The Minister of Finance Iipumbu Shiimi says the Financial Institutions and Markets Act (FIMA) will no longer become law on 1 October 2022, as previously indicated.
“The finalisation and passing of FIMA is on hold until further notice, pending consultations. Ignore the October deadline, until such a time all consultations are done,” Shiimi told The Brief.
The Namibia Financial Institutions Supervisory Authority (NAMFISA) on Friday also announced that the contentious regulations will no longer come into effect on 1 October 2022.
“Pursuant to section 468 (1) of FIMA, the Minister for Finance needs to determine the date by which FIMA comes into operation. In this regard, the public is informed that FIMA will not come into operation on 1 October 2022 as was previously envisaged. The date on which FIMA will come into operation will be communicated to the public at the appropriate time,” said Victoria Muranda, the NAMFISA Manager: Corporate Communications and Consumer Education.
She, however, said the non-banking sector regulator has received input from various stakeholders regarding the proposed regulation.
“Public and industry inputs on the subordinate legislation to the FIMA have been received, and feedback on these comments will be communicated during the last quarter of 2022,” Muranda said.
Following the postponement, the Retirement Fund for Local Authorities and Utility Services in Namibia told its members the postponement by Shiimi was connected to the contentious preservation clause.
According to the clause, an employ below the age of 55, who would have been dismissed or resigned from employment, will not be able to access 100% of their pension.
The FIMA legislation was expected to replace the current legislation for non-banking institutions regulated by NAMFISA and govern retirement and medical aid funds and their administrators, short- and long-term insurers, collective investment schemes, and asset managers.
According to NAMFISA, the objective of FIMA is to consolidate and harmonise the laws regulating financial institutions, financial intermediaries, and financial markets in Namibia.
