NAMFISA's Purpose, Achievements & Future Outlook
As identified in our mission
statement, NAMFISA’s aim
is to effectively regulate and
supervise financial institutions in
Namibia. Furthermore, our vision is to
be a respected regulator of the financial
services sector that fosters a stable and
safe financial system contributing to
the economic development of Namibia.
Key Responsibilities NAMFISA is tasked with:
- Supervising and regulating the financial services industry
- Advising the Minister of Finance on related matters
- Promoting consumer protection
- Driving financial literacy through its Consumer Education Strategy
Key Responsibilities NAMFISA is tasked with:
- Supervising and regulating the financial services industry
- Advising the Minister of Finance on related matters
- Promoting consumer protection
- Driving financial literacy through its Consumer Education Strategy
Achievements Over the Past 15 Years
NAMFISA During the Past 15 Years?
To appreciate humble gains attained at the Authority, it is important to go back in time to contextualise the background and previous state of affairs.
As evident in continual negative reporting some years ago, the public and media perception of NAMFISA was very poor.
Relationships with the Board and Minister of Finance were not sound.
Staff were disgruntled and motivation was low.
Supervisory activities were low and non-existent for some sectors.
With such a tarnished image, it was very difficult to attract and retain skilled and competent employees.
But thanks to the three-year rolling transformation strategy which commenced in 2013 — along with hard work, perseverance, commitment, and support from various stakeholders — today a completely different picture can be seen at NAMFISA.
Some regard this as phenomenal transformation.
Once viewed as underperforming, NAMFISA has undergone a remarkable transformation since 2013, guided by a strategic reform process. Key highlights include:
- Organisational Excellence
- Regulatory & Supervisory Milestones
- Publications & Public Engagement
To appreciate humble gains attained at the Authority, it is important to go back in time to contextualise the background and previous state of affairs.
As evident in continual negative reporting some years ago, the public and media perception of NAMFISA was very poor.
Relationships with the Board and Minister of Finance were not sound.
Staff were disgruntled and motivation was low.
Supervisory activities were low and non-existent for some sectors.
With such a tarnished image, it was very difficult to attract and retain skilled and competent employees.
But thanks to the three-year rolling transformation strategy which commenced in 2013 — along with hard work, perseverance, commitment, and support from various stakeholders — today a completely different picture can be seen at NAMFISA.
Some regard this as phenomenal transformation.
Once viewed as underperforming, NAMFISA has undergone a remarkable transformation since 2013, guided by a strategic reform process. Key highlights include:
- Organisational Excellence
- Regulatory & Supervisory Milestones
- Publications & Public Engagement
Best Annual Reports in Namibia
For two consecutive years (2013 and 2014), NAMFISA’s annual reports were rated the best in the country.
(PMR.africa – 1st place, Diamond Arrow Award – i.e., Outstanding)
Best company/institution demonstrating exceptional management and corporate governance in Namibia in 2014
(PMR.africa – 1st place, Diamond Arrow Award – i.e., Outstanding).
This is a tremendous improvement from the previous classification of “worst managed SOE.”
In 2015, NAMFISA received an International Quality Award.
The Authority was one of only 30 entities from across the globe to receive this award at a ceremony held in Paris, France.
The award was conferred in recognition of the Authority’s commitment to quality and service excellence.
An independent survey conducted in 2014 by NaMedia (Namibia Media Monitoring) revealed that NAMFISA’s profile in the media had shifted from negative to positive.
Statistics indicated that 70% of media reporting about the Authority was positive.
The situation has turned around significantly, with the Authority now being regarded as one of the most sought-after employers in the country.
NAMFISA has successfully attracted and retained highly skilled employees.
Among these, the Authority has recruited:
• 11 admitted legal practitioners
• 4 Chartered Accountants (CA)
• Over 24 employees with Master’s Degrees
(PMR.africa – 1st place, Diamond Arrow Award – i.e., Outstanding)
Best company/institution demonstrating exceptional management and corporate governance in Namibia in 2014
(PMR.africa – 1st place, Diamond Arrow Award – i.e., Outstanding).
This is a tremendous improvement from the previous classification of “worst managed SOE.”
In 2015, NAMFISA received an International Quality Award.
The Authority was one of only 30 entities from across the globe to receive this award at a ceremony held in Paris, France.
The award was conferred in recognition of the Authority’s commitment to quality and service excellence.
An independent survey conducted in 2014 by NaMedia (Namibia Media Monitoring) revealed that NAMFISA’s profile in the media had shifted from negative to positive.
