NAMFISA
NAMFISA'S TRANSFORMATION JOURNEY
Since its establishment, NAMFISA has contributed to the stability of the financial sector of Namibia while protecting consumers of financial products and services. NAMFISA has developed and maintained a strong, effective presence in the regulatory field, in locally and internationally, while working closely with counterparts in the SADC region and beyond, to establish solid regulatory and supervisory frameworks. The Authority is the regulator of the financial sector in Namibia and supervises financial institutions and intermediaries in terms of the following Acts, inter alia: • The Public Accountants' and Auditors' Act, 1951 (Act 51 of 1951); • The Pension Funds Act, 1956 (Act 24 of 1956); • The Friendly Societies Act, 1956 (Act 25 of 1956); • The Usury Act, 1968 (Act 73 of 1968); • The Unit Trusts Control Act, 1981 (Act 54 of 1981); • The Participation Bonds Act, 1981 (Act 55 of 1981); • The Stock Exchanges Control Act, 1985 (Act 1 of 1985); • The Medical Aid Funds Act, 1995 (Act 23 of 1995); • The Short-term Insurance Act, 1998 (Act 4 of 1998); • The Long-term Insurance Act, 1998 (Act 5 of 1998); • The Financial Institutions (Investment of Funds), 1984 (Act 39 of 1984); • The Inspection of Financial Institutions Act, 1984 (Act 38 of 1984); and • The NAMFISA Act, 2001 (Act 3 of 2001).
Kenneth S. Matomola: NAMFISA Chief Executive Officer
BACKGROUND ON NAMFISA AND THE CURRENT REGULATORY FRAMEWORK
The Namibia Financial Institutions Supervisory Authority (NAMFISA) was established in November 2001 pursuant to the Namibia Financial Institutions Supervisory Authority Act, 2001 (No. 3 of 2001). NAMFISA is a public enterprise established to supervise financial institutions and financial services, and to advise the Minister of Finance on matters related thereof in the public interest, and fully funded by levies from this industry. Prior to the establishment of NAMFISA, a Directorate in the Ministry of Finance performed the function of supervision over the business of financial institutions. In terms of the NAMFISA Act, the functions of the Authority are to: • Exercise supervision over the business of financial institution and over financial services; • Advise the Minister of Finance on matters related to financial institutions and financial services; and • Supervise, monitor and enforce compliance with the Financial Intelligence Act, 2012 (Act No. 13 of 2012) in respect of all accountable and reporting institutions supervised by NAMFISA.
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WHY REGULATE THE FINANCIAL SECTOR?
The financial sector requires regulation for the purpose of consumer and industry protection. The extent and form of the regulation will differ between different financial institutions, stage of development of the financial sector and jurisdictions. The principal aims of regulation of the financial sector are to: • Correct market inefficiencies and promote efficient and orderly markets in financial services. Consumers of financial services lack information and expertise to fully understand the details of the increasingly complex financial services traded. Thus, efficient and orderly financial markets are of paramount importance in Namibia and other developing countries where financial literacy is relatively low. • Protect consumers of financial services. The consumers of financial services, collectively, assume that the financial sector is sound and operates in a fair and transparent manner. Individually, a consumer of financial services has limited bargaining power when dealing with a financial services provider and this is compounded by the information asymmetries. The regulator aims to ensure that the financial sector is sound and operates in a fair and transparent manner. • Maintain confidence in the financial system. From a macroeconomic point of view, it is necessary that there is confidence in the financial system.