Adolf Kaure
The Ministry of Finance has formally declared that the Financial Institutions and Markets Act, 2021 (FIMA) has come into operation on 1 May. FIMA introduces a more integrated, principles-based regulatory framework, strengthening governance, enhancing supervisory powers, and promoting a more outcome-driven approach to member protection and market conduct. According to the RFIN chairperson, Klaus Laborn, the implementation of FIMA represents an important evolution of the regulatory landscape. “FIMA seeks to modernise the industry and align it with international best practice.
At the same time, it is recognised that reform of this scale inevitably brings areas of uncertainty, particularly where new provisions intersect with existing frameworks or require further interpretative guidance,” he said. In practical terms, and as aligned with the joint understanding reached with NAMFISA, this means that specific aspects relating to defined contribution fund treatment are not yet operational.
The effect is a measured transition: the broader legislative framework is now in force, while certain technical provisions are temporarily held back to avoid legal inconsistency and allow for proper alignment with existing laws and operational realities.
The Act is therefore now substantively effective, marking a significant milestone in Namibia’s financial sector reform.
The RFIN chairperson added that RFIN remains committed to supporting its members through this transition.
“Our ongoing engagements with NAMFISA and broader industry stakeholders reflect a shared objective. This is to ensure that implementation is both legally sound and practically workable. In this regard, continued collaboration, guidance, and capacity building will be critical.
To this end, RFIN is actively advancing initiatives aimed at strengthening industry readiness, including trustee and principal officer training, governance support, and emerging risk areas such as cybersecurity,” Laborn added.
These efforts are designed to ensure that funds are not only compliant, but capable of operating effectively within a more demanding regulatory environment.
“RFIN encourages all industry participants to approach this transition with diligence, adaptability, and a continued focus on the protection of members’ interests,” he concluded. The FIMA Act, 2021 was implemented through Government Notice No. 147 published in the Government Gazette of 30 April. The commencement excludes certain provisions, including paragraph (b) of the definition of a “defined contribution fund” under section 249.