By The Atlas News Desk:
The Registrar of Financial Institutions at the Reserve Bank of Malawi has demanded that the controversial Amaryllis Hotel transaction be rescinded, placing the reversal of the sale at the centre of escalating regulatory action against the Public Service Pension Trust Fund (PSPTF).
In a letter dated 20 February 2026, Registrar Dr. George Paltridge directed the Board of Trustees to reverse the sale agreement after establishing that the Fund proceeded with the acquisition despite explicit instructions to halt the transaction.
The directive follows earlier correspondence from the Registrar’s office, including a 14 November 2025 order instructing the Board to pend all transactions relating to the Amaryllis Hotel acquisition until the direction was varied or removed. A subsequent letter dated 23 December 2025 further required the trustees to submit a comprehensive justification on the viability of the investment and safeguards for pensioners’ funds before proceeding.
However, the Registrar states that the Board went ahead and closed the transaction before complying with these regulatory requirements.
The letter notes that the trustees proceeded with the deal while fully aware that the investment would place the Fund in breach of prudential limits under the Financial Services (Investment Management of Life Insurers and Pension Funds) Directive, 2025, raising serious concerns about governance and fiduciary responsibility.
Crucially, the Registrar has now taken the position that the transaction itself must be undone.
“Meanwhile we also demand that the sale agreement be rescinded,” the letter states, signalling a firm regulatory stance that could trigger a reversal of the acquisition if enforced.
The Registrar further indicated that by proceeding with the transaction, the Board disobeyed lawful directions issued by the regulator and failed to comply with financial services law. As a result, the trustees have been given seven days to submit reasons why administrative penalties should not be imposed under Sections 39 and 75 of the Financial Services Act.
The move significantly heightens the stakes in the Amaryllis deal, shifting the focus from procedural non-compliance to the possible nullification of the entire transaction. Analysts say the demand to rescind the sale suggests the regulator views the acquisition not merely as irregular, but as fundamentally flawed from a regulatory and prudential standpoint.
If enforced, the rescinding of the sale could have far-reaching financial and legal implications for the PSPTF, including contractual disputes and reputational fallout, while also raising broader questions about oversight and compliance in the management of public pension funds.
The PSPTF Board of Trustees had not issued a public response by press time, as pressure mounts over whether the Fund will comply with the regulator’s directive to reverse the transaction.
