Regulation of Investment Managers on the cards
Reflecting on a positive year at the helm of the Namibia Financial Institutions Supervisory Authority, Chief Executive Officer Philip Shiimi also used the launch of the 2014 Annual Report to announce that regulation for investment managers is on the cards and is due to be promulgated within the ensuing financial year. He said the drafting of the Financial Institutions and Markets Bill is in its final stages.
He said, “During 2013, the Authority drafted the Conditions for the regulation and supervision of investment managers under section 4 (1) of the Stock Exchanges Control Act. These conditions are envisaged to be promulgated in the ensuing financial year.” The supervisory authority was also able to finalise the draft regulations to be issued in terms of the Unit Trusts Control Act which is ready for promulgation as envisaged in the Act.
Gearing towards growth, Shiimi said, “The Board set priority areas for the 2013/14 financial year. These priorities are set to steer the Authority towards achieving its strategic goals and objectives.” Shiimi mentioned that the regulatory authority prudently managed its financial resources, it was able to build productive relationships with key stakeholders, was on hand to conduct quality research and give policy advice, and developed an efficient and effective regulatory and supervisory framework.
He added,“The drafting of the amendments to the Namfisa Bill and the new Financial Institutions and Markets (FIM) Bill started a few years ago and have underwent several rounds of consultation with stakeholders including regulated entities and [the] Cabinet Committee on legislation.”
According to Shiimi, the bills are with the legal drafters of the Ministry of Justice for finalisation. The law will, according to Shiimi, allow the Namibia Financial Institutions Supervisory Authority to adequately impose its supervisory and regulatory powers.
He said “This new legislative instrument allows for greater innovation in offering financial products and services to the benefit of both consumers and the financial institutions involved.”
Shiimi further pointed out that his institution had played a huge role to bring the Financial Institutions and Markets Bill to fruition. He said “The Authority has completed 79 subordinate [pieces of] legislation to accompany the FIM Bill. These regulations and standards are in layman’s draft format and will be converted into legal drafts. Once finalised, the new standards and regulations will go through industry review and consultations. Rounding off a successful year, Shiimi added “During the period under review, two insurance advisory committees were established in terms of the Long-term and Short-term Insurance Acts to assist the Minister of Finance to execute her mandate as per the two insurance acts.”