financial institutions and markets bill · to consolidate and harmonise the laws regulating...

[B. 13 - 2018]

REPUBLIC OF NAMIBIA

NATIONAL ASSEMBLY

______________________

FINANCIAL INSTITUTIONS ANd MARkETS BILL

_________________________________

(As read a First Time)_________________________________

(Introduced by the Minister of Finance)

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BILLTo consolidate and harmonise the laws regulating financial institutions,

financial intermediaries and financial markets in Namibia; and to provide for incidental matters.

ARRANGEMENT OF SECTIONS

CHAPTER 1PRELIMINARY

1. Generaldefinitions2. ObjectsofAct3. Controlovercorporatebodies

CHAPTER 2INSURANCE

PART 1GENERAL

4. DefinitionsforthisChapter5. Prohibitions6. Restrictionsonuseofcertaindesignations7. Limitations8. Classesofinsurance

PART 2REGISTRATION

9. Applicationforregistration10. Registrationrequirements11. Registration12. Insurersandreinsurerspreviouslyregistered13. Applicationforcancellationorvariationofregistration14. Cancellationorvariationofregistration

PART 3ADMINISTRATION

15. Principalofficeandprincipalofficer16. Accounts17. Appointmentofauditor18. Appointmentofvaluator

PART 4CONDUCT OF INSURANCE BUSINESS

19. Conductofinsurancebusiness20. Financiallysoundposition21. Restrictionsonpledgingassetsandborrowing22. Actuarialsoundnessofpolicies

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23. Prohibitionagainsttiedselling24. Policies:miscellaneousprovisions25. Publicationofstatementsofcapital26. Prohibitionagainstsecuringbusinessforunregisteredperson27. Restrictiononacquisitionofsharesorotherinterests28. Participatingpolicies29. Plainlanguage30. Misleading,falseanddeceptivestatements:consequencesofconviction

PART 5CERTAIN LONG-TERM POLICIES

31. Lifepolicies:minors32. Lifepolicies:marriedpersons33. Personsmarriedincommunityofproperty34. Lifepolicyonownlife:protectionduringlife35. Lifepolicyonownlife:protectionondeath36. Lifepolicies:spousesandchildren37. Protectedlifepolicies:selectionforrealisation38. Protectedlifepolicies:partialrealisation39. Lifepoliciescededortrustpoliciesnotkeptup40. Lifepoliciescededorpremiumspaidwithintenttodefraudcreditors41. Applicationofprovisionstofuneral,disabilityandhealthpolicies

PART 6PROVISIONS RELATING TO LLOYD’S

42. DefinitionsforthisPart43. AuthorisationofunderwritersatLloyd’s44. Changetoconstitution,powers,rights,obligationsandbye-laws45. AppointmentofLloyd’srepresentative46. TrustaccounttobekeptbyLloyd’srepresentative47. ReturnstobesubmittedbyLloyd’srepresentative48. ApplicationofcertainprovisionsofChaptertoLloyd’srepresentative49. ImpositionofprohibitiononactivitiesofLloyd’sunderwriters50. RegistrationofLloyd’sintermediaries51. ClaimsagainstunderwritersatLloyd’s52. PaymentofclaimsagainstunderwritersatLloyd’s

PART 7AGENTS AND BROKERS

53. DefinitionsforthisPart54. Unregisteredpersonmaynotactasagentorbroker55. Registrationasinsuranceagentandrenewalofregistration56. Remedialaction57. Applicationforregistrationasinsurancebroker58. Registrationrequirements59. Registrationandrenewalofregistration60. Agents,brokerspreviouslyregistered61. Principalofficeandprincipalofficer62. Accounts63. Insurancetobeinplace64. Onlyoneregistration

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65. Applicationforcancellationorvariationofregistration66. Cancellationorvariationofregistration67. Confirmationofcoverbyregisteredbrokers68. Otherobligationsofregisteredbrokers69. Nounreasonabledelays70. PlacinginsuranceoutsideNamibia71. Brokerliabletopolicyholder72. Policiesandprocedures73. Obligationsofregisteredinsuranceintermediaries74. Dutiesofregisteredinsuranceintermediaries75. Otherbusinessoroccupation76. Registrationtobeproduced77. PowersofNAMFISAinrelationtoregisteredinsuranceintermediaries

CHAPTER 3FINANCIAL MARkETS

PART 1PRELIMINARY

78. DefinitionsforthisChapter79. ObjectsofChapter80. Non-applicationofgamblinglaws

PART 2PROHIBITIONS AND RESTRICTIONS

81. Prohibitions82. Listedsecurities:exception

PART 3REGISTRATION OF CERTAIN REGULATED PERSONS

83. Applicationforregistration84. Registrationrequirements85. Registrationandrenewalofregistration86. Existingexchanges87. PersonsapprovedbyRegistrar88. Applicationforcancellationorvariationofregistration89. Cancellationorvariationofregistration90. Transferorwinding-up91. Registration as authorised user, portfolio manager, authorised advisor or

authorisedrepresentative92. Remedialaction93. Stockbrokers94. Existingportfoliomanagers95. Registrationasauthorisedrepresentativeofauthoriseduser96. Remedialaction97. Registrationasparticipant98. Remedialaction99. Nominees100. Remedialaction101. Foreignexchangeandelectronicexchange102. Principalofficeandprincipalofficer

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103. Appointmentofauditor

PART 4EXCHANGES

104. Interpretation105. FunctionsofexchangeandpowerofNAMFISA106. Listingofsecurities107. Removaloflistingandsuspensionoftrading108. Applicationofnewlistingrequirements109. Disclosureofinformationbyissuers110. Impositionoflevy111. Fundsofregisteredexchange112. Requirementsforexchangerules113. Reportingtransactionsinlistedsecurities114. Undesirableadvertisingorcanvassing115. Identityandsourcetobedisclosed116. Restrictiononborrowingandre-pledging117. Markingorrecordingsecurities118. Restrictiononalienationofsecurities119. Segregationoffundsofauthorisedusersandotherpersons120. Appealfromdecisionofexchange

PART 5CUSTODY AND ADMINISTRATION OF SECURITIES

121. DefinitionsforthisPart122. Functionsofcentralsecuritiesdepository123. Functionsofparticipant124. Uncertificatedsecurities125. Responsibilitiesofissuerofuncertificatedsecurities126. Depositoryrules127. Registrationofsecurities128. Ownershipofsecurities129. Transferofsecurities130. Pledgeorcessionofsecuritiestosecuredebt131. Deliveryofsecurities132. Records133. Warranty134. Recognitionoftrust135. Attachment

PART 6SELF-REGULATORY ORGANISATIONS

136. Recognisedself-regulatoryorganisations137. Carryingonadditionalbusiness138. Incorporationofself-regulatoryorganisationascompany139. Amalgamation140. Transferofassetsandliabilities141. Dutyofshareholdersofcontrollingentity142. Appointmentasofficerofself-regulatoryorganisation143. Limitationoncontrolofself-regulatoryorganisations144. Delegationoffunctions

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145. ReporttoNAMFISA146. RightofNAMFISAtoattendmeetingsandobtaindocuments147. Rulesofself-regulatoryorganisations148. Limitationofliability149. Disclosureofinformation

PART 7SECURITIES CLEARING HOUSE

150. Limitationofliability151. Amalgamation152. Transferofassetsandliabilities

PART 8CODE OF CONDUCT FOR REGULATED PERSONS

153. Codesofconduct154. Principlesofcodeofconduct

PART 9MARKET ABUSE

155. DefinitionsforthisPart156. Insidertradingoffences157. Publication158. Prohibitedtradingpractices159. False,misleadingordeceptivestatements,promisesandforecasts160. Civilliabilityresultingfrominsidertrading161. Disbursementofproceedsfromcivilclaim162. PowersofNAMFISAincivilproceedings163. Assessmentoffinesandpenalties164. PowersanddutiesofNAMFISA165. Protectionofexistingrights166. Confidentialityandsharingofinformation

PART 10GENERAL PROVISION

167. ExemptionfromActNo.34of1934

CHAPTER 4COLLECTIVE INVESTMENT SCHEMES

PART 1PRELIMINARY

168. DefinitionsforthisChapter169. Principlesforoperationofcollectiveinvestmentscheme170. Dutiesofmanager171. Appointmentofinvestmentmanager172. Disclosureofinformation173. Limitations

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PART 2REGISTRATION

174. Applicationforregistrationasmanager175. Registrationrequirements176. Registration177. Existingmanagementcompanies178. Applicationforcancellationorvariationofregistration179. Cancellationorvariationofregistration180. Registrationasauthorisedrepresentativeofmanagerandrenewalofregistration181. Remedialaction182. Registration as designated representative of authorised representative and

renewalofregistration183. Remedialaction184. Approvalofnomineecompany185. Principalofficeandprincipalofficer186. Appointmentofauditor187. Limitationoninvestments188. Rules

PART 3TRUSTEE OR CUSTODIAN

189. Appointmentandterminationoftrusteeorcustodian190. Registration191. Existingtrustees192. Dutiesoftrusteeorcustodian193. Statusofassets194. Liabilityforlossofassets

PART 4COLLECTIVE INVESTMENT SCHEMES IN SECURITIES

195. DefinitionsforthisPart196. Determinationoffairvalue197. Foreignsecurities

PART 5COLLECTIVE INVESTMENT SCHEMES IN PROPERTY

198. DefinitionsforthisPart199. Foreigncountryinwhichcollectiveinvestmentschemeinpropertymayinvest200. Listingofparticipatoryinterestsbyexchange

PART 6COLLECTIVE INVESTMENT SCHEMES IN PARTICIPATION BONDS

201. DefinitionsforthisPart202. Transitionalprovisions203. Capacityofmanager204. Registrationofparticipationbondsinnameofnomineecompany205. Rightsofinvestor206. Minimuminvestmentperiod207. Participatoryinterestsrankinpreferenceconcurrently

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208. Restrictionsonrightsofnomineecompany209. Collateralsecurityinrespectofparticipationbonds

PART 7COLLECTIVE INVESTMENT SCHEMES IN UNLISTED SECURITIES

210. DefinitionsforthisPart211. Minimuminvestmentperiod212. Listingbyexchange

PART 8COLLECTIVE INVESTMENT SCHEMES IN MONEY MARKET INSTRUMENTS

213. DefinitionsforthisPart214. Determinationoffairvalue215. Foreignmoneymarketinstruments

PART 9DECLARED COLLECTIVE INVESTMENT SCHEMES

216. DefinitionsforthisPart217. Declarationofspecifictypeofbusinessascollectiveinvestmentscheme

PART 10FOREIGN COLLECTIVE INVESTMENT SCHEMES

218. DefinitionsforthisPart219. Restrictionsonforeigncollectiveinvestmentscheme220. Reciprocity221. Withdrawalofapproval

PART 11CONVERSION OF COLLECTIVE INVESTMENT SCHEME

222. DefinitionsforthisPart223. Limitationsonconversionofcollectiveinvestmentscheme224. ApplicationforapprovalofNAMFISA225. Considerationofapplication226. Resolutionbyinvestors227. RegistrationofmemorandumandarticlesbyRegistrarofCompanies228. CertificateofregistrationofconversionandnoticeinGazette229. Effectsofconversion230. Issueofparticipatoryintereststoformerinvestors

PART 12GENERAL

231. Changeofnameofschemeorportfolio232. Prohibitionofmisleadingnamesandacts233. Restrictionsonsaleorlendingofassets234. Otherbusinessofmanager235. Exerciseofvotingpowerbymanager236. Unauthorisedgain237. Permissibledeductions

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238. Calculationofprice239. Paymentoffullpurchaseprice240. Powerofmanagertoborrow241. Matterstobeprovidedindeed242. Voidprovisionsandamendment243. Postponementofrealisationofassetsonwinding-up244. Separationofassets245. Segregationoffunds246. Identityandsourcetobedisclosed247. ApplicationofCompaniesActtomanager248. ExemptionfromActNo.34of1934

CHAPTER 5RETIREMENT FUNdS

PART 1PRELIMINARY

249. DefinitionsforthisChapter250. Prohibitions251. Restrictiononuseofdesignation“retirementfund”or“beneficiaryfund”

PART 2REGISTRATION

252. Applicationforregistration253. Registrationrequirements254. Registration255. Existingpensionfunds256. Existingbeneficiaryfunds257. Effectofregistration258. Applicationforcancellationorvariationofregistration259. Cancellationorvariationofregistration

PART 3ADMINISTRATION AND POWERS

260. Principalofficeandprincipalofficer261. Boardoffund262. Exemptions263. Replacementofmemberofboard264. Objectsofboard265. Dutiesofboard266. Appointmentofauditor267. Appointmentofvaluator268. Investigationsbyvaluator

PART 4CONDUCT OF BUSINESS AND MEMBER CONTRIBUTIONS

269. Businesswhichmaybecarriedon270. Paymentofcontributions

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PART 5RULES OF RETIREMENT FUND

271. Rules272. Amendmentofrules273. Bindingforceofrules

PART 6SPECIAL PROVISIONS RELATING TO BENEFITS

274. Benefitsnotreducible,transferableorexecutable275. Dispositionofbenefitsuponinsolvency276. Dispositionofbenefitsupondeath277. Deductionsfrombenefits

PART 7GENERAL

278. Voluntarydissolutionoffund279. Winding-upbycourt280. Specialprovisionsrelatingtoliquidationoffunds281. Righttoobtainandinspectdocuments282. Investments283. ExemptionfromActNo.34of1934

CHAPTER 6FRIENdLY SOCIETIES

PART 1PRELIMINARY

284. DefinitionsforthisChapter285. Objectsoffriendlysociety286. ApplicationofChapter287. Prohibitions288. Restrictiononuseofdesignation“friendlysociety”

PART 2REGISTRATION

289. Applicationforregistration290. Registrationrequirements291. Registration292. Existingfriendlysocieties293. Effectofregistration294. Applicationforcancellationorvariationofregistration295. Cancellationorvariationofregistration


296. Principalofficeandprincipalofficer297. Boardoffriendlysociety298. Exemptions

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299. Replacementofmemberofboard300. Objectsofboard301. Dutiesofboard302. Appointmentofauditor303. Appointmentofvaluator304. Investigationsbyvaluator305. Businesswhichmaybecarriedon306. Investments

PART 4RULES OF FRIENDLY SOCIETY

307. Rules308. Amendmentofrules309. Bindingforceofrules

PART 5MEMBERSHIP AND BENEFITS

310. Membershipofminors311. Membershipofmarriedpersons312. Paymentofbenefitstonominees313. Restrictionofpaymentsondeathofchildrenunder16years314. Protectionofmoneysdueoncessationofmembership315. Protectionofmoneysdueondeathofmember

PART 6GENERAL

316. Voluntarydissolutionofsociety317. Winding-upbycourt318. Specialprovisionsrelatingtoliquidationofsocieties319. Righttoobtainandinspectdocuments320. ExemptionfromActNo.34of1934

CHAPTER 7MEdICAL AId FUNdS

PART 1PRELIMINARY

321. DefinitionsforthisChapter322. ApplicationofChaptertomedicalaidfundestablishedbyState323. Prohibitions324. Restrictiononuseofdesignation“medicalaidfund”325. Prohibitedmarketing

PART 2REGISTRATION

326. Applicationforregistration327. Registrationrequirements328. Registration329. Existingmedicalaidfunds

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330. Effectofregistration331. Applicationforcancellationorvariationofregistration332. Cancellationorvariationofregistration333. Applicationforregistrationasmedicalaidfundbroker334. Registrationrequirements335. Registrationandrenewalofregistration336. Existingmedicalaidfundbrokers337. Applicationforcancellationorvariationofregistration338. Cancellationorvariationofregistration


339. Principalofficeandprincipalofficer340. Boardofmedicalaidfund341. Exemptions342. Replacementofmemberofboard343. Objectsofboard344. Dutiesofboard345. Appointmentofauditor346. Appointmentofvaluator347. Investigationsbyvaluator348. Financialarrangements349. Insuranceofliabilities350. Investments351. Membershipofmorethanonefundprohibited

PART 4RULES OF MEDICAL AID FUND

352. Rules353. Amendmentofrules354. Waitingperiods355. Bindingforceofrules

PART 5BENEFIT OPTIONS

356. Additionalbenefitoptions357. Prohibitiononcessionandattachmentofbenefits

PART 6GENERAL

358. Voluntarydissolutionoffund359. Winding-upbycourt360. Righttoobtainandinspectdocuments361. Chargesbysuppliersofhealthservices362. Offences relatingtomedicalaidfunds

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CHAPTER 8FUNd ANd SOCIETY AdMINISTRATORS

PART 1PRELIMINARY

363. DefinitionsforthisChapter364. Prohibitions365. Restrictiononuseofdesignation“fundadministrator”,“societyadministrator”

or“administrator”

PART 2REGISTRATION

366. Applicationforregistration367. Registrationrequirements368. Registration369. Existingfundadministratorsandsocietyadministrators370. Applicationforcancellationorvariationofregistration371. Cancellationorvariationofregistration


372. Principalofficeandprincipalofficer373. Appointmentofauditor374. Dutiesoffundadministratorsandsocietyadministrators375. Otherbusinessoffundadministratororsocietyadministrator376. ApplicationofCompaniesActtofundadministratororsocietyadministrator

CHAPTER 9PROPERTY HELd IN TRUST

377. DefinitionsforthisChapter378. Dutieswithrespecttotrustproperty379. Declarationofinterest380. Investmentoftrustproperty381. Alienationoftrustproperty382. Recordsanddocumentsasevidence383. Statutorymanager384. Consequencesofcriminalconviction

CHAPTER 10GENERAL PROVISIONS

PART 1PRELIMINARY

385. DefinitionsforthisChapter386. ApplicationofChapter387. Generalprohibition388. Transitionalprovisions389. Unregisteredpersonstofurnishinformation

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PART 2GENERAL MATTERS

390. Financialyear391. Nameandchangeofname392. Notificationofcertainmatters

PART 3GOVERNANCE

393. ApplicationofthisPart394. Boardoffinancialinstitution395. Dutiesofboard396. Directorstoactingoodfaith397. Auditcommittee398. Othercommittees399. Indemnificationofdirectorsandofficers400. Informationtobemadeavailable401. Appointmentofauditor402. Appointmentofvaluator403. Returnofdirectorsandauditors404. Dutiesoffinancialinstitutionsandfinancialintermediaries

PART 4GENERAL MARKET CONDUCT REQUIREMENTS

405. ApplicationofthisPartandotherfinancialserviceslaws406. Prohibitionoffalseandmisleadingstatements407. Declarationofpracticesasirregularorundesirable408. Marketconduct:powersofNAMFISA

PART 5POWERS OF NAMFISA TO REGULATE AND SUPERVISE

409. Powertoissuestandards410. Standards411. Guidelines,bulletins,rules,directivesandothermeasures412. Powertoissuedirectives413. Applicationtocourt414. Reportingobligations415. Fees416. Removalofboardmember417. Enquiriestoprincipalofficer418. Inspections419. Appointmentofinspectors420. Investigations421. Investigationsonrequestofotheragencies422. Powersofinspectors423. Timeandplaceofexaminations424. Entryuponorsearchofpremises425. Professionalprivilegeandincriminatingevidence426. Observanceofsecrecy427. Disclosuretocertainparties428. Costsofinvestigation

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429. Offencesrelatingtoinspections430. PowerofNAMFISAtoverifyinformation431. Decisionstobeinwriting432. Representativeself-regulatoryorganisations433. Changesincontroloffinancialinstitution434. Righttobeheard435. Latefilingorpayment

PART 6ENFORCEMENT

436. Enforceableundertakings437. CompensationforcontraventionsofAct438. CourtorderstoenforceAct439. Administrativesanctions

PART 7SCHEMES,STATUTORYMANAGEMENTANDWINDING-UP

440. Interpretation441. Failuretomaintainsoundfinancialposition442. Schemes443. Appointmentofstatutorymanager444. Poweranddutiesofstatutorymanager445. Winding-up

PART 8AMALGAMATIONS AND TRANSFERS IN THE ORIDNARY COURSE OF

BUSINESS

446. Amalgamations447. Transfers448. Standardsandexemptions449. Applicationforamalgamationortransfer450. Approvalofamalgamationortransfer451. StatementtobedepositedwithNAMFISA

PART 9FINANCIAL SERVICES COMPENSATION SCHEME

452. FinancialServicesCompensationScheme453. Schememanager454. Functionsanddutiesofschememanager

CHAPTER 11MISCELLANEOUS PROVISIONS

455. Confidentialityandsharingofinformation456. Inspectionofdocuments457. EffectofcertificateofNAMFISAondocument458. Recordsanddocumentsasevidence459. Alienationofproperty460. Protectionofclientassets461. Limitationofliability

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462. Generaloffencesandprovisionsrelatingtooffencesandsentences463. Jurisdictionofmagistrates’court464. ApplicationtoStateandpublicentities465. Regulations466. Conflictorinconsistency467. Repealoramendmentoflawsandtransitionalarrangements468. Shorttitleandcommencement

Schedule 1 ClassesofInsuranceSchedule 2 LawsRepealedorAmendedSchedule 3 TransitionalProvisions

BE IT ENACTEd aspassedbytheParliament,andassentedtobythePresident,oftheRepublicofNamibiaasfollows:-

CHAPTER 1PRELIMINARY

General definitions

1. (1) In this Act, unless the context indicates otherwise or theexpressionisspecificallydefinedinanotherChapterofthisAct-

“actuary” meansapersonwhoisafellowofanactuarialsociety, instituteorfacultyspecifiedinthe standards;

“Adjudicator”meanstheFinancialServicesAdjudicatorasdefinedinsection1oftheFinancialServicesAdjudicatorAct, 2019 (ActNo. of 2019), and includes aDeputyAdjudicatorandanad-hocAdjudicatorasdefinedinthatsection;

“advisorycommittee”meanstheadvisorycommitteeestablishedundersection20oftheNAMFISAAct;

“affiliate”,inrelationtoacompanyorotherentity,means-

(a) asubsidiaryofthatcompanyorotherentity;

(b) theholdingcompanyofthatcompanyorotherentity;or

(c) another companyor other entity that has the sameholding company as thatcompanyorotherentity;

“AppealBoard” meanstheappealboardestablishedbysection39of theNAMFISAAct;

“articles” meansthearticlesofassociationofacompanyasdefinedinsection1oftheCompaniesAct;

“associate”

(a) inrelationtoanindividualmeans-

(i) thespouseoftheindividual;

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(ii) thechild,parent,stepchild,stepparentorsiblingoftheindividualandthespouseofanysuchperson;

(iii) anotherpersonwhohasenteredintoanagreementorarrangementwiththe individual relating to the acquisition, holding or disposal of, ortheexerciseofvotingrights inrespectof,sharesorotherownershipinterestsinanentity;

(iv) a corporate body or other juristic person or unincorporated entitycontrolled,directlyorindirectly,by,ortheaffairsorpartoftheaffairsofwhicharemanagedoradministeredby,oratthedirectionorinstructionsof,theindividualoranypersonreferredtoinsubparagraphs(i)and(ii);and

(v) atrustcontrolledbytheindividual;and

(b) in relation to a corporatebody,other juristicpersonorotherunincorporatedentitymeans-

(i) anyentitywhichiscontrolled,directlyorindirectly,by,ortheaffairsorpartof theaffairsofwhicharemanagedoradministeredby,oratthedirectionor instructionsof, thecorporatebody, juristicpersonorunincorporatedentity;

(ii) anyentity-

(aa) which controls, directly or indirectly, the corporate body,juristicpersonorunincorporatedentity;

(bb) whichmanagesoradministerstheaffairsorpartoftheaffairsofthecorporatebody,juristicpersonorentity;or

(cc) onwhosedirections or instructions the affairs or part of theaffairs of the corporate body, juristic person or entity aremanagedoradministered;or

(iii) aparticipatingemployer,wherethecorporatebody,juristicpersonorunincorporatedentityisaretirementfund;

“auditor” meansaperson,registeredasanaccountantandauditorundersection23ofthePublic AccountantsandAuditorsAct,andwhohasbeenadmittedasamemberoftheInstituteofCharteredAccountantsofNamibiareferredtointhatAct;

“BankofNamibia”meanstheBankofNamibiaestablishedundertheBankofNamibiaAct,1997(ActNo.15of1997);

“bankinginstitution” meansabankinginstitutionasdefinedinsection1oftheBanking InstitutionsAct,1998(ActNo.2of1998);

“beneficiaryfund”meansabeneficiaryfundasdefinedinsection249;

“board” means the board of directors of a corporate body and, unless the contextindicates otherwise,theboardoftrusteesofaretirementfund,theboardoftrusteesof

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afriendlysociety,theboardoftrusteesofamedicalaidfundandanysimilarbodyofpersonsinrelationtoanysuchfundoranyotherentity;

“building society”means a building society as defined in section 1 of theBuildingSocietiesAct, 1986(ActNo.2of1986);

“centralsecuritiesdepository”meansacentralsecuritiesdepositoryasdefinedinsection78;

“client” meansaspecificpersonorgroupofpersons,excludingthegeneralpublic,whoisormay becomethesubjecttowhomafinancialserviceisrenderedintentionally,oristhesuccessorintitleofsuchpersonorthebeneficiaryofsuchservice;

“close corporation”means a corporation incorporated under theCloseCorporationsAct,1988(Act.No.26of1988);

“collective investment scheme”means a collective investment scheme as defined insection168;

“CompaniesAct”meanstheCompaniesAct,2004(ActNo.28of2004);

“company”meansacorporatebodyincorporatedundertheCompaniesAct,andincludesapublic company;

“corporatebody” meansanincorporatedbodywhereverorhoweverincorporated,andincludesa companyandaclosecorporation;

“court”meansanycourtorcourtsofNamibiahavingjurisdictionintheparticularmatterorinthe particularcircumstances;

“director”meansanaturalpersonwho-

(a) inrelationtoacorporatebody,occupiesthepositionofdirector,bywhatevername called, of the corporate body, and “board of directors” or “directors”referstothedirectorsasabody;

(b) in relation to any juristic person or other unincorporated entity, occupies apositionthatisthesameorsimilartothatofapersonreferredtoinparagraph(a);

“document”or“record” includesbooks,accountsandanyinformationstoredorrecorded electronically, digitally, photographically,magnetically,mechanically, optically or inanyotherform;

“entity”meansacorporatebody,anyother juristicperson,a trust,partnership, fund,association,jointventureandanyotherunincorporatedorganisation,thegovernmentofanycountryoranysubdivisionthereof;

“exchange”meansanexchangeasdefinedinsection78;

“fee”meansanappropriatefeedeterminedbyNAMFISAundersection415orundersection33oftheNAMFISAAct;

“financialadvice”meansanyfinancialadvicecontemplatedinsubsection(2);

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“financialcrime” meansanyofthefollowing:

(a) generally, an offence that involves theft, fraud, forgery or uttering a forgeddocument,perjuryoranoffenceundertheAnti-CorruptionAct,2003(ActNo.8of2003);

(b) crimesrelatingtomarketabuseprovidedforinPart9ofChapter3;

(c) financing,facilitatingorbeinginvolvedinfinancingorfacilitatinganoffencerelatingtoafinancialinstitution;

(d) dealingwiththeproceedsofanoffence,whetherornotrelatedtoafinancialinstitution;

(e) anoffenceunderthePreventionofOrganisedCrimeAct,2004(ActNo.29of2004);

(f) thefundingof,oranyoffencerelatingto thefundingof terrorism,under thePreventionandCombatingofTerroristandProliferationActivitiesAct,2014(ActNo.4of2014);or

(g) anyoffenceundertheFinancialIntelligenceAct,2012(ActNo.13of2012);

“financialinstitution”means-

(a) aregisteredbeneficiaryfund;

(b) aregisteredcentralsecuritiesdepository;

(c) acollectiveinvestmentschemeofaregisteredmanager;

(d) aregisteredexchange;

(e) aregisteredfriendlysociety;

(f) aregisteredinsurer;

(g) aregisteredmedicalaidfund;

(h) aregisteredreinsurer;

(i) aregisteredretirementfund;

(j) aregisteredsecuritiesclearinghouse;and

(k) anentitydeclaredbytheMinisterbyanoticeundersubsection(5)(a)tobeafinancialinstitution;

“financial intermediary” means a person who receives compensation, directly orindirectly,for providingafinancialservice,and-

(a) for the purposes of Chapter 2 on Insurance and as defined in section 53 includes-

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(i) aninsuranceagent,includingacorporateinsuranceagent;

(ii) aninsurancebroker,includingacorporateinsurancebroker;

(b) forthepurposesofChapter3onFinancialMarketsandasdefinedinsection78includes-

(i) anauthoriseduserofanexchange;

(ii) anauthorisedrepresentativeofanauthoriseduser;

(iii) anomineeofanauthoriseduser;

(iv) astockbroker;

(v) aninvestmentmanager;

(vi) alinkedinvestmentserviceprovider;

(vii) aportfoliomanagerofaninvestmentmanager;

(viii) aportfoliomanagerofalinkedinvestmentserviceprovider;

(ix) asecuritiesadvisor;

(x) anauthorisedadvisorofasecuritiesadvisor;

(xi) asecuritiesdealer;

(xii) anauthorisedrepresentativeofasecuritiesdealer;

(xiii) aparticipant;

(xiv) anomineeofaparticipant;

(xv) asecuritiesratingagency;

(c) forthepurposesofChapter4onCollectiveInvestmentSchemesandasdefinedinsection168includes-

(i) amanagerofacollectiveinvestmentscheme;

(ii) anauthorisedrepresentativeofamanager;

(iii) adesignatedrepresentativeofanauthorisedrepresentative;

(iv) anomineecompany;

(v) atrusteeorcustodian;

(d) for thepurposes ofChapter 5 onRetirementFunds, a fund administrator asdefinedinsection363;

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(e) forthepurposesofChapter6onFriendlySocieties,asocietyadministratorasdefinedinsection363andanindividualorentitythatcontrolstheaffairsofafriendlysociety;

(f) forthepurposesofChapter7onMedicalAidFunds-

(i) afundadministrator;

(ii) amedicalaidfundbrokerasdefinedinsection321;and

(g) apersonorentitydeclaredbytheMinisterbynoticeundersubsection(5)(b)tobeafinancialintermediary;

“financialproduct”means-

(a) apolicyissuedbyaninsurerorreinsurerpursuanttoChapter2;

(b) abenefitprovidedby-

(i) aretirementfundorabeneficiaryfundpursuanttoChapter5;

(ii) afriendlysocietypursuanttoChapter6;or

(iii) amedicalaidfundtothemembersofthemedicalaidfundbyvirtueofmembershippursuanttoChapter7;

(c) asecurity,derivativeinstrument,moneymarketinstrument,orotherinstrumentreferredtoinChapter3;

(d) aparticipatoryinterestinacollectiveinvestmentscheme;

(e) aforeigncurrencydenominatedinvestmentinstrument;

(f) any other product essentially similar in nature and character to a financialproductreferredtoinparagraphs(a)to(e);

(g) any product combining two ormore of the financial products referred to inparagraphs(a)to(f);or

(h) anyproductissuedbyaforeignentityandmarketedinNamibia,whichinnatureand character is essentially similar or corresponding to a financial productreferredtoinparagraphs(a)to(g);

“financialservice”means-

(a) theserviceofprovidingafinancialproductorfinancialadvice;or

(b) a service determined by NAMFISA after consultation with the advisorycommitteebynoticeundersubsection(4)(a)tobeafinancialservice;

butdoesnotinclude-

(i) thecollectionoraccountingbyabanking institutionofpremiumsorothermoneyspayablebyaclienttoafinancialinstitutionorfinancial

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intermediary in respect of a financial service, where the bankinginstitutionactsmerelyasaconduitbetweenaclientandthefinancialinstitutionorfinancialintermediary;or

(ii) any other service exempted from the provisions of this Act byNAMFISA,bynoticeundersubsection(4)(b);

“financialserviceslaw”means-

(a) thisAct;

(b) thePublicAccountants’andAuditors’Act;

(c) theFinancialIntelligenceAct,2012(ActNo.13of2012);

(d) theFinancialServicesAdjudicatorAct,2019 (ActNo.of2019);

(e) theMicrolendingAct,2018(ActNo.7of2018);

(f) theNAMFISAAct;

(g) alawthatdeclaresitselftobeafinancialserviceslawforthepurposesofthisdefinition;or

(h) alawdeclaredbytheMinisterbynoticeundersubsection(5)(c)tobeafinancialserviceslaw,

and includes regulations, standards, and other subordinatemeasuresmade or issuedunderanyofthoselaws;

“financialyear”, inrelation toafinancial institutionorfinancial intermediary,meanseachperiodnotexceeding12months,attheendofwhichtheannualfinancialstatementsofthefinancialinstitutionorfinancialintermediaryarepreparedinaccordancewiththestandards;

“foreignentity”meansanentity incorporatedor formedunder the lawsofacountryotherthanNamibia;

“friendlysociety”meansafriendlysocietyasdefinedinsection284;

“fundadministrator”,inrelationto-

(a) aretirementfund,meansafundadministratorasdefinedinsection363;and

(b) amedicalaidfund,meansafundadministratorasdefinedinsection363;

“generallyacceptedaccountingpractice”meanstheaccountingframeworksadoptedbytheInstituteofCharteredAccountantsofNamibiareferredtoinsection1ofthePublicAccountants’andAuditors’Act;

“HighCourt”meanstheHighCourtofNamibiareferredtoinArticle78(1)(b)oftheNamibianConstitutionoranyjudgeofthatcourt;

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“holding company” means a holding company as described in section 1(6) of theCompaniesAct;

“IncomeTaxAct”meanstheIncomeTaxAct,1981(ActNo.24of1981);

“industryassociation”meansavoluntaryorganisation representing the interestsof agroupofsimilarfinancialinstitutionsorfinancialintermediaries;

“InsolvencyAct”meanstheInsolvencyAct,1936(ActNo.24of1936);

“inspector”meansapersonappointedasaninspectorundersection419;

“insurer”meansaninsurerasdefinedinsection4;

“InternationalAuditingStandards”meanthemostrecentversionof theInternationalStandards onAuditing published by the InternationalAuditing Standards Board, asadoptedbytheInstituteofCharteredAccountantsofNamibiareferredtoinsection1ofthePublicAccountants’andAuditors’Act;

“legalpractitioner”meansalegalpractitionerincludingacandidatelegalpractitionerreferredtoinsection1oftheLegalPractitionersAct,1995(ActNo.15of1995);

“medicalaidfund”meansamedicalaidfundasdefinedinsection321;

“memorandum”meansamemorandumasdefinedinsection1oftheCompaniesAct;

“Minister”meanstheMinisterresponsibleforfinance;

“NAMFISA” meanstheNamibiaFinancialInstitutionsSupervisoryAuthorityreferredtoinsection2of theNAMFISAAct;

“NAMFISAAct”meanstheNamibiaFinancialInstitutionsSupervisoryAuthorityAct,2019(ActNo.of2019);

“objects ofNAMFISA”means the objects ofNAMFISA set out in section 3 of theNAMFISAAct;

“officer”inrelationto-

(a) acorporatebody,meansanynaturalpersonwhoisdesignatedasanofficerbytheboardofdirectorsofthatcorporatebody;and

(b) any other juristic person or other unincorporated entity, means any naturalpersonwhoisdesignatedasanofficerbytheboard,membersorownersoftheentity,asthecasemaybe,

andincludes-

(i) themembersoftheboard,theprincipalofficer,thepersonresponsibleforcomplianceandthepersonresponsibleforfinanceandinvestment;and

(ii) any other natural person designated as an officer by NAMFISA bywrittendirectiveissuedtothecorporatebodyorotherjuristicperson,

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orotherunincorporatedentity,oragrouporclassofnaturalpersonsdesignatedasofficersbytheNAMFISAbynoticeundersubsection(4)(c);

“permanentresident”meansapersonwhois inpossessionofapermanentresidencepermitissuedtohimorherintermsofsection26oftheImmigrationControlAct,1993(ActNo.7of1993);

“prescribed”meansprescribedbytheMinisterbyregulationmadeundersection465;

“principaloffice”means-

(a) inthecaseofanentitythatisafinancialinstitutionorfinancialintermediary,themainplaceofbusinessofthatentity;

(b) inthecaseofanindividualfinancialintermediarywhoisemployedbyafinancialinstitutionorbyanotherfinancialintermediary,themainplaceofbusinessofthatfinancialinstitutionorotherfinancialintermediary;and

(c) inthecaseofanindividualfinancialintermediarywhoisnotemployedbyafinancial institution or by another financial intermediary, the main place ofbusinessofthatindividual;

“principalofficer”meanstheofficerofafinancialinstitution,financialintermediaryorofthemanagerofacollectiveinvestmentschemeappointedasprincipalofficerwho-

(a) mustbe-

(i) the chief executive officer of the financial institution, financialintermediaryorofthemanagerofacollectiveinvestmentschemeandhavethedutiesandthefunctionsofachiefexecutiveofficer;or

(ii) the officer having the duties and functions normally exercised by achiefexecutiveofficer;and

(b) mustbetheofficerwhoisresponsibleforreportingtotheboardofdirectors,boardoftrusteesorotherboardonbehalfofthemanagementofthefinancialinstitution,financialintermediaryormanagerofacollectiveinvestmentscheme,

andinthecaseofafinancialintermediarythatisanaturalperson,thatpersonisdeemedtobetheprincipalofficerofthatfinancialintermediary;

“PublicAccountants’andAuditors’Act”meansthePublicAccountants’andAuditors’Act,1951(ActNo.51of1951);

“publiccompany”meansapubliccompanyreferredtoinsection20oftheCompaniesAct;

“registered”meansregisteredunderthisAct;

“regulations”meansregulationsmadebytheMinisterunderthisAct;

“reinsurer”meansareinsurerasdefinedinsection4;

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“retirementfund”meansaretirementfundasdefinedinsection249;

“securitiesclearinghouse”meansasecuritiesclearinghouseasdefinedinsection78;

“self-regulatoryorganisation”meansaself-regulatoryorganisationasdefinedinsection78orarepresentativeself-regulatoryorganisationreferredtoinsection432;

“societyadministrator”meansassocietyadministratorasdefinedinsection363;

“spouse”means-

(a) apartnerinamarriagesolemnisedintermsofthelawofNamibiaorofanyforeigncountry;

(b) a common law partner in a union recognised in common law as a life-timecohabitationarrangement;

(c) apartnerinacustomaryunionaccordingtocustomarylaworcustom;

(d) apartnerinaunionrecognisedasamarriageunderthetenetsofanyreligion;or

(e) a partner in a relationship in which the parties live together in a mannerresemblingamaritalpartnershiporcustomaryunion;

“standards”meansthestandardsissuedbyNAMFISAunderthisAct;

“statutorymanager” meansapersonappointedasastatutorymanagerforafinancialinstitution undersection443;

“subsidiary”meansasubsidiaryofanothercompanyasdescribedinsection1(3)oftheCompaniesAct;

“thisAct”includes-

(a) regulationsmade,orothersubordinatemeasuresmadeorissuedbytheMinister,underthisAct;and

(b) standardsandothersubordinatemeasuresissuedbyNAMFISAunderthisAct;

“TrustMoneysProtectionAct”meanstheTrustMoneysProtectionAct,1934(ActNo.34of1934);

“trust property” means any corporeal or incorporeal movable or immovable assetinvested,held, keptinsafecustody,controlled,administeredoralienatedbyanypersononbehalfofanotherperson;

“undesirablepractice”,inrelationtoanypracticeormannerofconductingbusinessofafinancialinstitutionorfinancialintermediaryortheprovisionofafinancialservice,meansapracticedeterminedundersection407tobeanundesirablepracticeinrelationtothatfinancialinstitution,financialintermediaryorfinancialservice;

“valuator”meansanactuary,oranexpertwhoisamemberofacategoryofprofessionsorpersonsspecifiedinthestandards,appointedorretainedasavaluatorbyafinancial

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institution or financial intermediary, or required byNAMIFSA tomake a valuationreportwithrespecttoafinancialinstitutionorfinancialintermediary;and

“whollyownedsubsidiary”meansawhollyownedsubsidiaryoranothercompanyasdescribedinsection1(7)theCompaniesAct.

(2) Subject to subsection (3), for purposes of thisAct, financial adviceincludes-

(a) any recommendation, guidance, projection or proposal relating to a financial product furnishedby anymeansormedium, to anypersonwhoisaclient,potentialclient,orgroupofclientsorpotentialclients,whether or not specifically sought by that person or group, andirrespectiveofwhetherornotsuchadviceresultsinatransactionbeingeffected-

(i) inrespectofbuying,selling,handlingorexchangingasecurity;

(ii) inrespectofpurchasinganyotherfinancialproduct;

(iii) inrespectofinvestinginanyfinancialproduct;or

(iv) inrespectofthevariationofanytermorconditionapplyingtoafinancialproduct,orthereplacementofafinancialproduct,ortheterminationofanypurchaseoforinvestmentinafinancialproduct;

(b) insuranceadviceasdefinedinsection4;and

(c) securitiesadviceasdefinedinsection78. (3) Despitesubsection(2),financialadvicedoesnotinclude-

(a) factualinformationgivenmerely-

(i) ontheprocedureforenteringintoatransactioninrespectofafinancialproduct;

(ii) inrelationtoadescriptionofafinancialproduct;

(iii) inanswertoroutineadministrativeenquiries;

(iv) intheformofobjectiveinformationaboutaparticularfinancialproductincludinginformationregardingthetaxtreatmentofaparticularfinancialproduct;

(v) bythedisplayordistributionofpromotionalmaterial;or

(vi) bywayofananalysisorreportonafinancialproductwithoutanyexpressorimpliedrecommendation,guidanceorproposalthatanyparticulartransactioninrespectofthefinancialproductisappropriatetotheparticularinvestmentobjectives,financialsituationorparticularneedsofaclient;or

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(b) advicegivenby-

(i) the board or any boardmember of a retirement fund or bya friendly society to themembers of the fund or society onbenefitsenjoyedortobeenjoyedbythosemembers;

(ii) theboardof trusteesor anyboardmemberof amedical aidfund to themembersof themedicalaidfund,onhealthcarebenefitsenjoyedortobeenjoyedbythosemembers;

(iii) a member of a professional association, including withoutlimitation, a legal practitioner, auditor or actuary,where theadviceisfortaxpurposesorancillarytosomeotheradvicethatisnotfinancialadvice;or

(c) anyotheradvisoryactivityexemptedfromtheprovisionsofthisActbyNAMFISA,bynoticeundersubsection(4)(d).

(4) NAMFISAmay,forthepurposesof-

(a) paragraph(b)ofthedefinitionof“financialservice”,afterconsultationwiththeadvisorycommittee,bynoticeintheGazette determineanyservicetobeafinancialservice;

(b) subparagraph(ii)ofthedefinitionof“financialservice”,bynoticeintheGazette exemptanyservicefromtheapplicationoftheprovisionsofthisAct;

(c) subparagraph(ii)ofthedefinitionof“officer”,bynoticeintheGazette designateagrouporclassofnaturalpersonsasofficers;and

(d) subsection(3)(c),bynoticeintheGazette,exemptanyadvisoryactivityfromtheapplicationoftheprovisionsofthisAct.

(5) TheMinistermay,forthepurposesof-

(a) paragraph(k)ofthedefinitionof“financialinstitution”,bynoticeintheGazette declareanypersonorentitytobeafinancialinstitution;

(b) paragraph(g)ofthedefinitionof“financialintermediary”,bynoticeintheGazette declareanypersonorentitytobeafinancialintermediary;and

(c) paragraph(h)ofthedefinitionof“financialserviceslaw”,bynoticeintheGazette declareanylawtobeafinancialserviceslaw.

