The Chief Executive Officer of the Namibia Financial Institutions Supervisory Authority (Namfisa), Kenneth Matomola, has raised concerns regarding the current regulatory framework, saying it hampers Namfisa’s ability to fulfil its mandate.

During a briefing at the Government Information Centre (GIC) on Tuesday, Matomola said Namfisa is tasked with overseeing non-bank financial institutions, but outdated laws pose significant obstacles to achieving their objectives.

“The challenges we face stem from antiquated legislation that stifles innovation and proves difficult to implement,” Matomola explained.

He said the current laws are very reliant on a compliance-driven approach to supervision, whereas the world has moved on to a risk-based approach to supervision, noting that a risk-based approach would help Namfisa look to the future and mitigate possible future issues.

“Right now we are ticking boxes, and when you tick boxes, it means you are recording things that have already happened, so we should focus on a risk-based approach to ensure these risks do not occur,” stated Matomola.

He further outlined Namfisa’s commitment to comprehensive reforms, saying the authority has undertaken a three-pronged reform strategy that entails institutional, legislative, and supervisory changes.

Matomola also said Namfisa has revamped its organisational structure to enhance service delivery and is actively developing legislation to modernise its regulatory framework for non-banking financial institutions in Namibia.