Finance minister Ipumbu Shiimi has postponed the implementation of the Financial Institutions and Markets Act (FIMA), amid intense pressure from various stakeholders to drop the contentious clause on compulsory preservation of retirement benefits.
The final regulations were due to be published in the Government Gazette on 1 October 2022 when FIMA was to become operational.
However, Treasury said the postponement is to allow for broader consultations regarding the proposed regulation.
“Following wide consultations with stakeholders, the Minister of Finance, Hon. Ipumbu Shiimi, hereby announces the postponement of the implementation of the draft Regulation RF.R.5.10 which was contemplated to be issued under the Financial Institutions and Markets Act, (Act No. 2 of 2021), to allow adequate time for broader consultations on the envisaged regulation for compulsory preservation of the retirement benefits. The modalities on how the consultations will be undertaken will be announced in course,” the Ministry of Finance said on Friday.
Shiimi has the final discretion to review or rescind the proposed regulations before they are gazetted into law.
The latest decision by the Minister comes after various retirement funds had distanced themselves from the inclusion of the contentious clause, which calls for the retention of 75% members pension when they leave employment before reaching the retirement age.
The Namibia Financial Institutions Supervisory Authority (NAMFISA) opened a 30-day consultative window to allow for further input into the proposed regulations following a backlash.
The proposed FIMA legislation is expected to replace the existing legislation for non-banking institutions regulated by the NAMFISA and govern retirement and medical aid funds and their administrators, short- and long-term insurers, collective investment schemes, and asset managers.