(6) NAMFISAmayissuestandards,guidelines,bulletins,rules,directivesorothersubordinatemeasuresortakeanyothermeasuresthatNAMFISAisauthorisedorhasbeenauthorisedtoissueortakeunderthisActortheNAMFISAActinordertogiveeffecttoanyactionthatNAMFISAhastakenundersubsection(4)ortheMinisterhastakenundersubsection(5). (7) TheMinistermaymakeregulations,issueothersubordinatelegislationormeasuresortakeothermeasuresthattheMinisterisauthorisedtoissueortakeunder

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thisActortheNAMFISAActinordertogiveeffecttoanyactionthatNAMFISAhastakenundersubsection(4)ortheMinisterhastakenundersubsection(5).

Objects of Act

2. TheobjectsofthisActaretofoster-

(a) the financial soundness of financial institutions and financialintermediaries;

(b) thestabilityofthefinancialinstitutionsandmarketssector;

(c) thehighest standardsofconductofbusinessbyfinancial institutionsandfinancialintermediaries;

(d) thefairness,efficiencyandorderlinessofthefinancialinstitutionsandmarketssector;

(e) theprotectionofconsumersoffinancialservices;

(f) the promotion of public awareness and understanding of financialinstitutionsandfinancialintermediaries;and

(g) thereductionanddeterrenceoffinancialcrime.

Control over corporate bodies

3. (1) ForthepurposesofthisAct,eachofthefollowingisconsideredashavingcontroloveracorporatebodyorotherentity-

(a) inthecaseofacorporatebody-

(i) apersonthathasthepowertoappointadirectorormemberoftheboardofdirectors;

(ii) a personwhose consent is needed for the appointment of adirectorormemberoftheboardofdirectors;

(iii) apersonthat,eitheraloneorwithoneormoreassociates,holds20%ormoreof thevotingrightsattached tosharesorothersecuritiesinthecorporatebody;and

(iv) apersonthat,eitheraloneorwithoneormoreassociates,hasthepowertocontrol20%ormoreofthevotingrightsattachedtosharesorothersecuritiesinthecorporatebody;and

(b) inthecaseofanentitythatisnotacorporatebody,apersonthatisinapositiontocontrolorinfluenceinessentiallythesamemeasureasapersonreferredtoinparagraph(a),thebusinessorfinancialoperationsoftheentity.

(2) For the purposes of thisAct, a person referred to in any provisionofsubsection(1)(a)thatisconsideredashavingcontroloveracorporatebodyisalsoconsideredashavingcontroloveranysubsidiaryofthatcorporatebody.

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(3) Whereacorporatebodyisafinancial institution,forthepurposesofsubsection(1)(a)(iii)or(iv),theMinistermaybynoticeintheGazettedeterminealowerpercentagethan20%,toapplyeithergenerallyortoaclassoffinancialinstitutions. (4) NAMFISAmay inaparticular casedetermine that apersondoesordoesnotcontrolafinancialinstitution,subjecttosuchtermsandconditionsasmaybespecifiedinsuchdetermination. (5) NAMFISA may not make a determination that a person controls afinancialinstitutionpursuanttosubsection(4)unless-

(a) thepersonhasbeengivennoticeoftheproposeddeterminationandareasonableopportunity tomake representations toNAMFISAon thematter;and

(b) NAMFISA is satisfied that the person is in a position to control orinfluencethebusinessorfinancialoperationsofthefinancialinstitutioninessentiallythesamemeasureasapersonreferredtoinsubsection(1)(a).

CHAPTER 2INSURANCE

PART 1GENERAL

Definitions for this Chapter

4. (1) InthisChapter,unlessthecontextindicatesotherwise-

“actuarialbasis”,inrelationtoapolicy,meanstheunderlyingactuarialrules,specificationsand formulae,approvedbythevaluatoroftheregisteredinsurerorreinsurer,intermsofwhichapolicyoperatesandisexecutedascontemplatedbythisAct;

“capitaladequacyrequirement”meansanamountwhicharegisteredinsurerorreinsurerisrequiredtohave continuouslyinaccordancewiththerequirementsofthestandards;

“classofinsurance”meansaclassorclassesofinsurancedescribedinsection8,andareferenceinthisActtoaparticularclassofinsuranceisareferencetotheinsuranceofrisksfallingwithinthatparticularclassdeterminedinaccordancewithsection8;

“domesticpolicy” meansapolicyissuedinNamibiaandwhichispayableinNamibiainthe currencyofNamibia,and,inthecaseofalong-termpolicy,includesapolicywhichwasissued-

(a) onorafterMarch21,1990butbeforeJuly1,1998,otherthansuchapolicyin respect ofwhich the policyholder has inwriting requested the registeredinsurerconcernedthatitmustnotbemadepayableinNamibiainthecurrencyofNamibia;or

(b) before March 21, 1990 and which the policyholder has not requested thatthepolicybemadepayableoutsideNamibiainacurrencyotherthanthatofNamibiaorthepolicyholderhasspecificallymadethepolicytobepayableinNamibiainNamibiancurrency;

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“duedate”inrelationto -

(a) apremium,means-

(i) inthecaseofanewpolicy,theinceptiondateofthepolicy;

(ii) inthecaseofanexistingpolicywhichhasbeenrenewed,therenewaldateofthepolicy;and

(iii) inthecaseofanyextensionof,orotherchangeto,anexistingpolicy,theinceptiondateofsuchextensionorotherchange;and

(b) aninstalmentofapremiummeans, thecommencementdateof theperiodinrespectofwhichtheinstalmentispayable;

“foreign insurer”meansa foreignentity that isauthorisedbyorunder the lawsofacountryotherthanNamibiatocarryonthebusinessofinsuranceinthatcountryorinanothercountry;

“foreignreinsurer”meansaforeignreinsurer that isauthorisedbyorunder the lawsofacountryotherthanNamibiatocarryonreinsurancebusinessinthatcountryorinanothercountry;

“gapinsurance”meansgapinsuranceasdefinedintheregulations;

“insurance”means long-term insuranceor short-term insurance,and includesmicro-insurance;

“insuranceadvice”meansany recommendation,guidance,projectionorproposaloninsurancefurnishedbyanymeansormedium,toanypersonwhoisaclient,potentialclientorpolicyholder,orgroupofclients,potentialclientsorpolicyholders,whetherornotspecificallysoughtbythatpersonorgroup,andirrespectiveofwhetherornotsuchadviceresultsinatransactionbeingeffectedinrespectofinsurancebutdoesnotinclude-


(i) ontheprocedureforenteringintoatransactioninrespectofinsurance;

(ii) inrelationtothedescriptionofaninsuranceproduct;


(iv) in the form of objective information about a particular insuranceproduct, including information regarding the tax treatment of aparticularinsuranceproduct;


(vi) bywayofananalysisor reporton insurancewithoutanyexpressorimplied recommendation, guidance or proposal that any particulartransaction in respect of insurance is appropriate to the particularinsurance or investment objectives, financial situation or particularneedsofaclient;

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(b) advice given by a member of a professional association, including withoutlimitation,alegalpractitioner,auditororactuary,wheretheadviceisfortaxpurposesorancillarytosomeotheradvicethatisnotinsuranceadvice;or

(c) anyotheradvisoryactivityexempted fromtheprovisionsof thisChapterbyNAMFISAbynoticeundersubsection(2);

“insuranceintermediary”meansaninsuranceagentoraninsurancebrokerasdefinedinsection53;

“insurer”meansapersoncarryingonthebusinessofinsuranceorreinsurance;

“long-terminsurance”meansinsuranceofaclassorclassesdescribedinsection8aslong-terminsurance;

“Long-termInsuranceAct”means theLong-termInsuranceAct,1998(ActNo.5of1998);

“micro-insurance”meansmicro-insuranceasdefinedintheregulations;

“participatingpolicy”meansapolicy issuedbya registered insureror reinsurer thatentitlesitsholdertoparticipateintheprofitsoftheregisteredinsurerorreinsurer;

“participatingpolicyholder”meanstheholderofaparticipatingpolicy;

“policy”meansadocumentthatisawrittencontractofinsuranceorreinsuranceandincludesacertificateofcoverage,interimreceipt,renewalreceipt,oranyotherdocumentevidencingacontractofinsurance;

“policybenefits”meansoneormoresumsofmoney,servicesorotherbenefitsunderapolicyandincludesanannuity;

“policyholder”meansthepersonwhoentersintoadomesticpolicywithaninsurerorreinsurer;

“premium”meanstheconsiderationgivenortobegiveninreturnforanundertakingtoprovideinsurance;

“registeredinsurer”meansaninsurerthatisacompanyregisteredundersection11tocarryonlong-terminsuranceorshort-terminsurance,andforthepurposesofPart6,includesLloyd’sasdefinedinsection42;

“registeredinsuranceintermediary”meansaregisteredinsuranceagentoraregisteredinsuranceorreinsurancebrokerasdefinedinsection53;

“reinsurance”meansthebusinessofinsuringaninsurer,reinsurerormedicalaidfundinrespectofthecontractualobligationsofthatinsurer,reinsurerormedicalaidfund;

“reinsurer”meansapersoncarryingonthebusinessofreinsurance;

“registeredreinsurer”meansareinsurerthatisacompanyregisteredundersection11tocarryonlong-termreinsuranceorshort-termreinsurance,andthatislimitedbyitscertificateofregistrationtoreinsurance,andforthepurposesofPart6,includesLloyd’sasdefinedinsection42;

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“short-terminsurance” meansinsuranceofaclassorclassesdescribedinsection8as short-terminsurance;and

“Short-termInsuranceAct”meanstheShort-TermInsuranceAct,1998,ActNo.4of1998. (2) NAMFISAmay, for the purposes of paragraph (c) of the definitionof insuranceadvice,bynotice in theGazette,exemptanyadvisoryactivityfromtheapplicationoftheprovisionsofthisChapter.

Prohibitions

5. (1) A person may not carry on the business of insurance orreinsuranceinNamibia,unlessthatperson-

(a) isregisteredpursuanttosection11,ordeemedtoberegisteredpursuanttosection12,andcarriesontheclassorclassesofinsuranceindicatedinitscertificateofregistrationasaninsurerorreinsurer;and

(b) carriesonthatbusinessinaccordancewiththisAct. (2) Despitesubsection(1),NAMFISAmay,ifsatisfiedthatnoregisteredinsureror reinsurer isable, inanyparticularcase, toprovidepolicybenefitsunderapolicyonequitableterms,grantanexemptiontoanyforeigninsurerorforeignreinsurerto issueapolicypayable inNamibia in thecurrencyofNamibia thatprovides thosepolicybenefits. (3) NAMFISAmay set out terms and conditions in the standards withrespecttoforeigninsurersorforeignreinsurersreferredtoinsubsection(2). (4) Subsection(1)doesnotapplytotheactivitiesof-

(a) aretirementfundregisteredunderChapter5,ifandinsofarasitactsinaccordancewiththatChapter;

(b) afriendlysocietyregisteredunderChapter6orexemptedunder thatChapterfromtherequirementtobesoregistered,ifandinsofarasitentersintolong-termpoliciesinrespectofanyofwhich-

(i) thetotalvalueofthepolicybenefits,otherthananannuity,tobeprovided;or

(ii) thetotalamountofthepremiuminreturnforwhichanannuityistobeprovided,

doesnotexceedtheprescribedmaximumamount;or

(c) amedicalaidfundregisteredunderChapter7,ifandinsofarasitactsinaccordancewiththatChapter.

(5) Forthepurposesofsubsection(1),aperson,intheabsenceofevidencetothecontrary,isregardedascarryingonthebusinessofinsuranceorreinsuranceinNamibia,ifthatpersonperformsinNamibia-

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(a) anyacttheobjectorresultofwhichisthatanotherpersonentersintoorvariesapolicy inwhich thatfirst-mentionedpersonundertakes toprovidepolicybenefits;or

(b) in relation to a policy referred to in paragraph (a), any act directedtowards-

(i) maintaining, servicing, surrendering, or otherwise dealingwith,orprovidingaloaninrespectof,oronthesecurityof,suchpolicy;

(ii) collecting or accounting for premiums payable under suchpolicy;or

(iii) receiving, submitting, settling,assistingorotherwisedealingwiththesettlementof,aclaimundersuchpolicy.

(6) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Restrictions on use of certain designations

6. (1) Aperson,otherthanaregisteredinsurer,aregisteredreinsurer,aregisteredinsuranceintermediary,oraLloyd’sbroker,intermediary,representativeorunderwritermaynotcarryonbusinessunderanynameordescriptionwhichincludesanyofthefollowingwordsoraliteraltranslation,derivativeorabbreviationofanysuchwords-

(a) “assurer”, “assurance”, “insure”, “insurer”, “insurance”, “Lloyd’s”,“underwriter”or“underwriting”;or

(b) “advisor”,“agent”,“broker”,“consultant”,“guarantee”or“indemnity”,whenusedinconjunctionorassociationwiththeword“assurance”or“insurance”.

(2) NAMFISAmayissuestandardsexemptingapersonorclassofpersonsfromtheprovisionsofsubsection(1). (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Limitations

7. (1) Aregisteredinsurerorreinsurermaynot-

(a) carry on the business of insurance or reinsurance in Namibia orelsewhereotherthanfortheclassorclassesofinsuranceforwhichitisregistered;

(b) inNamibiaissuepoliciesotherthanwrittendomesticpolicies;or

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(c) vary a domestic policy so that it becomes payable either outsideNamibiaorinacurrencyotherthanthecurrencyofNamibia,orbothpayableoutsideNamibiaandinacurrencyotherthanthecurrencyofNamibia.

(2) Despitesubsection(1),attherequestofaregisteredinsurerorreinsurerconcernedandsubjecttotheprovisionsofanyotherlaw,NAMFISA,bynoticegiventotheregisteredinsurerorreinsurerandpublishedintheGazetteandifsatisfiedthatitwillnotbedetrimentaltotheinterestsofpolicyholdersandthatitisdesirableinthepublicinterest,may-

(a) grantpriorapprovaltoaregisteredinsurerorreinsurertoeffectorrenewreinsuranceoutsideNamibiasubjecttosuchconditionsorlimitationscontainedinthestandardsandasmaybedeterminedbyNAMFISAinanyparticularcase;

(b) grant exemption for a class or classes of policies to be issued in acurrencyotherthanthecurrencyofNamibia,exceptthateverypremiuminrespectofthatpolicymustbepaidinthesamecurrencyasthatinwhichthepolicyisissued;or

(c) allow the registered insureror reinsurer tocarryonabusinessotherthaninsuranceorreinsurancethatisancillarytotheclassorclassesofinsuranceorreinsuranceforwhichitisregisteredinaccordancewithanystandardsthatmaybeissuedonthesubject.

(3) Forthepurposesofsubsection(2)(c),anancillaryactivityforaninsurerorareinsurerregisteredforlong-terminsuranceincludes,butisnotlimitedto-

(a) providing investmentcounsellingservicesandportfoliomanagementservices;

(b) engagingintheprovisionofrealestatebrokerageservices;

(c) providinginformationprocessingservicesinNamibiatoentitieswhichthe insureror reinsurer controls and thatdonotprovide informationprocessingservicestootherentities;

(d) actingasacustodianofproperty;or

(e) issuingunit-linkedproducts. (4) For thepurposesof subsection (3)(e),“unit-linkedproducts”has themeaningandmustbesubjecttotherequirementssetoutinthestandards. (5) Subjecttosubsection(6),aninsurerorareinsurer,maynotberegisteredforclassesofinsurancethatincludebothlong-terminsuranceandshort-terminsurance. (6) Despite subsection (5) an insurer or reinsurer registered to carry onlong-terminsuranceorshort-terminsurancemayalsoberegisteredtocarryonmicro-insurance.

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Classes of insurance

8. (1) Forthepurposesofsubsections(2)and(3)-

“disability insurance business” means the business of providing or undertaking toprovidepolicybenefitsunderdisabilitypolicies;

“disabilityevent”means theeventof thefunctionalabilityof themindorbodyofapersonoranunbornpersonbecomingimpaired;

“disabilitypolicy”meansacontractintermsofwhichaperson,inreturnforapremium,undertakestoprovidepolicybenefitsuponadisabilityevent,andincludesareinsurancepolicyinrespectofsuchacontract;

“fund”means-

(a) afriendlysocietyreferredtoinChapter6;

(b) amedicalaidfundreferredtoinChapter7;

(c) apensionfundreferredtoinsection255;

(d) aretirementfundandabeneficiaryfundreferredtoinChapter5;

(e) a permanent fund, approved by the Minister, established for the purposesof providing benefits to its members in the event of sickness, accident orunemployment, or of providing benefits to surviving spouses, children,dependantsornomineesofdeceasedmembers,ormainlyforthesepurposes;or

(f) anyotherprescribedperson,arrangementorbusiness;

“fundinsurancebusiness”meansthebusinessofprovidingorundertakingtoprovidepolicybenefitsunderfundpolicies;

“fundpolicy”meansacontract intermsofwhichaperson, inreturnforapremium,undertakestoprovidepolicybenefitsforpurposesoffundinginwholeor inpart theliabilityofafundtoprovidebenefitstoitsmembersintermsofitsrules,otherthansuchacontractrelatingexclusivelytoaparticularmemberofthefundortothesurvivingspouse, children, dependants or nominees of a particular member of the fund, andincludesareinsurancepolicyinrespectofsuchacontract;

“funeralinsurancebusiness”meansthebusinessofprovidingorundertakingtoprovidepolicybenefitsunderfuneralpolicies;

“funeralpolicy”meansacontractintermsofwhichaperson,inreturnforapremium,undertakestoprovideonthedeathofaparticularpersonpolicybenefits,notexceedingsuchamountasmaybeprescribed,consistingmainlyoftheprovisionofafuneralforthe deceased person or the granting to another person of some other non-monetarybenefit,whetherornotthepolicyprovidesfor-

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(a) thepayment,attheoptionoftheinsurerorthereinsureroranyotherperson,ofasumofmoneyinsteadoftheprovisionofsuchfuneralorthegrantingofsuchothernon-monetarybenefit;or

(b) thepaymentofasumofmoneyinadditiontotheprovisionofsuchfuneralorthe granting of such other non-monetary benefit, and includes a reinsurancepolicyinrespectofsuchacontract;

“healthevent”meansaneventrelatingtothehealthofthemindorbodyofapersonoranunbornperson;

“healthinsurancebusiness”meansthebusinessofprovidingorundertakingtoprovidepolicybenefitsunderhealthpolicies;

“healthpolicy”meansahealthpolicywithinthemeaningoftheregulations;

“life insurancebusiness”means thebusinessofprovidingorundertaking toprovidepolicybenefitsunderlifepolicies;

“lifepolicy”means a contract in termsofwhich aperson, in return for apremium,undertakesto-

(a) providepolicybenefits-

(i) ondeath;

(ii) onthehappeningofaneventorcontingencydependentonhumanlife;or

(iii) foratermdependentonhumanlife;or

(b) payanannuityforacertainperiod;

andincludesareinsurancepolicyinrespectofsuchacontract;

“long-term insurance business” means the business of providing or undertaking toprovidepolicybenefitsunderlong-termpolicies,butdoesnotinclude-

(a) theactivitiesofanassociationofpersonsestablishedforthepurposesofrenderingaidtoitsmembersortheirdependants,commonlycalleda friendly society, which is registered under Chapter 6 or which isexempted from registration under that Chapter and which does notat any time after the commencement of this Act employ a personwhosemain remuneratedoccupation consists of inducingpersons tobecomemembersoftheassociationorcollectingfromthosememberscontributionsofsubscriptionstowardsthefundsoftheassociation;

(b) theactivitiesofapensionfund,aprovidentfundoraretirementannuityfundasdefinedinsection1oftheIncomeTaxAct,whichisregisteredasaretirementfundunderChapter5;

(c) theactivitiesofamedicalaidfundwhichisregisteredunderChapter7;

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(d) anyactivityconnectedwithandsubsidiarytoanybusinessotherthaninsurance or reinsurance,which in the opinion ofNAMFISA is notlong-terminsurancebusinessasordinarilyunderstood;

(e) anysuchbusinessasmaybeprescribedwhichisconsiderednottobelong-terminsurancebusinessforthepurposesofthisAct;

“long-termpolicy”meansadisabilitypolicy,fundpolicy,funeralpolicy,healthpolicy,lifepolicyorsinkingfundpolicy,oracontractcomprisingacombinationofanyofthesepolicies;

“sinkingfundinsurancebusiness”meansthebusinessofprovidingorundertakingtoprovidepolicybenefitsundersinkingfundpolicies;

“sinkingfundpolicy”meansacontract,other thana lifepolicy, in termsofwhichaperson,inreturnforapremium,undertakestoprovideoneormoresumsofmoneyonafixedordeterminablefuturedateaspolicybenefits,andincludesareinsurancepolicyinrespectofsuchacontract. (2) Theclassesoflong-terminsurancebusinessinrespectofwhich-

(a) aninsurermayberegisteredtocarryonbusiness,otherthanreinsurancebusiness;and

(b) areinsurermayberegisteredtocarryonreinsurancebusinessonly,

inNamibiaarethosesetoutinPart1ofSchedule1. (3) Theclassesofshort-terminsurancebusinessinrespectofwhich-

(a) aninsurermayberegisteredtocarryonbusiness,otherthanreinsurancebusiness;and

(b) areinsurermayberegisteredtocarryonreinsurancebusinessonly,

inNamibiaarethosesetoutinPart2ofSchedule1. (4) IfaregisteredinsurerorreinsurerorapersonapplyingforregistrationandNAMFISAdonotagreeastotheclasstowhichanyparticularlong-termorshort-terminsurancebusinessbelongs,orif thatinsurerorreinsurerorpersonsorequests,NAMFISAmustdeterminetheclassunderwhichthebusinessmustbedealtwith. (5) The Minister may on his or her own accord or at the request ofNAMFISA,bynoticeintheGazette,amendSchedule1byaddingtoorremovingfromthatScheduleanyclassorclassesoflong-termorshort-terminsurancebusiness.

PART 2REGISTRATION

Application for registration

9. (1) ApubliccompanythatintendstocarryonbusinessasaninsurerorareinsurerinanyparticularclassorclassesofinsuranceinNamibiamustmakean

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application toNAMFISA for registration in respect of that class or those classes ofinsuranceinaccordancewithsubsection(2). (2) Anapplicationforregistrationasaninsurerorareinsurermustbe-

(a) madeinthemannerandformrequiredbythestandards;

(b) includetheinformationwithrespecttotheprincipalofficeandprincipalofficerrequiredbythestandards;

(c) accompaniedbythedocumentsandotherinformationrequiredbythestandards;

(d) accompaniedbysuchfurtherinformationthatNAMFISAonreasonablegroundsmayrequireinanyparticularcase;

(e) madesubjecttoandinaccordancewithanyotherapplicableprovisionofthisAct;and

(f) accompaniedbytherequiredfee. (3) Beforemakinganapplicationreferredtoinsubsection(1),theapplicantmust,at theexpenseof theapplicant,givenoticeof theproposedapplication in twonewspaperscirculatingnationallyinNamibia,stating-

(a) thenameoftheapplicant;

(b) theplacewheretheapplicationandthememorandum,articlesandrulesoftheapplicantmaybeinspectedbymembersofthepublic;and

(c) theperiodwithinwhichobjections to theapplicationmaybe lodgedwithNAMFISA.

Registration requirements

10. (1) Beforeapprovingtheapplicationandregisteringtheapplicantasaninsurerorareinsurerforanyclassofinsurance,NAMFISAmustbesatisfiedonreasonablegroundsthattherequirementsofsubsection(3)havebeenmetandthattheapplicant-

(a) isapubliccompany;

(b) hasappointedaprincipalofficerpursuanttosection15whoisamemberoftheboardofdirectors;

(c) hasatleastfivedirectors-

(i) at least 50 percent of whom must be Namibian citizens orholdersofpermanentresidencepermitsandwhoareresidentinNamibia;

(ii) at least one third of whommust be independent within themeaningofthestandards;and

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(iii) noneofwhomisaregisteredinsuranceintermediary;

(d) has,inrespectofsuchinsurancebusinessinNamibia,capitalthatmeetsthecapitaladequacyrequirementsofthestandards;

(e) haspaidupcapitalandsurplusinNamibiandollarstotallingatleast-

(i) N$ 2 000 000 for registration for one class of long-terminsurance;

(ii) N$8000000forregistrationformorethanoneclassoflong-terminsurance;

(iii) N$2 000 000 for registration for one class of short-terminsurance;

(iv) N$8000000forregistrationformorethanoneclassofshort-terminsurance;

(v) N$200000forregistrationforfuneralinsurance;

(vi) N$200000forregistrationformicro-insurance;

(vii) NS12000000forregistrationforreinsurance;or

(viii) such greater amount in any of the cases referred to insubparagraphs(i)to(vii)astheMinistermayprescribe;

(f) has submitted toNAMFISAabusinessplan, certifiedby avaluator,covering a period of three years reflecting the classes of insuranceproposed to be undertaken and their respective risk profiles andproviding details of projected set-up costs, capital requirements,projecteddevelopmentofbusiness,solvencymarginsandreinsurancearrangements,andsuchbusinessplanhasbeenfoundsatisfactorybyNAMFISA;

(g) willbeinapositionto-

(i) carryon thebusinessof insurance in theclassorclasses forwhichtheapplicationhasbeenmade;

(ii) conduct all affairs relating to its insurance business inaccordancewithsoundinsuranceandfinancialprinciplesandpracticesandtheprovisionsofthisAct;

(iii) complywiththecapitaladequacyrequirementssetoutinthestandards;and

(iv) protecttheinterestsofpolicyholders;and

(h) willbeinapositiontoensurethatitsorganisationalorgroupstructurewillnotbesuchastohindereffectivesupervisionbyNAMFISA.

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(2) Forthepurposesofsubsection(1)(c)(i),theprincipalofficermaynotbeincludedincalculatingthe50percentrequiredpursuanttothatsubsection. (3) Before approving the application and registering the applicant,NAMFISAmustbesatisfiedonreasonablegroundsthat-

(a) inrelationtotheapplicantpubliccompany-

(i) everyshareholderorotherowner thatcontrols theapplicant,andeverydirector,theprincipalofficerandotherofficersoftheapplicantarefitandproperwithinthemeaningofthestandards;

(ii) thememorandum,articlesorotherfoundingdocumentsoftheapplicantarenotinconsistentwiththeprovisionsofthisAct;

(iii) thedirectorindirectcontrolofthepubliccompanyisnotlikelyto be contrary to the interest of consumers of the financialservicesconcerned;and

(iv) theapplicantwillbeinapositiontoensurethatitsorganisationalor group structure will not be such as to hinder effectivesupervisionbyNAMFISA;

(b) doingsoisnotcontraryto-

(i) thisAct;or

(iii) thepublicinterest;

(c) theapplicanthastheattributesreasonablynecessaryandadequateto-

(i) provide the financial services in question with professionalintegrity,prudence,properskillandduediligence;

(ii) maintain a soundfinancial position and not cause or furtherinstabilityinthefinancialsystemofNamibia;and

(iii) complywiththisAct;

(d) the name under which the applicant proposes to conduct business,or a translation, shortened formor derivative of that name is not incontraventionofsection391;

(e) theapplicanthassubmittedallotherinformationwhich,intheopinionofNAMFISA,isnecessarytoassesstheapplication,andsuchinformationhasbeenfoundsatisfactorybyNAMFISA;and

(f) theapplicanthascompliedandwillcontinuetocomplywithanyotherrequirementscontainedinthisActorinthestandardswhichapplytotheapplicant.

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Registration

11. (1) IfNAMFISAissatisfiedthattheapplicantcomplieswiththeprovisionsofsections9and10,andafterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsection9(3),NAMFISAmust,subjecttoconditionsthatmaybeimposedundersubsection(4),registertheapplicantasaninsurerorareinsurertocarryonthebusinessoflong-terminsuranceorshort-terminsuranceintheclassorclassesinrespectofwhichregistrationhasbeengranted. (2) Theregistrationreferredtoinsubsection(1)mustspecify-

(a) theprincipalofficeoftheapplicantinNamibia;and

(b) theplacesinNamibiafromwhichtheapplicantmayoperate.

(3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Aninsurerorareinsurermustcomplywiththeconditionssubjecttowhichitwasregistered.

Insurers and reinsurers previously registered

12. An insurer or a reinsurer that was registered under the Long-termInsuranceActortheShort-termInsuranceActonthedateofcommencementofthisActisdeemedtobearegisteredinsurerorreinsurerundersection11and,subjecttosuchadjustmentsasmaybenecessaryandanyapplicablestandard,theprovisionsofthisActapplytothatinsurerorreinsurer.

Application for cancellation or variation of registration

13. (1) Aninsurerorareinsurermayatanytime,applytoNAMFISAforcancellationofaregistrationgrantedpursuanttosection11orforavariationtotheclassesofbusinessforwhichitwasregisteredortotheconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-


(b) accompaniedbythedocumentsandotherinformationrequiredbythestandards;

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(c) accompaniedbysuchfurtherinformationthatNAMFISAonreasonablegroundsmayrequireinanyparticularcase;and

(d) accompaniedbytherequiredfee. (3) Beforemakinganapplicationpursuanttosubsection(1),theapplicantmust give prior notice of the proposed application in two newspapers circulatingnationallyinNamibiaattheexpenseoftheapplicantstating-


(b) either-

(i) thereasonsfortheproposedcancellation;

(ii) thenatureoftheproposedvariationtotheclassesofbusinessforwhichitwasregistered;or

(iii) thenatureoftheproposedvariationtotheconditions;and


(4) Section 11 applies with the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1). (5) If,afterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsubsection(3),NAMFISAisoftheopinionthatitisreasonabletodosoandnotagainstthepublicinterest,NAMFISAmay,bynoticetotheinsurerorreinsurerconcerned-

(a) canceltheregistration;or

(b) varytheconditionsofregistration,includingtheimpositionofadditionalconditions.

(6) NAMFISA must make public any cancellation of registration orvariationofconditionsofregistrationundersubsection(5)andthereasonstherefor,bynoticeintheGazetteorbymeansofanyotherappropriatepublicstatement.

Cancellation or variation of registration

14. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2),ifNAMFISA,actingreasonably,findsthat-

(a) aregisteredinsurerorreinsurerhasmadeamaterialmisrepresentationor failed to provide information that was materially relevant in itsapplicationforregistration;

(b) aregisteredinsurerorreinsurerhasfailedtocomplywiththisAct;

(c) aregisteredinsurerorreinsurernolongermeetstherequirementsforregistration;

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(d) aregisteredinsurerorreinsurerhasprovidedfinancialserviceswithoutprofessionalintegrity,prudence,properskillandduediligence;

(e) aregisteredinsurerorreinsurerisinanunsoundfinancialposition;

(f) aregisteredinsurerorreinsurerhasfailedtocomplywithadirective,requestorrequirementofNAMFISAissuedunderthisAct;

(g) aregisteredinsurerorreinsurerhasfailedtogiveeffecttoadecisionoftheAppealBoard;

(h) aregisteredinsurerorreinsurerhasceasedtooperateorhasfailedtocommenceoperatingwithinareasonabletimeafterbeingregistered;

(i) aregisteredinsurerorreinsurerisinvolvedinafinancialcrime;or

(j) anydirector,theprincipalofficer,otherofficerormemberofaboardoftheregisteredinsurerorreinsurernolongermeetsthefitandproperrequirementswithin themeaningof the standardsorhas engaged inconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredinsurerorreinsurer-

(a) cancelitsregistration;

(b) vary the conditions of its registration, including the imposition ofadditionalconditions;or

(c) take any other steps that NAMFISA may consider necessary oradvisable.

(3) Beforetakinganyactionpursuanttosubsection(2),NAMFISAmustgivenoticetotheregisteredinsurerorreinsurerofitsintentiontotaketheaction,togetherwiththereasonstherefor,andmustgivetheregisteredinsurerorreinsurerareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredinsurerorreinsurermaymakerepresentationstoNAMFISAonthematter. (4) SubjecttosuchconditionsasNAMFISAmayimpose,NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredinsurerorreinsurerwithoutgivingnoticeandanopportunitytobeheardpursuanttosubsection(3),ifNAMFISAissatisfiedonreasonablegroundsthatitisurgentlynecessarytodosoinordertopreventormitigatedamagetotheinterestsoffinancialinstitutions,financialintermediaries,theirclientsorthefinancialsystemofNamibia,butNAMFISAmust-

(a) givetheregisteredinsurerorreinsurerthenoticeandanopportunitytobeheardandmakerepresentationsassoonasreasonablypossible;and

(b) havingconsideredanyrepresentationsreceived,determinewhethertheprovisionalsuspensionshouldbecontinueduntilfurtherconditionscanbeimposedorregistrationcancelled.

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(5) Onthecancellationoftheregistrationofaninsurerorareinsurerundersection13,subsection(2)(a)oranyotherapplicableprovisionofthisAct,theinsurerorreinsurermustbewound-upinaccordancewiththerequirementsofChapter10,andNAMFISAmusttakesuchstepsandmayimposesuchconditionsasarenecessaryinthecircumstances,whichstepsmayincludethetransferofthebusinessoftheinsurerorreinsurertoanotherinsurerorreinsurer,asappropriate,butnodistributionoftheassetsoftheinsurerorreinsurermaybemadewithoutthepriorapprovalofNAMFISA. (6) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranyotherstepstakenunderthissection and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (7) Apersonwho-

(a) continues to operate, or engage in, the business of insurance orreinsuranceafterthecancellationofregistrationundersection13(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(4);or

(b) fails to comply with a condition imposed by NAMFISA undersubsection(4),

commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

PART 3ADMINISTRATION

Principal office and principal officer

15. (1) Everyregisteredinsurerorreinsurermust-

(a) haveaprincipalofficeinNamibiawhereitmustholdandmaintainthedocumentsreferredtointhestandards;and

(b) appointtobeitsprincipalofficerinNamibia,afitandproperpersonwithinthemeaningofthestandards,whois-

(i) aNamibiancitizenorpermanentresident;and

(ii) residentinNamibia.

(2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),aregisteredinsurerorreinsurermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment.

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(4) NAMFISAmay,onthegroundsthataprincipalofficerisnotafitandproper person, within themeaning of the standards, and after giving the registeredinsurerorreinsurerandtheprincipalofficerareasonableopportunitytobeheard,directtheregisteredinsurerorreinsurertoappointsomeotherpersontobetheprincipalofficeroftheregisteredinsurerorreinsurer. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregisteredinsurerorreinsurerorbytheexpiryofacontractofemployment,theregisteredinsurerorreinsurermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredinsurerorreinsurer,thereasonsfortheresignation. (6) The principal officer of a registered insurer or reinsurer must be amemberoftheboardoftheinsurerorreinsurer. (7) TheprincipalofficerofaregisteredinsurerorreinsurerisauthorisedtoactonbehalfoftheinsurerorreinsurertoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswiththatinsurerorreinsurer,thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (8) Processinanylegalproceedingsmaybeservedonaregisteredinsurerorreinsurerbyservingacopythereofatitsprincipaloffice. (9) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Accounts

16. AregisteredinsurerorreinsurermustkeepinNamibiaproperaccountsof, and financial information relating to, its insurance or reinsurance business thatcomplywiththerequirementsofthestandards.

Appointment of auditor

17. (1) A registered insurer or reinsurer must, in accordance withsection401,appoint,andatalltimeshave,anauditororfirmofauditorstobeitsauditorforitsinsurancebusinessinNamibia. (2) Aregisteredinsurerorreinsurermaynotappointasitsauditor-

(a) anauditorwhois;or

(b) afirmofauditorsanymemberofwhichis,

anemployee,officer,directororshareholderoftheregisteredinsurerorreinsurerorofaninsuranceintermediarythatisaffiliatedwiththeregisteredinsurerorreinsurer. (3) NAMFISAmaydirect a registered insureror reinsurer to change itsauditorifNAMFISAissatisfiedthattheauditororanymemberofthefirmofauditorsappointedasauditorisanemployee,officer,directororshareholderoftheregistered

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insurerorreinsurerorofaninsuranceintermediarythatisaffiliatedwiththeregisteredinsurerorreinsurer. (4) Anauditorappointedundersubsection(1)-

(a) mustperformthefunctionsanddutiesassignedto;

(b) mustexercisethepowersconferredon;and

(c) issubjecttotheobligationsimposedon,

anauditorbysection401.

Appointment of valuator

18. (1) A registered insurer or reinsurer must, in accordance withsection402,appoint,andatalltimeshave,avaluatorforthepurposesofthisAct. (2) A registered insurer or reinsurermay not appoint as its valuator anemployee,officer,directororshareholderoftheregisteredinsurerorreinsurerorofaninsuranceintermediarythatisaffiliatedwiththeregisteredinsurerorreinsurer. (3) Aregistered insureror reinsurer thatwasregisteredunder theShort-termInsuranceActmustappointavaluatorwithin90daysofthecomingintoforceofthisPart. (4) The valuator of a registered insurer or reinsurer thatwas registeredunder the Long-term InsuranceActmay continue as the valuator of that registeredinsurerunderthisAct,aslongasthevaluatormeetstherequirementsofsubsection(2)andsection402(2). (5) NAMFISAmaydirect a registered insureror reinsurer to change itsvaluatorifNAMFISAissatisfiedthatthepersonappointedasvaluatorisanemployee,officer,directororshareholderoftheregisteredinsurerorreinsurerorofaninsuranceintermediarythatisaffiliatedwiththeregisteredinsurerorreinsurer. (6) Inadditiontothefunctionsanddutiesassignedtoavaluatorbysection402,avaluatorofaregisteredinsurerorreinsurermustvaluetheactuarialandotherpolicy liabilities of the registered insurer or reinsurer with respect to its insurancebusinessinNamibiaasattheendofeachfinancialyear,andprepareavaluationreportthereonforthatfinancialyear. (7) Thereportofthevaluatorreferredtoinsubsection(6)mustincludeanyparticularssetoutinthestandards. (8) The registered insurer or reinsurer must, within 180 days from theendofthevaluationperiod,andsubjecttosection402(10)(a),depositacopyofthevaluationreportreferredtoinsubsection(6)withNAMFISA. (9) Whenever a registered insurer or reinsurer depositswithNAMFISAa copy of a reportmade by a valuator under this section, itmust also depositwithNAMFISAacertificateoftheboardandoftheprincipalofficeroftheregisteredinsurerorreinsurerthattothebestoftheirknowledgeandbelieftheinformationfurnishedto

47

thevaluatorforthepurposesofthereportwascorrectandcompleteineverymaterialrespect. (10) Avaluatorappointedundersubsection(1)-




avaluatorbysection402. (11) Any personwho contravenes or fails to complywith subsection (8)or (9) ormakes a false ormisleading statementwhen required to issue a certificatepursuanttosubsection(9)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

PART 4CONDUCT OF INSURANCE BUSINESS

Conduct of insurance business

19. (1) A registered insurer or reinsurer must, in carrying on thebusinessofinsuranceandconductingitsaffairs-

(a) inallrespectsacthonestlyandingoodfaith;

(b) employsoundinsuranceprinciplesandfinancialpractices;and

(c) complywiththeprovisionsofthisActandanyotherapplicablefinancialserviceslaw.

(2) Everyregisteredinsurerorreinsurermust-

(a) hold instrictconfidenceall informationconcerning thebusinessandaffairsofanyclientof theregistered insureror reinsureracquired inthecourseoftheprofessionalrelationshipwiththatclientandmaynotdivulgeanysuchinformationunless-

(i) authorisedinwritingbytheclient;

(ii) required by thisAct or any other law or by an order of thecourt;or

(iii) as may be necessary in order to arrange or provide for theinsurancerequiredbytheclient;

(b) observe the requirementsof thisActandallother relevant rulesandlegislationregardingthepreservationandsafekeepingofthepropertyofthecliententrustedtotheregisteredinsurerorreinsurerand,iftherearenosuchrequirements,rulesorlegislation,ortheregisteredinsurerorreinsurerisindoubt,takethesamecareofsuchpropertyasacareful

48

andprudentpersonwould takeof thatperson’sownpropertyof likedescription;

(c) not stipulate, chargeor accept any fee that is not fullydisclosed, orthe basis forwhich is not fully disclosed, prior to the service beingrendered,orwhichissodisproportionatetotheserviceprovidedastobeunconscionable;

(d) maintain accounts and financial records in respect of the businesscarriedoutforaperiodofatleastfiveyearsaftertheperiodtowhichthoseaccountsandrecordsrelate;

(e) complywith such instructions asmaybe issuedbyNAMFISAwithrespecttothespecificaccounting,financialandotherrecordsthatmustbemaintainedfortheparticulartypeofactivityinwhichtheregisteredinsurerorreinsurerisengaged.

(3) A registered insurer or reinsurer may not, without the prior writtenapprovalofNAMFISA,makeadditionstooraltertheprovisionsofitsmemorandum,articlesorrules,andanypurportedadditionoralterationwithoutthatapprovalisvoid,despiteanyprovisioninanyotherlaw.

Financially sound position

20. (1) Aregisteredinsurerorreinsurermustatalltimesmaintainitsbusinessinafinanciallysoundpositionby-

(a) havingassetsexceedingthecapitaladequacyrequirementsassetoutinthestandards;and

(b) generallyconductingitsbusinesssothatitisinapositiontomeetitsliabilitiesandcapitaladequacyrequirementsatalltimes.

(2) For the purposes of determining the compliance of each registeredinsurerorreinsurerwiththecapitaladequacyrequirements,thevaluesoftheassetsandliabilitiesofeachregisteredinsurerorreinsurermustbedeterminedinaccordancewiththestandards. (3) Aregisteredinsurerorreinsurermustberegardedashavingfailedtocomplywithsubsection(1)ifit-

(a) doesnothaveassetsasrequiredunderthisAct;or

(b) has not made provision for the liabilities and the capital adequacyrequirementsinaccordancewiththisActandthestandards.

(4) Aregisteredinsurerorreinsurermaynotdeclareorpayadividendtoitsshareholders-

(a) whileitfailsorislikelytofailtocomplywithsubsection(1);

(b) ifthedeclarationorpaymentwouldresultinitfailingorbeinglikelytofailtocomplywithsubsection(1);or

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(c) if, after the declaration or payment, the aggregate value of assetsrequiredunderthisActwouldbeless thantheaggregatevalueof itsliabilities,issuedsharecapitalandnon-distributablereserves.

(5) Aregisteredinsurerorreinsurermaynotdeclareorpayadividendtoitsshareholdersunlessitsvaluatorhascertifiedthatthedeclarationorpaymentwillnotbecontrarytosubsection(4). (6) Aregisteredinsurerorreinsurermay,subjecttotheprovisionsofthisActandtheregulations,investitsfundsinanymannerprovidedbyitsmemorandum,articlesorrules. (7) TheMinistermaymakeregulationsandNAMFISAmayissuestandardsinrespectoftheinvestmentsby,orof,aregisteredinsurerorreinsurer. (8) Anypersonwhomakesaninvestmentincontraventionof,orfailstocomplywithsubsection(1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Restrictions on pledging assets and borrowing


(a) pledge,hypothecateorotherwiseencumberanyofitsassets;or

(b) allowanyotherpersontoholdanyassetsonitsbehalf,

unlesstheassetinquestionformspartofassetsthatareregardedasfreeassetsoftheregisteredinsurerorreinsurerasdeterminedinthestandards. (2) Where an asset of a registered insurer or reinsurer is held, pledged,hypothecatedorotherwiseencumberedascontemplatedinsubsection(1),thevalueofthatassetmust,forthepurposesofthisAct,bereducedproportionatelytotheextenttowhichitissoheld,pledged,hypothecatedorotherwiseencumbered. (3) Aregisteredinsurerorreinsurermaynot-

(a) borrowmoney;or

(b) guaranteetodischarge,orbinditselfassuretyforthedischargeof,thedebtsorotherobligationsofanyperson,

unless theborrowingofmoneyor thegrantingof theguaranteeorsurety isdoneoreffectedagainstthesecurityofthefreeassetsoftheregisteredinsurerorreinsurerasdeterminedinthestandards. (4) Apersonwhocontravenesor fails to complywith subsection (1)or(3)commitsanoffenceand is liableonconviction toafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Actuarial soundness of policies


(a) enterintoanypolicyunlessthevaluatorissatisfiedthatthepremiums,benefitsandothervaluesthereofareactuariallysound;

(b) makeadistinctionbetweenthepremiums,benefitsorothervaluesofdifferentpoliciesunlessthevaluatorissatisfiedthatthedistinctionisactuariallyjustified;or

(c) awardabonusorsimilarbenefittoapolicyholderunless-

(i) it is done in accordancewith theprinciples andpractices offinancial management of the registered insurer or reinsurer;and

(ii) the valuator is satisfied that it is actuarially sound and thatpaymentofthebonuswillnotcausetheinsurerorreinsurertobeincontraventionofsection20.

