Business Reporter
NAMIBIANS will be given a another chance to have their say in public consultations on the Financial Institutions Markets Act which has brought about much debate for one of it’s clause that oppose the common practice of withdrawing of retirement savings early to meet short term financial needs.
The FIMA was blasted for regulation (RF.R.5.10) which calls for the preservation of retirement benefits. Under the new regulations and when FIMA becomes operational, 75% of a retirement fund must be preserved untill the age of 55. This is done with the aim to ensure that more income is available to sustain pensioners after they retire, or otherwise their dependants in the event of death.
Wilson Shikoto, public relations officer within the Ministry of Finance said that the initial round of consultations is scheduled to begin on November 13, 2023, in the Kunene and Hardap Regions.
“The Technical Advisory Committee (TAC) on Standards and Regulations, comprising experts in the financial, labour and pension sectors, has been assembled to ensure that regulations governing financial institutions and markets are robust, fair, and conducive to the growth and stability of the financial sector. Their task includes soliciting input and feedback from stakeholders, including the general public, to create regulations that best serve the interests of our nation,” Shikoto said.
He added that public consultations are designed to be accessible to everyone, with a focus on inclusivity and diversity. “There will be no need to register for participation, visit the venue closer to you and air your concerns or you can submit your input via [email protected]. The list of public consultations will be communicated through the media.
FIMA, will replace the outdated Pension Fund Act of 1956 when it comes into effect.
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