NAMFISA’s legislative reforms to benefit industry

The Financial Institutions and Markets (FIM) Bill has officially been signed off by the Head of State and is yet to be gazetted while the Namibia Financial Institutions Supervisory Authority (NAMFISA) Bill was signed off by the President earlier in the year.

Once the FIM Bill is published in the Government Gazette, the authority will commence formal consultations with the industry on the standards

The Authority’s Chief Executive Officer (CEO) Kenneth Matomola explains that the two pieces of legislations aim to strengthen NAMFISA’s enforcement powers, issue standards and to consolidate and harmonise the laws regulating financial institutions, financial intermediaries and financial markets in Namibia.

“Some of the regulatory transformations compels insurers to adopt plain language in all policies and avoids common conflicts or disputes among policy holders and financial services providers. The Act seeks to widen the scope of unit trusts schemes by introducing different collective investment schemes. It further repeals the outdated Pension Funds Act of 1956 and invites for more innovation in pension and retirement funding among other benefits.”

The FIM Act seeks to foster soundness of financial institutions and financial intermediaries such as brokers and agents, ensure fairness, efficiency and orderliness of the financial institutions and markets sector and the protection of consumers of financial services. It is worth noting that the FSA Bill has been removed from the parliamentary roll because a different practical approach is being explored to deal with matters relating to complaints on financial services. Key stakeholders will be informed on the latest developments at an appropriate platform

NAMFISA exists to supervise financial institutions and financial services, and to advise the minister of finance on matters relating to financial institutions and financial services.