(2) For thepurposesof subsection (1)(c)(i), “principles andpracticesoffinancialmanagement”meansa statementapprovedby theboardofdirectorsof theregisteredinsurerorreinsurersettingoutthediscretionretainedbytheboardofdirectorsandtheparameterswithinwhichthatdiscretionmustbeexercisedinrespectofpolicieswhere the registered insureror reinsurerhas to exercise itsdiscretion in awardingabonusorsimilarbenefit.

Prohibition against tied selling

23. (1) Aperson(hereinafterinthissectionreferredtoas“thecreditor”)maynot-

(a) lendoroffertolendmoney;

(b) renderoroffertorenderanyservice;

(c) leaseoroffertoleasegoods;or

(d) grantoroffertograntcredit,

to anyperson (hereinafter in this section referred to as “the creditor”), on conditionthatthedebtororanyotherpersonmusttakeoutinsurancefromthatcreditororfromaspecificinsurer,reinsurerorinsuranceintermediarynominatedbythecreditor. (2) Despitesubsection(1),whereforthepurposesofsecuringadebtorotherobligationarisingfromatransactioncontemplatedinthatsubsectionitisreasonable,havingregardto-

(a) thecreditworthinessofthedebtor;

(b) anyothersecurityfurnishedorofferedbythedebtor;and

(c) anyotherrelevantconsideration,

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forthecreditortorequirethedebtororotherpersonconcernedtotakeoutinsurance,thecreditormustprovidethedebtor,beforethetransactionisenteredinto,withawrittenstatement indicating, inbold face typeof at least15points, that thedebtororotherpersonconcernedhas-

(i) no obligation to acquire such insurance from the creditor orfrom a specific insurer, reinsurer or insurance intermediarynominatedbythecreditor;and

(ii) a reasonableperiodof time,whichmustnotbe less than48hours,toprovideotheralternativesourcesforsuchinsurancefromoneormoreregisteredinsurersorreinsurersorinsuranceintermediaries.

(3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Policies: miscellaneous provisions

24. (1) Despite anything to the contrary contained in any domesticpolicyoranydocumentrelatingtosuchpolicy,anysuchpolicyissuedbeforeorafterthecommencementofthisActmaynotbeinvalidated,andtheobligationofaregisteredinsurerorreinsurerunderthatpolicymaynotbeexcludedorlimited,andtheobligationsof the policyholdermay not be increased, on account of any non-disclosure or anyrepresentationmade to the registered insureror reinsurerwhich isnot true,whetheror not the representation has beenwarranted to be true, unless the incorrectness ofsuchrepresentationisofsuchanatureastobelikelytohavemateriallyaffectedtheassessmentoftheriskunderthepolicyatthetime-

(a) ofitsissue;

(b) ofanyreinstatementorrenewalthereof;

(c) amaterialchangeismadetothepolicy;or

(d) thepolicyisconvertedtoanotherpolicy. (2) Forthepurposesofsubsection(1),arepresentationornon-disclosureismaterialifareasonable,prudentpersonwouldconsiderthattheparticularinformationconstitutingtherepresentationorwhichwasnotdisclosed,oughttohavebeencorrectlydisclosedtotheregisteredinsurerorreinsurersothattheregisteredinsurerorreinsurercouldformitsownviewastotheeffectofsuchinformationontheassessmentoftherelevantrisk. (3) ApolicyissuedbyaregisteredinsurerorreinsurerbeforeorafterthecommencementofthisActwillnotbeinvalidatedonaccountofthenon-compliancebytheregisteredinsurerorreinsurerwithaprovisionofanylawapplyingtothatpolicy. (4) Interest on an unpaid premium, or on a loan or advancemade by aregisteredinsurerorreinsureronthesolesecurityofapolicyunderwhichtheregisteredinsurerorreinsurerisliable,willceasetoaccruewhenthatinteresthasaccumulatedtoanamountequaltotheamountofthatunpaidpremium,loanoradvance.

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(5) InthecaseofapolicyissuedafterDecember31,1973,adebtarisingoutofanunpaidpremium,oroutofaloanoradvancereferredtoinsubsection(4),willnotbecomeprescribedbeforetheliabilityoftheregisteredinsurerorreinsurerunderthatpolicybecomesprescribed.

Publication of statements of capital

25. (1) Aregisteredinsurerorreinsurermaynotpublishanystatementconcerning its authorised, subscribedor paidup capital other than that shown in itsauditedfinancialstatements. (2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Prohibition against securing business for unregistered person

26. (1) Apersonmaynotinduceorattempttoinduceanyotherpersontoenterintoortomakeanapplicationtoenterintoadomesticpolicywithathirdpersonwhoisnotaregisteredinsurerorreinsurer. (2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Restriction on acquisition of shares or other interests

27. (1) In this section “registered insurance intermediary” means aregisteredinsurancebrokerasdefinedinsection53,aregisteredreinsurancebrokerasdefinedinsection53andaLloyd’sbrokerasdefinedinsection42. (2) ExceptwiththepriorwrittenapprovalofNAMFISA-

(a) a registered insurance intermediary the main business of whichincludesprovidinganyfinancialserviceinconnectionwithshort-terminsuranceortheprincipalofficerorarepresentativeofthatinsuranceintermediarymaynotacquireorholdsharesinaninsurerorareinsurerthatisregisteredtocarryonshort-terminsurance;

(b) an insurer or a reinsurer that is registered to carry on short-terminsurancemaynot acquireorhold sharesor interests in a registeredinsuranceintermediarythemainbusinessofwhichincludesprovidinganyfinancialserviceinconnectionwithshort-terminsurance;

(c) a registered insurance intermediary the main business of whichincludesprovidinganyfinancialserviceinconnectionwithlong-terminsuranceortheprincipalofficerorarepresentativeofthatinsuranceintermediary,maynotacquireorholdsharesinaninsurerorareinsurerthatisregisteredtocarryonlong-terminsurance;and

(d) an insurer or a reinsurer that is registered to carry on long-terminsurancemaynot acquireorhold sharesor interests in a registered

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insuranceintermediarythemainbusinessofwhichincludesprovidinganyfinancialserviceinconnectionwithlong-terminsurance.

(3) Subsection(2)doesnotapplytosharesorintereststhatareacquiredorheldasaresultof-

(a) anamalgamation;

(b) thedemutualisationofaregisteredinsurerorreinsurerthatisamutualcompany;or

(c) havingreceivedsuchsharesorinterestsinpaymentofadebt. (4) A person who contravenes or fails to comply with subsection (2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Participating policies

28. (1) The holder of one or more participating policies issued bya registered insureror reinsurer isentitled toattendmeetingsofpolicyholders,orofshareholdersandpolicyholders,oftheinsurerorreinsurerandisentitledtoonevoteatanysuchmeeting. (2) Theboardofdirectorsofaregistered insurerorreinsurer that issuesparticipatingpolicies,must-

(a) beforeissuinganyparticipatingpolicies;or

(b) inthecaseofaregisteredinsurerorreinsurerthatwasregisteredundertheLong-termInsuranceAct,within12monthsafterthecomingintoforceofthisPart,

establish,inaccordancewiththestandardsapolicyfordeterminingthedividendsandbonusestobepaidtotheparticipatingpolicyholders. (3) Aregisteredinsurerorreinsurer,thedirectorsofwhichestablishorvaryadividendpolicyundersubsection(2),must,within30daysaftertheestablishmentorvariation,sendacopyofthedividendpolicytoNAMFISA.

Plain language

29. Suchpolicies,certificatesofcoverage,relateddocumentsandanyotherdocumentsspecifiedinthestandardsmustbewritteninplainlanguageasdescribedinthestandards.

Misleading, false and deceptive statements: consequences of conviction

30. (1) Where a registered insurer or reinsurer is convicted of anoffenceundersection406-

(a) the registered insureror reinsurermaynot enforce apolicywhich apersonwasinducedtoenterintounlesssorequestedinwritingbythepersoninduced;

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(b) thepersonwhowasinducedtoenter intothepolicymaycancel thatpolicyandrecoverfromtheregisteredinsurerorreinsureranymoneyorotherpropertypaidortransferredbythepersonundersuchpolicy,togetherwithsuchcompensationforanylosssustainedasaresultofsuchpayment or transfer as the person and the registered insurer orreinsurermayagreeuponorasacourtmaydetermine,butifthatpersonexercises therightof recoveryunder thissubsection, thepersonwillnotreceiveanybenefitsunderthepolicyandmustrepayanybenefitsalreadyreceived;or

(c) apersonwhowasinducedtoexerciseorrefrainfromexercisinganyrightsunderapolicyreferredtoinparagraph(a)may,notmorethan90daysaftertheconvictionoftheregisteredinsurerorreinsurer-

(i) nullifytheactionthepersonwasinducedtotake;and

(ii) exerciseorrefrainfromexercisingsuchrightsinsuchmannerasthepersonmaydetermineregardlessofatimelimitthatmayhaveexisted in thepolicy in respectof theexerciseof thoserights.

(2) Subsection (1) does not limit any other right of a person to enforceanyotherrightsinfringedbyanyactionforwhicharegisteredinsurerorreinsurerisconvictedunderthisAct.

PART 5CERTAIN LONG-TERM POLICIES

Life policies: minors

31. (1) Apersonwhohasattainedtheageof18yearsmay,withouttheconsentorassistanceofhisorherguardian-

(a) effectalifepolicyonhisorherlife;

(b) payanypremiumdueunderthelifepolicywithmoneywhichtheminorhasearnedorwithanyothermoneyathisorherdisposal;

(c) giveanundertakingtomaintainthelifepolicyforaspecifiedperiodand cede his or her present or future earnings as security for suchundertaking;and

(d) cede,pledgeorsurrenderthelifepolicy. (2) Ifanymoneybecomespayabletoapersonwhohasattainedtheageof18yearsunderalifepolicyeffectedbythatpersononhisorherownlife,theregisteredinsurerorreinsurerthatisliableunderthelifepolicymustpaythatmoneytothatperson,andthatpersonmaydealtherewithasheorshethinksfitwithouttheconsentofhisorherguardian. (3) Any discharge given by a person referred to in subsection (1) to aregisteredinsurerorreinsurerwithouttheconsentorassistanceofhisorherguardianwithregardtoapaymentmadeintermsofsubsection(2),willbeoffullforceandeffect.

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Life policies: married persons

32. Despite the provision of any law, including the law relating tocommunityofpropertyordonationbetweenspouses,butsubjecttotheprovisionsofthisPart,amarriedperson-

(a) mayeffectandownalifepolicy;

(b) mayholdand,bywayofgiftorotherwise,acquirefromordisposeoftoanyperson,includingaspouse,anyrightorinterestinalifepolicy;

(c) becomestheownerof-

(i) anymoneyspaidbyaregisteredinsurerorreinsurerinrespectofanyrightorinterestheldbythatpersoninalifepolicyoranyassetsacquiredwiththosemoneys;and

(ii) anymoneysorassetsacquiredinrespectofthedisposalofanyrightorinterestheldbythatpersoninalifepolicyoranyassetsacquiredwiththosemoneys;and

(d) maydisposeofmoneysor assets referred to inparagraph (c) toanyperson,includingaspouse,bywayofgiftorotherwise,inallrespectsasifthatpersonwereasinglepersonoffullageandcapacity,andanysuchpolicy,right,interest,assetsormoneymaybeexcludedfromanyjointestate,whetherornotitwaseffected,acquiredorpaidbeforeorduringthemarriage.

Persons married in community of property

33. Ifapremiumpaidunderalifepolicyeffectedbyaspousemarriedincommunityofproperty,orunderalifepolicyinwhichthatspouseholdsanyrightorinterest,waspaidoutofmoneyswhichbelongedtothejointestateofbothspousesandtheliabilitiesofbothspousescontinuouslyexceededthevalueoftheirassetsfromthetimeofthepaymentofanysuchpremiumuntiltheirjointestatewassequestrated,thespousebywhomthelifepolicywaseffectedorbywhomtherightorinterestisheld,mustpayintotheinsolventestatetheamountofeverysuchpremiuminsofarasitspaymentcreatedorincreasedtheexcessofliabilitiesoverassetsinthejointestate.

Life policy on own life: protection during life

34. (1) Alifepolicyeffectedbyapersononhisorherownlifewhichhasenduredforaperiodofatleastthreeyearsfromthedateofthepaymentofthefirstpremiumandwhich-

(a) isattachedinexecutionofajudgmentoranorderofanycourtattheinstanceofajudgmentcreditorofthatperson;or

(b) becomespartof thatperson’s insolventestate,during the lifetimeofthatperson,

is,totheextentspecifiedinsubsection(2),protectedagainstanycreditorofthatpersonandagainstanyclaiminconnectionwiththeattachmentortheinsolvency.

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(2) The protection afforded in respect of a life policy referred to insubsection(1)extendstosomuchoftherealisablevalueofthelifepolicyasdoesnotexceedtheprescribedamount,exceptthat-

(a) wheretherearetwoormoresuchlifepolicies,theprotectionwillextendonlytotheamountdeterminedinaccordancewiththissubsection;and

(b) wherealifepolicyreferredtoinsubsection(1)ispledgedorcededassecurityforanyliability,therealisablevaluethereof,whichformsthesecurityfortheliabilityinrespectofwhichthelifepolicywaspledgedor ceded,may not be included as part of the amount determined inaccordancewiththissubsection.

(3) Where a life policy is afforded protection in the circumstancescontemplatedinsubsection(1),thepolicyholder,thejudgmentcreditororthetrusteeoftheinsolventestatemustnotifytheregisteredinsurerorreinsurerwhoisliableunderthatpolicyinwritingoftheprotection,whereupontheregisteredinsurerorreinsurermustissueanendorsementtothepolicytotheeffectthatduringthetimethatthejudgmentdebtremainsunsettledortheownerofthatpolicyremainsanunrehabilitatedinsolvent,thatpolicymaybedealtwithonlywiththepermissionofthejudgmentcreditororthetrusteeor,ifthereisnojudgmentcreditorortrustee,ofacourt. (4) Forthepurposesofthissection-

(a) alifepolicyissuedbyaregisteredinsurerorreinsurerinexchangefororinconsiderationofthesurrenderofanotherlifepolicyunderwhichtheregisteredinsurerorreinsurerwaspreviouslyliable,isdeemedtohavebeeneffectedonthedateonwhichthesurrenderedlifepolicywasissued,ifnopaymentotherthan-

(i) thevalueofthesurrenderedlifepolicy;and

(ii) anypremiumorpremiums thatwouldhavebecomepayableunderthatpolicyifitwerenotsurrendered;

wasreceivedbytheregisteredinsurerorreinsurerasconsiderationforthenewlifepolicy;and

(b) a lifepolicy issuedbyaregistered insurerorreinsurerundersection38(3) is deemed to have been effected on the date on which thesurrenderedlifepolicyforwhichitissubstituted,wasissued.

Life policy on own life: protection on death

35. (1) If a person has effected a life policy on his or her own lifewhichatthedateofthatperson’sdeathhasenduredforaperiodofatleastthreeyearsfromthedateofthepaymentofthefirstpremium,and-

(a) onthedeathofthatperson,andsubjecttotheprovisionsofsubsection(2),hisorherliabilitiesexceedhisorherassets,whetherornotthatpersonhasbeendeclaredaninsolvent;and

(b) thatpersonhasleftasurvivingspouse,childorparent,

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anymoneypayabletothedeceasedestateofthatpersonunderanysuchlifepolicymustbepaidtothatestate. (2) Moneypaidtoanestatepursuanttosubsection(1)-

(a) must, to the extent that it does not in the aggregate exceed theprescribedamount,devolveuponthesurvivingspouse,childorparentinaccordancewiththeprovisionsofavalidtestamentarydispositionofthatpersonor,ifthereisnovalidtestamentarydisposition,byrightofintestatesuccession;and

(b) is,totheextentthatitdoesnotintheaggregateexceedtheprescribedamount,notliabletobeattachedinexecutionofajudgmentoranorderofanycourtattheinstanceofajudgmentcreditorofthatpersonorofanyotherperson.

(3) Whencalculatingwhethertheliabilitiesofadeceasedpersonexceedhisorherassets,anylifepolicyeffectedbythedeceasedpersononhisorherownlifeandwhichhasenduredforaperiodofatleastthreeyearsfromthedateofthepaymentofthefirstpremium,maynotbeincludedasassetsofthedeceasedestatetotheextentthattherealisablevalueofsuchlifepolicyortheaggregaterealisablevalueofallsuchlifepoliciesdoesnotexceedtheprescribedamount.

Life policies: spouses and children

36. (1) Subsection(3)doesapplyinthesituationwhereaperson-

(a) cedesalifepolicyeffectedonhisorherownlifeto,orinfavourof,anypersonreferredtoinsubsection(2);

(b) effectsalifepolicyonhisorherownlifeoronthelifeofhisorherintendedspousewhomheorshethereaftermarriesoronthelifeofhisorherspouseinfavourofanypersonreferredtoinsubsection(2);or

(c) nominateshisorherintendedspouse(whom,forthepurposesofthissection,heorshethereaftermarries),spouseorchildasthebeneficiaryofalifepolicymentionedinparagraph(a)or(b).

(2) Thepersonsreferredtoinsubsection(1)(a)and(b)aretheperson’s-

(a) intendedspouse;or

(b) spouse,andadditionally,oralternatively,childorchildren, includinganunbornchild.

(3) A life policy referred to in subsection (1), ormoney becoming dueunder that life policy, subject to the provisions of this section and to the terms andconditionsonwhich thepersonmayhavecededor effected thepolicyormayhavemadethenomination-

(a) isnotliableforattachmentinexecutionofajudgmentoranorderofanycourtattheinstanceofajudgmentcreditorofthepersontowhomsuchlifepolicywascededorinwhosefavouritwaseffectedorwhohasbeennominatedasbeneficiarythereof;

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(b) maynotbecomepartoftheinsolventestateofthepersontowhomsuchlifepolicywascededor inwhosefavour itwaseffectedorwhohasbeennominatedasbeneficiarythereof,but-

(i) theprotectionaffordedintermsofthissectionmay,togetherwiththeprotectionaffordedinrespectoflifepoliciesintermsofanyotherprovisionof thisAct,notexceed theprescribedamount;and

(ii) where the lifepolicy ispledgedorcededassecurity foranyliability,therealisablevaluethereof,whichformsthesecurityfortheliabilityinrespectofwhichthelifepolicywaspledgedorceded,mustnotbeincludedaspartoftheamountdeterminedinaccordancewithsubparagraph(i).

(4) Theentitlementtoabenefitconferredorpurportedtobeconferreduponanintendedspouse,aspouseorchildunderalifepolicyinanyofthecircumstancescontemplatedinthissectionis,despite-

(a) any agreement to the contrary between the registered insurer orreinsurerliableundersuchpolicyandthepersonbywhomsuchpolicywaseffected;or

(b) thefactthattheintendedspouse,spouseorchildhasnotacceptedthatbenefitandisnotapartytothelifepolicy,

butsubjecttothetermsandconditionsonwhichsuchpolicywascededoreffectedorthenominationwasmade,enforceableagainst suchregistered insureror reinsurerattheinstanceoftheintendedspouse,spouseorchildorthelegalrepresentativeoftheintendedspouse,spouseorchild.

Protected life policies: selection for realisation

37. If-

(a) two ormore life policies in respect ofwhich protection is affordedundersection34,35or36,arethepropertyofonepersonandthelifepoliciesareattachedinexecutionofajudgmentoranorderofanycourtattheinstanceofajudgmentcreditorofthepolicyholder;or

(b) theestateofthepolicyholderoftwoormorelifepoliciesreferredtoinparagraph(a)issequestrated,andapartonlyoftheaggregaterealisablevalueofthoselifepoliciesissoprotected,

the creditor or the trustee of the insolvent estate of the policyholdermaydeterminewhichlifepolicyorpolicieswillberealisedwhollyorpartlyinordertomakeavailabletothecreditorortrusteesomuchoftheaggregaterealisablevalueasisnotsoprotected.

Protected life policies: partial realisation

38. (1) Ajudgmentcreditoroftheholderofalifepolicyorthetrusteeof the insolventestateof thatpolicyholderwho isentitled toapartof the realisablevalueofthelifepolicymay,ifthecreditorortrusteeisinpossessionofthelifepolicy,deliver that policy to the registered insurer or reinsurerwho is liable under the life

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policyforthepurposesofthepaymenttothecreditorortrusteeoftheamounttowhichthatcreditorortrusteeisentitled. (2) Ifajudgmentcreditorortrusteereferredtoinsubsection(1)isnotinpossessionofalifepolicyinrespectofwhichthecreditorortrusteeisentitledtoapartoftherealisablevalue,theholderofthelifepolicyoranyotherpersoninpossessionthereofmust, at the request of the creditor or trustee, deliver the life policy to theregistered insureror reinsurerwho is liableunder the lifepolicy for thepurposesofthepaymenttothatcreditorortrusteeoftheamounttowhichthecreditorortrusteeisentitled. (3) Onreceiptofalifepolicydeliveredtoaregisteredinsurerorreinsurerundersubsection(1)or(2),theregisteredinsurerorreinsurermust-

(a) attherequestofthejudgmentcreditorortrusteereferredtoinsubsection(1),paytothatcreditoror trusteeanamountequal to thepartof therealisable value of the life policy towhich the creditor or trustee isentitled;and

(b) paytheremainingpartoftherealisablevaluetotheholderofthelifepolicyor,ifatthattimethefullrealisablevalueofthelifepolicyislessthan the full suminsuredunder that lifepolicy, includinganybonuswhichmayhaveaccruedinconnectiontherewith;or

(c) at the request of such policyholder, issue to the policyholder a newlifepolicywiththesameprovisions,butforasuminsuredequaltothedifferencebetween-

(i) the full sum insuredunder theoriginal lifepolicy, includinganybonuswhichmayhaveaccruedinconnectiontherewith;and

(ii) anamountwhichbearsthesameratiotothefullsuminsuredundertheoriginallifepolicy,includinganybonuswhichmayhaveaccruedinconnectiontherewith,astheamountpaidbythe registered insurer or reinsurer to such creditor or trusteebearsatthattimetothefullrealisablevalueoftheoriginallifepolicy,whereupontheoriginallifepolicywilllapse.

Life policies ceded or trust policies not kept up

39. (1) Ifapersonwho-

(a) haseffectedorcededalifepolicyforthebenefitofhisorherspouse,andadditionallyoralternativelyofhisorherchildorchildren,orofanyofthem;or

(b) holdsalifepolicyintrustforanyotherpersonandisobligedtopaythepremiumsunderthatpolicy,

isorhasbeenunabletopaythepremiums,thatpersonmay,withtheconsentofanypersonwhoholdsorhasacquiredanyrightorinterestinthelifepolicyorifthelast-mentionedpersonisaminor,withtheconsentofthatminor’sguardianoroftheMaster

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oftheHighCourt,agreewiththeregisteredinsurerorreinsurerliableundersuchpolicyassetoutinsubsection(2). (2) Aperson referred to in subsection (1)mayagreewith the registeredinsurerorreinsurerliableunderthepolicyconcerned-

(a) toconvertthelifepolicyintoapaid-uplifepolicyofavaluedeterminedinaccordancewiththecurrenttariffoftheregisteredinsurerorreinsurerpayable,atthetimeandinthemannerspecifiedintheoriginalpolicy,tothepersonentitledtothesuminsuredbytheoriginalpolicy;

(b) toborrowfromtheregisteredinsurerorreinsureruponsecurityofsuchpolicysumsofmoneyasmaybenecessarytokeepsuchpolicyinforceortoreviveit;or

(c) toapplythevalueofanybonuswhichmayhaveaccruedinconnectionwiththelifepolicytoatemporaryorpermanentreductionofpremiumsortothepaymentofanypremiumswhichhavefallendue.

Life policies ceded or premiums paid with intent to defraud creditors

40. (1) NothingcontainedinthisPartmaybeconstruedasderogatingfromthepoweroftheHighCourttosetasideintermsofanylawrelatingtoinsolvency,acessionofa lifepolicymadewith intent tobenefitanypersonat theexpenseofacreditorofthecedent. (2) If apremiumundera lifepolicywaspaidwith intent tobenefitanypersonattheexpenseofacreditorofthepersonmakingthepayment,theHighCourtmay order the person so benefiting to pay an amount equal to the aggregate of allpremiumssopaid,withinterestontheamountofeachpremiumsopaidasfromthedateofitspayment,tothecreditortowhosedetrimentoneormorepremiumswerepaidor,iftheestateofthatcreditorissequestrated,tothetrusteeoftheinsolventestateofthatcreditor. (3) AnorderofHighCourtcontemplatedinsubsection(2)hastheeffectofpledging,insecurityforpaymentoftheamountpayableunderthatorder,thelifepolicyinquestiontothecreditorentitledtothepaymentuntilthepaymentismade,andwhilethelifepolicyissopledgedthatcreditormaypossessthelifepolicy.

Application of provisions to funeral, disability and health policies

41. Theprovisionsofsections31to40applywiththechangesrequiredbythecontexttopoliciesoffuneral,disabilityandhealthinsurance.

PART 6PROVISIONS RELATING TO LLOYD’S

Definitions for this Part

42. InthisPart,unlessthecontextindicatesotherwise-

“Lloyd’s”meanstheassociationofunderwritersgenerallyknownasLloyd’swhichisincorporatedbytheLloyd’sActof1871(34Vict.c21),passedbytheParliamentoftheUnitedKingdomofGreatBritainandIreland;

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“Lloyd’sbroker”meansapersonpermittedbytheLloyd’sCounciltoperformanyactasabrokeratLloyd’s;

“Lloyd’sCouncil”meansthecouncilknownastheCouncilofLloyd’sestablishedbytheLloyd’sAct,1982,passedbytheParliamentoftheUnitedKingdomofGreatBritainandNorthernIreland,tomanageandsuperintendtheaffairsofLloyd’s;

“Lloyd’sintermediary” meansapersonwhoperformsanyactrelatingtotheplacingofshort-terminsurancebusinesswith,ortheissueofpoliciesorthecollectionofpremiumsinrespectofsuchbusinessorassistswithclaimsinrespectofsuchbusinessfororonbehalfof,aLloyd’sbrokeroranunderwriteratLloyd’s,whetherornotasanagentofsuchbrokerorunderwriteratLloyd’s;

“Lloyd’s representative”means the person appointed in terms of section 45(1) andincludes an alternate representative while acting as the Lloyd’s representative ascontemplatedinthatsection;

“Lloyd’sunderwriter”meansanunderwritingmemberofLloyd’s;and

“trustaccount”meansthetrustaccountopenedpursuanttosection46(1).

Authorisation of underwriters at Lloyd’s

43. (1) Subject to this Part, Lloyd’s underwriters are authorised tocarryonshort-terminsurancebusinessinNamibia. (2) NAMFISA may issue standards determining the provisions of thisActthatareapplicabletoLloyd’sunderwritersandintermediariesandtotheLloyd’srepresentative.

Change to constitution, powers, rights, obligations and bye-laws

44. (1) Ifthereis-

(a) enacted any law governing Lloyd’s whereby a material change ismadetotheconstitution,powers,rightsorobligationsofLloyd’sorofLloyd’sunderwriters;or

(b) passed any bye-lawbyLloyd’swhereby the rights or obligations ofLloyd’sunderwritersaremateriallychanged,

theLloyd’srepresentativemust,within21daysaftertheenactmentofsuchlaworthepassingofsuchbye-law,notifyNAMFISAaccordingly. (2) IfNAMFISAconsidersthat,asaresultofalaworbye-lawreferredtoinsubsection(1),Lloyd’swillnolongerbeabletocomplywiththeprovisionsofthisAct,NAMFISAmaytakeanyactionreferredtoinsection49.

Appointment of Lloyd’s representative

45. (1) The Lloyd’s Council must appoint, and at all times have,a natural person permanently resident in Namibia as its representative and anothernatural person so appointed as an alternate representative to act inNamibia as such

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representativeintheeventoftheLloyd’srepresentativeforanyreasonnotbeingabletoactassuchrepresentative. (2) The appointment of the Lloyd’s representative or alternate representativedoesnottakeeffectunless-

(a) theLloyd’sCouncilhasnotifiedNAMFISAof theappointmentofarepresentativeoralternaterepresentativewhoisfitandproperwithinthemeaningofthestandards;

(b) NAMFISAhasnotsentanoticepursuanttosubsection(3)totheeffectthattheappointeeisnotacceptable;and

(c) Lloyd’s has, subject to such conditions as may be determined byNAMFISAinthestandards,openedatrustaccountpursuanttosection46.

(3) NAMFISAmaybynoticeinwritingwithinaperiodof30daysafterthenoticetoNAMFISAreferredtoinsubsection(2)(a)indicatetotheLloyd’sCouncilthattherepresentativeoralternativerepresentativeappointedisnotacceptableonthegroundsthattheappointeeisconsideredbyNAMFISAnottobeafitandproperpersoninaccordancewiththerequirementsofthestandards. (4) TheLloyd’srepresentativemust-

(a) haveaprincipalplaceofbusinessinNamibia;

(b) notifyNAMFISAinwritingof thephysicaladdressof thatprincipalplaceofbusiness;and

(c) ifthataddresschanges,notifyNAMFISAinwritingnotmorethan30daysafterthechange.

(5) WhenaprocessinanylegalproceedingsagainstLloyd’soraLloyd’sunderwriterisrequiredtobeserved,suchprocessmaybeservedbydeliveringacopythereofattheaddressreferredtoinsubsection(4). (6) TheLloyd’srepresentativemustensurethatLloyd’scomplieswiththisAct. (7) TheLloyd’srepresentativeandalternaterepresentativeinofficeatthedateofcommencementofthisAct,isdeemedtohavebeenappointedpursuanttothissection.

Trust account to be kept by Lloyd’s representative

46. (1) The Lloyd’s representative must open and maintain inaccordancewiththerequirementssetoutinthestandards,atrustaccountinthenameofLloyd’satabankinginstitutionorbuildingsocietyintowhichmustbedepositedsuchamountsofmoneythatarerequiredtobedepositedintermsofthestandards. (2) Onanon-goingbasis,theLloyd’sCouncilmustensurethatthevalueofthefundsinthetrustaccountmaynotbelessthanasrequiredunderthestandards.

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(3) Priortoseekingexchangecontrolapprovalfromanauthoriseddealerinforeignexchange,Lloyd’smustsubmittoNAMFISAsuchparticularsregardingitsbusinessinNamibiaasNAMFISAmayrequireinthestandards.

Returns to be submitted by Lloyd’s representative

47. (1) TheLloyd’sCouncilortheLloyd’srepresentativemustfurnishNAMFISAwithreturnsinrespectoftheshort-terminsurancebusinesscarriedonbyLloyd’sunderwritersinNamibia-

(a) inthemediumandform;

(b) containingtheinformation;and

(c) bythedateandwithintheperiod,

setoutinthestandards. (2) Despite the provisions of subsection (1), the Lloyd’s representativemust,ifatanytimesorequestedinwritingbyNAMFISA,submittoNAMFISAareturninrespectofthetrustaccountreferredtoinsection46(1)asatanyotherdayspecifiedbyNAMFISA. (3) Prior to making any deposit for the purposes of section 46(2) theLloyd’srepresentativemustsubmittoNAMFISA-

(a) anauditedannualreturnrelatingtotheinsurancebusinessofLloyd’sinNamibia;and

(b) a return showing the calculation of the trust fund requirements forLloyd’sintheformsetoutinthestandards.

(4) The Lloyd’s representative must continuously maintain and furnishNAMFISA with a list of the names of all Lloyd’s intermediaries and must notifyNAMFISAofanychangeinsuchlistwithin30days.

Application of certain provisions of Chapter to Lloyd’s representative

48. Theprovisionsofsection17relatingtotheappointmentofanauditorapplywiththechangesrequiredbythecontexttotheLloyd’srepresentativeinrespectofthetrustaccountreferredtoinsection46(1)asiftheLloyd’srepresentativewerearegisteredinsurer.

Imposition of prohibition on activities of Lloyd’s underwriters

49. (1) If-

(a) NAMFISAconcludesthatasaresultofalaworbye-lawreferredtoinsection44,Lloyd’swillnolongerbeabletocomplywiththeprovisionsofthisAct;

(b) Lloyd’s or a Lloyd’s representative fails to comply with the dutiesreferredtoinsection45;or

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(c) a Lloyd’s underwriter fails to complywith that underwriter’s dutiesunderthisPartorinrespectoftheshort-terminsurancebusinesscarriedonbyLloyd’sunderwritersinNamibia,

NAMFISAmay,subjecttosubsections(2)and(3),prohibitLloyd’sunderwritersortheunderwriterconcernedfromcarryingonshort-terminsurancebusinessinNamibia. (2) Beforeexercisingthepowerscontemplatedinsubsection(1),NAMFISAmustgivenotice inwriting to theLloyd’sCounciland theLloyd’s representativeofNAMFISA’sintentiontodosoandthereasonstherefore,andallowatleast30daysduringwhichrepresentationsmaybemadeinrespectofthematter. (3) IfNAMFISAdecidestoproceedwiththeprohibition,NAMFISAmustgivenoticetothateffectintheGazettespecifyingthedatefromwhichtheprohibitionwilltakeeffect.

Registration of Lloyd’s intermediaries

50. (1) A person may not be registered as a Lloyd’s intermediaryunlessthatpersonisregisteredasaninsuranceintermediaryunderthisAct. (2) The registration, operation and duties of a Lloyd’s intermediary inNamibiamustbeasrequiredbytheapplicablestandards.

Claims against underwriters at Lloyd’s

51. (1) Any claim against an underwriter at Lloyd’s arising from apolicyenteredintobyvirtueofanactperformedbyaLloyd’sintermediaryisjusticiablebyanycompetentcourtinNamibia. (2) Inanyactionorotherproceedingsinstitutedintermsofsubsection(1)theLloyd’srepresentativemaybecitedasnominaldefendantorrespondent. (3) TheLloyd’srepresentativemayinstituteandconductanyproceedingsin a competent court inNamibia as nominal plaintiff or applicant on behalf of anyLloyd’sunderwriterinrelationtoashort-terminsurancepolicy. (4) WhentheLloyd’srepresentativeiscitedasanominalparty,theLloyd’sunderwritermay,atanytimebeforeorafterjudgment,besubstituted-

(a) withleaveofacourt;or

(b) on production to the registrar or clerk of a competent court of anaffidavitsettingoutthetruepartiesandtheirnormalcitation,ifacopyhaspreviouslybeenfurnishedtotheotherparty.

Payment of claims against underwriters at Lloyd’s

52. (1) Any claim against a Lloyd’s underwriter arising from aninsurancepolicyenteredintobyaLloyd’sintermediarymaybedisbursedfrommoneysstandingtothecreditofthetrustaccountreferredtoinsection46(1).

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(2) Ifthepaymentofaclaimcontemplatedbysubsection(1)resultsinthesaidtrustaccountfallingtoalevelbelowthatdeterminedintermsofsection46(2),theLloyd’srepresentativemust-

(a) immediatelynotifyNAMFISAofsuchfact;and

(b) causethetrustaccounttoberestoredtothecreditlevelrequiredbythestandardswithin14daysfromthedateonwhichtheshortfalloccurred.

(3) Ontheproductiontohimorherof-

(a) awritofexecutionissuedbyacourtagainstaLloyd’sunderwriterinrespectofaclaimcontemplatedinsubsection(1);or

(b) a certificate issued by NAMFISA that the amount stated therein islawfullyduebyLloyd’stoNAMFISAinrespectofleviesorfees,

theLloyd’s representativemust immediatelycause theamountduebyLloyd’s tobepaidoutfromthemoneystandingtothecreditofthesaidtrustaccounttothecreditorconcerned, and the provisions of subsection (2) do apply to such paymentwith thechangesrequiredbythecontext.

PART 7AGENTS AND BROKERS



“insuranceagent”meansapersonwho,onbehalfofaninsurer,orapersonactingonbehalfofaninsurer,dealsdirectlywiththepublicinsolicitinginsuranceoractingoraiding in anymanner in connectionwith thenegotiation, continuanceor renewal ofinsurance,and,whereapplicable,includesacorporateinsuranceagent;

“insurancebroker”meansapersonwho,onbehalfof amemberof thepublicdealsdirectlywithaninsurerorapersonactingonbehalfofaninsurer,inarranginginsuranceor acting or aiding in any manner in connection with the negotiation, continuanceor renewalof insuranceorprovides consulting serviceswith respect to insuranceorinsurance claims and, where applicable, includes a corporate insurance broker andapersonwhose activities include theplacingof reinsurance, commonlyknownas areinsurancebroker;

“corporateinsuranceagent”meansanentitythatisaninsuranceagent;

“corporateinsurancebroker”meansanentitythatisaninsurancebroker;

“registered corporate insurance broker” means a corporate insurance broker that isregisteredpursuanttosection59;

“registered insuranceagent”meansan insuranceagentwho is registeredpursuant tosection55;

“registeredinsurancebroker”meansabrokerthatisregisteredpursuanttosection59,andincludesaregisteredcorporateinsurancebroker;

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“registeredreinsurancebroker”meansareinsurancebrokerthatisregisteredpursuanttosection59,and,whereapplicable,includesaregisteredcorporatereinsurancebroker;

“reinsurancebroker”meansapersonwhoonbehalfofanyinsurernegotiatesreinsurancebusinesswithoneormorereinsurers.

Unregistered person may not act as agent or broker

54. (1) Apersonmaynot,forcompensation,commissionoranyotherthingofvalue,carryonanyoftheactivitiesofaninsuranceagentinNamibiaexcept,inaccordancewithandtotheextentauthorisedbyaninsuranceagent’sregistrationoracorporateinsuranceagent’sregistrationissuedundersection55,orwherethepersonisdeemedtoberegisteredundersection60. (2) Apersonmaynot,forcompensation,commissionoranyotherthingofvalue,carryonanyoftheactivitiesofaninsurancebrokerorareinsurancebrokerinNamibiaexcept,inaccordancewithandtotheextentauthorisedbyaninsurancebroker’sor a reinsurance broker’s registration or a corporate insurance broker’s registrationissuedundersection59,orwherethepersonisdeemedtoberegisteredundersection60. (3) WithoutlimitingtheapplicationofanyotherremediesavailableunderthisAct,NAMFISAmaydirectapersonactinginviolationofsubsection(1)or(2)toceaseanddesistfromsuchconductbutmustgivethatpersonaperiodoftimewithinwhichtoapplyfortherequisiteregistrationuponthatpersongivinganundertakingtocomplywiththedirection. (4) Ifapersonreferredtoinsubsection(3)-

(a) doesnotobtainregistrationwithintheperiod;or

(b) violatestheundertaking,

referredtointhatsubsection,thatpersonbecomesineligibletoapplyforregistrationuntilsuchtimeasNAMFISAmaywaivethatineligibilityinwriting. (5) Despitesubsections(1)and(2),aninsurancebrokermaynotchargeanycommissionorotherthingofvalueorreceiveanycompensationforhavingrenderedaservicetoanypersonexceptthecommissiondeterminedinthestandards. (6) Apersonwhocontravenesorfailstocomplywithsubsection(1),(2)or(5)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Registration as insurance agent and renewal of registration

55. (1) A registered insurer may apply to NAMFISA for theregistrationofcertainentitiesascorporateinsuranceagentsbysubmittingacopyofthelistmaintainedbythatregisteredinsurerofthoseentities,togetherwithanyrequiredregistrationfeeforeachsuchentity(hereaftercalled“listedentity”inthissectionandsection56).

