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NAMFISA

NAMFISA. NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY. - Safeguarding the Nation's Wealth! -. NAMFISA. NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY. - Safeguarding the Nation's Wealth! -.

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NAMFISA

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  1. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! -

  2. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - NAMIBIA FINANCIAL INSTITUTIONSSUPERVISORY AUTHORITYEstablished in terms of Act No. 3 of 2001 Presented by: Marcelina !Gaoses Deputy Registrar (GM): Provident Institutions Boni Paulino Deputy Registrar (GM): Investment Institutions

  3. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - NAMFISA OBJECTIVES • To supervise the control over the activities of non-banking financial institutions; and • To act in advisory capacity to the Minister of Finance, the parliament, the public, and industry.

  4. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - This includes … • Maintaining confidence in the financial services industry; • To promote public awareness in the financial system and financial issues; • To facilitate in reducing financial crime; and • To secure appropriate degree of protection for consumers (public). Section 4 of NAMFISA Act 3 of 2001 specifies the powers of NAMFISA to achieve the above objectives

  5. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - VISION • VISION We protect the users of financial services through proactive regulation.

  6. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - MISSION • MISSION At NAMFISA, we realize our vision by interaction with our stakeholders as follows: • Ensuring through regular interaction that related legislation and regulations are constantly reviewed and updated to reflect national policies and international best practices. • Fostering trust in the national financial services industry by providing the public with demonstrable oversight, knowledge, education and a system of recourse. • Developing an equitable balance between direct oversight and self-regulation by exercising regulatory duties, without fear or favour, in an enabling and incorruptible manner.

  7. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - MISSION • MISSION - Continue • Creating working systems and an environment that will provide optimum opportunities for personal development, reward and satisfaction within transparent parameters of job definition, discipline and measurement. • Conforming to an internationally accepted Code of Corporate Governance as set out in the King II Report.

  8. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - REGULATED INDUSTRIES • Long- & Short Insurance Companies • Insurance Agents & Brokers • Medical Aid Funds • Pension Funds • Micro Lenders & Hire Purchase Outlets • Unit Trust Companies • Asset Managers • Stock Exchange & Stock Brokers • Friendly Societies • Participation Bonds Schemes • Public Accountants and Auditors

  9. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - PRUDENTIAL REGULATION Our responsibility in terms of prudential management of these institutions are: “To ensure that these institutions meet their promises/obligations towards the USERS of Financial Services, POLICYHOLDERS & PENSIONERS”

  10. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INDUSTRY SIZE The total assets value /assets under management of the various industries that we regulate and Manage – 2003/2004 financial year: • Long-term Insurance Companies – N$9 billion • Short-term Insurance Companies – N$1.1 billion • Medical Aid Funds – N$260 million • Pension Funds – N$ 17.73 billion • Asset Managers – N$24.86 billion • Unit Trust Companies – N$6.8 billion • Stock Brokers – N$1.4 billion • Micro Lenders – N$ 500 million (based on total loans disbursed)

  11. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - PROVIDENT INSTITUTIONS • The Provident Institutions Division deals with registration, monitoring, supervising and regulation of the following financial institutions: • Pension and Retirement Funds; • Long-term Insurance; • Short-term Insurance; • Medical Aid Funds (Schemes); and • Friendly Societies The Division has currently two (2) departments, namely Life Assurance & Pension Funds Department; and Short- term Insurance & Medical Aid Funds Department.

  12. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - PROVIDENT INSTITUTIONS • Department: Life Assurance and Pension Funds • Long-term Insurance and Reinsurance Long-term Insurance companies are governed by the Long-term Insurance Act, 1998 (Act No. 5 of 1998) and Rules and Regulations issued thereto. • Pension Funds and Friendly Societies Pension Funds are governed by the Pension Funds Act, 1956 (Act No.24 of 1956) and Rules and Regulations issued thereto. All Friendly Societies are governed by the Friendly Societies Act, 1956 (Act No 25 of 1956).

  13. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - PROVIDENT INSTITUTIONS • Department: Short-term Insurance and Medical Aid Funds • Short-term Insurance and Reinsurance Short-term Insurance companies are governed by the Short-term Insurance Act, 1998 (Act No. 4 of 1998) and Rules and Regulations issued thereto. • Medical Aid Funds All the Medical Aid Funds in Namibia are governed by the Medical Aid Funds Act, 1995 (Act No. 23 of 1995) and Rules and Regulations issued thereto.

  14. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - Regulating the Insurance Industry • To ensure financial stability of the industry • To ensure the quality, safety and appropriateness of products offered to policy holders. • To move the market closer to building the national economy and social welfare through long-term savings. • To address the market imperfections by: • First ensuring that the policy holders are better informed; • Second that product suppliers and intermediaries are honest, competent and financially sound.

  15. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - Objectives: Insurance Supervision • The Scope of Insurance Supervision involve: • Capital Adequacy & Liquidity • General Balance Sheet Risk Management • Regulatory Compliance • Underwriting Risk • Financial Reporting • External Audit • Market Risks (Position Risk) • Systems/Operational Risks • Corporate Governance • Strategic Management

  16. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - The Importance of PensionFund Supervision • To ensure financial security for the ageing population; • To assist in generating large funds for investment; • To help develop capital markets; and • To help move our economy to a market economy, through continues pension reform programs.

