FIM Bill 'threatens pension fund industry
A new bill could have devastating consequences on pension funds but one expert says very little is being done to delay its tabling.
Concerns that the planned introduction of the Financial Institutions and Market Bill could collapse the pension industry have still not been addressed despite stern opposition.
Pension fund doyen Tilman Friedrich last year warned that the bill would have dire consequences and asked that its tabling be delayed to allow for wider consultations.
Despite the call, it appears that very little has been done to incorporate industry recommendations into the bill. It was not the first time Friedrich had called for wider consultation on the bill. “We have unfortunately not been able to obtain an open ear for the concerns we have voiced over many years. There has never been an arbitrator between the Namibia Financial Institutions Supervisory Authority (Namfisa), as the bill's sponsor with vested interests, and industry with its own vested interests,” said Friedrich.
Another concern raised by Friedrich was that the bill was too technical, making it difficult for lawmakers to understand its impact once tabled.
“I fear that the bill will pass through parliament and the National Council without much questioning due to its complexities and due to the fact that politicians do not have the technical and practical insight into the potential consequences of the bill.
“I have been expressing my concern about the implications of the FIM Bill, and the fact that it will turn an established industry upside down, ever since it reared its head. The more I look at it the more I realise that the industry and its stakeholders will face uncertainty, frustration and expense for many years to come, and the fun will start soon,” he added.
Namfisa maintains that the bill is sound and conforms to international best practices.
“The International Monetary Fund (IMF) provided assistance to Namfisa in the review of the FIM Bill, the [planned amendment of the] Namfisa Bill and Financial Service Adjudicator Bill.
The IMF-procured consultants provided valuable input on the bills,” says its spokesperson, Victoria Muranda.“In particular, the IMF consultants provided quality assurance in that the bills are technically sound and meet the requirements of modern financial services law, including consistency with international standards,” she says. Finance minister Calle Schlettwein last month called for the speedy implementation of the bill, saying it was sound and met international best practices.
OGONE TLHAGE
Pension fund doyen Tilman Friedrich last year warned that the bill would have dire consequences and asked that its tabling be delayed to allow for wider consultations.
Despite the call, it appears that very little has been done to incorporate industry recommendations into the bill. It was not the first time Friedrich had called for wider consultation on the bill. “We have unfortunately not been able to obtain an open ear for the concerns we have voiced over many years. There has never been an arbitrator between the Namibia Financial Institutions Supervisory Authority (Namfisa), as the bill's sponsor with vested interests, and industry with its own vested interests,” said Friedrich.
Another concern raised by Friedrich was that the bill was too technical, making it difficult for lawmakers to understand its impact once tabled.
“I fear that the bill will pass through parliament and the National Council without much questioning due to its complexities and due to the fact that politicians do not have the technical and practical insight into the potential consequences of the bill.
“I have been expressing my concern about the implications of the FIM Bill, and the fact that it will turn an established industry upside down, ever since it reared its head. The more I look at it the more I realise that the industry and its stakeholders will face uncertainty, frustration and expense for many years to come, and the fun will start soon,” he added.
Namfisa maintains that the bill is sound and conforms to international best practices.
“The International Monetary Fund (IMF) provided assistance to Namfisa in the review of the FIM Bill, the [planned amendment of the] Namfisa Bill and Financial Service Adjudicator Bill.
The IMF-procured consultants provided valuable input on the bills,” says its spokesperson, Victoria Muranda.“In particular, the IMF consultants provided quality assurance in that the bills are technically sound and meet the requirements of modern financial services law, including consistency with international standards,” she says. Finance minister Calle Schlettwein last month called for the speedy implementation of the bill, saying it was sound and met international best practices.
OGONE TLHAGE
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