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(2) A registered insurermay apply toNAMFISA for the registration ofcertainindividualsasinsuranceagentsbysubmittingacopyofthelistmaintainedbytheinsurerofthosepersons,togetherwithanyrequiredregistrationfeeforeachsuchindividual(hereaftercalled“listedindividual”inthissectionandsection56). (3) Aregisteredinsurermusthaveinplaceacodeofconductandapplicablesystemsrelevanttolistedindividualinsuranceagentsemployedbyitscorporateinsuranceagentsinordertobereasonablysatisfiedwithrespecttoeachofthoseinsuranceagentsthat-

(a) theindividualisatleast18yearsofage;

(b) theindividualhasmettherequirementsforaninsuranceagentthatmaybeincludedinthestandardsfromtimetotime;

(c) theindividualisnotinapositiontoofferinducementorusecoercionorundueinfluenceinordertocontrol,directorsecurebusiness;

(d) the individual has not been refused registration, authorisation oracceptance or had such registration, authorisation or acceptancesuspendedorrevokedunderthisActoranyotherapplicablefinancialserviceslaw;

(e) the individual has not been convicted of an offence the nature ofwhichrendershimorher,intheopinionofNAMFISA,unfittoholdaregistrationunderthisAct;

(f) theindividualisfitandproperwithinthemeaningofthestandards;

(g) therearereasonablegroundsforbelievingthattheindividualwillcarryonwithintegrityandhonestytheactivitiesofaninsuranceagent;

(h) the individual has met, and there is no reason to believe that theindividualwillnotbeabletomeet,anyotherrequirementsofthisAct,andanyinstructionsandguidelinesissuedbyNAMFISAunderthisActor issuedby the registered insurerconcerned thatapply to insuranceagents;

(i) thereisnoreasontobelievethattheindividualislikelytoengageinconductofakindidentifiedinthestandardsasmisconduct;

(j) theindividualisordinarilyresidentinNamibiaandisinapositiontocomplywith the lawrelating tohisorher residency inNamibiaandwithanyotherapplicablelawsofNamibia;and

(k) anyrequiredfeehasbeenpaid. (4) Aregisteredinsurermusthaveinplaceacodeofconductandapplicablesystems relevant to its individual listed insurance agents in order to be reasonablysatisfiedwithrespecttoeachofthoseinsuranceagentsthat-


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(b) theindividualhasmettherequirementsforaninsuranceagentthatmaybeincludedinthestandardsfromtimetotime;





(g) therearereasonablegroundsforbelievingthattheindividualwillcarryonwithintegrityandhonestytheactivitiesofaninsuranceagent;

(h) the individual has met, and there is no reason to believe that theindividualwillnotbeabletomeet,anyotherrequirementsofthisAct,andanyinstructionsandguidelinesissuedbyNAMFISAunderthisActor issuedby the registered insurerconcerned thatapply to insuranceagents;



(k) anyrequiredfeehasbeenpaid. (5) Aregisteredinsurermust,inadditiontocomplyingwithsubsection(3)or(4),inrespectofeachlistedentitythatistoberegisteredasacorporateinsuranceagentensurethat-

(a) theentityisregisteredinaccordancewiththerelevantlawrequiringtheregistrationofsuchentitiesinNamibia;

(b) it has in its possession the following information or documents inrespectoftheentity:

(i) certifiedcopyofthememorandumandarticlesofassociationor founding statements, constitution or any other foundingdocumentsoftheentity;

(ii) certifiedcopiesofsharecertificatesormembers’interestoranyotherdocumentsprovingownership;and

(iii) anyotherdocumentthattheapplicantconsidersrelevantorthatNAMFISAmayrequire;

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(c) theentityhasmettherequirementsforacorporateinsuranceagentthatmaybeincludedinthestandardsfromtimetotime;

(d) the individualswhowill carryonactivitiesof thekind towhich theregistrationrelatesonbehalfoftheentitywillberegisteredasinsurancebrokerʼsagents;

(e) theentity isnot inaposition tooffer inducementorusecoercionorundueinfluenceinordertocontrol,directorsecurebusiness;

(f) theentityhasnotbeenrefusedregistration,authorisationoracceptanceor had such registration, authorisation or acceptance suspended orrevokedunderthisActoranyotherapplicablefinancialserviceslaw;

(g) therearereasonablegroundsforbelievingthattheentitywillcarryonwithintegrityandhonestytheactivitiesofacorporateinsuranceagent;

(h) theentityhasmet,andthereisnoreasontobelievethattheentitywillnotbeabletomeet,anyotherrequirementsofthisAct,andanyinstructionsandguidelines issuedbyNAMFISAunder thisActor issuedby theregisteredinsurerconcernedthatapplytocorporateinsuranceagents;

(i) thereisnoreasontobelievethattheentityislikelytoengageinconductofakindidentifiedinthestandardsasmisconduct;and

(j) anyrequiredfeehasbeenpaid. (6) A registered insurer must provide NAMFISA with such otherinformation andmaterial regarding its listed individuals asmay be specified in thestandards,andinthecaseofalistedentity,theinsurermustprovideNAMFISAwithsuchother informationandmaterial regarding that entity asmaybe specified in thestandards. (7) NAMFISAmustregistereachentityandeachindividualwhosenameappearsonthelistofcorporateinsuranceagentsorinsuranceagentsmaintainedbytheregisteredinsurer. (8) AregisteredinsurerthathassubmittedalisttoNAMFISApursuanttosubsection(1)or(2)mustsubmittoNAMFISAanupdateofthatlistwhentherehasbeenanadditionordeletion,togetherwith-

(a) inthecaseofadditionallistedentitiestoberegisteredthathavebeenaddedtothelistreferredtoinsubsection(1);or

(b) in thecaseof additional listed individuals tobe registered thathavebeenaddedtothelistreferredtoinsubsection(2);

therequiredfeeforeachadditionallistedentityorlistedindividualandtheinformationandmaterialreferredtoinsubsection(5),anduponreceiptbyNAMFISAofanupdatedlistcontainingthenamesofadditionallistedentitiesandlistedindividuals,theprovisionsofsubsections(6)and(7)apply. (9) If a registered insurer removes an entity from the list referred to insubsection(1),orremovesanindividualfromthelistreferredtoinsubsection(2),it

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must,atthesametimewhensubmittingtheupdateofthelistasrequiredbysubsection(8),provideNAMFISAwithastatementindicatingthereasonthattheentityorindividualhasbeenremovedfromthelist. (10) A registered insurermaynot remove a listed entity or an individualfromthelistasreferredtoinsubsection(9)unlesstheinsurerhasgiventheentityorindividualconcernedthereasonsfortheproposedremovalandareasonableopportunitytobeheard. (11) Thetermofregistrationasaninsuranceagentoracorporateinsuranceagent under this section expiresonMarch31of eachyear or on suchother date asNAMFISAmayspecify,butiftheappropriaterenewalfeeasdeterminedbyNAMFISAinrespectofeachinsuranceagent ispaid toNAMFISAin themannersetout in thestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate. (12) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose. (13) If-

(a) the renewal fee is not received within the period contemplated insubsection(12);or

(b) therequirementsofthestandardsreferredtoinsubsection(11)havenotbeencompliedwith,

NAMFISAmaynotrenewtheregistrationoftheinsuranceagentorcorporateinsuranceagent and must remove or direct the registered insurer to remove the name of theinsurance agent or corporate insurance agentwhose renewal feewas not paid or inrespecttowhomtherequirementsofthestandardshavenotbeencompliedwithfromthelistkeptbyNAMFISAorsubmittedtoNAMFISA,asthecasemaybe. (14) Apersonwhocontinues tooperate, or to engage in, thebusinessofaninsuranceagentoracorporateinsuranceagentafterthenon-renewalofregistrationunder subsection (13), commits an offence and is liable on conviction to a fine notexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Remedial action

56. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2)ifNAMFISA,actingreasonably,findsthatanyofthefollowingcircumstancesexistwithrespecttoaregisteredcorporateinsuranceagentoraregisteredinsuranceagent-

(a) inthecaseofalistedindividual,anyoftherequirementsreferredtoinsection55(3)or(4)havenotbeenmet;

(b) thecopyof the list submittedundersection55or theaccompanyinginformation and material contained information concerning thelistedentityorindividualthatwasnotmateriallyaccurateoromittedinformationthatwasmateriallyrelevant;

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(c) thelistedentityorindividualnolongermeetstherequirementsforaninsuranceagent;

(d) thelistedentityorindividualhassuspendedactivitiesforaperiodofatleast12months;

(e) thelistedentityorindividualisnotincompliancewitharequirementofthisAct;or

(f) thelistedentityorindividualhasengagedinconductofthekindthathasbeenidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection (1) exist, NAMFISA may take, or direct the registered insurer to take,remedialaction,including,withoutlimitation-

(a) directingtheinsurertoprovidefurtherinformationwithrespecttothelistedentityorindividual;

(b) directingtheinsurertoprovidefurthertrainingforthelistedentityorindividual;

(c) directingtheinsurertotakedisciplinaryactionagainstthelistedentityorindividual;

(d) directing the insurer to make changes to the code of conduct andsystemsreferredtoinsection55(3)or(4);

(e) requiringanundertakingfromthelistedentityorindividualpursuanttosection436;

(f) requiringanundertakingfromtheinsurerpursuanttosection436;

(g) directingthelistedentityorindividualtoundertakespecificactionsorrefrainfromspecificactions,pursuanttosection439(4)(c);

(h) directing the insurer to undertake specific actions or refrain fromspecificactionspursuanttosection439(4)(c);or

(i) imposing on the insurer any penalty that may be specified in thestandards, if the insurer has been negligent in satisfying itself withrespecttotheprovisionsofsection55(3)or(4).

(3) Ifonreceiptofevidencethattherequiredactionhasbeentakenpursuantto subsection (2),NAMFISA, acting reasonably,finds that anyof the circumstancesreferred to in subsection (1) continue to exist,NAMFISAmay direct the insurer toremovethenameofthelistedentityorindividualfromthelistreferredtoinsection55(1),(2)or(8).

(4) Beforedirectingthatthenameofalistedentityorindividualberemovedfromalistpursuanttosubsection(3),NAMFISAmustgivebothpartiesareasonableopportunitytobeheard.

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(5) If a registered insurer fails to remove the nameof a listed entity orindividualfromthelistwhenrequiredtodosobyNAMFISA,NAMFISAmay,aftergivingthelistedentityorindividualareasonableopportunitytobeheard,itselfremovethenameoftheentityorindividualfromthelist. (6) IfthenameofalistedentityorindividualisremovedfromalistbyaninsurerorNAMFISA,theregistrationofthatentityorindividualasaninsuranceagentoracorporateinsuranceagentiscancelledandtheentityorindividualmaynotactasaninsuranceagentoracorporateinsuranceagentorbeincludedbyaregisteredinsureronanylistacopyofwhichissubmittedundersection55forsuchperiodasNAMFISAmaydetermine. (7) Apersonwhocontinuestooperate,ortoengagein,thebusinessofaninsuranceagentoracorporateinsuranceagentafterthecancellationofregistrationundersubsection(6),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Application for registration as insurance broker

57. (1) Anindividualorentitymay,inaccordancewithsubsection(2),makeanapplicationforregistrationasaninsurancebrokerorareinsurancebrokeroracorporateinsuranceorreinsurancebroker,asthecasemaybe,toNAMFISA. (2) Anapplicationforregistrationasaninsurancebrokerorareinsurancebrokeroracorporateinsuranceorreinsurancebrokermustbe-


(b) whereapplicable,includetheinformationwithrespecttotheprincipalofficeandprincipalofficerrequiredbythestandards;




(f) accompaniedbytherequiredfee.


58. (1) Beforeapprovinganapplicationandregisteringanindividualas an insurance broker or a reinsurance broker, NAMFISA must be satisfied thattherequirementsofsubsection(3)and(4)havebeenmetand that, in thecaseofanindividualapplicant-


(b) theindividualhasmettherequirementsforregistrationthatmayfromtimetotimebeincludedinthestandards;

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(c) theindividualisnotinapositiontoofferinducementorusecoercionorundueinfluenceinordertocontrol,directorsecureinsurancebusiness;




(g) therearereasonablegroundsforbelievingthattheindividualwillcarryonwithintegrityandhonestytheactivitiesofaninsurancebroker;

(h) theindividualhasmet,orwillbeabletomeet,anyotherrequirementsof thisActandany instructionsandguidelines issuedbyNAMFISAunderthisActthatapplytoinsurancebrokersorreinsurancebrokers;

(i) theindividualdoesnot,andwillnotbelikelyto,engageinconductofakindidentifiedinthestandardsasmisconduct;


(k) anyrequiredfeehasbeenpaid. (2) Beforeapprovinganapplicationandregisteringanentityasacorporateinsuranceorreinsurancebroker,NAMFISAmustbesatisfiedthattherequirementsofsubsection(3)and(4)havebeenmetandthat-

(a) the individualswhowill carryonactivitiesof thekind towhich theregistrationrelatesonbehalfoftheentitywillberegisteredasinsurancebrokersorreinsurancebrokers;

(b) theentityhasmet,orwillbeabletomeet,therequirementsofsection72;

(c) ifapplicable,theentityisregisteredinaccordancewiththerelevantlawrequiringtheregistrationofsuchentitiesinNamibia;and

(d) anyrequiredfeehasbeenpaid. (3) Before approving the application and registering the applicant as anindividualinsurancebrokeroracorporateinsuranceorreinsurancebroker,NAMFISAmustbesatisfiedthat-

(a) wheretheapplicantisanentity-

(i) everyshareholderorotherowner thatcontrols theapplicant,andeverydirector, theprincipalofficerandotherofficersof

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theapplicant,andwhereapplicable,membersofanyboardoftrusteesorotherboard,arefitandproperwithinthemeaningofthestandards;

(ii) the memorandum, articles and rules or other foundingdocuments of the applicant are not inconsistent with theprovisionsofthisAct;

(iii) thedirect or indirect control of the entity is not likely tobecontrarytotheinterestofconsumersofthefinancialservicesconcerned;and



(i) thisAct;or

(ii) thepublicinterest;


(i) provide the financial services concerned with professionalintegrity,prudence,properskillandduediligence;






(4) In addition to the applicable requirements for a registration set outinsubsections(1),(2)and(3)ifanapplicationforaregistrationismadeafteradatedeterminedby theMinisterbynotice in theGazette an individualorentitymaynotbegrantedaregistrationasaninsurancebrokerorareinsurancebrokeroracorporateinsuranceorreinsurancebroker,unlessNAMFISAissatisfiedthat-

(a) aninsurancepolicyisinplaceprovidingerrorsandomissionscoverageinrespectoftheactivitiesoftheindividualorentityasbroker,inaformapprovedbyNAMFISAandinanamountthathasbeenprescribedin respectofanyoneoccurrence,withextendedcoverageforfraudulent

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acts,orsomeotherfinancialguaranteeaffordingcomparableprotectionacceptabletoNAMFISA;and

(b) iftheindividualorentitywillhaveemployeescarryingontheactivitiesofabroker,afidelityinsurancepolicyisinplaceprovidingcoveragein respectof lossesarising fromdishonestyofemployees, ina formapprovedbyNAMFISAandinanamountthathasbeenprescribed inrespectofanyoneoccurrence.

Registration and renewal of registration

59. (1) IfNAMFISAissatisfiedthattheapplicantcomplieswiththerequirements of section 58, NAMFISA must register the applicant as an insurancebrokerorareinsurancebrokeroracorporate insuranceorreinsurancebroker,as thecase maybe, subject to any conditions which NAMFISA may consider appropriatepursuanttosubsection(4). (2) Theregistrationreferredtoinsubsection(1)mustspecify-

(a) theprincipalofficeoftheapplicantinNamibia;

(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedforinthestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Aninsurancebrokerorareinsurancebrokeroracorporateinsuranceorreinsurancebrokermustcomplywiththeconditionssubjecttowhichitwasregistered. (7) Thetermofregistrationasaninsurancebroker,areinsurancebrokeroracorporateinsuranceorreinsurancebrokerunderthissectionexpiresonMarch31ofeachyearoronsuchotherdateasNAMFISAmayspecify,but if theappropriaterenewalfeeasdeterminedbyNAMFISAinrespectofeachinsuranceorreinsurancebrokerispaidtoNAMFISAinthemannersetoutinthestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate. (8) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose.

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(9) If-



NAMFISAmaynotrenewtheregistrationofaninsurancebroker,areinsurancebroker,corporateinsuranceorreinsurancebroker,asthecasemaybe,whoserenewalfeewasnotpaidorinrespecttowhomtherequirementsofthestandardshavenotbeencompliedwith. (10) Apersonwhocontinuestooperate,ortoengagein,thebusinessofaninsuranceorareinsurancebrokerafterthenon-renewalofregistrationundersubsection(9),commitsanoffenceandis liableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Agents, brokers previously registered

60. (1) Anagentorbrokerwhowasregisteredunder theLong-termInsuranceActor theShort-termInsuranceActon thedateofcommencementof thisPartisdeemedtoberegisteredunderthisActasaninsuranceagent,insurancebroker,a corporate insurance broker, or a reinsurance or corporate reinsurance broker, asapplicable. (2) Despite subsection (1), a person or an entity referred to in thatsubsectionmust,within12monthsafter thedateofcommencementof thisChapter,makeanapplicationtoNAMFISApursuanttosection55or57forregistrationasaninsurance agent, insurance broker, a corporate insurance broker, or a reinsurance orcorporatereinsurancebroker,asapplicable. (3) Ifapersonoranentityreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),thedeemedregistrationofthatpersonorentityiscancelled. (4) A person who continues to operate, or engage in, the business ofan insurance agent or an insurance or a reinsurance broker after the cancellation ofregistrationundersubsection(3),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.


61. (1) Everyregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermust-


(b) whereapplicable,appointtobeitsprincipalofficerinNamibia,afitandproperpersonwithinthemeaningofthestandards,whois-

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(ii) residentinNamibia. (2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),aregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment. (4) NAMFISAmay, on the grounds that a principal officer is not a fitandproperpersonwithinthemeaningofthestandards,andaftergivingtheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokerandtheprincipalofficerareasonableopportunitytobeheard,directtheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokertoappointsomeotherpersontobetheprincipalofficeroftheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebroker. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficer is terminated by a registered insurance or reinsurance broker or corporateinsurance or reinsurance broker or by the expiry of a contract of employment, theregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebroker,thereasonsfortheresignation. (6) Theprincipalofficerofaregisteredinsuranceorreinsurancebrokerisauthorisedtoactonbehalfoftheinsuranceorreinsurancebrokertoensurecompliancewith thisAct, and in anycasewhere aperson, includingNAMFISA, communicateswith that insurance or reinsurance broker, that personmay do so by addressing thecommunicationtotheprincipalofficer. (7) Processinanylegalproceedingsmaybeservedonaninsurancebrokerorareinsuranceorcorporatebrokerbyservingacopythereofatitsprincipaloffice. (8) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Accounts

62. AregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermustkeepinNamibiaproperaccountsof,andfinancialinformationrelatingto,itsinsurancebusinessthatcomplywiththerequirementsofthestandards.

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Insurance to be in place

63. Everyregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermusthaveinplacetheinsurancereferredtoinsection58(4)totheextentapplicabletoit,asfromadatedeterminedbytheMinisterbynoticeintheGazette.

Only one registration

64. (1) Apersonmaynotberegisteredasaninsuranceagentandaninsurancebrokeratthesametime.

(2) Subject to subsection (3), a registered insurance agentmay only beregisteredaseitheranagentforshort-terminsuranceoranagentforlong-terminsuranceandmaynotactasagentformorethanoneregisteredinsurerorrepresenthimselforherselftothepublicbyadvertisementorotherwiseastheregisteredinsuranceagentofmorethanoneregisteredinsurer. (3) Despitesubsections(1)and(2)-

(a) ifaninsurerisregisteredunderthisChapterforlong-terminsurance,andanaffiliateofthatregisteredinsurerisregisteredunderthisChapterfor short-term insurance, an agent of thatfirst insurerwhohasbeenregistered for long-term insurance pursuant to section 55, may, onapplicationby thatsecond insurer,obtainasecondregistrationasanagentforshort-terminsuranceprovidedheorshemeetsalltheotherrequirementsofthisAct;and

(b) ifaninsurerisregisteredunderthisChapterforshort-terminsurance,andanaffiliateofthatregisteredinsurerisregisteredunderthisChapterfor long-term insurance, an agent of that first insurerwho has beenregistered for short-term insurance pursuant to section 55, may, onapplicationby thatsecond insurer,obtainasecondregistrationasanagent for long-terminsuranceprovidedheorshemeetsall theotherrequirementsofthisAct.


65. (1) A registered insurance or reinsurance broker or corporateinsuranceorreinsurancebrokermayatanytime,applytoNAMFISAforcancellationofaregistrationgrantedpursuanttosection59orforavariationoftheconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-




(d) accompaniedbytherequiredfee.

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(3) Beforemakinganapplicationpursuanttosubsection(1),theapplicantmust give prior notice of the proposed application in two newspapers circulatingnationallyattheexpenseoftheapplicantstating-


(b) either-

(i) thereasonsfortheproposedcancellation;or

(ii) thenatureoftheproposedvariation;and


(4) Section 59 applies with the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1). (5) If,afterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsubsection(3),NAMFISAisoftheopinionthatitisreasonabletodosoandnotagainstthepublicinterest,NAMFISAmay,bynoticetotheregisteredinsurancebrokerconcerned-





66. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2), ifNAMFISA,acting reasonably,finds thata registered insuranceor reinsurancebrokerorcorporateinsuranceorreinsurancebroker-

(a) hasmadeamaterialmisrepresentationorfailedtoprovideinformationthatwasmateriallyrelevantinitsapplicationforregistration;

(b) hasfailedtocomplywiththisAct;

(c) nolongermeetstherequirementsforregistration;

(d) hasprovidedfinancialserviceswithoutprofessionalintegrity,prudence,properskillandduediligence;

(e) isinanunsoundfinancialposition;

(f) has failed to comply with a directive, request or requirement ofNAMFISAissuedunderthisAct;

(g) hasfailedtogiveeffecttoadecisionoftheAppealBoard;

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(h) has ceased to operate or has failed to commence operatingwithin areasonabletimeafterbeingregistered;

(i) isinvolvedinafinancialcrime;or

(j) in the case of an individual, no longer meets the fit and properrequirementswithin themeaningof the standardsorhas engaged inconductidentifiedinthestandardsasmisconduct;or

(k) inthecaseofacorporateinsuranceorreinsurancebrokerorcorporateinsurance or reinsurance broker, any director, the principal officer,otherofficerormemberofaboardnolongermeetsthefitandproperrequirementswithin themeaningof the standardsorhas engaged inconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredinsurancebrokerorreinsurancebrokerorcorporateinsuranceorreinsurancebroker-




(3) NAMFISAmustgivenoticetotheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokeroftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(2),togetherwiththereasonstherefor,andmustgivetheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokerareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokermaymakerepresentationstoNAMFISAonthematter. (4) Subject to such conditions as NAMFISA may impose, NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredinsuranceorreinsurancebrokerorcorporateinsuranceorreinsurancebrokerwithoutgivingnoticeandanopportunitytobeheardpursuanttosubsection(3)ifNAMFISAissatisfiedonreasonablegroundsthatitisurgentlynecessarytodosoinordertopreventormitigate damage to the interests of financial institutions, financial intermediaries,theirclientsorthefinancialsystemofNamibia,butNAMFISAmust-

(a) give the registered insurance or reinsurance broker or corporateinsurance or reinsurance broker the notice and an opportunity to beheardandmakerepresentationsassoonasreasonablypossible;and


(5) Onthecancellationoftheregistrationofaninsuranceorareinsurancebrokerundersection60(3),section65,subsection(2)(a)oranyotherapplicableprovision

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ofthisAct,theinsuranceorreinsurancebrokermustbewound-upinaccordancewiththerequirementsofChapter10,andNAMFISAmusttakesuchstepsandmayimposesuch conditions as are necessary in the circumstances,which stepsmay include thetransferofthebusinessoftheinsuranceorreinsurancebrokertoanotherinsuranceorreinsurancebroker,asappropriate,butnodistributionoftheassetsoftheinsuranceorreinsurancebrokermaybemadewithoutthepriorapprovalofNAMFISA. (6) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranystepsothertakenunderthissection and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (7) Apersonwho-

(a) continues to operate, or engage in, the business of insurance orreinsurancebrokerafterthecancellationofregistrationundersection60(3),section65(5)(a),subsection(2)(a)oranyotherprovisionofthisActoraftersuspensionofregistrationundersubsection(4);or



Confirmation of cover by registered brokers

67. (1) Afterplacingapolicyofinsurance,everyregisteredinsuranceorreinsurancebrokermustensurethatthepolicyholderconcernedis,withintheperiodspecifiedinthestandards,providedwithapolicyoracertificateofcoverage,certifyingthattheinsurancehasbeenplaced. (2) Acertificateofcoveragereferredtoinsubsection(1)mustsetout-

(a) thenameandmailingaddressofthepolicyholder;

(b) adescriptionofthecoverageprovided;

(c) the full name of each registered insurer or reinsurer authorised tounderwritethepolicy;and

(d) theamountofinsuranceplacedwitheachregisteredinsurerorreinsurer. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Other obligations of registered brokers

68. (1) A registered corporate insurance or reinsurance broker or aregisteredinsuranceorreinsurancebrokerwhoisanemployeeofaregisteredcorporateinsuranceorreinsurancebrokermaynotknowinglyactoraidinsoliciting,negotiatingorprocuringanypolicywith-

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(a) aregisteredinsurerorreinsurerthatisashareholderthatcontrolstheregisteredcorporateinsuranceorreinsurancebroker;

(b) a registered insurer or reinsurer of which the registered corporateinsurance or reinsurance broker is a shareholder that controls theregisteredinsurerorreinsurer;or

(c) a registered insurer or reinsurer that is under common ownership,directly or indirectly, with the registered corporate insurance orreinsurancebroker,

unlesstherelationshipbetweentheregisteredcorporateinsuranceorreinsurancebrokerandtheregisteredinsurerorreinsurerisspecifiedinanycertificateofcoverageandonthefaceofthepolicyprovidedtothepolicyholder. (2) Where any other circumstances exist, which, in the opinion ofNAMFISA,wouldconstituteaconflictofinterestoranapprehensionofbiasonthepartofaregisteredinsuranceorreinsurancebroker,thosecircumstancesmustbedisclosedtoanypolicyholderorpotentialpolicyholder,andspecifiedinanycertificateofcoverageandonthefaceofthepolicyprovidedtothepolicyholder. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

No unreasonable delays

69. Every registered insurance or reinsurance broker must avoidunreasonableorrepeateddelaysintransmittingfundstoapolicyholderoraclaimantunderapolicythatareintendedforsuchtransmission.

Placing insurance outside Namibia

70. (1) Subjecttosubsection(2),aregisteredinsuranceorreinsurancebrokermaynotplaceinsurancewithaninsurerorareinsurerthatisnotregisteredunderthisAct. (2) Aregisteredinsuranceorreinsurancebrokermayplaceinsurancewithaforeigninsurerorreinsurerreferredtoinsection5(2). (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Broker liable to policyholder

71. (1) A registered insurance or reinsurance broker is liable to thepolicyholder on any policy issued through that registered insurance or reinsurancebroker,directlyorindirectly,thatisunderwrittenbyanypersonwhoisnotaregisteredinsurerorreinsurerorisnotexemptfromtherequirementthatinsurersorreinsurersberegisteredundersection5(2)orundertheNAMFISAActinthesamemannerasiftheregisteredinsuranceorreinsurancebrokerhadbeentheinsurerorreinsurer.

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(2) Forgreatercertainty-

(a) iftheregisteredinsuranceorreinsurancebrokerthroughwhomapolicyof thekind referred to in subsection (1) is issued is an employeeofa registered corporate insurance or reinsurance broker, the liabilityimposed by subsection (1) is a joint and several liability of the tworegisteredinsuranceorreinsurancebrokers;and

(b) noliabilityisimposedbysubsection(1)inrespectofapolicyissuedbyaninsurerorareinsureroperatingoutsideofNamibiareferredtoinsection5(2).

Policies and procedures

72. (1) Every registered corporate insurance or reinsurance brokermustputinplacepoliciesandprocedurestoscreenindividualsitproposestoemployasbrokersforsuitabilitypriortoemployingthemandtomonitortheiractivitiesafteremployingthem. (2) If it comes to the attention of a registered corporate insurance orreinsurance broker that one of its employed insurance or reinsurance brokers is notcomplyingwithorhasnotcompliedwiththeprovisionsofthisAct,itmustimmediatelynotifyNAMFISAinwritingofthatfact.

Obligations of registered insurance intermediaries

73. (1) When a premium is received by a registered insuranceintermediaryinrespectofapolicy,thatregisteredinsuranceintermediarymustprovidethe policyholder, within the period set out in the standards, with a receipt for thatpremium, including the name of the registered insurer or reinsurer with which thecoverageistobeplaced. (2) When a premium has been received by a registered insuranceintermediaryandareceiptissuedpursuanttosubsection(1),thepremiumisdeemedtohavebeenreceivedbytheregisteredinsurerorreinsurernamedinthereceiptevenifthatinsurerorreinsurerdoesnotreceivethepremiumasprovidedforunderthetermsofthecontractorarrangementbetweentheregisteredinsuranceintermediaryandtheregisteredinsurerorreinsurer. (3) Every premium paid to a registered insurance intermediarymust bedepositedinatrustaccountwithabankinginstitutionorbuildingsocietyassetoutinthestandards. (4) Every premiumpaid into the trust account of a registered insuranceintermediaryconstitutesfundsheldonbehalfoftheregisteredinsurerorreinsurerwithwhichthepolicyinquestionhasbeenplacedandmaynotbeusedbythatintermediaryforanyotherpurpose. (5) Commissionsmaybewithdrawnfromatrustaccountofaregisteredinsuranceintermediaryasprovidedforinthecontractualorotherarrangementgoverningtherelationshipbetweentheintermediaryandtheregisteredinsurerorreinsurerfromwhichthecommissionsaredue.

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(6) Every registered insurance intermediary must forward premiumsreceivedonbehalfof a registered insureror reinsurer to that insureror reinsurer, inaccordancewith the terms of the contract or other arrangement with the insurer orreinsurer,withoutunreasonableorrepeateddelays. (7) When so requested inwriting byNAMFISA, a registered insuranceintermediarymust,within30daysofreceiptofsuchrequest,provideanaccountingtoNAMFISAofallpremiumfundsreceivedduringaperiodnolonger than24monthsbeforethedateoftherequest,asmaybespecifiedbyNAMFISA.

duties of registered insurance intermediaries

74. Everyregisteredinsuranceintermediarymust-

(a) hold instrictconfidenceall informationconcerning thebusinessandaffairsofanyclientoftheintermediaryacquiredinthecourseoftheprofessionalrelationshipwiththatclientandmaynotdivulgeanysuchinformationunless-

(i) authorisedinwritingbytheclient;

(ii) required by thisAct or any other law or by an order of thecourt;or

(iii) asmaybenecessary inorder toarrangefor the insuranceorreinsurancerequiredbytheclient;

(b) observe the requirementsof thisActandallother relevant rulesandlegislationregardingthepreservationandsafekeepingofthepropertyofthecliententrustedtotheregisteredinsuranceintermediaryand,iftherearenosuchrequirements,rulesorlegislation,ortheintermediaryisindoubt,takethesamecareofsuchpropertyasacarefulandprudentpersonwouldtakeoftheperson’sownpropertyoflikedescription;

(c) not stipulate, chargeor accept any fee that is not fullydisclosed, orthe basis forwhich is not fully disclosed, prior to the service beingrendered,orwhichissodisproportionatetotheserviceprovidedastobeunconscionable;

(d) maintain accounts and financial records in respect of the businesscarriedoutforaperiodofatleastfiveyearsaftertheperiodtowhichthoseaccountsandrecordsrelate;

(e) complywith such instructions asmaybe issuedbyNAMFISAwithrespecttothespecificaccounting,financialandotherrecordsthatmustbemaintainedfortheparticulartypeofactivityinwhichtheregisteredinsuranceintermediaryisengaged;and

(f) acthonestlyandingoodfaithandinthebestinterestsofitsclients.

Other business or occupation

75. Aregisteredinsuranceintermediarywhoengagesinanotherbusinessoroccupationconcurrentlywiththepracticeofthevocationofagentorbrokermustnot

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allowsuchoutsideinteresttojeopardisetheintegrity,independenceorcompetenceoftheintermediary.

Registration to be produced

76. (1) Every registered insurance intermediary must produce theirregistrationcertificatewhenrequestedsotodoby-

(a) NAMFISAoranypersonauthorisedbyNAMFISA;

(b) anyregisteredinsurerorreinsurerthatwishestoestablishorthathasestablishedanybusinessrelationshipwiththatintermediary;and

(c) anactualoraprospectiveclient. (2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Powers of NAMFISA in relation to registered insurance intermediaries

77. (1) IncarryingoutthetermsofthisAct,aninspectormayvisitanyofficeorplaceofbusinessofanyregisteredinsuranceintermediaryandmayinspecttherecordsrelatingtothebusinesscarriedoutandmayrequestanyinformationreasonablyrequiredtoproperlyinvestigatethesituation. (2) Everyregisteredinsuranceintermediarymustdoeverythingpossibletofacilitateanyinquiriesbyaninspectorandmustmakeallrequiredinformationavailableonatimelybasis. (3) Aninspectorisentitledtoquestionanyregisteredinsuranceintermediaryandanyemployee,officerordirectorofaregisteredinsuranceintermediaryunderoath. (4) NAMFISAmayinthestandardsdescribeconductthatwillconstitutemisconductonthepartofaregisteredinsuranceintermediaryforthepurposesofthisPart.

CHAPTER 3FINANCIAL MARkETS

PART 1PRELIMINARY



“administrativeservice”meanstheprovisionofaclerical,technical,administrativeorothersimilarservicethatdoesnot-

(a) requirejudgmentonthepartofthepersonprovidingtheservice;or

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(b) leadanypersontoenterintoanyspecifictransactionwithrespecttoasecurity,

and includes the provision of the factual information listed in paragraph (a) of thedefinitionof“securitiesadvice”;

“authorisedadvisor”meansanaturalpersonemployedbyaregisteredsecuritiesadvisortogivesecuritiesadvice;

“authorisedrepresentative”meansanaturalpersonemployedbyanauthoriseduserorasecuritiesdealertobuyorsellsecuritiesortogivesecuritiesadvice;

“authoriseduser”means a companyauthorisedby a registered exchange toperformsuchsecuritiesservicesastheexchangerulesmaypermit;

“central securities depository” means a public company through which participantsprovide for the holding in custody and administration of securities or an interest insecuritiestofacilitatetheevidencingofownershipandthetransferringofsuchsecuritiesorinterests;

“clear”,inrelationtoatransactionorgroupoftransactionsinlistedsecurities,means-

(a) tocalculateanddetermine,beforeeachsettlementprocess-

(i) the exact number or nominal value of securities of each kind to betransferredbyoronbehalfofaseller;and

(ii) theamountofmoneytobepaidbyoronbehalfofabuyer,toenablesettlementofatransactionorgroupoftransactions;or

(b) whereapplicable,theprocessbymeansofwhich-

(i) thefunctionsreferredtoinparagraph(a)areperformed;and

(ii) thedueperformanceofthetransactionisunderwrittenfromthetimeoftradetothetimeofsettlement;

“depositoryrules”meanstherulesmadebyacentralsecuritiesdepositoryinaccordancewithsection126;

“derivativeinstrument” meansafinancialinstrumentorcontractthatcreatesrightsand obligationsand-

(a) thatderivesitsvaluefromthepriceorvalueof;or

(b) thevalueofwhichmayvarydependingonachangeinthepriceorvalueof,

someotherparticularproductorthing;

“directive” means a directive issued by a registered exchange or registered centralsecuritiesdepositoryinaccordancewithitsrules;

“electronicexchange”meansanexchangethatprovidesfortradingthroughcomputerterminalsorsimilarequipmentwithoutaphysicaltradingfloor;

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“exchange” means a public company that constitutes, maintains and provides aninfrastructure-

(a) forbringingtogetherbuyersandsellersofsecurities;

(b) formatchingtheordersforsecuritiesofmultiplebuyersandsellers;and

(c) wherebyamatchedorderforsecuritiesconstitutesatransaction,

andincludes,unlessthecontextotherwiseindicates,anelectronicexchange;

“exchangerules”meanstherulesmadebyaregisteredexchangeinaccordancewithsection112;

“foreign exchange”means a person authorised as an exchange under the laws of acountryotherthanNamibia;

“investment manager” means a company that is in the business of investmentmanagement;

“investmentmanagement”meansmanagingforanotherperson,thebuying,handling,sellingorexchangingofsecurities,andincludesthehandlingofthefundsof,andgivingsecuritiesadviceto,thatotherpersoninconnectionwithsuchactivity;

“issuer”meansanissuerofsecuritiesand,forthepurposesofPart4ofthisChapter,includesanissuerofmoneymarketinstruments;

“linkedinvestmentserviceprovider”meansacompanywhosebusiness-

(a) consistswhollyorpartlyofimplementingorcapturinginvestmentinstructionsgivenbyoronbehalfofclientsinrelationtoinvestmentsonthebasisthatthelinkedinvestmentserviceproviderholds,purchasesorsellssuchinvestmentsinbulk;

(b) involvestheimplementationonbehalfofanotherpersonofadecisiontobuy,sellordealwithinvestmentsinlistedsecuritiesorinvestmentsofwhichlistedsecuritiesformpart,butdoesnotinclude-

(i) thegivingofsecuritiesadviceonthemeritsofsuchtransactionswithoutreceivingfundsorassetsfromaclient;or

(ii) theperformanceofthefunctionsofacompanyorinstitutionwhichisregisteredastrusteeorcustodianunderthisAct;

“listingrequirements”meanstherequirements,determinedbyaregisteredexchange,thatmustbemetbeforeasecuritymaybetraded,ormaycontinuetobetraded,onthatexchange;

“listedsecurities”meanssecuritiesincludedinthelistofsecuritieskeptbyaregisteredexchangepursuanttosection106;

“moneymarketinstruments”meansmoneymarketinstrumentswithinthemeaningoftheregulations;

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“nominee”meansacompanythatactsastheregisteredholderofsecuritiesoraninterestin securitiesonbehalfofotherpersons;

“participant”meansacompanythatholdsincustodyandadministerssecuritiesoraninterestin securitiesandthathasbeen-

(a) acceptedby a registered central securitiesdepository as aparticipant in thatcentralsecuritiesdepositoryundersection97(1);and

(b) registeredpursuanttosection97(3);

“portfoliomanager”meansanaturalpersonwhoisemployedbyaregisteredinvestmentmanager or linked investment service provider to perform investment managementfunctionsonbehalfofthatinvestmentmanager;

“prudentialandfinancialmarketsinstitution”means-

(a) abuildingsociety;

(b) ajuristicpersontowhichtheDevelopmentBankofNamibiaAct,2002(ActNo.8of2002),applies;

(c) the Namibia Post Limited established by section 2(1)(a) of the Posts andTelecommunications Companies Establishment Act, 1992 (Act No. 17 of1992);

(d) ajuristicpersontowhichtheAgriculturalBankofNamibiaAct,2003(ActNo.5of2003),applies;or

(e) an entity declared by theMinister to be a prudential and financial marketsinstitutionbynoticeundersubsection(2);

“recognisedforeignexchange”meansaforeignexchangethathasbeenrecognisedbyNAMFISApursuanttosection101;

“recognisedself-regulatoryorganisation”meansaself-regulatoryorganisationthathasbeenrecognisedbyNAMFISApursuanttosection136;

“regulatedperson” meansanyofthefollowingpersonsregisteredunderthisChapter-

(a) anauthorisedadvisorofasecuritiesadvisor;

(b) anauthorisedrepresentativeofanauthoriseduser;

(c) anauthorisedrepresentativeofasecuritiesdealer;

(d) anauthoriseduser;

(e) acentralsecuritiesdepository;

(f) anexchange;

(g) aninvestmentmanager;

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(h) alinkedinvestmentserviceprovider;

(i) anomineeofanauthoriseduser;

(j) anomineeofaparticipant;

(k) aparticipant;

(l) aportfoliomanagerofaninvestmentmanagerorofalinkedinvestmentserviceprovider;

(m) asecuritiesadvisor;

(n) asecuritiesclearinghouse;

(o) asecuritiesdealer;

(p) asecuritiesratingagency;and

(q) astockbroker;

“securitiesadvice”meansanyrecommendation,guidance,projectionorproposalofafinancialnaturefurnishedbyanymeansormedium,toanypersonwhoisaclientorpotentialclient,oragroupofclientsorpotentialclients,whetherornot specificallysoughtbythatpersonorgroup,andirrespectiveofwhetherornotsuchadviceresultsinatransactionbeingeffectedinrespectofbuying,selling,handlingorexchangingasecurity,andincludesadvisingoninvestmentstrategy,assetallocationandgivingsimilaradviceonhowaportfolio shouldor shouldnotbe invested toobtain an investmentreturn,butdoesnotinclude-


(i) ontheprocedureforenteringintoatransactioninrespectofasecurity;

(ii) inrelationtothedescriptionofasecurity;


(iv) intheformofobjectiveinformationaboutaparticularsecurityincludinginformationregardingthetaxtreatmentofaparticularsecurity;


(vi) bywayofananalysisorreportonasecuritywithoutanyexpressorimplied recommendation, guidance or proposal that any particulartransaction in respect of the security is appropriate to the particularinvestmentobjectives,financialsituationorparticularneedsofaclient;

(b) advice given by a member of a professional association, including withoutlimitation,alegalpractitioner,auditororactuary,wheretheadviceisfortaxpurposesorancillarytosomeotheradvicethatisnotsecuritiesadvice;or

(c) anyotheradvisoryactivityexempted fromtheprovisionsof thisChapterbyNAMFISAbynoticeundersubsection(3)(a);

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“securities advisor” means a natural person or company in the business of givingsecuritiesadvicetoclientsorpotentialclients;

“securitiesdealer”meansacompany,otherthananauthoriseduser,thatisengagedinthebusinessofbuyingandsellingsecuritiesforownaccountorinafiduciarycapacity,whetherthroughabrokerorotherwise,butexcludesacompanythat,forownaccountandnotaspartofitsregularbusiness,buysandsellssecurities;

“securities clearing house”means a public company that is retained by a registeredexchangetoprovidesecuritiesclearingservicestothatexchange;

“securitiesclearingservices”meanssecuritiesclearingservicesorsecuritiessettlementservices, or both securities clearing and securities settlement services provided to aregisteredexchangebyasecuritiesclearinghouse;

“securities rating agency” means a company that carries on the business of ratingsecuritiesandissuersofsecurities;

“security”includes-

(a) ashare;

(b) stock;

(c) abond;

(d) adebenture;

(e) anote;

(f) aderivativeinstrumentandanoption,warrant,certificateorotherinstrumentacknowledging,conferringorcreatingarighttosubscribeto,acquire,disposeof,orconvertasecurity;

(g) aninvestmentscheme,plan,programmeorcontractdesignedtoenticeaclientorpotentialclienttoinvest,useorcommitmoneyorotherpropertywiththeexpectation of future payment of interest, dividends, capital appreciation orotherreturnormonetarybenefit;and

(h) aninstrumentdeclaredbyNAMFISAbynoticeundersubsection(3)(b)tobeasecurity,

butdoesnotincludeamoneymarketinstrument,aparticipatoryinterestinacollectiveinvestmentschemeasdefinedinsection168,aunitorotherformofparticipationinaforeigncollectiveinvestmentschemeasdefinedinsection218,orasecuritydeclaredbyNAMFISAbynoticeundersubsection(3)(c)nottobeasecurityforthepurposesofthisChapter;

“self-regulatoryorganisation” meansapubliccompanythatisorganisedforthepurposeofregulatingtheoperationsandbusinessconduct,incapitalmarkets,ofitsmembersandtheirrepresentativeswiththepublicinterestobjectivesofenhancingmarketintegrity,investorprotectionandmarketefficiencyandincludes-

(a) a registeredexchange;

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(b) aregisteredcentralsecuritiesdepository;

(c) aregisteredsecuritiesclearinghouse;and

(d) arecognisedself-regulatoryorganisation;

“settle”meanstodischargetheobligationsarisingfromatransactioninlistedsecurities;

“stockbroker”meansapersonwhowasastockbrokerwithinthemeaningoftheStockExchangesControlActatthetimethisActcomesintoforce;

“StockExchangesControlAct”meanstheStockExchangesControlAct,1985(ActNo.1of1985),repealedbythisAct;

“systemicrisk”meanstheriskofafailureordisruptionofNamibia’sfinancialsystemasawhole;and

“transaction” meansacontractofpurchaseandsaleofsecurities. (2) TheMinistermay,forthepurposesofparagraph(e)ofthedefinitionof“prudentialandfinancialmarketsinstitution”,bynoticeintheGazette declareanyentitytobeaprudentialandfinancialmarketsinstitutionforthepurposesofthisAct. (3) NAMFISAmay,forthepurposesof-

(a) paragraph (c) of the definition of “securities advice”, by notice intheGazette exemptanyadvisoryactivity fromtheprovisionsof thisChapter;

(b) paragraph(h)ofthedefinitionof“security”,bynoticeintheGazette declareanyinstrumenttobeasecurityforthepurposesofthisChapter;and

(c) the definition of “security”, by notice in the Gazette declare anyinstrumentnottobeasecurityforthepurposesofthisChapter.

Objects of Chapter

79. TheobjectsofthisChapterareto-

(a) increaseconfidenceintheNamibianfinancialmarketsby-

(i) requiringthatsecuritiesservicesbeprovidedinafair,efficientandtransparentmanner;and

(ii) contributing to themaintenance of a stable financialmarketenvironment;

(b) promote the supervision of regulated persons and the protection ofclients;

(c) reducesystemicrisk;and

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(d) promote the international competitiveness of securities services inNamibia.

Non-application of gambling laws

80. AnylawrelatingtogamblingorwageringdoesnotapplytoanyactivityregulatedbyorunderthisChapter.

PART 2PROHIBITIONS AND RESTRICTIONS

Prohibitions

81. (1) Apersonmaynotoperateoractasaregulatedperson,unlessthatpersonisregisteredorisdeemedtoberegisteredtooperateoractintheapplicablecapacityunderthisChapter. (2) Apersonreferredtoinsubsection(1)whoisnotregisteredordeemedtoberegisteredunderthisChaptermaynotpurporttobearegulatedpersonorbehaveinamanneroruseanameordescriptionwhich iscalculated to indicateor likely toleadotherpersonstobelieveorwhichsuggests,signifiesorimpliesthatthepersonisaregulatedpersonorthatthereissomeconnectionbetweenthatpersonandaregulatedperson. (3) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(2)andthatperson-

(a) subsequentlychangesthatname;

(b) producesanydeedordocument,bearingthepreviousnamewhichwasregisteredinanydeedsregistryorinanyotherofficewherearegisterorrecordoftheownershipoforentitlementtoanypropertyiskept,tothepersonchargedwiththeregistrationofdeedsinthatregistryortotheofficerinchargeofthatotheroffice;and

(c) satisfiesthepersonsochargedorofficerthatthenamewaschangedasaresultoftheprohibitioncontainedinsubsection(2),

thatpersonsochargedorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonsuchdeedordocumentandinalltherelevantregisters. (4) Apersonwhocontravenesor fails to complywith subsection (1)or(2)commitsanoffenceand is liableonconviction toafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Listed securities: exception

82. (1) Apersonmaynotcarryon thebusinessofbuyingorsellinglistedsecuritiesunlessthatperson-

(a) isaregisteredauthoriseduser;

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(b) is the registered authorised representative of a registered authoriseduser;

(c) effectssuchbuyingorsellingthrougharegisteredauthoriseduserorregisteredauthorisedrepresentative;

(d) is a banking institution, prudential and financial markets institutionorafinancialinstitutiontransactingasprincipalwithanotherbankinginstitution, prudential and financial markets institution or financialinstitutionalsotransactingasprincipal;or

(e) isapersonwho,subject toanyconditionsthatmaybesetoutinthestandards,buysorsellslistedsecuritiesinorderto-

(i) give effect to a reconstruction of a company or group ofcompaniesbytheissueorreallocationofshares,oratakeoverbyonecompanyofanotheroranamalgamationoftwoormorecompanies;or

(ii) effectachangeinthecontrolovermanagementorthebusinessofacompany.


