… As it awaits Schlettwein’s green light on levy hike
By Hilary Mare
THE Namibia Financial Institutions Supervisory Authority (Namfisa) has adopted a new strategy that covers a five-year period, from 2017 to 2022, as the authority awaits approval from Finance Minister Calle Schlettwein for a hike in its levy used for regulation.
It is envisaged that the new proposed levy will, after due industry consultations have taken place, be implemented during the 2017/18 financial year.
Namfisa Chief Executive Officer, Kenneth Simataa Matomola, told Confidente that consultations for the amendment to the gazetted levy are ongoing, and once approved by Schlettwein, after consultation, it will be adopted.
“The logic behind a new proposed levy is that funding of regulation should be equal to the cost of regulation,” he said.
Reflecting on the new strategy, in which Namfisa adopted a balanced scorecard approach to guide the leadership team in the process, Matomola highlighted that the authority is embarking on a journey of regulatory supervisory reform, with a particular emphasis on modernising the current laws and regulations, to keep abreast with best practices in the non-banking financial institutions (NBFI) regulatory and supervisory sphere.
“This reform will enable the authority to implement a risk-based approach to supervision, which will ensure better utilisation of its limited resources, and allow for focus on the key risks pertaining to the sector,” Matomola said.
The strategy was crafted by Schlettwein, the Namfisa board, as well as the parastatal’s leadership and staff. The outgoing strategy’s key focus areas and concerns, according to Matomola, were among others, fragmented and archaic legislation, based on a compliance approach.
The strategy, which ran from 2014 to 2017, also faced financial constraints, due to an outdated levy model, a lack of financial regulatory and supervisory skills and the limited utilisation of the electronic regulatory system.
“While significant efforts were aimed at initiatives to address these challenges, a number of these remain relevant for the current environment, and 14 strategic objectives have been set, in order to adequately address them, through focused initiatives, during the current strategy period,” Matomola said.
He went on to say that some of the objectives in the current strategy include the improvement of skills and knowledge, regulatory and supervisory effectiveness, work culture, stakeholder engagement, a policymaking process, cost-effectiveness and consumer engagement.
While the mission of the authority remains as enshrined in the Namfisa Act, its vision has been refined to guide the journey of regulatory reform. The new vision is to have a safe, stable and fair financial system, which contributes to the economic development of Namibia and consumer protection.
“To ensure that the authority achieves its vision, not only should the new legislation be in place, but the processes, skills and systems should be enhanced to ensure that operational efficiencies are achieved.
“The authority recognises that good corporate governance is one of the cornerstones, enabling it to regulate and supervise financial institutions and intermediaries, and to foster consumer protection and financial stability within the financial sector.
“The authority believes that maintaining good governance practices enhances its reputation and enables it to carry out its mandate, as conferred on it by the Namfisa Act. For the new strategy, 14 strategic objectives have been set, through focused initiatives, for the current strategy period. These objectives form the basis of operational plans and performance agreements with the authority leadership and all staff,” Namfisa said in its 2017 annual report.
The regulator’s total income for the year ending 31 March 2017 amounted to N$153.7 million, with expenditure totalling N$199.9 million. The total comprehensive losses for the year amounted to N$44.6 million, which is 53.2 percent (N$50.6 million) less than the budgeted deficit of N$95.2 million.
Confidente. Lifting the Lid. Copyright © 2015