FIMA consultations expected to restart this year
Retirement Fund Solutions says it is hopeful that much progress will be made with regards to the legalisation of the Financial Institutions and Markets Act (Fima) this year, and noted the progress made by the Namibia Financial Institutions Supervisory Authority (Namfisa) to get the Act complete. This is according to RFS compliance manager, Carmen Diehl.
The Fima Act was promulgated in Government Gazette no. 7645 on 1 October 2021. The Minister of Finance has not yet set a date for it to become effective, according to Diehl.
“It hibernated ever since, but following last year’s elections, we will see action on it again in 2025, once the new minister of finance has been appointed and found his feet. Namfisa, however, has not been idle, spending a lot of time revising and issuing Fima standards and regulations,” Diehl said.
Namfisa last year said it is hopeful the Financial Institutions Markets Act (Fima) will be implemented this year.
This follows the completion of a study into the Act by a technical advisory committee appointed by finance minister Ipumbu Shiimi in 2022, which was tasked to review aspects of the proposed legislation that have been met with resistance.
Namfisa CEO Kenneth Matomola said the financial watchdog had received the report on the Act and said he is hopeful it can become legislation next year.
“We have received the report from the technical advisory committee. Probably by the end of September 2024 or beginning of October, he [Shiimi] will pronounce himself. We are still hopeful that Fima will come into being next year, in 2025,” Matomola said at the time.
“As it stands now, FIMA can only come into force once the minister says 'yes, let’s go ahead and implement'. Given what has happened, the minister said, 'okay, maybe there was no broad consultation on a legislation or subordinate legislation on pension benefits, or the preservation thereof',” Matomola said on the likely delay behind the adoption of FIMA.
The Standing Committee on Economics and Public Administration had also taken a deep dive into FIMA following the public outcry around the pension preservation rules, Matomola explained.
“Given that this is an Act of Parliament, when there was a little bit of unease among the public, the committee summoned stakeholders and they interrogated the issues that they had with FIMA, and a report was drawn up and presented in Parliament. That report has recommendations and the recommendations need to be addressed,” he said.
The Fima Act was promulgated in Government Gazette no. 7645 on 1 October 2021. The Minister of Finance has not yet set a date for it to become effective, according to Diehl.
“It hibernated ever since, but following last year’s elections, we will see action on it again in 2025, once the new minister of finance has been appointed and found his feet. Namfisa, however, has not been idle, spending a lot of time revising and issuing Fima standards and regulations,” Diehl said.
Namfisa last year said it is hopeful the Financial Institutions Markets Act (Fima) will be implemented this year.
This follows the completion of a study into the Act by a technical advisory committee appointed by finance minister Ipumbu Shiimi in 2022, which was tasked to review aspects of the proposed legislation that have been met with resistance.
Namfisa CEO Kenneth Matomola said the financial watchdog had received the report on the Act and said he is hopeful it can become legislation next year.
“We have received the report from the technical advisory committee. Probably by the end of September 2024 or beginning of October, he [Shiimi] will pronounce himself. We are still hopeful that Fima will come into being next year, in 2025,” Matomola said at the time.
“As it stands now, FIMA can only come into force once the minister says 'yes, let’s go ahead and implement'. Given what has happened, the minister said, 'okay, maybe there was no broad consultation on a legislation or subordinate legislation on pension benefits, or the preservation thereof',” Matomola said on the likely delay behind the adoption of FIMA.
The Standing Committee on Economics and Public Administration had also taken a deep dive into FIMA following the public outcry around the pension preservation rules, Matomola explained.
“Given that this is an Act of Parliament, when there was a little bit of unease among the public, the committee summoned stakeholders and they interrogated the issues that they had with FIMA, and a report was drawn up and presented in Parliament. That report has recommendations and the recommendations need to be addressed,” he said.