PART 3REGISTRATION OF CERTAIN REGULATED PERSONS


83. (1) Only a public companymay, in accordancewith subsection(4),makeanapplicationforregistrationas-

(a) acentralsecuritiesdepository;

(b) anexchange,inrespectofoneormoretypesofsecurities;or

(c) asecuritiesclearinghouse,

toNAMFISA. (2) Only a company may, in accordance with subsection (4), make anapplicationforregistrationas-

(a) aninvestmentmanager;

(b) alinkedinvestmentserviceprovider;

(c) asecuritiesratingagency;or

(d) asecuritiesdealer,

toNAMFISA.

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(3) Acompanyoran individualmay, inaccordancewithsubsection(4),makeanapplicationforregistrationasasecuritiesadvisortoNAMFISA. (4) An application for registration pursuant to subsection (1), (2) or (3)must-

(a) bemadeinthemannerandformrequiredbythestandards;


(c) inthecaseof-

(i) acentralsecuritiesdepositoryoranexchange,beaccompaniedby the proposed rules of the central securities depository orexchange;and

(ii) an exchange, be accompanied by the proposed listingrequirementsoftheexchange;

(d) beaccompaniedbythedocumentsandotherinformationrequiredbythestandards;

(e) be accompanied by such further information that NAMFISA onreasonablegroundsmayrequireinanyparticularcase;

(f) be made subject to and in accordance with any other applicableprovisionofthisAct;and

(g) beaccompaniedbytherequiredfee. (5) Beforemakinganapplicationforregistrationreferredtoinsubsection(1)or(2)(c),theapplicantmustgivenoticeoftheproposedapplicationintwonewspaperscirculatingnationallyinNamibiaattheexpenseoftheapplicant,stating-


(b) theperiodwithinwhich,and themanner inwhich,objections to theapplicationmaybelodgedwithNAMFISA;and

(c) inthecaseofanapplicationreferredto-

(i) insubsection(1)(a)or(b),theplacewheretheproposedrulesof the exchange or central securities depository, as the casemaybe,maybeinspectedbymembersofthepublic;

(ii) in subsection (1)(b), the place where the proposed listingrequirementsoftheexchangemaybeinspectedbymembersofthepublic,

andthemannerinwhich,andtheperiodwithinwhich,themembersofthepublicmaylodgeobjectionstotheproposedrulesorlistingrequirements,asthecasemaybe,withNAMFISA.

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84. (1) Beforeapprovingtheapplicationandregisteringtheapplicantpursuant to an applicationmade under section 83(1), (2) or (3)NAMFISAmust besatisfiedthat-

(a) inrelationtotheapplicantcompany-

(i) everyshareholderorotherowner thatcontrols theapplicant,andeverydirector,theprincipalofficerorotherofficersoftheapplicant,andwhereapplicable,membersofanyotherboardofanapplicant,arefitandproperwithin themeaningof thestandards;





(i) thisAct;or






(d) in the case of a central securities depository or an exchange, theapplicantwillbeinapositiontoensurecompliancewithitsrulesbyitsparticipantsandauthorisedusers,asthecasemaybe,anditsclients;

(e) inthecaseofanexchange,theapplicantwillbeinapositiontoensurecompliancewithitslistingrequirementsbyitsauthorisedusers,anditsclients;

(f) the name under which the applicant proposes to conduct business,or a translation, shortened formor derivative of that name is not incontraventionofsection391;

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(g) theapplicanthassubmittedallotherinformationwhich,intheopinionofNAMFISA,isnecessarytoassesstheapplication,andsuchinformationhasbeenfoundsatisfactorybyNAMFISA;and

(h) theapplicanthascompliedandwillcontinuetocomplywithanyotherrequirementscontainedinthisActorinthestandardswhichapplytotheapplicant.

(2) Before approving an application and registering an individual asa security advisor pursuant to section 83(3), NAMFISA must, in addition to therequirementsofsubsection(1)(b),(c),(f),(g)and(h)besatisfiedthat-


(b) the individual hasmet the requirements for a securities advisor thatmaybeincludedinthestandardsfromtimetotime;


(d) the individual has not been refused registration, authorisation oracceptanceasasecuritiesadvisororhadsuchregistration,authorisationor acceptance suspended or revoked under this Act or any otherapplicablefinancialserviceslaw;

(e) theindividualhasnotbeenconvictedofanoffencethenatureofwhichrendershim, in theopinionofNAMFISA,unfit toholdaregistrationunderthisAct;


(g) therearereasonablegroundsforbelievingthattheindividualwillcarryonwithintegrityandhonestytheactivitiesofansecuritiesadvisor;

(h) the individual has met, and there is no reason to believe that the individualwillnotbeabletomeet,anyotherrequirementsofthisAct,andanyinstructionsandguidelinesissuedbyNAMFISAunderthisAct orissuedbytheregisteredinsurerconcernedthatapplytoasecuritiesadvisor;



(k) anyrequiredfeehasbeenpaid.


85. (1) If-

(a) afterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsection83(5);and

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(b) inanyothercasewhereanoticeisnotrequiredtobegivenbeforeanapplicationreferredtointhatsectionismade,

NAMFISA is satisfied that the applicant complies with the requirements of section84,NAMFISAmustregistertheapplicantasacentralsecuritiesdepository,exchange,investment manager, linked investment services provider, securities clearing house,securitiesratingagency,securitiesadvisororsecuritiesdealer,asthecasemaybe,and-

(i) in the case of a central securities depository, approve itsproposeddepositoryrules;and

(ii) in the case of an exchange, approve its proposed exchangerulesandlistingrequirements.

(2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate;

(c) thefinancialservicesinsecuritiesthatmaybeprovidedbytheapplicant;

(d) inthecaseofasecuritiesclearinghouse,whetherthesecuritiesclearinghousemayprovide both securities clearing and securities settlementservices,oronlysecuritiesclearingservicesoronlysecuritiessettlementservices;and

(e) inthecaseofanexchange,whethertheexchangemay,inadditiontosecurities,alsolistandprovidefortradinginmoneymarketinstruments,participatory interests in collective investment schemes, and otherproductsorintereststhatarenotsecurities.

(3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Acentralsecuritiesdepository,anexchange,aninvestmentmanager,alinkedinvestmentserviceprovider,securitiesclearinghouse,securitiesratingagency,securitiesadvisororsecuritiesdealermustcomplywiththeconditionssubjecttowhichitwasregistered. (7) Thetermofregistrationassecuritiesratingagency,securitiesadvisororsecuritiesdealerunderthissectionexpiresonMarch31ofeachyearoronsuchother

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dateasNAMFISAmayspecify,but if theappropriate renewal feeasdeterminedbyNAMFISAinrespectofeachsecuritiesratingagency,securitiesadvisororsecuritiesdealerispaidtoNAMFISAinthemannersetoutinthestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate. (8) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose. (9) If-



NAMFISA may not renew the registration of a securities rating agency, securitiesadvisororsecuritiesdealer,asthecasemaybe,whoserenewalfeewasnotpaidorinrespecttowhomtherequirementsofthestandardshavenotbeencompliedwith. (10) Apersonwhocontinuestooperate,ortoengagein,thebusinessofasecuritiesratingagency,securitiesadvisororsecuritiesdealerafterthenon-renewalofregistrationundersubsection(9),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Existing exchanges

86. (1) An exchange that was licensed under the Stock ExchangesControlAct prior to, and remains licensed on, the date of commencement of thisChapter,despitethatsuchexchangeisnotapubliccompany,isdeemedtoberegisteredasanexchangeunderthisAct,subjecttosubsection(3). (2) Anexchangereferredtoinsubsection(1)is,fromthedateonwhichthisChaptercomesintoforce,ajuristicpersoncapableofsuingandbeingsuedunderthenamebywhichitisregistered,ofacquiringrightsanddutiesandofacquiring,owning,burdening,hiring,lettingandalienatingproperty,and,subjecttothisAct,ofdoingsuchthingsasmaybenecessaryfororincidentaltotheperformanceofitsfunctionsunderitsexchangerules. (3) An exchange referred to in subsection (1)must, in accordancewithsection138,be incorporated intoapubliccompanyhavingasharecapitalwithin12monthsofthedateofcommencementofthisChapterandmust,uponsuchincorporation,complywithalltherequirementsimposedonanapplicantforregistrationasanexchangeintermsofthisAct. (4) If an exchange referred to in subsection (1) contravenes or fails tocomply with subsection (3), NAMFISA may take action that NAMFISA considersappropriateagainsttheexchangepursuanttosection89,412or439.

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Persons approved by Registrar

87. (1) ApersonthatwasapprovedbytheRegistrarundersection4(1)(f)oftheStockExchangesControlActonthedateofcommencementofthisChapteris, subject to subsection (2), deemed to be registered in the appropriate category ofregulatedpersonunderthisActasdeterminedbyNAMFISA. (2) Despite subsection (1), a person referred to in that subsectionmust,within12monthsafterthedateofcommencementofthisChapter,makeanapplicationto NAMFISA pursuant to section 83 for registration in the appropriate category ofregulatedperson. (3) Ifapersonreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),thedeemedregistrationofthatpersoniscancelled.


88. (1) Aregisteredcentralsecuritiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse,securitiesratingagency,securitiesadvisororsecuritiesdealermayatanytime,applytoNAMFISAforcancellationofa registrationgrantedpursuant to section85or foravariation to theconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-






(b) either-




(4) Section 85 applies with the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1).

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(5) If,afterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsubsection(3),NAMFISAisoftheopinionthatitisreasonabletodosoandnotagainstthepublicinterest,NAMFISAmay,bynoticetotheapplicantconcerned-





89. (1) NAMFISAmaytakeanyof theactionssetout insubsection(3),ifNAMFISA,actingreasonably,findsthataregisteredcentralsecuritiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse,securitiesratingagency,securitiesadvisororsecuritiesdealer-









(i) isinvolvedinafinancialcrime;

(j) inthecaseofasecuritiesadvisorthatisanindividual,nolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct;or

(k) every shareholder or other owner that controls the applicant, and anydirector,theprincipalofficer,otherofficerormemberofaboardnolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) Inadditiontothereasonssetoutinsubsection(1),NAMFISAmaytakeanyoftheactionssetoutinsubsection(3)if,intheopinionofNAMFISA,suchactioniswarrantedbecause-

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(a) thatpersonhasfailedto-

(i) giveeffecttoadecisionoftheAppealBoard,andsuchfailurehasdefeatedtheobjectsofthisChapterreferredtoinsection79orislikelytodefeatthem;or

(ii) in the case of an exchange or central securities depository,complywith the rules of that exchange or central securitiesdepository;or

(b) afteraninspectionoftheperson’saffairsunderthisAct,NAMFISAissatisfiedonreasonablegroundsthatthemannerinwhichitisoperatedis-

(i) not in the best interests of authorised advisors, authorisedrepresentatives, authorised users, participants or portfoliomanagers,asthecasemaybe,ortheirclients;or

(ii) defeatingtheobjectsofthisChapterreferredtoinsection79. (3) IfNAMFISA is satisfied that any of the circumstances described insubsection (1) or (2) exist, NAMFISAmay take any of the following actions withrespect totheregisteredcentralsecuritiesdepository,exchange, investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse,securitiesratingagency,securitiesadvisororsecuritiesdealer-




(4) NAMFISA must give notice to the registered central securitiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse, securities ratingagency, securities advisoror securitiesdealerof theintentionofNAMFISAtotakeanyactionreferredtoinsubsection(3),togetherwiththereasonstherefor,andmustgivetheregisteredcentralsecuritiesdepository,exchange,investment manager, linked investment service provider, securities clearing house,securitiesratingagency,securitiesadvisororsecuritiesdealerareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredcentralsecuritiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider, securities clearing house, securities rating agency, securities advisor orsecuritiesdealermaymakerepresentationstoNAMFISAonthematter. (5) SubjecttosuchconditionsasNAMFISAmayimpose,NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredcentralsecuritiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse,securitiesratingagency,securitiesadvisororsecuritiesdealerwithout giving notice and an opportunity to be heard pursuant to subsection (4), ifNAMFISAissatisfiedonreasonablegroundsthatitisurgentlynecessarytodosoinordertopreventormitigatedamagetotheinterestsoffinancialinstitutions,financialintermediaries,theirclientsorthefinancialsystemofNamibia,butNAMFISAmust-

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(a) givetheregisteredcentralsecuritiesdepository,exchange,investmentmanager,linkedinvestmentserviceprovider,securitiesclearinghouse,securities rating agency, securities advisor or securities dealer thenoticeandanopportunitytobeheardandmakerepresentationsassoonasreasonablypossible;and

(b) havingconsideredanyrepresentationsreceived,determinewhethertheprovisionalsuspensionshouldbecontinueduntilfurtherconditionscanbeimposedortheregistrationcancelled.

(6) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranyotherstepstakenunderthissection and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (7) Apersonwho-

(a) continuestooperate,orengagein,thebusinessofacentralsecuritiesdepository,anexchange,aninvestmentmanager,alinkedinvestmentservice provider, securities clearing house, securities rating agency,securities advisor or securities dealer after the cancellation ofregistration under section 87(3), 88(5)(a), subsection (3)(a), or anyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(5);or



Transfer or winding-up

90. If the registrationofany regulatedperson iscancelledunder section87(3), 88(5)(a), 89(3)(a)or anyother applicableprovisionof thisAct, or suspendedpursuant to section 89(5), NAMFISA must take such steps and may impose suchconditionsasarenecessarytoachievetheobjectsofthisChapterreferredtoinsection79,whichstepsmayinclude-

(a) thetransferofthebusinessoftheregulatedpersontoanotherregulatedperson,asappropriate;and

(b) iftheregulatedpersonisacompany,thewinding-upofthecompanyinaccordancewithChapter10.

Registration as authorised user, portfolio manager, authorised advisor or authorised representative

91. (1) A registered exchange may authorise a company to be anauthoriseduserofthatexchangeinaccordancewiththeexchangerulesreferredtoinsection112,andmayapply toNAMFISAfor the registrationof thatcompanyasanauthoriseduserbysubmittingacopyofthelistmaintainedbythatregisteredexchangeofthosecompanies,togetherwithanyrequiredregistrationfeeforeachsuchcompany.

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(2) Aregisteredinvestmentmanagerorlinkedinvestmentserviceprovidermayapply toNAMFISAfor the registrationof certainof its employeesasportfoliomanagers by submitting a copy of the list maintained by the registered investmentmanagerorlinkedinvestmentserviceproviderofthoseemployees,togetherwithanyrequiredregistrationfeeforeachsuchindividual. (3) A registered securities advisor may apply to NAMFISA for theregistrationofcertainofitsemployeesasauthorisedadvisorsbysubmittingacopyofthelistmaintainedbytheregisteredsecuritiesadvisorofthoseemployees,togetherwithanyrequiredregistrationfeeforeachsuchindividual. (4) AregisteredsecuritiesdealermayapplytoNAMFISAfortheregistrationofcertainofitsemployeesasauthorisedrepresentativesbysubmittingacopyofthelistmaintainedby the registered securitiesdealerof thoseemployees, togetherwithanyrequiredregistrationfeeforeachsuchindividual. (5) Aregisteredinvestmentmanager,registeredlinkedinvestmentserviceprovider,registeredsecuritiesadvisororregisteredsecuritiesdealer(inthissectionandinsection92referredtoas“listapplicants”),musthaveinplaceacodeofconductandapplicablesystemsrelevanttoitsportfoliomanagers,authorisedadvisorsorauthorisedrepresentatives,asthecasemaybe,(inthissectionreferredtoas“listedindividuals),inordertobereasonablysatisfiedwithrespecttoeachofitslistedindividualsthat-


(b) the individual has met the requirements for portfolio managers,authorisedadvisorsorauthorisedrepresentatives,as thecasemaybe,thatmaybeincludedinthestandardsfromtimetotime;



(e) the individual has not been convicted of an offence the nature ofwhichrendershimorher,intheopinionofNAMFISA,unfittoholdaregistrationunderthisAct.


(g) therearereasonablegroundsforbelievingthattheindividualwillcarryon with integrity and honesty the activities of a portfolio manager,authorisedadvisororauthorisedrepresentative,asapplicable;

(h) the individual has met, and there is no reason to believe that theindividualwillnotbeabletomeet,anyotherrequirementsofthisAct,andanyinstructionsandguidelinesissuedbyNAMFISAunderthisActorissuedbythelistapplicantconcerned,thatapplytotheindividual;


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(k) anyrequiredfeehasbeenpaid. (6) EachlistapplicantmustprovideNAMFISAwithsuchotherinformationandmaterialregardingitslistedindividualsasmaybespecifiedinthestandards,andtheregisteredexchangemustprovideNAMFISAwithsuchotherinformationandmaterialregardingthecompaniesonitslistasmaybespecifiedinthestandards. (7) NAMFISAmust register each company, the nameofwhich appearsonalistreferredtoinsubsection(1),asanauthoriseduser,andeachlistedindividualwhosenameappearsonthelistsreferredtoinsubsection(2),(3)or(4)asaportfoliomanager,authorisedadvisororauthorisedrepresentative,asthecasemaybe. (8) AregisteredexchangethathassubmittedalisttoNAMFISApursuanttosubsection(1)mustsubmittoNAMFISAanupdateofthatlistwhentherehasbeenanadditionordeletion,togetherwithadditionalcompaniestoberegisteredthathavebeenaddedtoalistreferredtoinsubsection(1),andtherequiredfeeforeachadditionalcompany and the information and material referred to in subsection (6), and uponreceiptbyNAMFISAofanupdatedlistcontainingthenamesofadditionalcompanies,theprovisionsofsubsection(7)apply. (9) EachlistapplicantthathassubmittedalisttoNAMFISApursuanttosubsection(2),(3)or(4),mustsubmittoNAMFISAanupdateofthatlistwhentherehasbeenanadditionordeletion,togetherwithadditionallistedindividualstoberegisteredthathavebeenaddedtoalistreferredtoinsubsection(2),(3)or(4),andtherequiredfeeforeachadditionallistedindividualandtheinformationandmaterialreferredtoinsubsection(6),anduponreceiptbyNAMFISAofanupdatedlistcontainingthenamesofadditionallistedindividuals,theprovisionsofsubsection(7)apply. (10) Ifaregisteredexchangeremovesacompanyfromthelistreferredtoinsubsection(1),oralistapplicantremovesalistedindividualfromalistreferredtoinsubsection(2),(3)or(4),theregisteredexchangeorthelistapplicant,asthecasemaybe,must,atthesametimeassubmittingtheupdateofthelistasrequiredbysubsection(8)or(9),provideNAMFISAwithastatementindicatingthereasonthatthecompanyorindividualhasbeenremovedfromthelist. (11) A registered exchangemay not remove a company from the list asreferred to in subsection (10)unless the registeredexchangehasgiven thecompanyconcerned the reasons for the proposed removal and a reasonable opportunity to beheard. (12) A list applicantmay not remove a listed individual from the list asreferred to insubsection(10)unless the listapplicanthasgiven the listed individualconcerned the reasons for the proposed removal and a reasonable opportunity to beheard.

Remedial action

92. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2), if NAMFISA, acting reasonably, finds that any of the following circumstancesexistwithrespecttoapersonwhoisaregisteredauthoriseduser,registeredportfoliomanager,registeredauthorisedadvisororregisteredauthorisedrepresentative-

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(a) inthecaseofindividuals,anyoftherequirementsreferredtoinsection91(5)havenotbeenmet;

(b) thecopyof the list submittedundersection91or theaccompanyinginformation and material contained information, concerning theperson, thatwas notmaterially accurate or omitted information thatwasmateriallyrelevant;

(c) the person no longermeets the requirements for an authorised user,portfoliomanager,authorisedadvisororauthorisedrepresentative,asapplicable;

(d) the person has suspended the activities for which the person wasregisteredforaperiodofatleast12months;

(e) thepersonisnotincompliancewitharequirementofthisAct;or

(f) thepersonhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection (1) exist, NAMFISAmay take, or direct the registered exchange or listapplicantconcernedtotake,remedialaction,includingwithoutlimitation-

(a) directing the registered exchange or list applicant to provide furtherinformationwithrespecttotheperson;

(b) directing the registered exchange or list applicant to provide furthertrainingfortheperson;

(c) directingtheregisteredexchangeorlistapplicanttotakedisciplinaryactionagainsttheperson;

(d) directingthelistapplicanttomakechangestothecodeofconductandsystemsreferredtoinsection91(5);

(e) requiringanundertakingfromthepersonpursuanttosection436;

(f) requiring an undertaking from the list applicant pursuant to section436;

(g) directing the person to undertake specific actions or refrain fromspecificactions,pursuanttosection439(4)(c);

(h) directingthelistapplicanttoundertakespecificactionsorrefrainfromspecificactionspursuanttosection439(4)(c);or

(i) imposingonthelistapplicantanypenaltythatmaybespecifiedinthestandards, if the list applicant has been negligent in satisfying itselfwithrespecttotheprovisionsofsection91(5).

(3) Ifonreceiptofevidencethattherequiredactionhasbeentakenpursuantto subsection (2),NAMFISA, acting reasonably,finds that anyof the circumstancesreferredtoinsubsection(1)continuetoexist,NAMFISAmaydirectthelistapplicant

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toremovethenameofthepersonfromthelistreferredtoinsection91(1),(2),(3),(4),(8),or(9). (4) Before directing that the name of a person be removed from a listpursuanttosubsection(3),NAMFISAmustgivetheregisteredexchangeorlistapplicantandthepersonthereasonsfortheproposedremovalandareasonableopportunitytobeheard. (5) IfaregisteredexchangeorlistapplicantfailstoremovethenameofapersonfromthelistwhenrequiredtodosobyNAMFISA,NAMFISAmay,aftergivingthepersonareasonableopportunitytobeheard,itselfremovethenameofthepersonfromthelist. (6) Ifthenameofapersonisremovedfromalistbyaregisteredexchangeor list applicant orNAMFISA, the registrationof that person as an authoriseduser,portfolio manager, authorised advisor or authorised representative, as the casemaybe,iscancelledandthepersonmaynotactasanauthoriseduser,portfoliomanager,authorisedadvisororauthorised representative,orbe includedonany list a copyofwhichissubmittedundersection91forsuchperiodasNAMFISAmaydetermine. (7) Apersonwhocontinues tooperate,orengage in, thebusinessofanauthoriseduser,aportfoliomanager,anauthorisedadvisororauthorisedrepresentativeafter thecancellationofregistrationundersubsection(6),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Stockbrokers

93. (1) A stockbroker thatwas licensed under the StockExchangesControlActonthedateofcommencementofthisChapteris,subjecttosubsections(2)and(3),deemedtobeanauthoriseduserorauthorisedrepresentative,asthecasemaybe,underthisAct. (2) Despitesubsection(1),astockbrokerthatisacompanyorotherentity,oranindividualstockbrokerwhoisnotanemployeeofastockbrokerthatisacompanyorentity,mustbeincludedinthelistsubmittedtoNAMFISAbytheregisteredexchangeofwhichitisanauthoriseduser,pursuanttosection91. (3) Despite subsection (1), a stockbroker who is an employee of acompanyorotherentitythatisastockbroker,mustbeincludedinthelistofauthorisedrepresentativessubmittedbythatcompanyorotherentitytotheregisteredexchangeofwhichthatcompanyorentityisanauthoriseduser,pursuanttosection95. (4) Ifastockbrokerreferredto insubsection(2) isnot includedina listsubmitted toNAMFISA by a registered exchange pursuant to section 91within 12monthsfromthedateofcommencementofthisChapter,thedeemedregistrationofthatpersoniscancelled. (5) Ifastockbrokerreferredto insubsection(3) isnot includedina listsubmitted toNAMFISAbyacompanyorotherentityconcernedpursuant tosection95within 12months from the date of commencement of this Chapter, the deemedregistrationofthatpersoniscancelled.

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(6) A stockbroker may continue to use the designation “stockbroker”,“stockbroker(Namibia)”or“stockbroker(Nam)”. (7) Wherethebusinessofapersontowhomtherulesofaforeignexchangeapplyissubstantiallysimilartothatofastockbroker,thatpersonmayusethedesignation“stockbroker”ifthelawunderwhichtheforeignexchangeisregulatedortherulesofthatforeignexchangeauthorisethatdesignation. (8) AnauthoriseduserwhowasnotlicensedundertheStockExchangesControlActonthedateofcommencementofthisChapter,butwhosebusinessasanauthoriseduserissubstantiallysimilartothatofastockbroker,mayusethedesignation“stockbroker”. (9) Apersonwhoisnotmentionedinanyoftheprovisionsofsubsections(1),(2)(3),(7)and(8)maynot-

(a) purporttobeastockbroker;or

(b) useanydesignationreferredtoinsubsection(6),(7)or(8)oranyothername, title, description or symbol, or perform any act implying, ortendingtoinducethebelief,thatsuchpersonisastockbroker.

(10) A person who contravenes or fails to comply with subsection (9)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment. (11) Apersonwhocontinues tooperate,orengage in, thebusinessofanauthorised user, authorised representative or a stockbroker after the cancellation ofregistrationundersubsection(4)or(5),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Existing portfolio managers

94. (1) AportfoliomanagerwhoisapprovedbytheRegistrarundersection4(1)(f)oftheStockExchangesControlActonthedateofcommencementofthisChapterisdeemedtoberegisteredasaportfoliomanagerunderthisAct. (2) Despitesubsection(1),aregisteredinvestmentmanageroraregisteredlinkedinvestmentserviceproviderthatemploysaportfoliomanagerreferredtointhatsubsectionmust,withinsixmonthsofthedateofcommencementofthisChapter,includetheportfoliomanagerinalistsubmittedtoNAMFISAbytheinvestmentmanagerorlinkedinvestmentserviceproviderpursuanttosection91(2). (3) Ifaportfoliomanagerreferredtoinsubsection(1)isnotincludedinalistsubmittedtoNAMFISAbyaregisteredinvestmentmanagerorregisteredlinkedinvestmentserviceproviderpursuanttosection91(2)withintheperiodreferredtoinsubsection(2),thedeemedregistrationofthatpersoniscancelled. (4) A personwho continues to operate, or engage in, the business of aportfoliomanagerafterthecancellationofregistrationundersubsection(3),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Registration as authorised representative of authorised user

95. (1) Anauthorisedusermustsubmittotheregisteredexchangeofwhichitisanauthoriseduser,acopyofthelistmaintainedbytheauthoriseduserofitsemployeesthatareitsauthorisedrepresentatives. (2) Anauthorisedusermusthaveinplaceacodeofconductandapplicablesystemsrelevanttoauthorisedrepresentativesinordertobereasonablysatisfiedwithrespecttoeachauthorisedrepresentativethat-


(b) theindividualhasmettherequirementsforauthorisedrepresentativesthatmaybeincludedinthestandardsortheexchangerulesfromtimetotime;





(g) there are reasonable grounds for believing that the individual willcarry on with integrity and honesty the activities of an authorisedrepresentative;

(h) the individual has met, and there is no reason to believe that theindividualwillnotbeabletomeet,anyotherrequirementsofthisAct,therulesoftheregisteredexchangeandanyinstructionsandguidelinesissuedbyNAMFISAunderthisthisActorissuedbytheexchangethatapplytoauthorisedrepresentatives;



(k) anyrequiredfeehasbeenpaid. (3) An authorised user must provide the exchange with such otherinformationandmaterialregardingitsauthorisedrepresentativesastheexchangerulesmayrequire.

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(4) TheregisteredexchangemustforwardthecopyofthelisttoNAMFISAtogetherwithanyrequiredfeeandNAMFISAmustregistereachpersonwhosenameappearsonthelistasanauthorisedrepresentative. (5) Anauthoriseduserthathassubmittedalisttotheregisteredexchangepursuanttosubsection(1)mustsubmittotheregisteredexchangeanupdateofthatlistwhentherehasbeenanadditionordeletion,together,inthecaseofadditionalauthorisedrepresentatives,withtherequiredfeeforeachadditionalauthorisedrepresentativeandtheinformationandmaterialreferredtoinsubsection(3). (6) Anauthorisedusermaynotremoveanindividualfromthelistreferredtoinsubsection(1)unlesstheauthoriseduserhasgiventheindividualconcernedthereasonsfortheproposedremovalandareasonableopportunitytobeheard. (7) Ifanauthoriseduserremovesanindividualfromthelist,itmust,atthesametimeassubmittingtheupdateofthelistasrequiredbysubsection(5),providetheregisteredexchangewithastatementindicatingthereasonthattheindividualhasbeenremovedfromthelist. (8) The registered exchange must forward any updated list receivedpursuant to subsection (5) toNAMFISA, togetherwith any statement referred to insubsection(7),andinthecaseofanyaddition,theprovisionsofsubsection(4)apply.

Remedial action

96. (1) A registered exchange may take any of the actions set outin subsection (2) if the exchange, acting reasonably, finds that any of the followingcircumstancesexistwithrespecttoanauthorisedrepresentative-

(a) anyoftherequirementsreferredtoinsection95(2)havenotbeenmet;

(b) thecopyof the list submittedundersection95or theaccompanyinginformation and material contained information concerning theindividual,thatwasnotmateriallyaccurateoromitted,informationthatwasmateriallyrelevant;

(c) the individual no longer meets the requirements for an authorisedrepresentative;

(d) theindividualhassuspendedtheactivitiesforwhichtheindividualwasregisteredforaperiodofatleast12months;

(e) theindividualisnotincompliancewitharequirementofthisAct;or

(f) theindividualhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) If the registered exchange is satisfied that any of the circumstancesdescribed in subsection (1) exist, the registered exchange may take, or direct theauthoriseduserofwhichtheindividualistheauthorisedrepresentativetotake,remedialaction,includingwithoutlimitation-

(a) directingtheauthorisedusertoprovidefurtherinformationwithrespecttotheindividual;

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(b) directing the authorised user to provide further training for theindividual;

(c) directing the authorised user to take disciplinary action against theindividual;

(d) directingtheauthorisedusertomakechangestothecodeofconductandsystemsreferredtoinsection95(2);

(e) requiringanundertakingfromtheauthoriseduserorfromtheauthorisedrepresentativeorfrombothpursuanttosection436;

(f) directingtheauthoriseduserortheauthorisedrepresentativeorbothtotakespecificactionsorrefrainfromspecificactions;or

(g) referringthemattertoNAMFISA. (3) If on receipt of evidence that the required action has been takenpursuanttosubsection(2),theregisteredexchange,actingreasonably,findsthatanyofthecircumstancesreferredtoinsubsection(1)continuetoexist,theregisteredexchangemaydirecttheauthorisedusertoremovethenameoftheindividualfromthelistreferredtoinsection95(1)or(5). (4) Before directing that the name of a person be removed from a listpursuanttosubsection(3),theregisteredexchangemustgivetheauthoriseduserandthe authorised representative the reasons for theproposed removal and a reasonableopportunitytobeheard. (5) If an authorised user fails to remove the name of an authorisedrepresentative from the list when required to do so by the registered exchange, theregistered exchange may, after giving the authorised representative a reasonableopportunitytobeheard,itselfremovethenameofthepersonfromthelist. (6) The registered exchange must inform NAMFISA forthwith of anydirection to an authorised user to remove the name of an authorised representativefromthelistpursuanttosubsection(3)oroftheremovalofthenameofanauthorisedrepresentativefromthelistbytheexchangepursuanttosubsection(5)andinthatevent,orintheeventthattheregisteredexchangerefersthemattertoNAMFISApursuanttosubsection(2)(g),theprovisionsofsection92applywithanychangesmadenecessarybythecontext. (7) Ifthenameofapersonisremovedfromalistbyaregisteredexchange,an authorised user or NAMFISA, the registration of that person as an authorisedrepresentativeiscancelledandthepersonmaynotactasanauthorisedrepresentative,orbeincludedonanylistacopyofwhichissubmittedundersection95forsuchperiodasNAMFISAmaydetermine. (8) Apersonwhocontinues tooperate,orengage in, thebusinessofanauthorised representative after the cancellation of registration under subsection (7),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Registration as participant

97. (1) Aregisteredcentralsecuritiesdepositorymayacceptacompanythatholdssecuritiesoraninterestinsecuritiesasaparticipantinthatcentralsecuritiesdepository inaccordancewith itsdepositoryrules,andmustapply toNAMFISAfortheregistrationofthatparticipantbysubmittingacopyofthelistofsuchparticipantsmaintainedbythecentralsecuritiesdepository,togetherwithanyrequiredfeeforeachsuchparticipant. (2) The registeredcentral securitiesdepositorymustprovideNAMFISAwithsuchotherinformationandmaterialregardingthecompaniesonitslistasmaybespecifiedinthestandards. (3) NAMFISAmustregistereachcompany,thenameofwhichappearsonalistreferredtoinsubsection(1). (4) A registered central securities depositorymust submit toNAMFISAanupdateofthelistreferredtoinsubsection(1)whentherehasbeenanadditionordeletionofaparticipanttogether,inthecaseofadditionalparticipantstoberegistered,withtherequiredfeeforeachsuchadditionalparticipant. (5) Onreceiptofalistreferredtoinsubsection(4)andtherequiredfee,NAMFISAmustregisterthosecompaniesasparticipants. (6) Ifaregisteredcentralsecuritiesdepositoryremovesacompanyfromthelistreferredtoinsubsection(1),theregisteredcentralsecuritiesdepositorymust,atthesametimeassubmittingtheupdateofthelistasrequiredbysubsection(4),provideNAMFISAwithastatementindicatingthereasonthatthecompanyhasbeenremovedfromthelist. (7) Aregisteredcentralsecuritiesdepositorymaynotremoveacompanyfrom the list as referred to in subsection (6) unless the registered central securitiesdepositoryhasgiventhecompanyconcernedthereasonsfortheproposedremovalandareasonableopportunitytobeheard.

Remedial action

98. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2)ifNAMFISA,actingreasonably,findsthatanyofthefollowingcircumstancesexistwithrespecttothecompanythatisregisteredasaparticipant-

(a) thecopyof the list submittedundersection97or theaccompanyinginformation and material contained information concerning thecompanythatwasnotmateriallyaccurateoromittedinformationthatwasmateriallyrelevant;

(b) thecompanynolongermeetstherequirementsforaparticipant;

(c) thecompanyhassuspendedtheactivitiesforwhichthecompanywasregisteredforaperiodofatleast12months;

(d) thecompanyisnotincompliancewitharequirementofthisAct;or

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(e) thecompanyhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection (1) exist, NAMFISAmay take, or direct the registered central securitiesdepositoryconcernedtotake,remedialaction,includingwithoutlimitation-

(a) directingtheregisteredcentralsecuritiesdepositorytoprovidefurtherinformationwithrespecttothecompany;

(b) directingtheregisteredcentralsecuritiesdepositorytoprovidefurthertrainingforthecompany;

(c) directingtheregisteredcentralsecuritiesdepositorytotakedisciplinaryactionagainstthecompany;

(d) requiringanundertakingfromthecompanypursuanttosection436;

(e) requiringanundertakingfromthecentralsecuritiesdepositorypursuanttosection436;

(f) directing the company to undertake specific actions or refrain fromspecificactions,pursuanttosection439(4)(c);

(g) directingthecentralsecuritiesdepositorytoundertakespecificactionsorrefrainfromspecificactionspursuanttosection439(4)(c).

(3) If,onreceiptofevidencethattherequiredactionhasbeentakenpursuantto subsection (2)NAMFISA, acting reasonably, finds that any of the circumstancesreferredtoinsubsection(1)continuetoexist,NAMFISAmaydirectthecentralsecuritiesdepositorytoremovethenameofthecompanyfromthelistreferredtoinsection97(1)or(4). (4) Before directing that the name of a company be removed from alistpursuant to subsection (3),NAMFISAmustgive the registeredcentral securitiesdepository and the company the reasons for the proposed removal and a reasonableopportunitytobeheard. (5) IfaregisteredcentralsecuritiesdepositoryfailstoremovethenameofacompanyfromthelistwhenrequiredtodosobyNAMFISA,NAMFISAmay,aftergivingthecompanyareasonableopportunitytobeheard,itselfremovethenameofthecompanyfromthelist. (6) IfthenameofacompanyisremovedfromalistbyaregisteredcentralsecuritiesdepositoryorNAMFISA,theregistrationofthatcompanyasaparticipantiscancelledandthecompanymaynotactasaparticipantorbeincludedonanylistacopyofwhichissubmittedundersection97forsuchperiodasNAMFISAmaydetermine. (7) A personwho continues to operate, or engage in, the business of aparticipantafterthecancellationofregistrationundersubsection(6),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Nominees

99. (1) Anauthorisedusermust-

(a) maintainalistofapprovednominees;

(b) submitacopyofsuchlisttotheregisteredexchangeofwhichitisanauthoriseduser;and

(c) submittotheregisteredexchangeanupdateofthelistattheendofeachmonthinwhichtherehasbeenanadditionordeletionofanominee.

(2) Aparticipantmust-

(a) maintainalistofapprovednominees,

(b) submitacopyofsuchlisttotheregisteredcentralsecuritiesdepositoryofwhichitisaparticipant;and

(c) submittotheregisteredcentralsecuritiesdepositoryanupdateofthelistat theendofeachmonth inwhich therehasbeenanadditionordeletionofanominee.

(3) Aregisteredexchangeorregisteredcentralsecuritiesdepositorymustsubmitacopyofthelistreferredtoinsubsection(1)or(2),asapplicable,toNAMFISA. (4) NAMFISAmustmaintain a list of all nominees approved under theexchangerulesordepositoryrulesandsenttoNAMFISApursuanttosubsection(3).

Remedial action

100. (1) Aregisteredexchangeorregisteredcentralsecuritiesdepositorymaytakeanyoftheactionssetoutinsubsection(2)iftheexchangeorcentralsecuritiesdepository,actingreasonably,findsthatanyofthefollowingcircumstancesexistwithrespecttoanominee-

(a) anyoftherequirementssetoutintherulesoftheexchangeorofthecentralsecuritiesdepository,asthecasemaybe,havenotbeenmet;

(b) the copy of the list submitted under section 99(1)(b) or (2)(b)respectivelyortheaccompanyinginformationandmaterialcontainedinformation,concerningthenomineecompany,thatwasnotmateriallyaccurateoromittedinformationthatwasmateriallyrelevant;

(c) thenomineecompanynolongermeetstherequirementsforanapprovednominee;

(d) the nominee company has suspended the activities forwhich itwasregisteredforaperiodofatleast12months;

(e) thenomineecompanyisnotincompliancewitharequirementofthisAct;or

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(f) thenomineecompanyhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) Iftheregisteredexchangeorregisteredcentralsecuritiesdepositoryissatisfiedthatanyofthecircumstancesdescribedinsubsection(1)exist,theregisteredexchangeorregisteredcentralsecuritiesdepositorymaytake,ordirecttheauthoriseduser or participant ofwhich the nominee company is an approved nominee to take,remedialaction,includingwithoutlimitation-

(a) directing the authorised user or participant, as the case maybe, toprovidefurtherinformationwithrespecttothenomineecompany;

(b) directing the authorised user or participant, as the case maybe, toprovidefurthertrainingforthenomineecompany;

(c) directingtheauthoriseduserorparticipant,asthecasemaybe,totakedisciplinaryactionagainstthenomineecompany;

(d) directing the authorised user or participant, as the case maybe, tomakechangestothecodeofconductandsystemsasprovidedfortheexchangeordepositoryrules;

(e) requiringanundertakingfromtheauthoriseduserorparticipant,asthecasemaybe,orfromtheapprovednomineeorfrombothpursuanttosection436;

(f) directingtheauthoriseduserorparticipant,asthecasemaybe,ortheapproved nominee or both to take specific actions or refrain fromspecificactionspursuanttosection439(4)(c);or

(g) referringthemattertoNAMFISA. (3) Ifonreceiptofevidencethattherequiredactionhasbeentakenpursuantto subsection (2), the registered exchangeor registered central securities depository,acting reasonably, finds that any of the circumstances referred to in subsection (1)continue to exist, the registered exchange or registered central securities depositorymaydirecttheauthoriseduserorparticipant,asthecasemaybe,toremovethenameofthenomineecompanyfromthelistreferredtoinsection99(1)or(2). (4) Beforedirectingthatthenameofanomineecompanyberemovedfromalistpursuanttosubsection(3),theregisteredexchangeorregisteredcentralsecuritiesdepositorymust give the authorised user or participant, as the casemaybe, and theapprovednomineethereasonsfortheproposedremovalandareasonableopportunitytobeheard. (5) Ifanauthoriseduseroraparticipant fails to remove thenameofanapprovednomineefromthelistwhenrequiredtodosobytheregisteredexchangeorregistered central securities depository, the registered exchange or registered centralsecuritiesdepositorymay,aftergivingtheapprovednomineeareasonableopportunitytobeheard,itselfremovethenameofthenomineecompanyfromthelist. (6) The registered exchange or registered central securities depositorymustinformNAMFISAforthwithofanydirectiontoanauthoriseduseroraparticipant,asthecasemaybe,toremovethenameofanapprovednomineefromthelistpursuantto

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subsection(3)oroftheremovalofthenameofanapprovednomineefromthelistbytheexchangeorcentralsecuritiesdepositoryorpursuanttosubsection(5)andinthatevent,orintheeventthattheregisteredexchangeorregisteredcentralsecuritiesdepositoryrefersthemattertoNAMFISApursuanttosubsection(2)(g),theprovisionsofsection98applywithanychangesmadenecessarybythecontext. (7) Ifthenameofapersonisremovedfromalistbyaregisteredexchange,registeredcentralsecuritiesdepository,authoriseduser,participantorNAMFISA,theregistrationofthatpersonasaparticipantiscancelledandthepersonmaynotactasanomineecompany,orbeincludedonanylistacopyofwhichissubmittedundersection99forsuchperiodasNAMFISAmaydetermine. (8) A personwho continues to operate, or engage in, the business of anomineecompanyafterthecancellationofregistrationundersubsection(7),commitsan offence and is liable on conviction to a fine not exceeding N$5 000 000 or toimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Foreign exchange and electronic exchange

101. (1) NAMFISAmay,bynoticeintheGazette,recogniseaforeignexchange. (2) If a recognised foreign exchange operates an electronic exchangethroughoneormoreterminalslocatedinNamibiathroughwhichtradecanbeenteredonthatforeignexchange,thatelectronicexchangeisdeemednottobelocatedinNamibiaprovidedthattheterminalslocatedinNamibiaareoperatedbyapersonorpersonswhoareregisteredasanexchangeorasanauthoriseduserunderthisChapter.


102. (1) Every registered regulatedperson that is a companyand theexchangereferredtoinsection86must-




(ii) residentinNamibia. (2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b), the regulated person or exchange referred to in subsection (1)must,within theperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment.

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(4) NAMFISAmay, on the grounds that a principal officer is not a fitandproperpersonwithinthemeaningofthestandards,andaftergivingtheregulatedpersonorexchangereferredtoinsubsection(1)andtheprincipalofficerareasonableopportunitytobeheard,directtheregulatedpersonorexchangereferredtoinsubsection(1)toappointsomeotherpersontobetheprincipalofficeroftheregulatedpersonorexchangereferredtoinsubsection(1). (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregulatedpersonorexchangereferredtoinsubsection(1)orbytheexpiryofacontractofemployment,theregulatedpersonorexchangereferredtoinsubsection(1)must,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregulatedpersonorexchangereferredtoinsubsection(1),thereasonsfortheresignation. (6) Theprincipalofficerreferredtoinsubsection(1)(b)mustbeamemberoftheboardregulatedpersonoroftheexchange. (7) TheprincipalofficerofaregulatedpersonisauthorisedtoactonbehalfoftheregulatedpersonortheexchangetoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswiththatregulatedpersonortheexchange,thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (8) Processinanylegalproceedingsmaybeservedontheregulatedpersonortheexchangebyservingacopythereofatitsprincipaloffice. (9) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.


