Allexer Namundjembo
The Retirement Funds Institute of Namibia (RFIN) has cautioned that the implementation of the Financial Institutions and Markets Act (Fima) must be carefully managed to avoid legal and operational problems in the financial sector.
The act, together with the Namfisa Act, officially came into effect on 1 May after determinations by the finance minister and publication in the government gazette.
The legislation introduces a new regulatory framework for the non-banking financial sector.
Namfisa stated that the framework aims to enhance consumer protection, financial stability, and market confidence.
RFIN, however, said some technical provisions under Fima have not yet been fully activated as part of a phased implementation process.
“The broader legislative framework is now in force, but certain provisions are being carefully managed to ensure alignment with existing systems and avoid operational inconsistencies,” said RFIN chairperson Klaus Laborn.
Laborn said the approach follows ongoing consultations between industry stakeholders and Namfisa. He noted that some regulations, including pension preservation provisions, are still being refined.
“The intention is to ensure that implementation is not only legally sound, but also practically workable for the industry,” Laborn said.
Namfisa has already confirmed that retirement benefit commutation rules remain unchanged for now.
This includes existing provisions under the Income Tax Act governing lump-sum benefits for pension, retirement annuity and provident funds.
RFIN described Fima as a major step toward a more integrated and principles-based regulatory system but warned that the transition requires proper coordination to avoid uncertainty in the retirement fund sector.
“The shift from fragmented legislation to a consolidated framework is a major development, but it must be supported by continued guidance, consultation, and capacity building,” RFIN said.
RFIN also highlighted the importance of industry-readiness initiatives such as trustee training, governance strengthening and preparation for risks, including cybersecurity.
Laborn urged stakeholders to work together during the transition while prioritising the protection of members’ retirement savings.
Fima faced criticism last year and was temporarily put on hold following concerns raised by several stakeholders.
The parliamentary standing committee on budget and finance later recommended that the legislation be implemented without further delay.
At the time, then committee chairperson Phillipus Katamelo told Parliament that the recommendations linked to Fima should be enforced within 90 days.
