More amendments to Regulations 28 and 29 pending
Several new amendments to Regulations 28 and 29 of the Pension Fund Act are on the cards, according to the Namibia Financial Institutions Supervisory Authority (NAMFISA). Earlier in the week, Head of Legal Services at NAMFISA, Cornelius Verwey, stated in a presentation that the regulator is in the process of drafting the amendments.
This was confirmed to the Economist later in the week by NAMFISA spokesperson, Isaac Hamata.
Verwey made the remarks when he spoke about the regulator’s experience with Regulation 29 at the Retirement Funds Institute of Namibia annual conference.
Said Verwey “we have received proposals from amendments on Regulation 28 and 29 from industry. The regulations will remain under the Financial Institutions and Markets Act. It is very important that there is cooperation. We require input and assistance.” Verwey had a brief powerpoint presentation but made the remarks while talking off the cuff.
Verwey’s comments come a month after Deputy Minister of Finance, Hon. Natangwe Ithete announced that his ministry would bring changes to Regulations 15 of the Long Term Insurance Act and to Regulation 28 of the Pension Fund Act. Ithete made the remarks at an Investment and Insurance expo which was held late in July this year.
According to the deputy minister, the revision of Regulation 15 of the Long Term Insurance Act is necessary to gear more development capital home following the success by enforcing Regulation 28 of the Pension Fund Act. The two regulations are almost similar to the word and have been in force since shortly after Independence. “A revision of Regulation 15 is underway. 35% of the total long-term money will be invested locally. Government expects compliance. This move is viewed as critical. Local investments should contribute to local development” the deputy said without furnishing detail.
Neither the Namibia Financial Institutions Regulatory Authority nor the Ministry of Finance which was approached repeatedly in July by the Economist could provide clarity on the proposed amendments. NAMFISA spokesperson, Isaac Hamata however stated that discussions with industry was still on-going. “Amendments are still to be considered. The regulations need to address the needs of the industry. We are still consulting with industry,” said Hamata telephonically in response to the Economist.