103. (1) Every regulated person that is a company and the exchangereferredtoinsection86must,inaccordancewithsection401,appoint,andatalltimeshave,anauditororfirmofauditorstobetheauditorforitsbusinessinNamibia. (2) Aregulatedpersonthatisacompanyorexchangereferredtoinsection86maynotappointasitsauditor-


(b) afirmofauditors,anymemberofwhichis,

adirector,officer,employeeorshareholderorotherownerofthatregulatedpersonorthatexchangeorwhohasanyfinancialinterestinthatregulatedpersonorthatexchange. (3) NAMFISA may direct a regulated person that is a company or anexchangereferredtoinsection86tochangeitsauditor,ifNAMFISAissatisfiedthattheauditororanymemberofthefirmofauditorsappointedasauditorisanemployee,officer,directororshareholderofthatregulatedpersonorthatexchange. (4) Anauditorappointedundersubsection(1)-

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PART 4EXCHANGES

Interpretation

104. ForthepurposesofthisPart,“securities”include-

(a) moneymarketinstruments;

(b) aparticipatoryinterestinacollectiveinvestmentschemeasdefinedinsection168;

(c) aunitorotherformofparticipationinaforeigncollectiveinvestmentschemeasdefinedinsection168;and

(d) other products or interests that the registered exchangemay list andprovidefortradingpursuanttosection85(2)(e).

Functions of exchange and power of NAMFISA

105. (1) Aregisteredexchange-

(a) mustissueandenforcetheexchangerulesandlistingrequirements;

(b) mustsupervisecompliancebyauthoriseduserswiththisActandtheexchangerules;

(c) mayissuedirectives;

(d) afterconsultationwithNAMFISA,mayamendorsuspendtheexchangerulesundersection147(4)andmayamenditslistingrequirements;

(e) mustmakeprovisionfortheclearingandsettlementoftransactionsinlistedsecuritieseffectedthroughtheexchange;

(f) mayretainoneormoresecuritiesclearinghousestoperformsecuritiesclearing services for the exchange in accordancewith the exchangerules;

(g) mustconsultwithitsretainedsecuritiesclearinghouseswhenmakingor amending exchange rules pertaining to securities clearing andsettlement;

(h) mustsupervisecompliancebyissuersoflistedsecuritieswiththelistingrequirements,theexchangerulesandthisAct;and

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(i) maydoallotherthingsthatarenecessaryfor,orincidentalorconduciveto, the proper operation of a registered exchange and that are notinconsistentwiththisAct.

(2) NAMFISAmayassumeresponsibilityforoneormoreofthefunctionsofaregisteredexchangereferredtoinsubsection(1)ifNAMFISAconsidersitnecessaryinordertoachievetheobjectsofthisChapterreferredtoinsection79. (3) NAMFISAmust,beforeassumingresponsibilityundersubsection(2)-

(a) inform the registered exchange of NAMFISA’s intention to assumeresponsibility;

(b) givetheregisteredexchangethereasonsfortheintendedassumption;and

(c) call upon the registered exchange to show cause within a periodspecifiedbyNAMFISAwhyresponsibilityshouldnotbeassumedbyNAMFISA.

Listing of securities

106. (1) Aregisteredexchangemust issue listing requirementswhichsetout-

(a) themannerinwhichsecuritiesmaybelistedorremovedfromthelistorthemannerinwhichthetradinginlistedsecuritiesmaybesuspended;

(b) therequirementswithwhichissuersoflistedsecuritiesandofsecuritieswhichareintendedtobelisted,mustcomply;

(c) the standards of conduct that issuers of listed securities and theirdirectors,officersandagentsmustmeet;

(d) the standards of disclosure and corporate governance that issuers oflistedsecuritiesmustmeet;

(e) suchdetailsrelatingtothelistedsecuritiesasmaybenecessary;

(f) thestepsthatmustbetakenbytheexchange,orapersontowhomtheexchangehasdelegateditsinvestigativeanddisciplinaryfunctions,fortheinvestigationanddisciplineofanissuer,orapersonwhocontrolsanissuer,oradirector,officeroremployeeofanissuer,thatcontravenesorfailstocomplywiththelistingrequirements,includingarequirementthatadequatenoticeofthedateofanycontemplatedhearingbegiventothepartiestothehearingandtheprocedurestobefollowedbeforeorduringadisciplinaryhearing;

(g) anyoneormoreof the followingpenalties thatmaybe imposedbytheexchangeorbyapersontowhomtheexchangehasdelegateditsinvestigative and disciplinary functions for any contravention of orfailuretocomplywiththelistingrequirements-

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(i) areprimand;

(ii) afinenotexceedingtheamountprescribedbytheMinister;

(iii) disqualification,inthecaseofanaturalperson,fromholdingthe office of a director or officer of a listed company for aspecifiedperiodoftime;

(iv) thepaymentofcompensationtoanypersonprejudicedbythecontraventionorfailure;and

(h) anyothermatterdeterminedinthestandards. (2) Thelistingrequirementsofaregisteredexchangemayrequirethat-

(a) fullparticularsregardingtheimpositionofapenaltymaybepublishedintheGazette,innewspaperscirculatingnationallyorthroughthenewsserviceoftheexchange;

(b) any person who contravenes or fails to comply with the listingrequirementsmaybeorderedtopaythecostsincurredinaninvestigationorhearing;and

(c) theexchangemaytakeintoaccountatahearing,informationobtainedbyNAMFISAinthecourseofaninspectionconductedunderthisActorobtainedbyNAMFISAinaninvestigationundersection164.

(3) Ifapersonfailstopayafineorcompensationreferredtoinsubsection(1)(g), the registered exchangemay take such steps as are necessary, including theinstitutionoflegalaction,torecoverthefineorcompensation. (4) The listing requirements of a registered exchange must set out thepurposeforwhichafinereferredtoinsubsection(1)(g)mustbeappropriated. (5) The listing requirements of a registered exchange and any otherconditionsoflistingarebindingonanissuerandanauthoriseduserandonanypersonwhocontrolsanissueroranauthoriseduserthatisacompany,andontheirdirectors,officers,employeesandagents. (6) Aregisteredexchange-

(a) mustkeepalistofthesecuritieswhichmaybetradedonthatexchange;

(b) mustreceiveandconsider,andmaygrant,deferorrefuse,subject toitslistingrequirementsandanyotherconditionsthatitmaydetermine,applicationsfortheinclusionofsecuritiesinthelist;

(c) mayincludesecuritiesissuedbyitinitsownlistsubjecttotheapprovalofNAMFISAandtheconditionssetoutinthestandards;and

(d) may, despite any arrangement entered into before or after thecommencement of this Chapter according to which listed securitiesmaybeboughtandsoldontheexchange,chargethefeesprovidedforinthelistingrequirementsortheexchangerules.

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(7) Aregisteredexchangemust,beforerefusinganapplicationtoincludesecuritiesinthelistundersubsection(6)(b)-

(a) informtheissuerofitsintentiontorefusetheapplication;

(b) givetheissuerthereasonsfortheintendedrefusal;and

(c) call upon the issuer to show causewithin a period specified by theexchangewhytheapplicationshouldnotberefused.

Removal of listing and suspension of trading

107. (1) Aregisteredexchangemay,subjecttothissection,theexchangerulesandthelistingrequirements,removesecuritiesfromthelist,eventotheextentthataremovalmayhavetheeffectthatanentiretradingboardorsubstantialportionofthetradingboardoftheexchangeisclosed,orsuspendthetradinginlistedsecurities,ifitwillfurtheroneormoreoftheobjectsofthisChapterreferredtoinsection79. (2) A registered exchange must, subject to subsection (3) and before aremovalorsuspension-

(a) informtheissueroftheintendedremovalorsuspension;

(b) givetheissuerthereasonsfortheintendedremovalorsuspension;and

(c) call upon the issuer to show cause,within a period specifiedby theexchange,whytheremovalorsuspensionshouldnotbeeffected.

(3) If-

(a) the listing requirements, the conditions determined by a registeredexchangeinrespectofthelistingofsecuritiesortheexchangerulesarenotcompliedwith;or

(b) a circumstance arises which is envisaged by the exchange rules orthe listing requirements as a circumstance justifying the immediatesuspensionoftrading,

aregisteredexchangemayorderanimmediatesuspensionoftradingforaperiodnotexceeding30days,whichperiodmaybeextendedforoneormorefurtherperiodsof30days. (4) Ifthetradingoflistedsecuritieshasbeensuspendedunderthissection,aregisteredexchangemay,despitesubsections(1)and(3),permitauthoriseduserstobuyandsellthosesecuritiesforthesolepurposeoffulfillingobligationsenteredintoinrelationtothosesecuritiesbeforethesuspension. (5) If an issuer requests a registered exchange to remove the issuer’ssecuritiesfromthelisttheexchangemustbesatisfiedonreasonablegroundsthattheinterestsofminorityholdersofthesecuritieshavebeenconsideredandtheapplicableprovisionsoftheCompaniesActhavebeencompliedwith. (6) Anissuermustprovidereasonsforarequestreferredtoinsubsection(5).

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(7) Ifaregisteredexchange-

(a) refusesanapplicationfor the inclusionofsecurities in the listundersection106(6)(b);or

(b) removessecuritiesfromthelistpursuanttosubsection(1),

the exchange must immediately notify every other exchange, including a foreignexchange,onwhichtheissuerislisted,ifany,ofthereasonsforanddateoftherefusalorremoval. (8) If-

(a) the refusal to list securities was due to any fraud or other crimecommittedbytheissueroranymaterialmisstatementofitsfinancialpositionornon-disclosureofanymaterialfact;or

(b) theremovalofsecuritieswasduetoafailuretocomplywiththelistingrequirementsoftheregisteredexchange,

anyotherregisteredexchangemaynot,foraperiodofsixmonthsfromthedatereferredtoinsubsection(7),grantanapplicationfortheinclusionofthesecuritiesconcernedinthelistkeptbyit,orallowtradinginsuchsecurities,unlesstherefusalorremovaliswithdrawnbythefirstexchangeorsetasideonappealbyNAMFISA. (9) If a registered exchange withdraws a refusal referred to in section106(6)(b)ora removal referred to in this sectionbefore theexpiryofsixmonths, itmustnotifytheissuerandeveryotherexchangeonwhichtheissuerislisted.

Application of new listing requirements

108. (1) Aregisteredexchangemay,bynoticeinwritingtotheissueroflistedsecurities,applythenewlistingrequirementsorconditionsdeterminedbythatexchangeinrespectofthelistingofsecuritiestosecuritieslistedbeforethecomingintoforceofthenewlistingrequirementsorconditions. (2) Listing requirements or conditions referred to in subsection (1) takeeffectfromadatedeterminedbytheregisteredexchange,whichdate-

(a) mustnotbeearlierthanonemonthafterthedateonwhichtheexchangenotifiestheissuer;or

(b) maybeanearlierdate,whenspecialcircumstancesjustify,

buttheexchangemaypostponethedatereferredtoinparagraph(a)onwrittenrequestbytheissuer. (3) Ifaregisteredexchangerefusesarequestforapostponementreferredto in subsection (2), the issuer concerned may make representations in writing toNAMFISA,andiftherequestforapostponementisreasonable,NAMFISAmay,afterconsultationwiththeregisteredexchange,postponethedateonwhichthenewlistingrequirementsorconditionstakeeffectbynotmorethanthreemonthsandmustinformtheexchangeaccordingly.

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Disclosure of information by issuers

109. (1) Aregisteredexchangemayrequireanissueroflistedsecuritiestodisclosetotheexchangeanyinformationaboutthosesecuritieswhichisattheissuer’sdisposalorabouttheaffairsoftheissuer,ifsuchdisclosureisnecessarytoachieveoneormoreoftheobjectsofthisChapterreferredtoinsection79. (2) Aregisteredexchangemustrequiretheissuertodisclosetheinformationreferredtoinsubsection(1)totheregisteredholdersofthesecurities,withinaperiodspecifiedbytheexchange,iftheobjectsofthisChapterreferredtoinsection79arenotbeingmet. (3) Ifanissuerrefusestodisclosetheinformationreferredtoinsubsection(1) or (2) to the registered exchange or the registered holders of the securities, theexchangemay,unlesstheissuerobtainsanorderoftheHighCourtexcusingitfromsuchdisclosure,suspendtradinginthosesecuritiesuntilsuchtimeastherequireddisclosurehasbeenmadetothesatisfactionoftheexchange. (4) If the information disclosed by an issuer under this section to theregisteredholdersofsecuritiesmayinfluence thepriceof thosesecurities, the issuermustatthesametimemaketheinformationavailabletothepublic.

Imposition of levy

110. A registered exchange may impose a levy on any person involvedina transactionin listedsecuritieseffected throughthatexchangefor thepurposeofmaintaininginsurance,aguarantee,acompensationfundorotherwarrantyfor thoseusingtheservicesoftheexchange.

Funds of registered exchange

111. (1) Aregisteredexchangemay,incompliancewiththestandards,require its authorised users and their clients to contribute towards the funds of theexchangeforthepurposeofcarryingonitsbusiness. (2) Ifaregisteredexchangehasassetswhicharesurplustoitsrequirementsitmaydistributesuchassetstoanyperson-

(a) afterprovidingforanyliabilitiesoftheexchange;

(b) inaccordancewithitsfoundingdocuments;and

(c) withthepriorapprovalofNAMFISA. (3) Ifaregisteredexchangeisanon-proprietaryexchange,thedistributionreferredtoinsubsection(2)maybemadedespiteanycontraryprovisionsofanylaworthecommonlawandwithoutaffectingthenon-proprietarystatusoftheexchange.

Requirements for exchange rules

112. (1) TheexchangerulesofaregisteredexchangemustbeconsistentwiththisAct. (2) Theexchangerulesofaregisteredexchangemustprovide-

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(a) forthecriteriaforauthorisationandexclusionofauthorisedusersand,inparticular,thatnocompanymaybeadmittedasanauthoriseduserorallowedtocontinueasanauthoriseduserunlessthatcompanyisownedandmanagedbypersonswhoare-

(i) fitandproperpersonswithinthemeaningofthestandards;and

(ii) ofhighbusinessintegrityandcomplywiththerequirementsfortraining, experienceandotherqualificationsof theexchangerules;

(b) forthecapitaladequacy,guaranteeandriskmanagementrequirementswithwhichanauthorisedusermustcomply,andthatsuchrequirementsmust be prudent although they may differ in respect of differentcategoriesof authorisedusersordifferent activitiesof an authoriseduser’sbusiness;

(c) iftherearedifferentcategoriesofauthorisedusers,fortherestrictionoftheactivitiesofsuchcategoriessubjecttodifferentconditions;

(d) foranefficient,honest,transparentandfairmannerinwhichandtermsandconditionssubjecttowhichtransactionsinlistedsecuritiesmustbeeffectedbyauthorisedusers,whetherforownaccountoronbehalfofotherpersons;

(e) forthemannerinwhichtransactionsinlistedsecuritiesmustbeclearedandsettled;

(f) fortheclearingandsettlementoftransactionsiftheregisteredexchangehasnotretainedaregisteredsecuritiesclearinghouse;

(g) forthecircumstancesinwhichabuyerorselleroflistedsecuritiesmayrepudiatethetransaction;

(h) fortheregulationoftransactionsinlistedsecuritiesenteredintoasaresultofanyfirstcommunicationmadetoapersonwithoutanexpressortacitinvitationfromsuchperson;

(i) forthecircumstancesinwhichatransactioninlistedsecuritiesmaybedeclaredvoidbytheregisteredexchange;

(j) fortheconditionssubjecttowhichanauthorisedusermayundertakemanagement of listed securities for remuneration or benefit in anyform;

(k) that no authorised usermay effect a transaction in securitieswith apersonwhomtheauthoriseduserbelievesorsuspectsrequiresapprovaltoundertakemanagementofsecuritiesunderthisActwithouthavingtaken reasonable measures to ascertain that such person has thenecessaryapproval;

(l) fortheapprovalbytheregisteredexchangeofanomineeofanauthoriseduserwhichnomineeholdssecuritiesinasecuritiesrepositoryorcentralsecuritiesrepositoryasdefinedinsection121;

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(m) forsurveillanceofanymatterrelevantforthepurposesofthisAct,theexchangerulesandanydirectivesissuedbytheregisteredexchange;

(n) for the conditions subject to which an authorised representative ofanauthorisedusermay,inrelationtothebuyingandsellingoflistedsecurities, advise on or conclude any transaction on behalf of theauthorised user in the course of that authorised user’s business andforthecircumstancesinwhichsuchauthorisedrepresentativemaybedeniedaccesstotheregisteredexchange;

(o) for thecircumstances inwhich trading inany listedsecuritymaybesuspendedorstopped;

(p) generally, for themanner inwhich an authorised user is required toconductthebusinessofbuyingandsellinglistedsecurities;

(q) fortheoperationbytheregisteredexchangeoranauthoriseduserofatrustaccountreferredtoinsection119;

(r) for-

(i) recordingtransactionseffectedthroughtheregisteredexchange;

(ii) monitoringcompliancebyauthoriseduserswiththisAct,andtheexchangerulesanddirectivesoftheregisteredexchange;and

(iii) surveillanceofanymatterrelevantforthepurposesofthisAct,andsuchexchangerulesanddirectives;

(s) for the circumstances andmanner inwhich an authorised usermayadvertiseorcanvassforbusiness;

(t) for the equitable and expeditious settlement of disputes betweenauthorisedusers;

(u) for themanner inwhichcomplaintsagainstanauthoriseduseroranauthorisedrepresentativeofanauthorisedusermustbeinvestigated;

(v) forthereferralofacomplaintbyaclientagainstanauthoriseduseroranauthorisedrepresentativeofanauthorisedusertotheAdjudicator;

(w) for the steps to be taken by the registered exchange or a person towhom the registered exchange has delegated its investigative anddisciplinaryfunctions,toinvestigateanddisciplineanauthoriseduseroranauthorisedrepresentativeofanauthoriseduserwhocontravenesorfailstocomplywiththisActortheexchangerules,interimexchangerulesordirectivesoftheregisteredexchange,andforareportonthedisciplinaryproceedingstobefurnishedtoNAMFISAwithin30daysafter the completion of such proceedings and the procedures to befollowedbeforeorduringadisciplinaryhearing;

(x) forthemannerinwhichanauthoriseduseroranauthorisedrepresentativeofanauthoriseduserwhoisbelievedtobe-

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(i) inpossessionofany informationrelevant toan investigationreferredtoinparagraph(u)or(w);or

(ii) inpossessionorhaveundertheircontrolanydocumentwhichhasabearingonaninvestigationreferredtoinparagraph(u)or(w),

mayberequiredtoappearbeforetheregisteredexchangeorapersonconductinganinvestigation,tobequestionedonsuchinformationortoproducesuchdocument;

(y) withrespect to the insurance,guarantee,compensationfundorotherwarrantyreferredtoinsection110,for-

(i) the persons who must contribute in order to maintain suchinsurance,guarantee,compensationfundorotherwarranty;

(ii) theamountofthelevyimposedbytheregisteredexchangeforthispurpose;

(iii) differentcategoriesofclaimsthatmaybebroughtagainsttheinsurance,guarantee,compensationfundorotherwarranty;

(iv) restrictionsontheamountofanyclaim;

(v) the control and administration of the insurance, guarantee,compensationfundorotherwarranty;and

(vi) theownershipoftheinsurance,guarantee,compensationfundorotherwarranty;

(z) for the disclosure by authorisedusers to clients of the fees for theirservices;

(aa) for authorised users to charge a fee for different categories oftransactions;

(bb) forthepurposesforwhichtheregisteredexchangemayissuedirectives;

(cc) forthesupervisionbytheregisteredexchangeofcompliancewiththeduties imposed on it and its authorised users by thisAct, any otherapplicablefinancialserviceslawandtherules;and

(dd) forsuchothermattersasmaybesetoutinthestandards. (3) A registered exchangemay, with the approval of NAMFISA,makeexchangerulesonmattersadditionaltothoselistedinsubsection(2). (4) Anexchangerulemadeunderthissectionisbindingontheregisteredexchange, its authorised users and their authorised representatives, issuers and theirofficersandemployees,andonclients.

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Reporting transactions in listed securities

113. (1) Aperson,whetherthatpersoncarriesonthebusinessofbuyingor selling listed securities or not,must report toNAMFISA, in accordancewith thestandards,anytransactioninlistedsecuritiesresultinginachangeofcontrolofbeneficialownershipof thosesecuritiesandconcludedby itoutsidea registeredexchangeandsimultaneouslymust report that transaction to the registered exchangeonwhich thesecuritiesarelisted. (2) NAMFISAmust, in respectofa report referred to in subsection (1),specifyinthestandards-

(a) theinformationrequiredinrespectofanytransaction;and

(b) themannerinwhichandtimewithinwhichreportsaretoberendered. (3) Apersonreferredtoinsubsection(1)thatisaregisteredexchangemaypublishanyinformationdisclosedtoitunderthatsubsection. (4) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Undesirable advertising or canvassing

114. (1) A person, other than an authorised user or an authorisedrepresentativeofanauthoriseduserwhoissopermittedundertheexchangerules,maynotinanymanner,directlyorindirectly,advertiseorcanvassforthebusinessofthatauthoriseduser. (2) Despiteanyother lawto thecontrary,NAMFISAmay, if it isof theopinion that an advertisement, brochure or other document relating to securities ismisleadingorforanyotherreasonobjectionable,issueadirectivetotheeffectthattheadvertisement,brochureorotherdocumentnotbepublishedorthatitspublicationbestoppedorthatsuchamendmentsasNAMFISAconsidersnecessarybeeffected. (3) Apersonwhocontravenesor fails to complywith subsection (1)orcontravenesorfailstocomplywithadirectiveissuedundersubsection(2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Identity and source to be disclosed

115. (1) Apersonmaynot publish or circulate anywritten commentwhich relates to the trading resultsofapubliccompanyorwhichmay influence thevalueofthelistedsecuritiesofapubliccompanyunlesssuchcommentisaccompaniedby-

(a) thenameofthepersonorpersonswhocompileditorthenameofthepersonorpersonson theeditorial staffof anewspaperorperiodicalwho,intheopinionoftheeditor,compiledit;or

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(b) disclosureofthesourcefromwhichitwasobtained. (2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Restriction on borrowing and re-pledging

116. (1) Anauthorisedusermaynot-

(a) borrow against pledged listed securities an amount in excess of theoutstandingbalanceofanyamountwhichtheauthorisedusermayhavelentthepledgoragainstthepledgedsecurities;or

(b) re-pledgelistedsecuritieswithoutthewrittenconsentofthepledgor. (2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Marking or recording securities

117. Whenadocumentof titlerelatingtoa listedsecuritycomes into thepossessionofanauthoriseduser,theauthorisedusermust,assoonaspossible-

(a) markit;or

(b) recordandstorethenecessarydetails,

inamannerwhichwillrenderitpossibleatanytimethereaftertoreadilyestablishtheidentityoftheownerofthosesecurities.

Restriction on alienation of securities

118. Subjecttotheexchangerulesofaregisteredexchange,anauthorisedusermayonlyalienatelistedsecuritiesdepositedwiththeauthoriseduserifthepersonwhodepositedthemhasauthorisedsuchalienationinwriting.

Segregation of funds of authorised users and other persons

119. (1) Everyauthoriseduser-

(a) must open and maintain at a banking institution a trust accountdesignatedforclientfunds;or

(b) may use such an account opened and maintained by the registeredexchangeofwhichitisanauthoriseduser,

intowhichanyinstrumentsofpaymentorcashreceivedfromaclientmustbedepositedonthedayofreceipt,exceptthatanydepositthatismadebyaclientdirectlyintoanauthoriseduser’sownaccount,oranydepositthatisreceivedafterbankinghours,must

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betransferredintosuchtrustaccountbythestartofbusinessonthefollowingbusinessday. (2) Atrustaccountreferredtoinsubsection(1)mustcontainonlythefundsofclientsandnotthoseoftheregisteredexchangeorauthoriseduser. (3) Fundsreceivedfromaclientneednotbedepositedintoatrustaccountpursuanttosubsection(1)ifpayment-

(a) ismadetotheauthoriseduserbyabuyeroflistedsecurities-

(i) againstdeliveryofsuchsecuritiestothebuyer;or

(ii) againstsuchsecuritiesbeingmarkedorrecordedasthepropertyofthebuyer;

(b) isprecededbyapaymentmadebytheauthorisedusertotheselleroflisted securities against delivery of such securities to the authoriseduser;

(c) ismade to pay a debt due to the authorised user, but a debt arisingfrom the purchase of listed securities which have not been markedorrecordedasthepropertyofthebuyerofthesecuritiesmaynotberegardedasadebtdueforthispurpose;or

(d) is made under any other law or exchange rule which specificallyprovidesforsuchpaymenttobedepositedintosomeotheraccount.

(4) Subjecttosubsection(8),fundsheldinatrustaccountandanyfundswhichhavenotbeendepositedintoatrustaccountasrequiredbysubsection(1)butwhich are identifiable as belonging to a specific person, are considered to be trustproperty. (5) Funds deposited into a trust accountmay only bewithdrawn by anauthoriseduserforthepurposeofmakingpayment-

(a) tothepersonentitledtothepayment;or

(b) underanyotherlaworexchangerule,

butif,afteranysuchwithdrawal,anydepositeddraftorotherinstrumentofpaymentagainstwhichthewithdrawalwasmadeisnotsubsequentlyhonoured,theauthorisedusermustpaytheshortfallarisingfromthedefaultintothetrustaccountimmediately. (6) All charges made by the banking institution concerned accruing inrespectofatrustaccountreferredtointhissectionarefortheaccountoftheauthoriseduserexceptthatanysuchchargesspecificallyrelatingtoadepositorwithdrawalofthefundsofaparticularclientareforthatclient’sownaccount. (7) Anyinterestaccruingtothefundsinatrustaccountreferredtointhissectionispayabletotheownerofthefunds,afterdeductionofanyfeesowingtotheauthoriseduserorregisteredexchange.

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(8) Despitesubsection(4),anyexcess remaining ina trustaccountafterpaymentoforprovisionforallclaimsofpersonswhosefundshaveorshouldhavebeendepositedinthetrustaccount,maynotbeconsideredtobetrustproperty. (9) The High Court may, on the application of a registered exchange,NAMFISAoranyotherpersonhavingaclaimagainstatrustaccountofanauthoriseduser,ongoodcauseshown,prohibittheauthoriseduserfromoperatingthetrustaccount,andmayretainapersontocontrolandadministerthetrustaccountwithsuchrights,powersanddutiesinrelationtheretoasthecourtmayconsidernecessary.

Appeal from decision of exchange

120. (1) ApersonaggrievedbyadecisionofaregisteredexchangemayappealthatdecisiontoNAMFISAinthemannerprovidedforinthestandards. (2) Anappealreferredtoinsubsection(1)mustbeheardonadateandatatimeandplacedeterminedbyNAMFISA,uponnotificationtothepersonconcernedandtheregisteredexchange. (3) NAMFISAmay-

(a) confirm,setasideorvarythedecisionoftheregisteredexchange;or

(b) remit the matter to the registered exchange for reconsideration, inaccordancewithsuchdirections,ifany,asNAMFISAmaydetermine.

(4) A person or a registered exchange may, in the manner prescribed,appealagainstadecisionofNAMFISApursuanttosubsection(3)totheAppealBoard.

PART 5CUSTODY AND ADMINISTRATION OF SECURITIES



“central securities account”means an accountkeptby a registered central securitiesdepositoryforaparticipantthatreflectsthenumberornominalvalueofsecuritiesofeachkinddepositedandallentriesmadeinrespectofsuchsecurities;

“centralsecuritiesrepository”meansacollectionofsecuritiesofthesamekindheldbyaregisteredcentralsecuritiesdepository;

“certificatedsecurities”meanssecuritiesevidencedbyacertificateorwritteninstrument;

“deposit”meansadepositofsecuritiesandincludesadepositbymeansofanentryinasecuritiesaccountoracentralsecuritiesaccount;

“entry”includesanelectronicrecordingofanydeposit,withdrawal,transfer,attachment,pledge, cessiontosecureadebtorothertransactioninrespectofsecurities;

“securities”includecertificatedsecuritiesanduncertificatedsecurities,moneymarketinstrumentsandotherproductsor interests includedassecuritiespursuant tosection104;

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“securitiesaccount”meansanaccountkeptbyoronbehalfofaparticipantforaclientthatreflectsthenumberornominalvalueofsecuritiesofeachkinddepositedandallentriesmadeinrespectofsuchsecurities;

“securitiesofthesamekind”meanssecuritiesissuedbythesameissuerandofthesameclass;

“securities repository” means a collection of securities of the same kind held by aparticipant;

“subregister”meanstherecordofuncertificatedsecuritiesadministeredandmaintainedbyaparticipant,whichformspartoftheregisterofmembersofthecompanyconcerned;and

“uncertificated securities”means securities that arenot evidencedby a certificateorwritten instrumentandaretransferablebybook-entrywithoutacertificateorawritteninstrument,resultingintheoriginalcertificateorotherwritteninstrumentevidencingownershiportitlenolongerbeingrecognisedasprima facieevidenceofownershiportitle.

Functions of central securities depository

122. (1) Aregisteredcentralsecuritiesdepository-

(a) mustissueandenforcethedepositoryrules;

(b) must supervise compliance by participants with this Act and thedepositoryrules;

(c) mayissuedirectives;

(d) mayamendorsuspendthedepositoryrulesundersection147(4);

(e) mayholdallsecuritiesofthesamekinddepositedwithitbyaparticipantcollectivelyinaseparatecentralsecuritiesrepository;

(f) must maintain a central securities account with due regard to theinterestsofparticipantsandtheirclients;

(g) mustnotifyaparticipant inwritingorasotherwiseagreed toby theparticipant of an entry made in the participant’s central securitiesaccount;

(h) must balance and reconcile the aggregate of the central securitiesaccountswiththerecordsoftherelevantissuer-

(i) in respect of each kind of certificated security, at least onceeverysixmonths;

(ii) inrespectofeachkindofuncertificatedsecurity-

(aa) ifthataggregatehasnotchanged,atleastonceeverymonth;

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(bb) ifthataggregatehaschanged,onthebusinessdayaftersuchchange;

(i) must administer and maintain a record of uncertificated securitiesdepositedwithit;

(j) isentitledtoaccesstherecordsofuncertificatedsecuritiesadministeredandmaintainedbyitsparticipants;

(k) mayberetainedasasecuritiesclearinghousebyaregisteredexchange,if the central securities depository is also registered as a securitiesclearinghouseundersection85;

(l) mustdisclosetoparticipantsandissuersthefeesandchargesrequiredbyitforitsservices;

(m) mustonrequestdisclose-

(i) to NAMFISA information about the securities held by aparticipantinacentralsecuritiesaccount;

(ii) to an issuer information about the securities issued by thatissuerandheldbyparticipantsincentralsecuritiesaccounts;

(n) must, if a participant ceases to be a participant, notify NAMFISAimmediatelypursuanttosection97(4);

(o) mustconductitsbusinessinaprudentmannerandwithdueregardtotherightsofparticipants,clientsandissuers;and

(p) mustperform suchother functions asNAMFISAmay set out in thestandards.

(2) NAMFISAmayassumeresponsibilityforoneormoreofthefunctionsofaregisteredcentralsecuritiesdepositoryreferredtoinsubsection(1)ifNAMFISAconsidersitnecessaryinordertoachievetheobjectsofthisChapterreferredtoinsection79. (3) NAMFISAmust,beforeassumingresponsibilityundersubsection(2)-

(a) inform the registered central securities depository of NAMFISA’sintentiontoassumeresponsibility;

(b) give the registered central securities depository the reasons for theintendedassumption;and

(c) call upon the registered central securities depository to show causewithinaperiodspecifiedbyNAMFISAwhyresponsibilityshouldnotbeassumedbyNAMFISA.

Functions of participant

123. Aparticipantmust-

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(a) deposit securities that are depositedwith itwith a central securitiesdepository,unlesstheclientexpresslydirectsotherwiseinwriting;

(b) maintain a securities account for a client in respect of depositedsecurities;

(c) reflectthenumberornominalvalueofeachkindofsecuritiesdepositedinasecuritiesaccount;

(d) administerandmaintainarecordofallsecuritiesdepositedwithitinaccordancewiththedepositoryrules;

(e) recordallsecuritiesofthesamekinddepositedwithitinasubregisterifsorequiredbythedepositoryrules;

(f) disclosetoclientsandissuersthefeesandchargesrequiredbyitforitsservices;

(g) notifyaclientinwritingorasotherwiseagreedtobytheclientofanentrymadeintheclient’ssecuritiesaccount;

(h) onrequestdisclose-

(i) toNAMFISA, informationabout thesecuritiesrecorded inasecuritiesaccount;and

(ii) to an issuer, information about the securities issued by thatissuerandrecordedinasecuritiesaccount;

(i) maintainacentralsecuritiesaccountwithacentralsecuritiesdepository,andmay-

(i) depositsecuritieswithorwithdrawsecuritiesfromthatcentralsecuritiesdepository;or

(ii) transfer, pledgeor cedean interest in securities through thatcentralsecuritiesdepository,andincaseofsecuritiesheldonbehalf of clients, transfer, pledge, or cede interests in thosesecuritiesinaccordancewiththeinstructionsoftheclients;

(j) exercisetherightsinrespectofsecuritiesdepositedbyitwithacentralsecurities depository in its ownnameon behalf of a clientwhen soinstructedbytheclient;

(k) balanceandreconciletheaggregateofthesecuritiesaccountswiththecentralsecuritiesaccountonadailybasis;and

(l) performsuchotherfunctionsasNAMFISAmayrequireinthestandards.

Uncertificated securities

124. (1) Certificated securities may be converted to uncertificatedsecuritiesandanissuermayissueuncertificatedsecuritiesdespiteanycontraryprovisionin-

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(a) anyotherlaw;

(b) thecommonlaw;

(c) anagreement;

(d) thearticlesofassociationoftheissuer;

(e) aprospectus;or

(f) anyotherconditionsapplicabletotheissuingofsecurities. (2) An issueror a central securitiesdepository and itsparticipantsmustmakearrangementsinaccordancewithdepositoryrulesforuncertificatedsecuritiestobeevidencedbywayofanentry. (3) Anissuerhasthesameobligationsinrespectofuncertificatedsecuritiesasithasinrespectofcertificatedsecuritiesexceptthatnocertificateorwritteninstrumentisissuedinrespectofuncertificatedsecurities.

Responsibilities of issuer of uncertificated securities

125. Anissuerofuncertificatedsecuritiesmust-

(a) record in its register the number or nominal value of each kind ofuncertificatedsecuritiesissuedbyit;

(b) maintainseparaterecordsforeachcentralsecuritiesdepositoryholdinguncertificated securities, unless all those securities are held by onecentralsecuritiesdepository;

(c) ifrequiredbysection127(1),recordthenameofthatcentralsecuritiesdepositoryoritswhollyownedsubsidiaryastheregisteredholderoftheuncertificatedsecurities;

(d) balance and reconcilewith a central securities depository the recordreferred to inparagraph (a) in respect of eachkindofuncertificatedsecurity-

(i) ifthatrecordhasnotchanged,atleastonceeverymonth;and

(ii) if the record has changed, on the business day after suchchange;and

(e) complywithanyotherrequirementssetoutinthestandards.

Depository rules

126. (1) ThedepositoryrulesofaregisteredcentralsecuritiesdepositorymustbeconsistentwiththisAct. (2) Thedepositoryrules-

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(a) mustprovideforequitablecriteriafortheacceptanceandexpulsionofaparticipantandforsuchacceptanceandexpulsiontobeintheinterestsofissuersandclients;

(b) ifapplicable,mustprovideforarrangementsforcertificatedsecuritiesto be converted to uncertificated securities and for issuers to issueuncertificatedsecurities;

(c) mustprovide foradequatesteps tobe takenby thecentral securitiesdepositoryoraperson towhomthecentralsecuritiesdepositoryhasdelegated its investigative and disciplinary functions, to investigateanddisciplineaparticipantoranofficeroremployeeofaparticipantwhocontravenesorfailstocomplywiththisAct,thedepositoryrules,the interimdepositoryrulesor thedirectivesof thecentralsecuritiesdepositoryandmust requirea reporton thedisciplinaryproceedingstobefurnishedtoNAMFISAwithin30daysafter thecompletionofsuchproceedingsandmakeprovisionfortheproceduretobefollowedbeforeorduringanydisciplinaryproceedings;

(d) mustprovideforthemannerinwhichaparticipantwhoisbelievedto-

(i) be able to furnish any information on the subject of anyinvestigation;or

(ii) haveinthatparticipant’spossessionorunderthatparticipant’scontrol,anydocumentwhichhasbearinguponthatsubject,

mayberequiredtoappearbeforeapersonconductinganinvestigation,tobequestionedortoproducesuchdocument;

(e) must provide for requirements in respect of a participant’s financialsoundnessandvalidfinancialcover that theparticipantmusthold inrespectof-

(i) theparticipant’sactualandpotentialliabilities;

(ii) the participant’s conditional and contingent liabilities to thecentralsecuritiesdepository;and

(iii) liabilities which existed before or accrue after a person hasceasedtobeaparticipant;

(f) mustrequirethat-

(i) dividendspaidandotherpaymentsowingbyissuersinrespectofsecuritiesarepaidbysuchissuerstoparticipantsorclientsand,ifapplicable,byparticipantstoclients;

(ii) all notices regarding rights and other benefits accruing totheownersof securitiesdepositedwith thecentral securitiesdepositoryareconveyedtoparticipantsandclients;

(iii) therightsofparticipantsorclientsarenotinanywaydiminishedbythefactthatsecuritiesheldbythemorontheirbehalfare

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heldcollectivelyinacentralsecuritiesrepositoryasprovidedforbythisPart;and

(iv) securitiesbelongingtoorheldonbehalfofclientsmustbedealtwithonlyinaccordancewiththeinstructionsoftheclients;

(g) must require thatwhereaparticipantagreesor isotherwise required to-

(i) receivemoniesinrespectofsecuritiesonbehalfofclientsfromacentralsecuritiesdepositoryorissuer,thatsuchmoniesare,infact,paidtotheclientsconcerned;

(ii) convey to clients all information regarding rights and otherbenefitsaccruingtothesecuritiesheldonbehalfofsuchclients,thatsuchinformationis,infact,conveyed;and

(iii) giveeffecttothelawfulinstructionsofclientswithregardtovotingrightsandothermatters,andthatthenecessaryactionistaken;

(h) must require that a participant, on written request from a client towithdraw securities or an interest in securities held in a securitiesrepositoryorcentralsecuritiesrepository,deliveracertificateorwritteninstrumentevidencing thesamenumberofsecuritiesor securitiesofthe samenominalvalueandof the samekind, as the securitiesheldonbehalfofthatclientinthesecuritiesrepositoryorcentralsecuritiesrepository,as longas theclienthasasufficientunencumberedcreditbalanceofthosesecuritieswiththeparticipant;

(i) must require that a participant’s central securities account does notshowadebitbalance;

(j) mayprovidethatacentralsecuritiesdepositorymayrefusetoacceptsecuritiesissuedbyanyparticularissuerwithdueregardtotheclearingandsettlementarrangementsofaregisteredexchangefortransactionsinthosesecurities;

(k) mustprovidefor-

(i) thedutyofaclient todisclose toaparticipant,and thedutyof aparticipant todisclose to a central securitiesdepository,information about a beneficial, limited or other interest insecurities deposited by a client with a participant or by aparticipantwithacentralsecuritiesdepository,asthecasemaybe;and

(ii) themanner,formandfrequencyofsuchdisclosure;

(l) mustprovidefor themanner inwhichacentralsecuritiesdepositoryor aparticipantmustkeep recordsof clientsorownersorbeneficialownersofsecuritiesandlimitedorotherinterestsinsecurities;

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(m) mustprovideforthemannerinwhichparticipantsmustgiveinstructionstoacentralsecuritiesdepository;

(n) if thecentralsecuritiesdepository is retainedasasecuritiesclearinghouse by a registered exchange, may regulate, consistent with theexchangerules, thesecuritiesclearingandsettlementfunctionstobeperformed by participants in the securities clearing and settlementprocess;

(o) mustprovideforthepurposesforwhichacentralsecuritiesdepositorymayissuedirectives;

(p) must provide for the manner in which a participant must hold andadministersecurities;

(q) mustprovidefortheapprovalbythecentralsecuritiesdepositoryofanomineeofaparticipantoranyothernomineewhohasanaccountwithaparticipant,whichnomineeholdssecuritiesinasecuritiesrepositoryorcentralsecuritiesrepository;and

(r) mustincludesuchothermattersasmayberequiredbythestandards. (3) Acentralsecuritiesdepositorymay,withtheapprovalofNAMFISA,makedepositoryrulesonmattersadditionaltothoselistedinsubsection(2). (4) A depository rulemade under this section is binding on the centralsecuritiesdepository,aparticipant,anominee,anissuerofsecuritiesdepositedwiththecentralsecuritiesdepositoryandtheirofficersandemployees,andonclients.

Registration of securities

127. (1) NAMFISA may direct that any securities held by a centralsecuritiesdepositorymust,unlesstheyarebearerinstruments,moneymarketinstrumentsorrecordedinasubregister,withdueconsiderationofthedepositoryrules,beregisteredinthenameofthatcentralsecuritiesdepositoryoritswhollyownedsubsidiarythathasbeenapprovedbyNAMFISA. (2) A central securities depository or participant does not become theowner,co-owner,holder,pledgeeorcessionaryforthepurposeofsecuringadebt,ofsecuritiesmerelybecauseof-

(a) adepositofsecurities;or

(b) theregistrationinitsnameof-

(i) securities;

(ii) limitedrightsinsecurities;

(iii) otherrightsinsecurities;

(iv) benefitsinrespectofsecurities;or

(v) benefitsaccruingtosecurities.

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(3) Subsection(2)alsoappliestoawhollyownedsubsidiaryofacentralsecuritiesdepositoryorparticipant.

Ownership of securities

128. (1) Wheresecuritiesofanykind-

(a) aredepositedwith-

(i) aparticipant;or

(ii) aregisteredcentralsecuritiesdepository;or

(b) accruetotheownerofsecuritiesheldby-

(i) aparticipantinasecuritiesrepository;or

(ii) aregisteredcentralsecuritiesdepository,

thepersonwhowastheownerofthesecuritiesatthetimeofdepositoraccrualbecomesentitledtoaninterestasco-ownerofallthesecuritiesofthesamekindcomprisedinthesecuritiesrepositoryorcentralsecuritiesrepository,asthecasemaybe. (2) Insofarasanylimitedrightexistsinrespectofanysecuritiesatthetimeofadepositoraccrualreferredtoinsubsection(1),suchlimitedrightextendstotheinterestofsuchco-ownerandtoanysecuritiesdeliveredtothatco-owner. (3) The interest of a co-owner, client or participant in all the securitiesinasecuritiesrepositoryorcentralsecuritiesrepository,asthecasemaybe,mustbecalculatedbyreferencetotheproportionthatthenumberornominalvalueofsecuritiesdepositedbyoronbehalfofthatco-owner,clientorparticipantandaccruingtosuchsecurities,bearstothetotalnumberornominalvalueofallsecuritiesofthatkindheldinthesecuritiesrepositoryorcentralsecuritiesrepository. (4) Awrittenstatementissuedbyoronbehalfof-

(a) aparticipantinrespectofanownerofsecuritiesorofaclient;or

(b) aregisteredcentralsecuritiesdepositoryinrespectofaparticipant,

andspecifyingtheinterestofthatowner,clientorparticipant,isprima facieevidenceofthetitleorinterestofthatpersoninsuchsecurities.

