The Namibia Financial Institutions Supervisory Authority (Namfisa) is entrusted with the crucial task of regulating and supervising financial institutions and intermediaries to ensure a stable and fair non-banking financial sector. In this regard, the authority has embarked on proactive measures aimed at securing the long-term sustainability of the non-bank financial sector, and the protection of consumers of financial services thereof.
Namfisa’s complaints’ resolution mechanism revealed that consumers of the financial services mostly complained about disputes over the correctness of amounts paid by regulated entities, overcharged interest, non-payment of pension benefits, repudiation of funeral benefits, and non-payment of refunds or lapsed policies. Namfisa takes these complaints seriously, and strives to ensure all matters are addressed in a fair and timely manner.
During the second quarter of this year, between July and September, about N$3.8 million was paid to complainants, owing to the authority’s intervention.
“This represents a significant increase in the total amount paid when compared to the previous quarter (April-June 2023), where a total amount of N$ 672 347 was paid to complainants. The highest amount, totalling N$3 160 857, was recovered from the pension funds industry, followed by N$392 340 from the short-term insurance industry. In addition, some N$250 749 from the long-term insurance industry, N$41 295 from the microlending industry, while N$2 767 was recovered from the medical aid funds industry.
“Treating customers fairly is what we should all subscribe to as regulated entities and regulator alike. Hence, both Namfisa and service providers in the non-bank financial sector continuously explore ways to ensure consumers’ awareness and education for the benefit of stakeholders in the financial sector. It is important for us to rebuild consumer trust and confidence in the financial sector by devising effective and efficient consumer protection and empowerment framework”, said Namfisa CEO Kenneth Matomola.
He further advised that Namfisa has a Consumer Complaints Department which investigates complaints from consumers of non-bank financial services at no cost. Any registered non-bank financial institution or financial intermediary in Namibia can be complained against. Namfisa conducts a thorough investigation to ensure a fair resolution of disputes.
In addition, Matomola expressed his gratitude to those who have provided feedback and comments through available channels. “We appreciate your comments, and would like to assure you that we put in every effort to address your concerns and resolve issues related to our regulation and supervision of the non-bank financial industry,” he stated.