FIMA will not come into operation in October says NAMFISA
The Financial Institutions and markets Act 2021 (FIMA) will not come into operation on 1 October 2022 as it was previously envisaged, the Namibia Financial Institutions Supervisory Authority (NAMFISA) announced recently in a statement.
The date on which FIMA will come into operation will be communicated to the public at the appropriate time, NAMFISA stated.
“Public and industry input on the subordinate legislation to the FIMA has been received, and feedback on these comments will be communicated during the last quarter of 2022,” they added.
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; and the reduction and deterrence of financial crime.
FIMA takes a wider approach not only to address prudential matters but to advocate for issues of market conduct and governance. Under this reform, NAMFISA will shift from compliance or rule-based supervision to Risk-Based Supervision, allowing NAMFISA to focus its considerable resources on the areas that pose the greatest risk to meeting regulatory objectives.