Finance minister Iipumbu Shiimi has appointed a 19-member Technical Committee to spearhead consultations on the protracted Financial Institutions and Markets Act (FIMA).
The committee already has its work cut out as it is expected to deal with contentious regulation RF.R.5.10 Preservation of Retirement Benefit, whose implementation was halted indefinitely after various stakeholders opposed it.
The committee consists of Lovisa Indongo-Namandje as chairperson and Dickson Mbangu Matengu nominated by NAMFISA, Erwin Naimhwaka. Jason Kandume (Bank of Namibia); Justus Mwafongwe, Festus Nghifenwa, Immanuel Nashivela and Seppo Shigwele (Ministry of Finance); Maria Nakale representing retirement fund institute of Namibia as well as Vonkie Olivier and Immanuel Atanasiu nominated by the University of Namibia and University of Science and Technology, respectively.
Other members include, Mahongora Kavihuhua, Zocks Nghikundwavali, Errikie Shitana, Job Amupanda and John Nakuta as nominated by Trade Union Congress of Namibia, as well as Petrus Nevonga of National Union of Namibian Workers, Joseph Garoeb and John Paporo representing Namibia National Labour Organisation.
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.
There was much constentation when RF.R.5.10 Preservation of Retirement Benefit was smuggled into the Act. The regulation meant that someone who is below the age of 55 and happens to resign or is dismissed will only be entitled to 25% of their pension savings, while the remaining 75% is accessible upon attainment of 55 years.
According to NAMFISA, the object of FIMA is to consolidate and harmonise the laws regulating financial institutions, financial intermediaries and financial markets in Namibia, and to provide for incidental matters.
In particular, the objects of FIMA are to foster the financial soundness of financial institutions and financial intermediaries; the stability of the financial institutions and markets sector; the highest standards of conduct of business by financial institutions and financial intermediaries; the fairness, efficiency and orderliness of the financial institutions and markets sector; the protection of consumers of financial services; the promotion of public awareness and understanding of financial institutions and financial intermediaries as well as the reduction and deterrence of financial crime.