  17. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - Objectives:Pension Funds Supervision • The Scope of Funds Supervision involve: • Fund Rules • Fund Returns • Fund Valuations • Fund Inspections

  18. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - Regulating Medical Aid Funds • Develop strategic alliances nationally, regionally and internationally e.g. BHF • Monitor the impact of the Act, research developments and implement policy options to improve the regulatory environment. • Investigate and resolve complaints raised by beneficiaries and the public. • Promote financial soundness of registered MAF. • Ensure that quality healthcare services are offered to all Namibians irrespective of their income, color, state of health, etc.

  19. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - Objectives:Medical Aid Fund Supervision • Fund Rules • Fund Returns • Fund Valuations • Contributions vs. Benefit • Payments of 3rd parties (administrators and Healthcare consultants), Principal Officers and Board of Trustees • Composition of Boards • Appoint of Principal Officers, Healthcare Consultants

  20. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • The Investment Institutions Division deals with registration, monitoring, supervising and regulation of the following financial institutions: • Investment (Asset) Managers; • Unit Trusts Management Schemes; • Stock Exchanges; • Participation Bond Schemes; • Public Accountants’ and Auditors’; • Microlenders; and • Hire Purchase Outlets The Division has currently two (2) departments, namely: Capital Markets Department and Microlending and Credit Agreements Department.

  21. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Capital Markets In achieving its objectives and carrying out its functions, the Capital Markets Department supervise the following entities: • Asset Managers Asset Managers and Stock Brokers are regulated under the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985) and the Rules and Regulations issued thereto. • Unit Trusts Management Schemes Unit Trusts Management Schemes (Collective Investment Schemes) are governed by the Unit Trusts Control Act, 1981 (Act No. 54 of 1981). • The Namibian Stock Exchange

  22. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Capital Markets The key functions and objectives of the Capital Markets Department are to ensure the: • Protection of Investors; • Fairness, efficiency, and transparency of financial markets; and • Reduction of systemic risk.

  23. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Capital Markets Investment Management Companies or Investment Managers • Are engaged in the management of investments on behalf of the public. • Solicit funds from the public, including individuals, pension funds, and insurance companies and manage these funds in investment portfolios or funds.

  24. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Capital Markets Unit Trust Schemes • The Department approves and licenses unit trust management companies and their trustees and auditors. • Compliance with the requirements of the Unit Trusts Control Act, 1981. • Monitors the trustees and auditors to comply with their duties and responsibilities in terms of the Act.

  25. INVESTMENT INSTITUTIONS • Department: Capital Markets The Namibian Stock Exchange • A Stock Exchange is the institution which provides and maintains the infrastructure, for bringing together buyers and sellers of securities; for matching the orders for securities of several buyers and sellers; and results in a matched order constituting a transaction. • Securities traded on the NSX may include shares, stocks, notes, derivative instruments, bonds, debentures, instruments based on an index, participatory interests in a collective investment scheme, but exclude money market instruments. These instruments are provided for separately. • The NSX is a self-regulatory organization, which approves, controls, and supervises their members. Stock-brokers are members of the NSX and only the members of the NSX may deal or trade in securities on the NSX.

  26. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Microlending and Credit Agreements • Microlending and Credit Agreements The companies are regulated by the Usury Act, 1968 (Act No, 73 of 1968).

  27. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Microlending and Credit Agreements The key functions and objectives of the Microlending and Credit Agreements Department are: • Registration and licensing. • Non-prudential supervision or Market Conduct supervision. The Department supervises the following entities: • Microlenders • Credit Agreement Companies

  28. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Microlending and Credit Agreements • SUPERVISION AND INSPECTION • FINDINGS • CORRECTIVES AND MEASURES

  29. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INVESTMENT INSTITUTIONS • Department: Microlending and Credit Agreements CONCERNS / PROBLEMS • Over-indebtedness • Unregistered Microlenders • Abuse of the system by Microlenders • Loopholes in the current legislation

  30. CONSUMER EDUCATION/PROTECTION • OUR AIM IS TO ASSIST ALL NAMIBIANS IN MANAGING THEIR FINANCIAL AFFAIRS EFFECTLY This can be done by: • Financial services providers providing accurate information • Financial services providers practicing fair treatment and be professional • Consumers taking responsibility for their financial decisions • Consumers seeking more information to make informed decisions • Consumers knowing where to seek help if things go wrong • NAMFISA taking proactive actions against irresponsible financial services providers

  31. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - RESPONSIBILITY OF THE INVESTING PUBLIC • As a current user/investor or prospective user/investor you have to protect yourself and help us (NAMFISA) protect you – by making informed investment decisions. • You have the right to obtain certain important information from any financial institution or intermediary.

  32. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - INTERNATIONAL COOPERATION AND ACTIVITIES • Cooperation, through NAMFISA, with and participation in the activities of other regulatory authorities and international bodies. • Aim is to cooperate in regulatory enforcement and supervision, especially in cross-border financial activity and transactions. • Also to learn best practices and supervisory techniques from these authorities.

  33. NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY - Safeguarding the Nation's Wealth! - THANK YOU!QUESTIONS ?

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