Transfer of securities

129. Transferofaninterestinsecuritiesheldbyaregisteredcentralsecuritiesdepository or participantmust be effected by entry in the central securities accountorsecuritiesaccountofthetransferorandthetransfereekeptbythecentralsecuritiesdepositoryortheparticipant,asthecasemaybe.

Pledge or cession of securities to secure debt

130. (1) Apledgeorcession,tosecureadebt,inrespectofaninterestin securities held by a registered central securities depository or participant or in a

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securitiesaccountheldonbehalfofaparticipant,mustbeeffectedbyentryinthecentralsecuritiesaccountorthesecuritiesaccountof-

(a) thepledgorinfavourofthepledgeespecifyingthenameofthepledgee,theinterestinthesecuritiespledgedandthedateofentry;or

(b) the cedent in favour of the cessionary specifying the name of thecessionary,theinterestinthesecuritiescededandthedateofentry.

(2) An interest in securities referred to in subsection (1) may not betransferredexceptwiththewrittenconsentofthepledgeeorcessionary,asthecasemaybe. (3) The pledgee or cessionary of an interest in securities referred to insubsection(1)isentitledtoalltherightsofapledgeeofmovablepropertyorcessionaryofarightinmovablepropertypledgedorcededtosecureadebt,asapplicable. (4) Subsections(1),(2)and(3)alsoapply,withthechangesrequiredbythecontext,tothepledgeandcessiontosecureadebtbyoneparticipanttoanotherofan interest insecuritiesheldbya registeredcentralsecuritiesdepository inacentralsecuritiesaccount.

Delivery of securities

131. Subjecttosections128and130,theownerofaninterestinsecuritiesheldbyaparticipant ina securities repositoryoraparticipantholdingan interest insecuritiesinacentralsecuritiesrepository,asthecasemaybe,isatalltimesentitled,onwrittenrequestforwithdrawal,todelivery,withinareasonabletime,bytheparticipantor central securities depository concerned, of a certificate or written instrumentevidencingthesamenumberofsecuritiesorsecuritiesofthesamenominalvalueandofthesamekindastheinterestinsecuritiesheldonbehalfofsuchownerorparticipant,aslongassuchownerorparticipanthasasufficientunencumberedcreditbalanceofthosesecurities in that owner’s securities accountor in that participant’s central securitiesaccount,asthecasemaybe.

Records

132. If the records of a registered central securities depository areinconsistentwiththoseofaparticipantregardingsecuritiesdepositedwiththecentralsecuritiesdepositorybythatparticipant,therecordsofthecentralsecuritiesdepositoryareconsideredtobecorrectuntilthecontraryisproved.

Warranty

133. (1) Every person, whether a client or participant, who depositssecuritieswithaparticipantorregisteredcentralsecuritiesdepository,asthecasemaybe, is deemed towarrant that such person is entitled to deposit such securities andthat any document or instruction relating to such securities lodged or given by thatpersonisgenuineandcorrectinallrespectsandthatpersonisdeemedtohaveagreedtoindemnifytheparticipantorthecentralsecuritiesdepositoryagainstanyclaimmadeupon theparticipantorcentralsecuritiesdepositoryandagainstany losssufferedbytheparticipantorcentralsecuritiesdepositoryarisingoutofsuchdepositorbreachofwarranty.

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(2) Aregisteredcentralsecuritiesdepositoryisnotdeemedtohavegivenawarrantyorindemnityreferredtoinsubsection(1).

Recognition of trust

134. A registered central securities depository is not obliged to recogniseanyrelationshipoftrustoragencyofitsparticipantsinrespectofsecurities.

Attachment

135. (1) The attachment of an interest in securities deposited with aparticipant andheld in a securities repositoryor central securities repository is onlycompletewhen-

(a) noticeoftheattachmenthasbeengiveninwritingbythesherifforthemessengerofcourttotheparticipant;

(b) the sheriff or the messenger of court has taken possession of anysecuritiesaccountasevidencedbyawrittenacknowledgementissuedbytheparticipantorthesherifforthemessengerofcourthascertifiedthat the sheriff or the messenger of court has been unable, despitediligentsearch,toobtainpossessionofsuchwrittenacknowledgement;and

(c) thesherifforthemessengerofcourthasmadeanentryoftheattachmentonsuchsecuritiesaccountorcausedittobemadebysuchparticipant.

(2) Thesherifforthemessengerofcourtmayuponexhibitingtheoriginalofthewarrantofexecutiontotheparticipantenterthepremiseswheresuchaccountiskeptandmakeaninventoryandvaluationoftheinterestattached. (3) For the purposes of this section, “sheriff”means the sheriff, deputysherifforotherofficerappointedundersection30oftheHighCourtAct,1990(ActNo.16of1990),thesheriff,deputysherifforotherofficerappointedundersection26oftheSupremeCourtAct,1990(ActNo.15of1990)orthemessengerofthecourtappointedintermsofsection14oftheMagistratesCourtsAct,1944(ActNo.32of1944),asthecasemaybe.

PART 6SELF-REGULATORY ORGANISATIONS

Recognised self-regulatory organisations

136. (1) Apubliccompanymay,inaccordancesubsection(2),applytoNAMIFSAtoberecognisedasaself-regulatoryorganisation. (2) Anapplicationforrecognitionasaself-regulatoryorganisationmust-

(a) bemadeinthemannerandformrequiredbythestandards;

(b) includetheinformationwithrespecttomembersofitsgoverningbodyasmayberequiredbythestandards;

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(c) beaccompaniedbythedocumentsandotherinformationrequiredbythestandards;

(d) be accompanied by such further information that NAMFISA onreasonablegroundsmayrequireinanyparticularcase;

(e) be made subject to and in accordance with any other applicableprovisionofthisAct;and

(f) beaccompaniedbytherequiredfee. (3) NAMFISA may require an applicant to furnish such additionalinformation or require such information to be verified as NAMFISAmay considernecessary-

(a) includingtakingintoconsiderationanyotherinformationregardingtheapplicantderivedfromwhateversourceorfromanyothersupervisoryauthority;and

(b) ifsuchinformationisdisclosedtotheapplicant,theapplicantisgivenareasonableopportunitytorespondthereto.

(4) Before recognising an applicant as a self-regulatory organisationNAMFISAmustbesatisfiedthattheapplicant-

(a) hasassetsandresourcesinNamibia,whichresourcesincludefinancial,management and human resources with appropriate experience toperformitsfunctionsassetoutinthisAct;

(b) hasgovernancearrangementsthatareclearandtransparent,promotethesafetyandefficiencyofitsinfrastructure,andsupportthestabilityofthebroaderfinancialsystem,otherrelevantpublicinterestconsiderations,andtheobjectivesofrelevantstakeholders;

(c) demonstrates that the fit and proper requirements as set out in thestandardsaremetbytheapplicant,itsdirectorsandseniormanagement;

(d) hasmadearrangementsfortheefficientandeffectivesurveillanceofalltransactionseffectedthroughitsinfrastructureandforthesupervisionof its members so as to identify possible market inefficiencies anddiscrepanciesandensurecompliancewith the requirements, relevantrulesanddirectivesandthisAct;

(e) hasmade arrangements for the efficient and effectivemonitoring ofcompliancebymembersandotherstakeholderswithitsrequirements;

(f) has made arrangements to efficiently and effectively manage thematerialrisksassociatedwithitsoperations;

(g) hasmadearrangementsforefficientandeffectivesecurityandback-upprocedurestoensuretheintegrityoftherecordsoftransactionseffectedthroughitsinfrastructure;

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(h) has insurance, a guarantee, compensation fund or otherwarranty inplace to enable it to provide compensation to clients, subject to therequirementsofthestandardsanditsrules;

(i) hasmadearrangements for the efficient andeffective supervisionofitsmembers soas toensurecompliancewith thisActandanyotherapplicablefinancialserviceslaw;and

(j) demonstratesthatithaseffectiveandreliableinfrastructurenecessarytofacilitatesmoothconductofitsoperations.

(5) IfNAMFISAissatisfiedthattheapplicantmeetstherequirementsofsubsection(4)andotherrelevantprovisionsofthisAct,andthatitisnotcontrarytothepublicinteresttodoso,NAMFISAmustrecognisetheapplicantpubliccompanyasaself-regulatoryorganisation. (6) Arecognitionunder thissectionmustbe inwritingand issubject tosuchtermsandconditionsasNAMFISAmayimpose. (7) UponrecognitionofanapplicantNAMFISAmustissuetotheapplicantacertificateofrecognitioninaformprovidedbythestandards. (8) NAMFISA may impose such conditions on the recognition of theapplicant as it considersnecessaryhaving regard,without limitation, to all the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (9) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (10) Arecognisedself-regulatoryorganisationmust-

(a) regulate the operations and the standards of practice and businessconductof itsmembers and their representatives in accordancewithitsby-laws,rules,regulations,policies,procedures,interpretationsandpractices;

(b) have the capacity to carry out the purposes of its governing laws,regulations and rules consistent with the responsibility of the self-regulatoryorganisation,andtoenforcecompliancebyitsmembersandassociatedpersonssubject to itsby-laws, rules, regulations,policies,procedures,interpretationsandpractices;

(c) treat all members of the self-regulatory organisation, applicants formembership and similarly situatedmarket participants subject to itsrulesinafairandconsistentmanner;

(d) developrulesthataredesignedtosetstandardsforitsmembersandtopromoteinvestorprotection;

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(e) submit to NAMFISA, its rules and any amendments thereto, forapproval and ensure that the rules are consistentwith the directivesissuedbyNAMFISAunderthisAct;

(f) co-operate with NAMFISA and other domestic self-regulatoryorganisations to investigate and enforce applicablefinancial serviceslaws;

(g) ensureafairrepresentationofmembersinselectionofitsdirectorsandadministrationofitsaffairs;

(h) avoidrulesthatmaycreateanti-competitivesituations;

(i) avoidusingitsoversightroletoallowanymarketparticipanttounfairlygainadvantageinthemarket;

(j) provide information to NAMFISA that allows matters requiringregulatoryinterventiontobeidentifiedatanearlystage;

(k) haveproceduresinplacetoaddresspotentialconflictsofinterestand,whereapplicable,takenecessarystepstoavoid,eliminate,discloseandotherwisemanagepossibleconflictsofinterestbetweenitsregulatoryfunctionsanditscommercialservices,whichstepsmustinclude-

(i) the implementation of appropriate arrangements, whicharrangements must comply with the requirements of thestandards,bedocumentedandbepubliclyavailable;and

(ii) anannualassessment,inthemannersetoutinthestandards,ofthearrangementsreferredtoinsubparagraph(i),theresultsofwhichmustbepublished;and

(l) adopt standards of confidentiality for its staff and standards ofproceduralfairnessapplicabletoitsmembers.

(11) NAMFISAmay,ifitconsidersthatitisinthepublicinteresttodoso,makeanydecisionwithrespecttotheby-laws,rules,regulations,policies,procedures,interpretationsandpracticesofarecognisedself-regulatoryorganisation. (12) NAMFISAmay, if it considers that therearegood reasons todoso,andaftergiving the recognisedself-regulatoryorganisationa reasonableopportunitytomakerepresentationstoNAMFISAonthematter,suspend,revokeorwithdrawtherecognitionofarecognisedself-regulatoryorganisation. (13) NAMFISA may issue standards regarding the recognition of self-regulatory organisations and the operations and othermatters relating to recognisedself-regulatoryorganisations.

Carrying on additional business

137. Ifaself-regulatoryorganisationcarriesonbusinessinadditiontothatregulated by or under this Chapter, NAMFISAmay, for the purpose ofminimisingsystemicrisk,issuedirectivesinrespectofthecarryingonofsuchbusiness.

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Incorporation of self-regulatory organisation as company

138. (1) With the prior approval of NAMFISA, and upon writtenapplicationmade in the formandmannerprovided for in the standards, and subjectto the standardsand to suchconditionsasNAMFISAmay impose,a self-regulatoryorganisationthatisanexchange,acentralsecuritiesdepositoryorasecuritiesclearinghousewhichisnotincorporatedasacompanyhavingasharecapitalundertheCompaniesActmustbeincorporatedasapubliccompanywithasharecapital. (2) Upontheincorporationofaself-regulatoryorganisationreferredtoinsubsection(1)-

(a) the self-regulatory organisation is deemed to be a public companyincorporatedintermsoftheCompaniesActfromadatedeterminedbyNAMFISAinconsultationwiththeself-regulatoryorganisation;

(b) the Registrar of Companies, appointed in terms of section 6 of theCompanies Act, must register the memorandum and articles ofassociationoftheself-regulatoryorganisationintermsofsection68(1)ofthatActonthedatereferredtoinparagraph(a);

(c) the continued corporate existence of the self-regulatory organisationfrom the date on which it was first registered by NAMFISA isunaffectedandanyactionsoftheself-regulatoryorganisationbeforeitsincorporationremaineffectual;

(d) alltheassetsandliabilitiesoftheself-regulatoryorganisation,includinganyinsurance,guarantee,compensationfundorotherwarrantyownedormaintainedbytheself-regulatoryorganisationtocoveranyliabilitiestoclientsofauthorisedusersorparticipants,asthecasemaybe,remainvestedin,andbindingupon,thecompanyintowhichtheself-regulatoryorganisationhasbeenincorporatedoruponsuchotherentityacceptabletoNAMFISAastheself-regulatoryorganisationmaydesignate;

(e) theself-regulatoryorganisationhasthesamerightsandissubjecttothesameobligationsasithadimmediatelybeforeitsincorporationintoacompany;

(f) allagreements,appointments,transactionsanddocumentsenteredinto,made,executedordrawnupby,withorinfavouroftheself-regulatoryorganisationandinforceimmediatelybeforetheincorporationoftheself-regulatoryorganisation,remaininfullforceandeffect,andmustbeconstruedforallpurposesasif theyhadbeenenteredinto,made,executedordrawnupby,withorinfavourofthecompanyintowhichtheself-regulatoryorganisationhasbeenincorporated;

(g) any bond, pledge, guarantee or other instrument to secure futureadvances,facilitiesorservicesmadebytheself-regulatoryorganisationwhichwasinforceimmediatelybefore theincorporationof theself-regulatoryorganisation,remainsinfullforceandeffect,andmustbeconstruedforallpurposesasabond,pledge,guaranteeorinstrumentgiven to or in favour of the company intowhich the self-regulatoryorganisationhasbeenincorporated;

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(h) anyclaim,right,debt,obligationordutyaccruingtoanypersonagainstthe self-regulatory organisation or owing by any person to the self-regulatoryorganisationisenforceableagainstorowingtothecompanyinto which the self-regulatory organisation has been incorporated,subjecttoanylawgoverningprescription;

(i) anylegalproceedingsthatwerependingorcouldhavebeeninstitutedagainst theself-regulatoryorganisationbefore the incorporationmaybe continued or instituted against the company intowhich the self-regulatory organisation has been incorporated, subject to any lawgoverningprescription;and

(j) the registration of the self-regulatory organisation remains vested inthe company into which the self-regulatory organisation has beenincorporated,aslongasthecompanycomplieswithalltherequirementsofthisAct.

Amalgamation

139. (1) Twoormore-

(a) registeredexchanges;

(b) registeredcentralsecuritiesdepositories;or

(c) recognisedself-regulatoryorganisations,

thathavesimilarobjectsor thatperformsimilarfunctionsmay,with theapprovalofNAMFISA and subject to the standards and to such conditions as NAMFISAmayimpose,amalgamateormerge. (2) Anexchangereferredtoinsection86mustbeincorporatedasapubliccompanywith a share capital pursuant to section138prior to any amalgamationormergerunderthissection. (3) Ifanamalgamationormergerreferredtoinsubsection(1)takesplace-

(a) alltheassetsandliabilitiesoftheamalgamatingormergingcompanies,including any insurance, guarantee, compensation fund or otherwarranty owned or maintained by the amalgamating companies tocover any liabilities to clients of authorised users or participants, asthecasemaybe,vest inandbecomebindingupon theamalgamatedcompany or upon such other entity acceptable to NAMFISA as thepartiestotheamalgamationmaydesignate;

(b) theamalgamatedcompanyhasthesamerightsandissubjecttothesameobligationsaseachoftheamalgamatingcompanieshadimmediatelybeforetheamalgamation;

(c) allagreements,appointments,transactionsanddocumentsenteredinto,made,executedordrawnupby,withorinfavouroftheamalgamatingcompaniesandinforceimmediatelybeforetheamalgamationremaininfullforceandeffectandmustbeconstruedforallpurposesasifthey

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hadbeenenteredinto,made,executedordrawnupby,withorinfavouroftheamalgamatedcompany;

(d) anybond,pledge,guaranteeorotherinstrumenttosecurefutureadvances,facilitiesorservicesmadebyanyoftheamalgamatingcompaniesandwhichwasinforceimmediatelypriortotheamalgamation,remainsinfullforceandeffectandmustbeconstruedasabond,pledge,guaranteeorinstrumentgiventoorinfavouroftheamalgamatedcompany;

(e) anyclaim,right,debt,obligationordutyaccruingtoanypersonagainstanyoftheamalgamatingcompaniesorowingbyanypersontoanyofthe amalgamating companies, is enforceable against orowing to theamalgamatedcompany;

(f) anylegalproceedingsthatwerependingorcouldhavebeeninstitutedagainstanyoftheamalgamatingcompaniesbeforetheamalgamationmay be continued or instituted against the amalgamated company,subjecttoanylawgoverningprescription;and

(g) theregistrationoftheamalgamatingcompaniesremainsvestedintheamalgamatedcompany,aslongastheamalgamatedcompanycomplieswithalltherequirementsofthisAct.

Transfer of assets and liabilities

140. (1) A -

(a) registeredexchangemay,withtheapprovalofNAMFISAandsubjectto the standards and to such conditions as NAMFISAmay impose,transferanyofitsassetsandliabilitiestoanyotherregisteredexchange;

(b) registered central securities depository may, with the approval ofNAMFISA and subject to the standards and to such conditions asNAMFISAmayimpose,transferanyofitsassetsandliabilitiestoanyotherregisteredcentralsecuritiesdepository;and

(c) recognised self-regulatory organisation may, with the approval ofNAMFISA and subject to the standards and to such conditions asNAMFISAmayimpose,transferanyofitsassetsandliabilitiestoanyother registered recognised self-regulatory organisation or registeredself-regulatoryorganisation,

thathassimilarobjectsorthatperformssimilarfunctionsastheregisteredexchange,centralsecuritiesdepository,recognisedself-regulatoryorganisationorregisteredself-regulatoryorganisation,asthecasemaybe,thatistransferringtheassetsandliabilities. (2) Ifatransferofassetsandliabilitiesreferredtoinsubsection(1)takesplace,section139(3)applieswithanychangesrequiredbythecontext.

Duty of shareholders of controlling entity

141. Each shareholder or other owner of any entity that controls a self-regulatoryorganisationandeachmemberoftheboardofdirectorsofaself-regulatoryorganisationowesafiduciarydutyandadutyofcareandskilltothatself-regulatoryorganisation.

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Appointment as officer of self-regulatory organisation

142. (1) Apersonmaynotbeappointedasanofficerofaself-regulatoryorganisationifthatperson-

(a) may not be appointed or act as a director under section 225 of theCompaniesAct;or

(b) hasbeenpenalisedindisciplinaryproceedingsforacontraventionoftherulesofanyprofessionalorganisation,includingaself-regulatoryorganisation,whichinvolveddishonesty.

(2) Apersonwhoacceptsanappointmentincontraventionofsubsection(1)commitsanoffenceand is liableonconviction toafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment. (3) Ifaself-regulatoryorganisationmakesanappointmentincontraventionofsubsection(1)-

(a) withoutmakingreasonableenquiryastowhetherthepersonappointedisdisqualifiedundersubsection(1);or

(b) knowingthatthepersonappointedissodisqualified,

NAMFISAmayimposeapenaltyupontheself-regulatoryorganisationnotexceedingtheamountthattheMinistermayprescribe. (4) Aself-regulatoryorganisationmust,within14daysoftheappointmentofanewofficer,informNAMFISAoftheappointmenttogetherwithsuchinformationonthematterasNAMFISAmayrequire. (5) Theprovisionsofsubsection(4)mustnotbeconstruedsoastorendertheappointmentofanofficerofaself-regulatoryorganisationsubjecttotheapprovalofNAMFISA. (6) If it appears to NAMFISA that an officer of a self-regulatoryorganisationisdisqualifiedundersubsection(1),NAMFISAmay,subjecttosubsection(7)andinaccordancewithsection412,directthatself-regulatoryorganisationtotakeallnecessarystepstohavethatpersonremovedasanofficer.

(7) NAMFISAmust,beforegivingadirectiveundersubsection(6)-

(a) inform the self-regulatory organisation and the person concerned ofNAMFISA’sintentiontogivesuchadirective;

(b) give the self-regulatory organisation and the person reasons for theintendeddirective;and

(c) callupontheself-regulatoryorganisationandthepersontoshowcausewithinaperiodof14dayswhythedirectiveshouldnotbegiven.

(8) IfNAMFISAdirectstheself-regulatoryorganisationtohaveanofficerremoved,theself-regulatoryorganisationmusthavethepersonremovedwithinaperiod

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of14daysandmustensurethatthepersoninquestiondoesnotinanyway,whetherdirectlyorindirectly,concernhimselforherselfwithortakepartinthemanagementoftheself-regulatoryorganisation. (9) If a self-regulatory organisation fails to complywith subsection (8),NAMFISAmay,inrespectofsuchnon-compliance,takeanyactionagainstthatself-regulatoryorganisationwhichNAMFISAisempoweredtotakeundersection412or439andtheprovisionsofthosesectionsapplytosuchnon-compliance. (10) NAMFISAmustaffordtheself-regulatoryorganisationtherighttobeheardbeforeimposinganypenaltyunderthissection.

Limitation on control of self-regulatory organisations

143. (1) Apersonmaynot,without thepriorapprovalofNAMFISA,acquireorholdsharesoranyotherinterestinaself-regulatoryorganisationwhichisacompany, if theacquisitionorholding results in thatperson,directlyor indirectly,aloneorwithoneormoreassociates,acquiringorholdingcontroloftheself-regulatoryorganisation. (2) IfNAMFISAissatisfiedonreasonablegroundsthattheretentionofaparticularshareholdinginaself-regulatoryorganisationbyaparticularpersonwillbeprejudicialtotheself-regulatoryorganisation,NAMFISAmayapplytotheHighCourtforanorder-

(a) compelling the person to reduce,within a period determined by theHighCourt, thatshareholdingtoashareholdingwithatotalnominalvaluenotexceeding20percentof the totalnominalvalueofall theissuedsharesoftheself-regulatoryorganisation;and

(b) limiting,withimmediateeffect,thevotingrightsthatmaybeexercisedby that person by virtue of that shareholding to 20 per cent of thevoting rights attached to all the issued shares of the self-regulatoryorganisation.


delegation of functions

144. (1) A self-regulatory organisation may delegate or assign anyfunctionentrustedtoitbythisChapteroritsrulestoanypersonorpersonsapprovedbytheentitythatcontrolstheself-regulatoryorganisation,subjecttotheconditionsthattheself-regulatoryorganisationmaydetermine. (2) Aself-regulatoryorganisationisnotdivestedorrelievedofafunctiondelegated or assigned under subsection (1) and may, if necessary, withdraw thedelegationorassignmentatanytimeonreasonablenotice.

Report to NAMFISA

145. Within 90 days after the end of its financial year, a self-regulatoryorganisationmustsubmittoNAMFISAanannualreportcontainingthedetailsrequired

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bythestandardsandauditedannualfinancialstatementsthatfairlypresentthefinancialaffairsandstatusoftheself-regulatoryorganisation.

Right of NAMFISA to attend meetings and obtain documents

146. (1) NAMFISAmayattendanymeetingoftheentitythatcontrolsaself-regulatoryorganisationoracommitteeofthatentity,andmaytakepart,butmaynotvote,inalltheproceedingsatsuchmeeting. (2) The entity that controls a self-regulatory organisation must furnishNAMFISAwithallnotices,minutesanddocumentswhicharefurnishedtoshareholdersorotherownersoftheentitythatcontrolstheself-regulatoryorganisationoracommitteeofthatentity.

Rules of self-regulatory organisations

147. (1) In this section “rules” means rules of a self-regulatoryorganisation. (2) NAMFISAmustassoonaspossibleafterregisteringaself-regulatoryorganisation under section 85(1) or recognising a self-regulatory organisation undersection136(5),causetherulesmadebythatorganisationtobepublishedintheGazette. (3) The costs of a notice published in the Gazette pursuant to any ofsubsections(2),(7),(8),(9),(10),(11)or(12)orinnewspaperscirculatingnationallyinNamibiapursuanttosubsection(15)(a)mustbeattheexpenseoftheself-regulatoryorganisationconcerned. (4) Aself-regulatoryorganisationmay, subject to this section,amendorsuspenditsrules. (5) Aproposedamendmentoftherules,otherthanasuspension,mustbesubmittedtoNAMFISAforapprovalandmustbeaccompaniedbyanexplanationofthereasonsfortheproposedamendment. (6) If NAMFISA, acting reasonably, finds that any amendment to therulesisnotsatisfactory,NAMFISAmustbynoticetotheself-regulatoryorganisationconcernedcontainingthereasonswhytheamendmentisnotsatisfactory,givetheself-regulatoryorganisationanopportunitytobeheardincludingaperiodofatleast30dayswithinwhichtomakerepresentations. (7) NAMFISAmust,assoonaspossible-

(a) afterthereceiptofaproposedamendment;or

(b) intheeventthatsubsection(6)applies,afterrepresentationshavebeenmadebytheself-regulatoryorganisationthatsatisfyNAMFISAwithrespecttotheamendment,

causetobepublishedintheGazette,attheexpenseoftheself-regulatoryorganisation,anoticeoftheproposedamendmentcallinguponallinterestedpersonswhohaveanyobjectionstotheproposedamendmenttolodgetheirobjectionswithNAMFISAwithinaperiodof21daysfromthedateofpublicationorsuchotherperiodasNAMFISAmaydirect.

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(8) If no objections have been lodged with NAMFISA pursuant tosubsection (7), or if objections have been lodged, NAMFISA has considered suchobjectionsandafterconsultationwith theself-regulatoryorganisationhasdecided toapprovetheproposedamendmentintheformpublishedintheGazetteundersubsection(7), the amendment comes into operation on a date determined by NAMFISA andpublishedbyafurthernoticeintheGazette. (9) If,asaresultofobjectionslodgedwithNAMFISApursuanttosubsection(7),NAMFISAdecides,afterconsultationwiththeself-regulatoryorganisation,toamendtheproposedrulesaspublishedintheGazette,theproposedrulesasamendedmustbepublishedbyNAMFISAbyfurthernoticeintheGazetteandcomeintooperationonadatedeterminedbyNAMFISAinthatnotice. (10) NAMFISAmay-

(a) ifthereexistsanurgentsituationunderexceptionalcircumstances;

(b) if it isnecessary toachievetheobjectsof thisChapterreferredto insection79;and

(c) afterconsultationwiththeself-regulatoryorganisationconcerned,

bynoticeintheGazetteamendtherulesofthatself-regulatoryorganisation. (11) Subject to the prior approval of NAMFISA, a self-regulatoryorganisationmaysuspendanyofitsrulesforaperiodnotexceeding30daysaftergivingreasonablenoticeoftheproposedsuspensionbypublicationintheGazette. (12) NAMFISAmay,fortheperiodofsuchsuspension,issueaninterimruletoregulatethemattercoveredbytherulesuspendedundersubsection(11)bynoticepublishedintheGazette. (13) Anycontraventionoforfailuretocomplywithaninterimrulehasthesamelegaleffectasacontraventionoforfailuretocomplywitharule. (14) Therulesmayprovidethattheself-regulatoryorganisationconcernedorapersontowhomtheself-regulatoryorganisationhasdelegateditsinvestigativeanddisciplinaryfunctions,mayimposeanyoneormoreofthefollowingpenaltiesforanycontraventionoforfailuretocomplywiththerulesorthisAct-

(a) areprimand;

(b) apenaltynotexceedingtheamountprovidedintherules;

(c) suspensionorcancellationoftheauthorisationtoactasanauthoriseduser,aparticipantorpersonoranentitythatissubjecttotherulesofaself-regulatoryorganisation;

(d) arestrictiononthemannerinwhichanauthoriseduserorparticipant,and an authorised representative of the authorised user or an officeroremployeeoftheparticipantorpersonorentitythatissubjecttotherulesofaself-regulatoryorganisation,mayconductbusiness;and

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(e) thepaymentofcompensationtoclientsprejudicedbythecontraventionorfailure.

(15) Therulesmustprovidethat-

(a) fullparticularsregardingtheimpositionofapenaltymustbepublishedintheGazette,newspaperscirculatingnationallyinNamibiaorthroughthenewsservice,ifany,oftheself-regulatoryorganisation;

(b) anypersonwhohascontravenedorfailedtocomplywiththerulesorthisActmaybeorderedtopaythecostsincurredinaninvestigationorhearingconductedinaccordancewiththerules;

(c) theself-regulatoryorganisationmaytakeintoaccountatadisciplinaryhearing any information obtained byNAMFISA in the course of aninspectionorinvestigationundersections418to429;and

(d) theself-regulatoryorganisationorapersontowhomaself-regulatoryorganisationhasdelegateditsinvestigativeanddisciplinaryfunctions,may, upon good cause shown and subject to the conditions it mayimpose, vary or modify any penalty which it may previously haveimposed,butthatinvaryingormodifyingsuchpenaltythepenaltymaynotbeincreased.

(16) Ifapersonfailstopayafineorcompensationreferredtoinsubsection(14)(b)or (e), the self-regulatoryorganisationmay take such stepsas arenecessary,includingtheinstitutionoflegalaction,torecoverthefineorcompensation. (17) This section does not prejudice the common law rights of a personaggrievedbyacontraventionoforfailuretocomplywitharuleorthisActtoclaimanyamount,excepttotheextentthatanyportionofsuchamounthasbeenrecoveredundersubsection(14). (18) Therulesmustsetoutthepurposeforwhichapenaltyreferredtoinsubsection(14)mustbeappropriated.

Limitation of liability

148. (1) Apersonreferredtoinsubsection(2)maynotbeheldliableforanylosssustainedordamagesufferedbyanyotherpersoninrespectofanythingdoneoromittedtobedonebythatpersonorbyanauthoriseduser,aparticipantorpersonoranentitythatissubjecttotherulesofaself-regulatoryorganisationintheperformanceingoodfaithofanyfunctionunderthisAct,therulesordirectivesoftheself-regulatoryorganisationorthelistingrequirementsofanexchange. (2) Thepersonstowhomsubsection(1)appliesare-

(a) aself-regulatoryorganisation;

(b) amemberoftheboard,theprincipalofficer,otherofficer,anemployeeorarepresentativeofaself-regulatoryorganisation;and

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(c) ashareholderorotherowner,directororofficerofanentitythatcontrolstheself-regulatoryorganisationoramemberofacommitteeofsuchentity.

disclosure of information

149. Despite sections 166 and 426, a self-regulatory organisation maydisclose information relating to or arising from its responsibilities for regulating,investigating or prosecuting financial institutions or financial intermediaries, to anyotherself-regulatoryorganisationorsupervisoryauthority,whetherdomesticorforeign,thatisalsoresponsibleforregulating,investigatingorprosecutingfinancialinstitutionsorfinancialintermediaries.

PART 7SECURITIES CLEARING HOUSE


150. Section 148 applies to a securities clearing house with the changesrequiredbythecontext.

Amalgamation

151. (1) Twoormoresecuritiesclearinghousesthathavesimilarobjectsorperformsimilarfunctionsmay,withtheapprovalofNAMFISAandsubjecttothestandardsandtosuchconditionsasNAMFISAmayimpose,amalgamateormergewithoneanotherorwithanyself-regulatoryorganisationthathassimilarobjectsorperformssimilarfunctionsasthoseofthesecuritiesclearinghousethatitproposestoamalgamateormergewith. (2) Section139(3)applieswithanychangesmadenecessarybythecontexttoanamalgamationormergerreferredtoinsubsection(1).

Transfer of assets and liabilities

152. (1) A securities clearing house may, with the approval ofNAMFISA and subject to the standards and to such conditions as NAMFISAmayimpose,transferanyofitsassetsandliabilitiestoanyothersecuritiesclearinghouseortoaself-regulatoryorganisationthathassimilarobjectsorperformssimilarfunctionsasthoseofthesecuritiesclearinghousethatitproposeseffectthetransferofassetsandliabilitieswith. (2) Section139(3)applieswithanychangesmadenecessarybythecontexttoatransferreferredtoinsubsection(1).

PART 8CODE OF CONDUCT FOR REGULATED PERSONS

Codes of conduct

153. (1) NAMFISAmayprovideinthestandardsacodeofconductforoneormorecategoriesofregulatedpersons.

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(2) The code of conduct referred to in subsection (1) for a category ofregulatedpersons is bindingon those regulatedpersons, their directors, officers andotheremployeesandontheirclients.

Principles of code of conduct

154. (1) Acodeofconductreferredtoinsection153mustbebasedonthefollowingprinciples:

(a) theregulatedpersonmustacthonestlyandfairly,withduecare,skillanddiligenceandintheinterestsofclients;

(b) theregulatedpersonmustupholdtheintegrityofthesecuritiesindustry;

(c) theregulatedpersonmusthaveandeffectivelyemploytheresources,proceduresandtechnologicalsystemsnecessaryfortheconductofitsbusiness;

(d) theregulatedpersonmustseekinformationfromaclientregardingthefinancialposition,investmentexperienceandobjectivesoftheclientinconnectionwiththeservicerequired;and

(e) the regulated person must act fairly in any situation of conflictinginterests.

(2) Thecodeofconductmustinparticularandasappropriate,providefor-

(a) thedisclosuretoaclientofrelevantmaterialinformation,includingthedisclosureofactualorpotentialinterestsoftheregulatedperson;

(b) properrecord-keeping;

(c) avoidance of fraudulent andmisleading advertising, canvassing andmarketing;

(d) propersafekeeping,separationandprotectionoffundsandtransactiondocumentsofclients;

(e) suitable guarantees or professional indemnity or fidelity insurancecover;and

(f) anyothermatterwhichitisnecessaryorexpedienttoregulateinthecodeofconductfortheachievementoftheobjectsofthisChapter.

PART 9MARKET ABUSE



“affectedtransaction”meansanytransaction,includingatransactionwhichformspartofa seriesoftransactionsorascheme,whateverformitmaytake,which-

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(a) togetherwithanysecuritiesheldbyapersonimmediatelybeforesuchtransactionorschemetakesplace,hasorwillhavetheeffectof-

(i) vestingcontrolofanycompanyinthatpersonorinthatpersonandoneormoreassociatesandpersonsactinginconcertwiththatperson, inwhomcontroldidnotvestpriortosuchtransactionorscheme;or

(ii) thatpersonorthatpersonandoneormoreassociatesandpersonsactinginconcertwiththatperson,acquiringorbecomingthesoleholderorholdersofallthesecurities,orallthesecuritiesofaparticularclass,ofanycompany;

(b) involvestheacquisitionbyapersonorthatpersonandoneormoreassociatesandpersonsactinginconcertwiththatperson,inwhomcontrolofanycompanyhadalreadyvested,offurthersecuritiesofthatcompanyinexcessofthelimitssetoutinthestandards;or

(c) isadisposalpursuanttosection236oftheCompaniesAct;

“claims officer” means the person appointed by NAMFISA to be responsible forconsideringand determiningclaimspursuanttosection161(1);

“deal”meansanymannerinwhichsecuritiesareacquiredordisposedofandincludesconveyingorgivinganinstructiontodeal;

“insideinformation”meansspecificorpreciseinformation,whichhasnotbeenmadepublicandwhich-

(a) isobtainedorlearnedasaninsider;and

(b) ifitweremadepublicwouldbelikelytohaveamaterialeffectonthepriceorvalueofanysecuritylistedonaregulatedmarket;

“insider”meansapersonwhohasinsideinformation-

(a) through-

(i) being a director, employee or shareholder of an issuer of securitieslistedonaregulatedmarkettowhichtheinsideinformationrelates;or

(ii) havingaccesstosuchinformationbyvirtueofemployment,officeorprofession;or

(b) knowing that the direct or indirect source of the information was a personreferredtoinparagraph(a);

“madepublic”,inrelationtoinsideinformation,meansmakingtheinsideinformationpublicasdescribedinsection157;

“marketabuserules”meanstherulesmadeundersection164(2)(d);

“market corner” means any arrangement, agreement, commitment or understandinginvolving thepurchasing,sellingorissuingofsecuritieslistedonaregulatedmarket-

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(a) bywhichapersonortwoormoreassociatesortwoormorepersonsactinginconcert,acquiredirectorindirectbeneficialownershipof,orexercisecontrolover, or are able to influence the price of, securities listed on that regulatedmarket;and

(b) wheretheeffectofthearrangement,agreement,commitmentorunderstandingisorislikelytobethatthetradingpriceofthosesecurities,asreflectedthroughthefacilitiesofthatregulatedmarket,isorislikelytobeabnormallyinfluencedorarbitrarilydictatedbysuchpersonorpersonsinthatthetradingpricedeviatesorislikelytodeviatemateriallyfromthetradingpricewhichwouldotherwiselikely have been reflected through the facilities of that regulatedmarket onwhichthosesecuritiesaretraded;

“publicsectorbody”means-

(a) allspheresofthegovernmentofNamibiaorofanyothercountryorterritory;

(b) theBankofNamibia;and

(c) thecentralbankofanycountryorterritoryoutsideNamibia;

“regulatedmarket”means anymarket, including an exchange,whether domestic orforeign,whichisregulatedunderthelawsofthecountryinwhichthemarketconductsbusinessasamarketfordealinginsecuritiestradedonthatmarket;and

“securities”includeparticipatoryinterestsincollectiveinvestmentschemesasdefinedinsection168,andmoneymarketinstrumentsandotherproductsorinterestsincludedassecuritiespursuanttosection104.

Insider trading offences

156. (1) An insiderwhoknows thatheor shehas inside informationmaynotdealdirectlyorindirectlyorthroughanagentforhisorherownaccountinsecuritiestradedonaregulatedmarkettowhichtheinsideinformationrelatesorwhicharelikelytobeaffectedbytheinsideinformation. (2) Despitesubsection(1),an insiderdoesnotcommitanoffenceunderthatsubsectionifsuchinsiderprovesonabalanceofprobabilitiesthatheorshe-

(a) wasactinginpursuitofthecompletionofanaffectedtransaction;and

(b) onlybecameaninsiderafterheorshehadgiventheinstructiontodealtoaregisteredauthoriseduseroraregisteredsecuritiesdealerandtheinstructionwasnotchangedinanymannerafterheorshebecameaninsider.

(3) Aninsiderwhoknowsthatheorshehasinsideinformationmaynot,directlyorindirectlyorthroughanagentoranyotherperson,dealforanotherpersoninthesecuritiestradedonaregulatedmarkettowhichtheinsideinformationrelatesorwhicharelikelytobeaffectedbytheinsideinformation. (4) Despitesubsection(3),an insiderdoesnotcommitanoffenceunderthatsubsectionifsuchinsiderprovesonabalanceofprobabilitiesthatheorshe-

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(a) isaregisteredauthorisedrepresentativeofaregisteredauthoriseduserorofaregisteredsecuritiesdealerandwasactingonspecificinstructionsfromaclient,exceptwheretheinsideinformationwasdisclosedtohimorherbythatclient;

(b) wasactingonbehalfofapublicsectorbodyinpursuanceofmonetarypolicy,policiesinrespectofexchangerates,themanagementofpublicdebtorexternalexchangereserves;

(c) wasactinginpursuanceofthecompletionofanaffectedtransaction;or

(d) onlybecameaninsiderafterheorshehadgiventheinstructiontodealtoanauthoriseduserorsecuritiesdealerand the instructionwasnotchangedinanymannerafterheorshebecameaninsider.

(5) Aninsiderwhoknowsthatheorshehasinsideinformationmaynotdisclosethatinsideinformationtoanotherperson. (6) Despitesubsection(5),an insiderdoesnotcommitanoffenceunderthat subsection if such insider proves on a balance of probabilities that he or shedisclosedtheinsideinformationbecauseitwasnecessarytodosoforthepurposeoftheproperperformanceofthefunctionsofhisorheremployment,officeorprofessionincircumstancesunrelatedtodealinginanysecuritylistedonaregulatedmarketandthatatthesametimeheorshedisclosedthattheinformationwasinsideinformation. (7) Aninsiderwhoknowsthatheorshehasinsideinformationmaynotencourageorcauseanotherpersontodealordiscourageorstopanotherpersonfromdealinginthesecuritiestradedonaregulatedmarkettowhichtheinsideinformationrelatesorwhicharelikelytobeaffectedbytheinsideinformation. (8) Apersonwhocontravenesorfailstocomplywithsubsection(1),(3),(5)or(7)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Publication

157. (1) Insideinformationisregardedashavingbeenmadepublicincircumstanceswhichinclude,butarenotlimitedtothefollowing:

(a) the information is published in accordance with the rules of therelevantregulatedmarketforthepurposeofinformingclientsandtheirprofessionaladvisers;

(b) theinformationiscontainedinrecordswhichbyvirtueofanyenactmentareopentoinspectionbythepublic;

(c) theinformationcanbereadilyacquiredbythoselikelytodealinanylistedsecurities-

(i) towhichtheinformationrelates;or

(ii) ofanissuertowhichtheinformationrelates;or

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(d) theinformationisderivedfromotherinformationwhichhasbeenmadepublic.

(2) Insideinformationwhichwouldotherwiseberegardedashavingbeenmadepublicmustcontinuetoberegardedashavingbeenmadepubliceventhough-

(a) it can be acquired lawfully only by persons exercising diligence orobservationorhavingexpertise;

(b) itiscommunicatedlawfullyonlyonpaymentofafee;or

(c) itisonlypublishedoutsideNamibia.

Prohibited trading practices

158. (1) Apersonmaynot-

(a) eitherforsuchperson’sownaccountoronbehalfofanotherperson,directly or indirectly use or knowingly participate in the use of anymanipulative, improper, false or deceptive practice of trading in asecuritytradedonaregulatedmarket,whichpracticecreatesormightcreate-

(i) a false or deceptive appearance of the trading activity inconnectionwiththesecurity;or

(ii) anartificialpriceforthesecurity;or

(b) place an order to buy or sell traded securities which, to his or herknowledgewill,ifexecuted,haveaneffectdescribedinparagraph(a).

(2) Without limiting the generality of subsection (1), the following areconsideredtobemanipulative,improper,falseordeceptivetradingpractices:

(a) approving or entering on a regulatedmarket an order to buy or sella security traded on that market which involves no change in thebeneficialownershipofthatsecurity;

(b) approving or entering on a regulatedmarket an order to buy or sellasecuritytradedonthatmarketwiththeknowledgethatanoppositeorderorordersofsubstantiallythesamesizeatsubstantiallythesametimeandatsubstantiallythesameprice,havebeenorwillbeenteredbyorforthesameordifferentpersonswiththeintentionofcreating-

(i) a false or deceptive appearance of active public trading inconnectionwiththatsecurity;or

(ii) anartificialmarketpriceforthatsecurity;

(c) approvingorenteringonaregulatedmarketorders tobuyasecuritytraded on thatmarket at successively higher prices or orders to sella security listed on thatmarket at successively lower prices for thepurposeofundulyorimproperlyinfluencingthemarketpriceofsuchsecurity;

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(d) approvingorenteringonaregulatedmarketanorderatornearthecloseofthemarket,theprimarypurposeofwhichistochangeormaintaintheclosingpriceofasecuritytradedonthatmarket;

(e) approvingorenteringonaregulatedmarketanordertobuyorsellasecurity tradedon thatmarketduringanyauctioningprocessorpre-opening session and cancelling such order immediately prior to themarket opening, for the purpose of creating or inducing a false ordeceptiveappearanceofdemandfororsupplyofsuchsecurity;

(f) effectingorassistingineffectingamarketcorner;

(g) maintainingatalevelthatisartificial,thepricefordealinginsecuritiestradedonaregulatedmarket;

(h) employinganydevice,schemeorartificetodefraudanyotherpersonasaresultofatransactioneffectedthroughthefacilitiesofaregulatedmarket;or

(i) engaginginanyact,practiceorcourseofbusinessinrespectofdealinginsecuritiestradedonaregulatedmarketwhichisdeceptiveorwhichislikelytohavesucheffect.

