NAMFISA orders N$ 12 million in paybacks to consumers

The Namibia Financial Institutions Supervisory Authority (NAMFISA) received a total of 427 complaints from consumers of financial services during the last two quarters (September- December 2017 and January – March 2018), of which 358 were resolved, translating to 83.8 percent successful resolution rate.

Most of the complaints were from four sectors, namely micro lending and credit agreements (141 complaints), long-term insurance (138 complaints), pension funds (74 complaints) and short-term insurance (70 complaints).

The Authority says the payback order of N$ 12 903 291 to consumers is a result of its effective execution of its Consumer Education Strategy.

The key focus areas identified in the Consumer Education Strategy for the 2017/2018 financial year were consumer satisfaction, increased awareness relating to the complaints process, and efficient channels to register complaints.

As a result, NAMFISA has observed a significant increase in the number of complaints received as well as the usage of various channels to lodge these complaints.

The Authority says consumers are increasingly becoming aware of their rights and responsibilities hence the increase in the consumer complaints received and resolved.

NAMFISA further appeals to the financial institutions and intermediaries to embrace the concept of treating customers fairly in order boost confidence in the financial system.

The Authority revealed that it has been doing specialized inspections and investigations into the affairs of financial institutions whenever a specific request arises while working closely with the Bank of Namibia and the Financial Intelligence Centre in fulfilling the Authority’s mandate of supervising financial institutions and financial services and advise the Minister of Finance on matters relating to financial institutions and services as set out in the Namfisa Act, 2001, ( Act no.3 2001).

The Regulator encourages stakeholders to read the quarterly statistical bulletin in a form of a report that is compiled to provide consolidated statistics and analysis relating to the transactions on services rendered by financial institutions supervised by NAMFISA.

The purpose of this quarterly statistical report is to provide industry statistics as well as the latest industry trends and developments. The report also provides information regarding NAMFISA’s regulatory and supervisory activities during the quarter under review.

 The Namibia Financial Institutions Supervisory Authority (NAMFISA) is an institution established by virtue of Act No. 3 of 2001 to regulate and supervise the business of financial institutions and financial services and to give sound advice to the Minister of Finance in Namibia on matters related to financial institutions and financial services.

This relates, inter alia, to the business of the Long-term Insurance; Short-term Insurance; Asset Management; Unit Trusts (Collective Investment Schemes); Pension Funds; Medical Aid Funds; Public Accountants and Auditors; Stock Exchange; Stock Brokers; Brokers and Agents of Insurance companies and Money Lenders.