26 Jun 2019 15:00pm
WINDHOEK, 26 JUN (NAMPA) - The Namibia Financial Institutions Supervisory Authority (Namfisa) Bill was tabled in the National Assembly on Tuesday by Minister of Finance, Calle Schlettwein.
The new legislation brings the supervision of the non-banking financial sector in line with regional and global regulatory frameworks and upgrades the regulatory architecture, commensurate with the expansion and potential risks inherent in the non-banking financial services sector.
Motivating the Bill, Schlettwein said it was necessitated by deficiencies in the non-banking financial sector which include non-provision by the current legislative framework to regulate with adequate supervisory and enforcement powers and tools.
The board of the authority has no regulatory functions to oversee the execution of regulatory mandates of the authority, therefore the proposed Bill aligns these functions and empowers the board.
The current legislative framework is also static in nature, according to Schlettwein, and non-responsive to new developments in the sector. This, he said, is because the framework is largely limited to changes in the primary legislation.
The Bill provides for this responsiveness to market developments by delineating among the primary legislation and regulations by the minister and the setting of standards, determination and other subordinate legal instruments by the regulator through a consultative process, ensuring that the regulator is responsive to changes in the financial sector landscape, as well as to be able to respond in times of crisis, the minister said.
He explained that the Bill was proposed due to rapid advancement in the financial sector regulatory framework, both globally and regionally, and the onset of the global financial crisis in 2007.
The Bill also proposes enabling domestic policy objectives, further enhancing the bid to deepen financial market development and safeguarding financial stability.
Constant developments and innovation in the non-banking financial sector, as well as shortcomings detected in the implementation of the Namfisa Act, have necessitated the reform of the entire framework, Schlettwein said.