Chairman of the Financial Institutions Market Act’s Advisory Technical Committee (TAC), Dr Manfred Zamuee yesterday announced that the committee has finalised its Terms of Reference (ToR) and Charter to kick-start its mandate.
The 36-membercommittee, which was inaugurated in May of this year by the Minister of Finance and Public Enterprises Ipumbu Shiimi, was directed to consult with the general public over a proposed draft regulation on preservation of retirement benefits.
Comprised of members from the Ministry of Finance and Public Enterprises, Bank of Namibia, Namfisa (Secretariat of the TAC), Retirement Funds Institute of Namibia (RFIN), Trade Union Congress of Namibia (Tucna), National Union of Namibian Workers (NUNW), Namibia National Labour Organisation (Nanlo), Pension Funds that are not part of the RFIN, and Employers’ Federation, the TAC was given six months to review the Financial Institutions and Markets Act (FIMA) of 2021 and make recommendations.
In addition, Minister Shiimi directed the TAC to conduct a comparative study of FIMA and benchmark with other Southern Africa Development Community (SADC) member states, international standard setting bodies, such as the International Organisation of Pension Supervisors (IOPS). Including other countries outside SADC in relation to policy and legislation for the purposes of preservation of retirement benefits.
“The committee has successfully finalised its terms of reference (ToR) and Charter,”Dr Zamuee said.
Dr Zamuee stated that the documents will act as guiding blueprints, giving the group clear direction and outlying the committee’s activities throughout is tenure.
He said the TAC has started to carry out its mandate and is making great strides toward achieving its goals.
He explained that the committee seeks to identify areas for improvement, address potential challenges, and recommend appropriate amendments or enhancements to ensure the Act remains up-to-date and aligned the evolving financial landscape.
“The establishment of this committee underscores the government’s commitment to fostering transparency, accountability, and innovation within the financial sector,” he pointed out.
According to Dr Zamuee, the committee will be essential in developing the regulatory framework controlling financial institutions and markets, fostering stability and promoting sustainable growth.
If Section 5 of the Act were to become law, people who leave their jobs before they turn 55 would only be able to collect 25% of their pension, while those who leave after that age would only be able to get 75%.
FIMA is administered by the Namibia Financial Institutions Supervisory Authority (Namfisa).
Dr Zamuee said the committee will engage in comprehensive review process, conducting research, consulting with key stakeholders including industry representatives, regulatory bodies, and the public.
“This inclusive approach will enable a holistic understanding of the challenges and opportunities faced by financial institutions and markets, allowing for the formulation of well-informed recommendations,” he explained.
He concluded that the formation of the committee and its subsequent development represent a crucial step in accomplishing this goal.