Statistics indicated that 70% of media reporting about the Authority was positive.
The situation has turned around significantly, with the Authority now being regarded as one of the most sought-after employers in the country.
NAMFISA has successfully attracted and retained highly skilled employees.
Among these, the Authority has recruited:
• 11 admitted legal practitioners
• 4 Chartered Accountants (CA)
• Over 24 employees with Master’s Degrees
Achievements
Key Achievements and Progress
• The introduction and regularisation of on-site inspections of regulated entities
• Zero tolerance for non-compliance: Hundreds of licence cancellations and millions in penalties/fines imposed by the Authority
• Service excellence commitments: Introduction of service level commitments issued to regulated entities
• Amendment to the Unit Trust Control Act to strengthen the legislative framework (drafted and finalised)
• Amendment to the Pension Funds Act to:
– Allow for unlisted investments
– Enable granting of loans for acquiring properties in unproclaimed areas
• Revised Regulations 15, 28, and 29 issued under the Long Term Insurance Act and Pension Funds Act, respectively
• Introduction of the Electronic Regulatory System (ERS) to improve operational efficiency
• Drafted the NAMFISA and FIM Bills after extensive market consultation – Submitted to the Minister of Finance – Currently with Government legal drafters in the Ministry of Justice
Enhanced Productivity and Intellectual Capacity
• In addition to timely and best-rated annual reports, the Authority now issues:
– Quarterly Statistical Bulletins
– Quarterly Consumer Education Bulletins
– Quarterly Regulatory Reform Newsletters
• During the past year:
– Drafted, obtained ministerial approval, and completed consultations for the Micro-Lending and Financial Services Adjudicator Bills
• Over the past 12 months:
– Drafted 86 regulations and standards
– Underwent expert review processes – Some are now distributed in affected industries for inputs and consultation
• On average, the Authority receives more than 50 complaints monthly and resolves over 95% of them
• The Authority developed and introduced Regulation 29.
We are proud to say that NAMFISA is the only regulatory and supervisory Authority globally that has developed a framework for pension fund investments in unlisted investments
• The introduction and regularisation of on-site inspections of regulated entities
• Zero tolerance for non-compliance: Hundreds of licence cancellations and millions in penalties/fines imposed by the Authority
• Service excellence commitments: Introduction of service level commitments issued to regulated entities
• Amendment to the Unit Trust Control Act to strengthen the legislative framework (drafted and finalised)
• Amendment to the Pension Funds Act to:
– Allow for unlisted investments
– Enable granting of loans for acquiring properties in unproclaimed areas
• Revised Regulations 15, 28, and 29 issued under the Long Term Insurance Act and Pension Funds Act, respectively
• Introduction of the Electronic Regulatory System (ERS) to improve operational efficiency
• Drafted the NAMFISA and FIM Bills after extensive market consultation – Submitted to the Minister of Finance – Currently with Government legal drafters in the Ministry of Justice
Enhanced Productivity and Intellectual Capacity
• In addition to timely and best-rated annual reports, the Authority now issues:
– Quarterly Statistical Bulletins
– Quarterly Consumer Education Bulletins
– Quarterly Regulatory Reform Newsletters
• During the past year:
– Drafted, obtained ministerial approval, and completed consultations for the Micro-Lending and Financial Services Adjudicator Bills
• Over the past 12 months:
– Drafted 86 regulations and standards
– Underwent expert review processes – Some are now distributed in affected industries for inputs and consultation
• On average, the Authority receives more than 50 complaints monthly and resolves over 95% of them
• The Authority developed and introduced Regulation 29.
We are proud to say that NAMFISA is the only regulatory and supervisory Authority globally that has developed a framework for pension fund investments in unlisted investments
Complaint Resolution and Innovative Regulatory Framework
Of course there will be teething challenges as we spread our regulatory mandate in wider sections of the economy.
However, these glitches and occasional gaps are altered and amended as they occur.
Despite the challenges, all Namibians should be proud of the fact that we are the world’s pioneer in this area.
The Authority has moved from a lowly regarded regulator to a highly regarded one.
This is evident in the following:
• Regulators in the SADC region continually send their staff for attachment to NAMFISA;
• Client satisfaction surveys conducted on behalf of the Authority by an independent research company revealed more than 70% satisfaction rate of regulated entities with respect to on-site inspections and industry forums;
• Client satisfaction surveys also revealed more than 80% satisfaction rate with respect to complaints resolution.
