Schlettwein signs Conditions for Investment Managers
14 Mar 2016 19:30pm
WINDHOEK, 14 MAR (NAMPA) Finance Minister Calle Schlettwein on Friday signed the Conditions for Investment Managers that provide a foundation for the effective and efficient supervision of investment managers by Namfisa.
In a statement issued on Monday, Namibia Financial Institutions Supervisory Authority (Namfisa) Acting Chief Executive Officer and Registrar of Stock Exchanges, Kenneth Matomola said the supervision of investment managers done by Namfisa is to enhance credibility of the market and thus improve market confidence.
The conditions were published in Government Gazette on 29 February 2016 and issued in terms of section 4(1) (f) of the Stock Exchanges Control Act, Act 1 of 1985.
Matomola noted the Conditions for Investment Managers include provisions for start-up capital requirements and additional ongoing liquidity requirements for maintenance of liquid assets to cover short-term financial obligations.
The capital and liquidity requirements are necessitated by the need to ensure that investment managers not only remain solvent, but that they also have sufficient liquidity to cover the investment managers financial obligations without severe stress on the managers financial resources.
Start-up capital requirements are N.dollars 250 000.
Matomola said the effective and efficient regulation of investment managers and other financial institutions offer many benefits that are not limited to increased market competitiveness; protected investing public and regulated entities; reduced systemic risk within the mandate of Namfisa; and financial stability.
He said the conditions incorporate international best practice in respect of fit and proper requirements and criteria for the assessment of fitness and probity of all key responsible persons of investment managers.
These include shareholders, directors and those charged with management, portfolio manager and compliance officers to ensure compliance with provision imposed by the Financial Intelligence Act 13 of 2012 on Namfisa as a supervisory body.