FIMA inspection rules take shape

The Namibia Financial Institutions Supervisory Authority (NAMFISA) has formalised the appointment of inspectors and inspection assistants as Namibia’s financial industry adjusts to the implementation of the Financial Institutions and Markets Act (FIMA).

A new NAMFISA standard, designated GEN.S.10.29, sets out the certificates that must be issued to inspectors and people appointed to assist them when conducting inspections or investigations under FIMA.

The standard was published in the Government Gazette on 15 September and took effect on the same day.

Clearer credentials for inspectors

For financial institutions and other regulated entities, the standard establishes a formal mechanism for confirming the status of people carrying out inspections on behalf of NAMFISA.

It provides for three categories of appointment certificates: one for inspectors employed by NAMFISA, one for inspectors who are not employed by the authority, and another for people appointed to assist inspectors.

The distinction is significant for an industry facing a broader shift to the supervisory framework established by FIMA, as NAMFISA moves to implement the legislation through regulations and subordinate standards.

The standard applies to all inspectors and people appointed to assist inspectors in inspections or investigations conducted under the Act.

Industry given 30 days to comment

NAMFISA issued the standard on an urgent basis, but has given the financial industry an opportunity to make representations before it is potentially re-issued.

Financial institutions, financial intermediaries, industry associations and self-regulatory organisations have 30 calendar days from the date of publication to submit written representations.

NAMFISA said the submissions will be considered when determining whether the standard should be re-issued in its current form or with modifications.

The standard was issued under sections 409(1) and 410(2)(b) of FIMA, while section 419 provides for the appointment of inspectors.