Finance minister Ericah Shafudah says the new Financial Institutions and Markets Act (Fima) will benefit citizens, businesses and investors – while allowing the government to strengthen oversight and improve economic planning.
Shafudah made these remarks at the official launch of the act in Windhoek on Wednesday.
“Fima replaces outdated and fragmented legislation with a single, coherent, and modern legal framework. [This framework] equips our regulators with the tools they need to safeguard the financial system, while creating the conditions in which innovation and growth can flourish,” she said.
The act was passed in 2021 and came into force on 1 May this year. It overhauls Namibia’s banking sector and consolidates previous laws regarding financial institutions, financial intermediaries and financial markets.
Shafudah said that the goals of Fima are to ensure financial stability, financial inclusion and protect consumers.
By improving regulator capacity, Fima will protect the financial system as a whole, she said.
“It safeguards pensions, savings, and investments, and ultimately protects the livelihoods of ordinary Namibians,” she said.
The minister added that consumer protection was enshrined in the law, which will build trust between consumers and the financial system.
When the Fima Act was introduced, serious concerns were raised by the public, financial institutions and organisations such as unions about retirement provisions in the law.
Specifically, concerns were raised about changing rules around the preservation of retirement funds. The new regulation would allow members of retirement funds to withdraw only 25% of their funds after the age of 55.
“Today I wish to clearly state that the concerns raised by the Namibian people regarding Regulation RF.R.5.10 have been taken to heart and it has been placed on hold,” Shafudah said.
The minister also called on all industry players to support the Namibia Financial Institutions Supervisory Authority (Namfisa) as it implements the new law.
Finance minister Ericah Shafudah says the new Financial Institutions and Markets Act (Fima) will benefit citizens, businesses and investors – while allowing the government to strengthen oversight and improve economic planning.
Shafudah made these remarks at the official launch of the act in Windhoek on Wednesday.
“Fima replaces outdated and fragmented legislation with a single, coherent, and modern legal framework. [This framework] equips our regulators with the tools they need to safeguard the financial system, while creating the conditions in which innovation and growth can flourish,” she said.
The act was passed in 2021 and came into force on 1 May this year. It overhauls Namibia’s banking sector and consolidates previous laws regarding financial institutions, financial intermediaries and financial markets.
Shafudah said that the goals of Fima are to ensure financial stability, financial inclusion and protect consumers.
By improving regulator capacity, Fima will protect the financial system as a whole, she said.
“It safeguards pensions, savings, and investments, and ultimately protects the livelihoods of ordinary Namibians,” she said.
The minister added that consumer protection was enshrined in the law, which will build trust between consumers and the financial system.
When the Fima Act was introduced, serious concerns were raised by the public, financial institutions and organisations such as unions about retirement provisions in the law.
Specifically, concerns were raised about changing rules around the preservation of retirement funds. The new regulation would allow members of retirement funds to withdraw only 25% of their funds after the age of 55.
“Today I wish to clearly state that the concerns raised by the Namibian people regarding Regulation RF.R.5.10 have been taken to heart and it has been placed on hold,” Shafudah said.
The minister also called on all industry players to support the Namibia Financial Institutions Supervisory Authority (Namfisa) as it implements the new law.
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