Even with the successes recorded, there is still a lot more to be done.
However, this is only possible with the continued support of all our stakeholders.
However, these glitches and occasional gaps are altered and amended as they occur.
Despite the challenges, all Namibians should be proud of the fact that we are the world’s pioneer in this area.
The Authority has moved from a lowly regarded regulator to a highly regarded one.
This is evident in the following:
• Regulators in the SADC region continually send their staff for attachment to NAMFISA;
• Client satisfaction surveys conducted on behalf of the Authority by an independent research company revealed more than 70% satisfaction rate of regulated entities with respect to on-site inspections and industry forums;
• Client satisfaction surveys also revealed more than 80% satisfaction rate with respect to complaints resolution.
Even with the successes recorded, there is still a lot more to be done.
However, this is only possible with the continued support of all our stakeholders.
What Were the Challenges that NAMFISA Faced in the Past 15 Years?
NAMFISA’s environment is extremely complex and challenging. However, our role as a regulator is exciting and provides an opportunity to strengthen the nation.
The job is challenging due to a number of factors including:
• Rapidly changing environment (market and international regulatory practices);
• Large work volume (9 sectors, more than 3,500 registered entities);
• Striking a balance between implementing current legislation whilst working on future legislation (several bills);
• Dealing with a multitude of consumer complaints stemming from a combination of limited literacy and some service providers’ limited orientation to treat customers fairly;
The job is challenging due to a number of factors including:
• Rapidly changing environment (market and international regulatory practices);
• Large work volume (9 sectors, more than 3,500 registered entities);
• Striking a balance between implementing current legislation whilst working on future legislation (several bills);
• Dealing with a multitude of consumer complaints stemming from a combination of limited literacy and some service providers’ limited orientation to treat customers fairly;
What Were the Challenges that NAMFISA Faced in the Past 15 Years?
NAMFISA’s environment is extremely complex and challenging. However, our role as a regulator is exciting and provides an opportunity to strengthen the nation.
The job is challenging due to a number of factors including:
• Rapidly changing environment (market and international regulatory practices);
• Large work volume (9 sectors, more than 3500 registered entities);
• Striking a balance between implementing current legislation whilst working on future legislation (several bills);
• Dealing with a multitude of consumer complaints stemming from a combination of limited literacy and some service providers’ limited orientation to treat customers fairly;
• Authority’s on-going transformation;
• High litigation risks;
• Fending off those that are not satisfied with the Registrar’s decisions;
• Striking delicate balance between the imperative for consumer protection in Namibia and participation by previously disadvantaged Namibians in the financial services sector.
The job is challenging due to a number of factors including:
• Rapidly changing environment (market and international regulatory practices);
• Large work volume (9 sectors, more than 3500 registered entities);
• Striking a balance between implementing current legislation whilst working on future legislation (several bills);
• Dealing with a multitude of consumer complaints stemming from a combination of limited literacy and some service providers’ limited orientation to treat customers fairly;
• Authority’s on-going transformation;
• High litigation risks;
• Fending off those that are not satisfied with the Registrar’s decisions;
• Striking delicate balance between the imperative for consumer protection in Namibia and participation by previously disadvantaged Namibians in the financial services sector.
What Are the Responsibilities of NAMFISA?
To regulate and supervise Namibia’s financial services sector and to advise the Minister of Finance on related matters.
Additionally, we are responsible for consumer protection and for ensuring that our consumers are financially literate, hence our Consumer Education strategy.
What Can the Namibian Society Expect from NAMFISA in the Future?
The envisaged promulgation of the NAMFISA, FIM, FSA and Micro Lending Bills can assist to achieve the objectives of the Financial Sector Strategy which are:
• A deepened, efficient and developed financial system;
• Respected, world class and effective regulators;
• A stable, well-regulated and competitive financial sector;
• Significant local ownership of financial institutions;
• An inclusive financial sector; and
• Financially literate and protected consumers of financial services and products.
Additionally, we are responsible for consumer protection and for ensuring that our consumers are financially literate, hence our Consumer Education strategy.
What Can the Namibian Society Expect from NAMFISA in the Future?
The envisaged promulgation of the NAMFISA, FIM, FSA and Micro Lending Bills can assist to achieve the objectives of the Financial Sector Strategy which are:
• A deepened, efficient and developed financial system;
• Respected, world class and effective regulators;
• A stable, well-regulated and competitive financial sector;
• Significant local ownership of financial institutions;
• An inclusive financial sector; and
• Financially literate and protected consumers of financial services and products.