(3) Subsection(2)(a)doesnotapplytoapurchase,saleortransfermadeforlegitimateestateplanningpurposes. (4) Forthepurposesofsubsection(2)(a),apurchaseorsaleofsecuritieslistedonaregulatedmarketdoesnotinvolveachangeinthebeneficialownershipif-

(a) a personwho has a beneficial interest in those securities before thepurchaseorsale;or

(b) oneormoreassociatesofthatpersoninrelationtothosesecurities,

directlyorindirectlyholdsabeneficialinterestinthosesecuritiesafterthepurchaseorsale. (5) The employment of price-stabilising mechanisms that are regulatedundertherulesorlistingrequirementsofanexchangedoesnotconstituteamanipulative,improper,falseordeceptivetradingpracticeforthepurposesofthissectionorinsidertradingforthepurposesofsections156and160. (6) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

False, misleading or deceptive statements, promises and forecasts

159. (1) Apersonmaynot, directly or indirectly,makeor publish inrespectofsecuritiesorinrespectofthepastorfutureperformanceofacompany-

(a) anystatement,promiseorforecastwhich,atthetimeandinthelightofthecircumstancesinwhichitismade,isfalse,misleadingordeceptive

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inrespectofanymaterialfactandwhichthepersonknowsoroughtreasonablytoknow,isfalse,misleadingordeceptive;or

(b) anystatement,promiseorforecastwhichis,byreasonoftheomissionofamaterialfact,renderedfalse,misleadingordeceptiveandwhichthe person knows or ought reasonably to know, is rendered false,misleadingordeceptivebyreasonoftheomissionofthatfact.

(2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5 000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Civil liability resulting from insider trading

160. (1) An insiderwhoknows thatheor shehas inside informationandwho-

(a) deals directly or indirectly or through an agent, for his or her ownaccount in the securities traded on a regulatedmarket to which theinsideinformationrelatesorinsecuritieswhicharelikelytobeaffectedbysuchinformation;

(b) makesaprofitorwouldhavemadeaprofitifheorshehadsoldthesecuritiesatanystageoravoidsaloss,throughsuchdealing;and

(c) failstoprove,onabalanceofprobabilities,anyoneofthedefencessetoutinsection156(2),

isliable,attheinstanceofNAMFISAbywayofproceedingsintheHighCourt,topaytoNAMFISAtheamountssetoutinsubsection(2). (2) Theamountsreferredtoinsubsection(1)are-

(a) theequivalentoftheprofitorlossreferredtoinsubsection(1)(b);

(b) a penalty for compensatory purposes, in a sum determined in thediscretionoftheHighCourt;

(c) apenaltyforpunitivepurposes,inasumdeterminedinthediscretionoftheHighCourt;

(d) interest from the date of the illegal transaction as prescribed in theregulations;and

(e) costsof theproceedingsonsuchscaleasmaybedeterminedby theHighCourt.

(3) Aninsiderwhoknowsthatheorshehasinsideinformationandwho-

(a) deals,directlyorindirectly,foranyotherpersoninthesecuritieslistedon a regulatedmarket to which the inside information relates or insecuritieswhicharelikelytobeaffectedbysuchinformation;

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(b) makesaprofitforthatotherpersonorwouldhavemadeaprofitifthesecuritieshadbeen sold at any stage, or avoids a loss for that otherperson,throughsuchdealing;and

(c) fails toproveanyoneof thedefencessetout insection156(4)onabalanceofprobabilities,

is,subjecttosubsection(8),liable,attheinstanceofNAMFISAbywayofproceedingsintheHighCourt,topaytoNAMFISAtheamountssetoutinsubsection(4). (4) Theamountsreferredtoinsubsection(3)are-

(a) theequivalentoftheprofitorlossreferredtoinsubsection(3)(b);


(c) apenaltyforpunitivepurposes,inasumdeterminedinthediscretionoftheHighCourt;

(d) interest from the date of the illegal transaction as prescribed in theregulations;

(e) thecommissionorconsiderationreceivedforsuchdealing;and

(f) costsof theproceedingsonsuchscaleasmaybedeterminedby theHighCourt.

(5) Aninsiderwhoknowsthatheorshehasinsideinformationandwho-

(a) disclosestheinsideinformationtoanyotherperson;and

(b) failstoproveonabalanceofprobabilitiesthedefencesetoutinsection156(6);

is,subjecttosubsection(8),liable,attheinstanceofNAMFISAbywayofproceedingsintheHighCourt,topaytoNAMFISAtheamountssetoutinsubsection(6). (6) Theamountsreferredtoinsubsection(5)are-

(a) iftheotherpersondealtinthesecuritieslistedonaregulatedmarkettowhichtheinsideinformationrelatesorwhicharelikelytobeaffectedbytheinsideinformation,theequivalentoftheprofitwhichthatpersonmadeorwouldhavemadeifthesecuritieshadbeensoldatanystageortheequivalentofthelossavoided,asaresultofsuchdealing;


(c) apenaltyforpunitivepurposesinasumdeterminedinthediscretionoftheHighCourt;


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(e) thecommissionorconsiderationreceivedforsuchdisclosure;and


(7) Aninsiderwhoknowsthatheorshehasinsideinformationandwhoencouragesorcausesanyotherpersontodeal in thesecurities tradedonaregulatedmarkettowhichtheinsideinformationrelatesorwhicharelikelytobeaffectedbytheinsideinformationis,subjecttosubsection(8),liable,attheinstanceofNAMFISAbywayofproceedingsintheHighCourt,topaytoNAMFISA-

(a) ifthatotherpersondealtinsuchsecurities,theequivalentoftheprofitwhichthatpersonmadeorwouldhavemadeifthesecuritieshadbeensoldatanystageor theequivalentof thelossavoided,asaresultofsuchdealing;


(c) apenaltyforpunitivepurposesinasumdeterminedinthediscretionoftheHighCourt;


(e) thecommissionorconsiderationreceivedforsuchencouragement;and


(8) Iftheotherpersonreferredtoinsubsection(3),(5)or(7)isliableasaninsiderundersubsection(1), theinsiderreferredtoinsubsection(3),(5)or(7)isjointlyandseverallyliabletogetherwiththatotherpersontopaytheamountssetoutinsubsection(4)(a),(d),(e)and(f),(6)(a),(d),(e)and(f)or(7)(a),(d),(e)and(f),asthecasemaybe.

(9) Theprofitmadeortheprofitthatwouldhavebeenmadeifthelistedsecuritieshadbeensoldatanystageorthelossavoided,isdeterminedinthediscretionoftheHighCourt,whichmusthaveregardtofactorssuchastheconsiderationforthedealingreferredtoinsubsections(3),(5)and(7),thetimebetweentherelevantdealingandthepublicationoftheinsideinformationandanyotherrelevantfactors.

Disbursement of proceeds from civil claim

161. (1) For the purposes of this section,NAMFISAmust appoint apersontobetheclaimsofficer. (2) NAMFISA must deposit directly into a specially designated trustaccountanyamountrecoveredbyNAMFISAasaresultoftheproceedingscontemplatedinsection160orasaresultofanagreementofsettlementand-

(a) NAMFISA,asafirstchargeagainstthetrustaccount,isentitledto-

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(i) reimbursement of all expenses reasonably incurred by it inbringingsuchproceedingsandinadministeringthedistributionsmadetoclaimantsundersubsection(3);and

(ii) anyadditionalamountthatmaybeprescribed,

lessanyamountofcostsactuallyrecoveredfromtheotherpartypriortothefinalisationofthedistributionaccount;

(b) the balance, if any,must be distributed by the claims officer to theclaimantsreferredtoinsubsection(3)inaccordancewithsubsection(4);and

(c) anyamountnotpaidoutunderparagraph(b)accruestoNAMFISA.

(3) Thebalancereferredtoinsubsection(2)(b)mustbedistributedtoallclaimantswho-

(a) submitclaimstoNAMFISAwithin90daysfromthedateofpublicationbyNAMFISAofanoticeintwonewspaperscirculatingnationallyinNamibiainvitingpersonswhoareaffectedbythedealingsreferredtoinsection160(1),(3),(5)or(7)tosubmittheirclaims;and

(b) provetothereasonablesatisfactionoftheclaimsofficerthattheywereaffectedby thedealingsreferred to insection160(1), (3), (5)or (7),and -

(i) in the case where the inside information was made publicwithinfivetradingdaysfromthetimetheinsiderreferredtoinsection160(1)or(3)ortheotherpersonreferredtoinsection160(5)or(7)dealt,thattheydealtinthesamesecuritiesoraderivative, linked instrument or connected instrument to thesecurities,atthesametimeoranytimeaftertheinsiderorotherperson so dealt and before the inside informationwasmadepublic;or

(ii) ineveryothercase,theydealtinthesamesecuritiesatthesametimeoranytimethereafteronthesameday,astheinsiderorotherpersonreferredtoinsubparagraph(i).

(4) Subjecttosubsection(5),aclaimantisentitledtoreceiveanamount-

(a) equaltothedifferencebetweenthepriceatwhichtheclaimantdealtand the price, determinedby the court or a settlement, atwhich theclaimantwouldhavedealtiftheinsideinformationhadbeenpublishedatthetimeofdealing;or

(b) equal to thepro rataportionof thebalancereferredto insubsection(2)(b), calculated according to the relationship which the amountcontemplated in paragraph (a) bears to all amounts proved undersubsection(3)byallclaimants,

whicheveristhelesser,unlesstheclaimsofficerinhisorherdiscretiondeterminesthattheclaimantmustreceivealesserornoamount.

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(5) An amount awarded to any particular claimant in any proceedingsreferredtoinsection165mustbedeductedfromanyamountclaimedunderthissection. (6) The common law principles of vicarious liability apply to the civilliabilityestablishedbythissection.

Powers of NAMFISA in civil proceedings

162. (1) NAMFISAmaywithdraw,abandonorcompromiseanycivilproceedingsinstitutedundersection160,butanyagreementofcompromiseenteredintobyNAMFISAandanyotherpartyorpartiesmustbemadeanorderoftheHighCourtandtheamountofanypaymentpursuanttosuchcompromisemustbemadepublic. (2) In the situation where civil proceedings have not been institutedNAMFISAmay,inaccordancewiththerulesoftherelevantcourt,filewiththeregistrarof a competent court any agreement of compromise entered into byNAMFISAandanyotherpartyorparties,andthereuponsuchagreementhasalltheeffectsofaciviljudgment lawfullygiven in that court against theother partyor parties in favourofNAMFISA for a liquid debt in the amount specified in the agreement andmay beenforcedassuch,andthepartiestotheagreementandtheamountofanypaymentmadeintermsofsuchagreementmustbemadepublic.

Assessment of fines and penalties

163. (1) Intheassessmentofanyfineimposedpursuanttosection156,158,159or166,theHighCourt mustconsideranyawardpreviouslymadeundersection160whicharisesfromthesamecause. (2) Intheassessmentofanyawardundersection160,theHighCourtmustconsideranypenaltywhicharisesfromthesamecauseandwhichhaspreviouslybeenimposedundersection156,158,159or166.

Powers and duties of NAMFISA

164. (1) NAMFISA is responsible for the supervision of compliancewiththisPart. (2) InadditiontoitsotherpowersunderthisAct,NAMFISAmay-

(a) investigate or instruct that an investigation take place regarding anyallegedmarket abuse ormatter relating to an offence referred to insections156,158,159or166;

(b) instituteanyproceedingsreferredtointhisPart;

(c) administer the proof of claims and distribution of payments undersection161;

(d) makemarketabuserules-

(i) concerningtheadministrationofthisPartbyNAMFISA;

(ii) concerning the manner in which investigations under thisChapteraretobeconducted;

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(iii) concerningthenotificationofamountsreceivedundersection160and161,theprocedureforthelodgingandproofofclaims,the administration of trust accounts and the distribution ofpaymentsinrespectofclaims;

(iv) dealingwiththemannerinwhichinsideinformationshouldbedisclosedand,generally,withtheconductexpectedofpersonswithregardtosuchinformation;and

(v) generallydesignedtoensurethatNAMFISAisabletoperformitsfunctionsunderthisPart;and

(e) after consultation with the relevant regulated markets in Namibia,requiresuchmarketstoimplementsuchsystemsasarenecessaryfortheeffectivemonitoringandidentificationofpossiblecontraventionsofthisChapter.

(3) NAMFISAmustcausethepublicationintheGazetteofanoticeofanyproposedmarketabuseruleoramendmentofsucharule,callinguponall interestedpersonswho have any objections to the proposed rule or amendment to lodge theirobjectionswithNAMFISAwithinaperiodspecifiedinthenoticewhichmaynotbelessthan21daysfromthedateofpublicationofthenotice. (4) If there are no such objections or if NAMFISA has considered anyobjections that have been received, and has decided to introduce the proposed ruleoramendment in theformpublished in theGazetteundersubsection(3), theruleoramendmentcomesintooperationonadatedeterminedbyNAMFISAbyfurthernoticepublishedintheGazette. (5) If NAMFISA, after considering any objections received, decides toamendtheproposedruleoramendmentaspublishedintheGazetteundersubsection(3),theproposedruleoramendmentasamendedbyNAMFISAmustbepublishedbyNAMFISAbynoticeintheGazetteandcomesintooperationonthedatedeterminedbyNAMFISAandincludedinthatnotice. (6) Arulemadeundersubsection(2)isbindingonallregulatedpersonsandmembersofthepublic. (7) Theprovisionsofsections418to429applywiththechangesrequiredbythecontexttoaninvestigationreferredtoinsubsection(2)(a).

Protection of existing rights

165. NothinginthisPartprejudicestherightsofanypersonaggrievedbyanydealingoroffencecontemplatedinthisChapterunderanyotherlawtoclaimanyamount,savetotheextentthatanyportionofsuchamounthasbeenrecoveredbysuchpersonundersection160and161.

Confidentiality and sharing of information

166. (1) Subjecttosection149andtosubsections(2)and(4),apersonmaynotdisclosetoanyotherpersonanyinformationacquiredintheperformanceoffunctionsunderthisChapter.

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(2) Disclosure of the information referred to in subsection (1) does notconstituteacontraventionofthatsubsectionifmadeby-

(a) apersonforthepurposeofperformingfunctionsunderthisChapter;

(b) apersonforthepurposeofanylegalproceedingsunderthisPart;

(c) apersonwhoisrequiredtodosobyacourtorunderthisActoranyotherlaw;

(d) NAMFISA,ifitisnecessarytoachieveoneormoreoftheobjectsofthisChapterreferredtoinsection79;

(e) NAMFISA,ifitisinthepublicinterest;or

(f) NAMFISA, by publishing the status and outcome of investigationsunderthisPart.

(3) NAMFISAmay share information concerning anymatter dealtwithunder this Part with the Bank of Namibia, the Public Accountants’ and Auditors’Board constituted under the PublicAccountants’ andAuditors’Act, self-regulatoryorganisations,theMinistryresponsiblefortheadministrationoffinance,theMinisterand with all other persons, whether inside Namibia or elsewhere, responsible forregulating,investigatingorprosecutinginsidertrading,prohibitedtradingpracticesandothermarketabuses. (4) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$25000000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

PART 10GENERAL PROVISIONS

Exemption from Act No. 34 of 1934

167. TheTrustMoneysProtectionActdoesnotapplytothisChapter.

CHAPTER 4COLLECTIVE INVESTMENT SCHEMES

PART 1PRELIMINARY


168. InthisChapter,unlessthecontextindicatesotherwise-

“administration” means any function performed in connection with a collectiveinvestment schemeincluding-

(a) themanagementofacollectiveinvestmentscheme;

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(b) thereceipt,paymentorinvestmentofmoneyorotherassets,includingincomeaccruals;

(c) thesale,repurchase,issueorcancellationofaparticipatoryinterestandgivingfinancialadviceormakingdisclosureofinformationonanyofthosematterstoinvestorsorpotentialinvestors;and

(d) the buying and selling of assets or the handing over thereof to a trustee orcustodianforsafecustody;

“administrativeservice”hasthemeaninggiventoitinsection78;

“assets”means the investmentscomprisingorconstitutingaportfolioofacollectiveinvestment scheme and includes any income accruals derived or resulting from theinvestmentsintheportfoliowhichareheldonbehalfof,oraredueto,theinvestorsinthatportfolio;

“authorisedrepresentative” meansacompanyornaturalpersonthatisregisteredundersection 180 and authorised by amanager to solicit investments in a portfolio frommembersofthepublicortogivefinancialadviceormakedisclosureofinformationtoinvestorsorpotentialinvestorsconcerningthesale,repurchase,issueorcancellationofaparticipatoryinterest;

“collectiveinvestmentscheme”meansascheme,inwhateverform,includinganopen-ended investment company,pursuant towhichmembersof thepublic are invitedorpermittedtoinvestmoneyorotherassetsinaportfolio,andunderthetermsofwhich-

(a) twoormoreinvestorscontributemoneyorotherassetstoandholdaparticipatoryinterestinaportfoliooftheschemethroughshares,unitsoranyotherformofparticipatoryinterest;and

(b) theinvestorssharetheriskandthebenefitofinvestmentinproportiontotheirparticipatoryinterestinthatportfoliooronanyotherbasisdeterminedinthedeed,

and includes a collective investment scheme in securities, a collective investmentschemeinproperty,acollectiveinvestmentschemeinparticipationbonds,acollectiveinvestment scheme in unlisted securities, a collective investment scheme in moneymarketinstruments,adeclaredcollectiveinvestmentschemeandaforeigncollectiveinvestmentschemeasdefinedrespectivelyinParts4,5,6,7,8,9and10ofthisChapter;

“custodian”meansacustodianappointedundersection189;

“deed” means the agreement between a manager and a trustee or custodian or thedocumentofincorporationwherebyacollectiveinvestmentschemeisestablishedandunderthetermsofwhichitisadministered,andincludesthetrustdeedofamanagementcompany which immediately prior to the commencement of this Chapter was amanagementcompanypursuanttotheUnitTrustsControlAct,repealedbythisAct;

“designated representative” means a natural person employed by an authorisedrepresentativetosolicitinvestmentsinaportfoliofrommembersofthepublicortogivefinancialadviceormakedisclosureof informationto investorsorpotential investorsconcerningthesale,repurchase,issueorcancellationofaparticipatoryinterest;

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“exchange”meansanexchangeregisteredundersection85ordeemedtoberegisteredundersection86oraforeignexchangereferredtoinsection197;

“incomeaccruals” meansanydividendsorinterestoranyotherincomefordistributionreceived oraccruedby the trustee,custodianormanageronbehalfof investors inaportfoliointhecourseofanyincomedistributionperiodorcarriedforwardfromanypreviousincomedistributionperiodorduetosuchinvestorsinrespectofdividendsorinterestoranyotherincomedeclarationsmadebutnotyetdistributedoranypaymentin lieuofincomeaccruals,providedthatthedeedmaydeterminethataportfolioisanon-distributingfundandthatincomeaccrualsarenotdistributed;

“investmentmanager”meansaninvestmentmanagerregisteredundersection85;

“investor”means the holder of a participatory interest in a portfolio of a collectiveinvestmentschemeinNamibia;

“listedsecurities”hasthemeaninggiventoitinsection78;

“manager”meansapubliccompanywhichisregisteredundersection176tooperateacollectiveinvestmentscheme;

“membersofthepublic”include-

(a) membersofanysectionof thepublic,whetherselectedasclients,members,shareholders,employeesorex-employeesofthepersonissuinganinvitationtoacquireaparticipatoryinterestinaportfolio;and

(b) abankinginstitution,prudentialandfinancialmarkets institutionorfinancialinstitution,

but excludes persons confined to a restricted circle of individuals with a commoninterestwhoreceiveaninvitationreferredtoinparagraph(a)incircumstanceswhichcan properly be regarded as a domestic or private business venture between thosepersonsandthepersonissuingtheinvitation;

“moneymarketinstruments”hasthemeaninggiventoitinsection78;

“nomineecompany”meansacompanywhichhasbeenapprovedbyNAMFISAasanomineecompanypursuanttosection184;

“open-endedinvestmentcompany”meansacompanywithanauthorisedsharecapital,whichisstructuredinsuchamannerthatitprovidesfortheissueofdifferentclassesofsharestoinvestors,eachclassofsharerepresentingaseparateportfoliowithadistinctinvestmentpolicy;

“participatoryinterest”meansanyinterest,unit,undividedshareorshare-

(a) bywhatevernamecalled;and

(b) regardlessofwhetheritsvalueremainsconstantorvariesfromtimetotime,

whichmaybeacquiredbyaninvestorinaportfolio;

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“payment in lieu of income accruals”means, on the creationof newunits in a unitportfolio, the amountwhich themanagermust record in a notional income accrualaccount, in order to acquire for those new units equal participation in the incomeaccrualsandnotionalincomeaccrualsaccounts,includingsuchamountscarriedforwardfromanypreviousincomedistributionperiod,andtheamountperunitiscalculatedbydividingthetotalnumberofissuedunitsintheunitportfolioimmediatelypriortotheissueofthenewunits,intothetotalamountoftheincomeaccrualsandnotionalincomeaccrualsaccounts;

“portfolio”meansagroupofassetsincludinganyamountincashinwhich,pursuanttoacollectiveinvestmentscheme,membersofthepublicareinvitedorpermittedbyamanagertoacquireaparticipatoryinterestoraparticipatoryinterestofaspecificclasswhichasaresultofitsspecificcharacteristicsdiffersfromanotherclassofparticipatoryinterests;

“prudentialandfinancialmarketsinstitution”hasthemeaninggiventoitinsection78;

“sell”or“repurchase”includesanexchangeofaparticipatoryinterestinacollectiveinvestmentscheme;

“solicit”meansanyacttopromoteinvestmentbymembersofthepublicinacollectiveinvestmentscheme;

“trustee”meansatrusteeappointedundersection189;and

“UnitTrustsControlAct”means theUnitTrustsControlAct, 1981 (ActNo. 54 of1981).

Principles for operation of collective investment scheme

169. (1) A manager must operate a collective investment schemehonestly and fairly, with skill, care, prudence and diligence and in the interest ofinvestorsandthecollectiveinvestmentschemeindustry. (2) Theassetsofaninvestormustbeproperlyprotectedbyapplicationoftheprincipleofsegregationandidentification. (3) For purposes of subsection (2), the principle of segregation andidentificationrequiresthatassetsofaninvestormustbedistinctandidentifiabletothatspecificinvestorandmustbeseparateanddistinguishablefromthoseofthemanageroranyotherperson.

duties of manager

170. (1) Amanager must avoid conflict between the interests of themanagerandtheinterestsofaninvestor. (2) Amanagermustdisclosetoinvestorsanyinterestsofitsdirectorsormanagementthatcouldconflictwiththeinterestsofinvestors. (3) A manager must maintain adequate financial resources to meet itscommitments and to manage the risks to which the collective investment schememanagedbythemanagerisexposed.

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(4) Amanagermust-

(a) organiseandcontrolthecollectiveinvestmentschemeinaresponsiblemanner;

(b) keepproperrecords;

(c) employ adequately trained staff and ensure that they are properlysupervised;

(d) havewell-definedcomplianceprocedures;

(e) maintain an open and cooperative relationship with NAMFISA andmustpromptlyinformNAMFISAaboutanythingthatmightreasonablybeexpectedtobedisclosed;and

(f) promote investor education, either directly or indirectly, throughinitiativesundertakenbyindustryassociationsorothers.

Appointment of investment manager

171. A manager may appoint an investment manager to assist in theinvestmentoftheassetsofacollectiveinvestmentschemeorofoneormoreportfoliosofthecollectivescheme.

disclosure of information

172. (1) Beforeenteringintoatransactionwithaninvestor,amanager,anauthorisedrepresentativeordesignatedrepresentativemust-

(a) disclosetotheinvestorinformationabouttheinvestmentobjectivesofthecollectiveinvestmentscheme,thecalculationofthenetassetvalueand dealing prices, charges, risk factors and distribution of incomeaccruals;and

(b) give to the investor ina timely fashionandcomprehensiblemanner,informationthatisnecessarytoenabletheinvestortomakeaninformeddecision, including any information specified for this purpose in thestandards.

(2) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Limitations

173. (1) With theexceptionofamanageroranoperatorofa foreigncollectiveinvestmentschemeapprovedundersection219,aperson,otherthanapubliccompanywhich has been registered or is deemed to be registered as amanager byNAMFISAunderthisChapterandinaccordancewiththerequirementsofPart2,maynotoperateacollectiveinvestmentscheme. (2) Apersonotherthan-

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(a) aregisteredmanager;

(b) aregisteredinvestmentmanager;

(c) aregisteredlinkedinvestmentserviceprovider;

(d) aregisteredauthorisedrepresentative;

(e) aregistereddesignatedrepresentative;

(f) aregisteredtrusteeorcustodian;or

(g) apersonperformingonlyadministrativeservicesforapersonreferredtoinparagraphs(a)to(f),

maynotcarryonanyaspectofthebusinessofadministeringacollectiveinvestmentschemeorperformanyactorenterintoanyagreementortransactionforthatpurpose. (3) Only apublic companywhichhas capital and reserves available foremploymentinitscollectiveinvestmentscheme,asdeterminedinaccordancewiththestandards,maybeormayremainregisteredasamanager. (4) A registered investment manager or registered linked investmentserviceprovidermayonlyoperateacollectiveinvestmentschemedescribedinParts4to9ofthisChapter. (5) Amanager must carry on the business of the collective investmentschemeinaccordancewiththisAct. (6) Only a registered manager, registered authorised representative,registered designated representative, registered investment manager, registeredlinkedinvestmentserviceprovideroramanageroranoperatorofaforeigncollectiveinvestmentschemeapprovedundersection219maysolicitinvestmentsinaportfoliofrommembersofthepublicorgivefinancialadviceormakedisclosureofinformationtoinvestorsorpotentialinvestorsconcerningthesale,repurchase,issueorcancellationofaparticipatoryinterest. (7) Apersonwhocontravenesorfailstocomplywithsubsection(1),(2),(4)or(6)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5 000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

PART 2REGISTRATION

Application for registration as manager

174. (1) Only a public companymay, in accordancewith subsection(2),makeanapplicationtoNAMFISAforregistrationasthemanagerofacollectiveinvestmentscheme. (2) Anapplicationforregistrationpursuanttosubsection(1)mustbe-


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175. Before approving an application and registering the applicant as amanagerofacollectiveinvestmentscheme,NAMFISAmustbesatisfiedonreasonablegroundsthat-

(a) inrelationtotheapplicantpubliccompany-

(i) every shareholder or other owner that controls the applicantandeverydirector,theprincipalofficerandotherofficersoftheapplicant,andwhereapplicable,membersoftheboard,arefitandproperwithinthemeaningofthestandards;

(ii) thememorandum,articlesorotherfoundingdocumentsoftheapplicantarenotinconsistentwiththeprovisionsofthisAct;

(iii) thedirectorindirectcontrolofthecompanyisnotlikelytobecontrarytotheinterestofconsumersofthefinancialservicesconcerned;



(i) thisAct;or



(i) provide the financial services concerned with professionalintegrity,prudence,properskillandduediligence;



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Registration

176. (1) IfNAMFISAissatisfiedthattheapplicantcomplieswiththerequirementsofsection175,NAMFISAmustregistertheapplicantasamanagerofacollectiveinvestmentscheme,subjecttoanyconditionswhichNAMFISAmayconsiderappropriatepursuanttosubsection(4)andmustissueacertificateofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicantandanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Amanagermustcomplywith theconditionssubject towhich itwasregistered.

Existing management companies

177. (1) Apersonthatwasregisteredundersection4(1)(3)or30(3)oftheUnitTrustsControlActonthedateofcommencementofthisChapteris,subjectto subsection (2), deemed tobe registeredas amanagement companyunder section176(1). (2) Despite subsection (1), a person referred to in that subsectionmust,within12monthsafterthedateofcommencementofthisChapter,makeanapplicationtoNAMFISApursuanttosection174forregistrationasamanager.

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(3) Ifapersonreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),thedeemedregistrationofthatpersoniscancelled.


178. (1) AmanagermayatanytimeapplytoNAMFISAforcancellationof a registrationgrantedpursuant to section176or for a variation to the conditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-






(b) either-


(iii) thenatureoftheproposedvariation;and


(4) Section 176 applieswith the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1). (5) If, after consideration of any objection received as a result of the noticereferredtoinsubsection(3),NAMFISAisof theopinionthat it isreasonabletodosoandnotagainstthepublicinterest,NAMFISAmay,bynoticetothemanagerconcerned-




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179. (1) NAMFISAmaytakeanyof theactionssetout insubsection(3),ifNAMFISA,actingreasonably,findsthatamanager-










(j) anydirector,theprincipalofficerorotherofficerormemberofaboardnolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) Inadditiontothereasonssetoutinsubsection(1),NAMFISAmaytakeanyoftheactionssetoutinsubsection(3)if,intheopinionofNAMFISA,suchactioniswarrantedbecause-

(a) thatpersonhasfailedtogiveeffecttoadecisionoftheAppealBoard,andsuchfailurehasdefeatedtheobjectsofthisChapterorislikelytodefeatthem;or

(b) afteraninspectionorinvestigationofthemanager’saffairsunderthisAct,NAMFISAissatisfiedonreasonablegroundsthatthemannerinwhichitisoperatingis-

(i) notinthebestinterestsofthecollectiveinvestmentschemeorinvestorsinthatscheme;or

(ii) defeatingtheobjectsofthisChapter. (3) IfNAMFISA is satisfied that any of the circumstances described insubsection (1) or (2) exist, NAMFISAmay take any of the following actions withrespecttothemanager-


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(c) take any other steps that NAMFISA may considers necessary oradvisable.

(4) NAMFISA must give notice to the manager of the intention ofNAMFISAtotakeanyactionreferredtoinsubsection(3), togetherwiththereasonstherefor,andmustgivethemanagerareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichthemanagermaymakerepresentationstoNAMFISAonthematter. (5) SubjecttosuchconditionsasNAMFISAmayimpose,NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofamanagerwithoutgivingnoticeandanopportunitytobeheardpursuanttosubsection(4),ifNAMFISAissatisfiedonreasonablegroundsthatitisurgentlynecessarytodosoinordertopreventormitigate damage to the interests of financial institutions, financial intermediaries,theirclientsorthefinancialsystemofNamibia,butNAMFISAmust-

(a) givethemanagerthenoticeandanopportunitytobeheardandmakerepresentationsassoonasreasonablypossible;and


(6) Onthecancellationoftheregistrationofamanagerunderthissection177(3),178(5)(a)orsubsection(3)(a),themanagermustbewound-upinaccordancewith the requirementsofChapter10, andNAMFISAmust take such steps andmayimposesuchconditionsasarenecessaryinthecircumstances,whichstepsmayincludethe transfer of the business of the manager to another registered manager, but nodistributionof theassetsof themanagermaybemadewithout thepriorapprovalofNAMFISA. (7) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranyotherstepstakenunderthissection and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (8) Apersonwho-

(a) continuestooperate,orengagein,thebusinessofamanagerafterthecancellation of registration under section 177(3), section 178(5)(a),subsection(3)(a)oranyotherprovisionofthisActoraftersuspensionofregistrationundersubsection(5);or



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Registration as authorised representative of manager and renewal of registration

180. (1) A manager registered under this Chapter may authorise acompanyoranindividualtoactasanauthorisedrepresentativeofthatmanager,andmay apply to NAMFISA for the registration of such company or individual as anauthorisedrepresentativebysubmittingacopyofthelistmaintainedbythemanagerofthosecompaniesorindividuals,togetherwithanyrequiredregistrationfeeforeachsuchcompanyorindividual. (2) Amanagermusthaveinplaceacodeofconductandapplicablesystemsrelevanttoitsauthorisedrepresentativeswhoareindividualsinordertobereasonablysatisfiedwithrespecttoeachsuchauthorisedrepresentativethat-


(b) theindividualhasmettherequirementsforauthorisedrepresentativesthatmaybeincludedinthestandardsfromtimetotime;





(g) there are reasonable grounds for believing that the individual willcarry on with integrity and honesty the activities of an authorisedrepresentative;

(h) the individual has met, and there is no reason to believe that theindividual will not be able to meet, any other requirements of thisChapter, and any instructions and guidelines issued by NAMFISAunder thisChapteror issuedbythemanagerconcernedthatapplytoauthorisedrepresentatives;



(k) anyrequiredfeehasbeenpaid. (3) If the list submitted to NAMFISA pursuant to subsection (1) is inrespectofanauthorisedrepresentativethatisacompany,themanagermustensurethattheauthorisedrepresentativehasacodeofconductandapplicablesystemsinplacewithrespecttothedesignatedrepresentativesofthatauthorisedrepresentative.

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(4) AmanagermustprovideNAMFISAwithsuchotherinformationandmaterialregardingitsauthorisedrepresentativesasmaybespecifiedinthestandards. (5) NAMFISAmustregistereachpersonwhosenameappearsonthelistofauthorisedrepresentativesmaintainedbythemanager. (6) AmanagerthathassubmittedalisttoNAMFISApursuanttosubsection(1),mustsubmittoNAMFISAanupdateofthatlistwhentherehasbeenanadditionordeletion, together, in thecaseof additionalpersons tobe registeredasauthorisedrepresentatives,withtherequiredfeeforeachadditionalpersonandtheinformationandmaterialreferredtoinsubsection(4),anduponreceiptbyNAMFISAofanupdatedlistcontainingthenamesofadditionalpersons,theprovisionsofsubsection(5)doapply. (7) Ifamanagerremovesacompanyoranindividualfromthelistreferredto insubsection(1), itmust,at thesame timeassubmitting theupdateof the listasrequiredbysubsection(6),provideNAMFISAwithastatementindicatingthereasonthatthecompanyorindividualhasbeenremovedfromthelist. (8) Amanagermaynotremoveacompanyoranindividualfromthelistasdescribedtoinsubsection(7)unlessthemanagerhasgiventhecompanyorindividualconcerned the reasons for the proposed removal and a reasonable opportunity to beheard. (9) The term of registration as an authorised representative under thissection expires onMarch 31 of each year or on such other date asNAMFISAmayspecify,butiftheappropriaterenewalfeeasdeterminedbyNAMFISAinrespectofeachauthorisedrepresentativeispaidtoNAMFISAinthemannersetoutinthestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate. (10) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose. (11) If-



NAMFISA may not renew the registration of the authorised representative andmust removeordirect the registeredmanager to remove thenameof theauthorisedrepresentativewhoserenewalfeewasnotpaidorinrespecttowhomtherequirementsofthestandardshavenotbeencompliedwithfromthelistkeptbyNAMFISAorsubmittedtoNAMFISA,asthecasemaybe. (12) Apersonwhocontinues tooperate, or to engage in, thebusinessofan authorised representative after the non-renewal of registration under subsection(11),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Remedial action

181. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2)ifNAMFISA,actingreasonably,findsthatanyofthefollowingcircumstancesexistwithrespecttoregisteredauthorisedrepresentative-


(b) thecopyofthelistsubmittedundersection180ortheaccompanyinginformationandmaterialcontainedinformationconcerningthepersonthat was not materially accurate or omitted information that wasmateriallyrelevant;

(c) the person no longer meets the requirements for an authorisedrepresentative;

(d) the person has suspended the activities for which he, she or it wasregisteredforaperiodofatleast12months;

(e) thepersonisnotincompliancewitharequirementofthisAct;or

(f) thepersonhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytake,ordirectthemanagertotake,remedialaction,including,withoutlimitation-

(a) directingthemanagertoprovidefurtherinformationwithrespecttotheperson;

(b) directingthemanagertoprovidefurthertrainingfortheperson;

(c) directingthemanagertotakedisciplinaryactionagainsttheperson;

(d) directing themanager tomake changes to the code of conduct andsystemsreferredtoinsection180(2)or(3);

(e) requiringanundertakingfromthepersonpursuanttosection436;

(f) requiringanundertakingfromthemanagerpursuanttosection436;

(g) directing the person to undertake specific actions or refrain fromspecificactionspursuanttosection439(4)(c);

(h) directing the manager to undertake specific actions or refrain fromspecificactionspursuanttosection439(4)(c);or

(i) imposing on the manager any penalty that may be specified in thestandards, if themanagerhasbeennegligent insatisfying itselfwithrespecttotheprovisionsofsection180(2)or(3).

(3) If,onreceiptofevidencethattherequiredactionhasbeentakenpursuantto subsection (2)NAMFISA, acting reasonably, finds that any of the circumstances

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referredto insubsection(1)continuetoexist,NAMFISAmaydirect themanager toremovethenameofthepersonfromthelistreferredtoinsection180(1)or(6). (4) Before directing that the name of a person be removed from a listpursuant to subsection (3), NAMFISA must give both parties the reasons for theproposedremovalandareasonableopportunitytobeheard. (5) If a manager fails to remove the name of a person from the listwhen required to do so byNAMFISA,NAMFISAmay, after giving the authorisedrepresentative a reasonable opportunity to be heard, itself remove the name of thepersonfromthelist. (6) If the nameof a person is removed from a list by amanager or byNAMFISA,theregistrationofthatpersonasanauthorisedrepresentativeiscancelled,andthatpersonmaynotactasanauthorisedrepresentativeorbeincludedonanylista copy ofwhich is submitted under section 180 for such period asNAMFISAmaydetermine. (7) Apersonwhocontinues tooperate, or to engage in, thebusinessofan authorised representative after the cancellation of registration under subsection(6),commitsanoffenceandis liableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Registration as designated representative of authorised representative and renewal of registration

182. (1) Anauthorisedrepresentativethatisacompanymustsubmittothemanagerofwhichitisanauthorisedrepresentativeacopyofthelistmaintainedbythatauthorisedrepresentativeofitsemployeeswhoareitsdesignatedrepresentatives. (2) Anauthorisedrepresentative that isacompanymusthave inplaceacodeofconductandapplicablesystemsrelevanttodesignatedrepresentativesinordertobereasonablysatisfiedwithrespecttoeachofitsdesignatedrepresentativesthat-


(b) theindividualhasmettherequirementsfordesignatedrepresentativesthatmaybeincludedinthestandardsortherequirementsofthemanagerfromtimetotime;





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(g) there are reasonable grounds for believing that the individual willcarry on with integrity and honesty the activities of a designatedrepresentative;

(h) the individual has met, and there is no reason to believe that theindividualwillnotbeabletomeet,anyotherrequirementsofthisActandanyinstructionsandguidelinesissuedbyNAMFISAunderthisActorissuedbythemanagerthatapplytodesignatedrepresentatives;



(k) anyrequiredfeehasbeenpaid. (3) Anauthorisedrepresentativethatisacompanymustprovidethemanagerwithsuchotherinformationandmaterialregardingitsdesignatedrepresentativesasthemanagermayrequire. (4) ThemanagermustforwardthecopyofthelisttoNAMFISAtogetherwithanyrequiredfeeandNAMFISAmustregistereachpersonwhosenameappearsonthelistasadesignatedrepresentative. (5) Anauthorisedrepresentativethatisacompanyandthathassubmittedalisttothemanagerpursuanttosubsection(1)mustsubmittothemanageranupdateofthatlistwhentherehasbeenanadditionordeletion,together,inthecaseofadditionaldesignated representatives, with the required fee for each additional designatedrepresentativeandtheinformationandmaterialreferredtoinsubsection(3). (6) An authorised representative that is a companymay not remove anindividualfromthelistreferredtoinsubsection(1)unlesstheauthorisedrepresentativehasgiventheindividualconcernedthereasonsfortheproposedremovalandareasonableopportunitytobeheard. (7) Ifanauthorisedrepresentativethatisacompanyremovesanindividualfromthelist,itmust,atthesametimeassubmittingtheupdateofthelistasrequiredbysubsection(5),providethemanagerwithastatementindicatingthereasonthattheindividualhasbeenremovedfromthelist. (8) The manager must forward any updated list received pursuant tosubsection(5)toNAMFISA,togetherwithanystatementreferredtoinsubsection(7),andinthecaseofanyaddition,theprovisionsofsubsection(4)doapply. (9) The term of registration as a designated representative under thissection expires onMarch 31 of each year or on such other date asNAMFISAmayspecify,butiftheappropriaterenewalfeeasdeterminedbyNAMFISAinrespectofeachdesignatedrepresentativeispaidtoNAMFISAinthemannersetoutinthestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate.

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(10) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose. (11) If-



NAMFISAmaynotrenewtheregistrationof thedesignatedrepresentativeandmustremoveordirectthemanagertoremovethenameofthedesignatedrepresentativewhoserenewalfeewasnotpaidorinrespecttowhomtherequirementsofthestandardshavenotbeencompliedwithfromthelistkeptbyNAMFISAorsubmittedtoNAMFISA,asthecasemaybe. (12) A personwho continues to operate, or engage in, the business of adesignatedrepresentativeafter thenon-renewalofregistrationundersubsection(11),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Remedial action

183. (1) Amanagermaytakeanyoftheactionssetoutinsubsection(2)ifthemanager,actingreasonably,findsthatanyofthefollowingcircumstancesexistwithrespecttoadesignatedrepresentative-


(b) thecopyofthelistsubmittedundersection182ortheaccompanyinginformation and material contained information concerning theindividualthatwasnotmateriallyaccurateoromittedinformationthatwasmateriallyrelevant;

(c) the individual no longer meets the requirements for a designatedrepresentative;

(d) the individual has suspended activities forwhich the individualwasregisteredforaperiodofatleast12months;

(e) theindividualisnotincompliancewitharequirementofthisAct;or

(f) theindividualhasengagedinconductofakindthathasbeenidentifiedinthestandardsasmisconduct.

(2) If themanagerissatisfiedthatanyofthecircumstancesdescribedinsubsection(1)exist,themanagermaytakeordirecttheauthorisedrepresentativethatisacompanytotakeremedialaction,including,withoutlimitation-

(a) directing the authorised representative that is a company to providefurtherinformationwithrespecttothedesignatedrepresentative;

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(b) directing the authorised representative that is a company to providefurthertrainingforthedesignatedrepresentative;

(c) directing the authorised representative that is a company to takedisciplinaryactionagainstthedesignatedrepresentative;

(d) directingtheauthorisedrepresentativetomakechangestothecodeofconductandsystemsreferredtoinsection182(2);

(e) requiringanundertakingfromtheauthorisedrepresentativeorfromthedesignatedrepresentativeorfromboth;

(f) directingtheauthorisedrepresentativeorthedesignatedrepresentativeorbothtotakespecificactionsorrefrainfromspecificactions;or

(g) referthemattertoNAMFISA. (3) Ifonreceiptofevidencethattherequiredactionhasbeentakenpursuanttosubsection(2),themanager,actingreasonably,findsthatanyofthecircumstancesreferredtoinsubsection(1)continuetoexist,themanagermaydirecttheauthorisedrepresentativetoremovethenameofthedesignatedrepresentativefromthelistreferredtoinsection182(1)or(5). (4) Before directing that the name of a person be removed from a listpursuant to subsection (3), themanagermust give the authorised representative andthedesignated representative the reasons for theproposed removalanda reasonableopportunitytobeheard. (5) Ifanauthorisedrepresentativefailstoremovethenameofadesignatedrepresentativefromthelistwhenrequiredtodosobythemanager,themanagermay,aftergivingthedesignatedrepresentativeareasonableopportunitytobeheard, itselfremovethenameofthepersonfromthelist. (6) ThemanagermustinformNAMFISAforthwithofanydirectiontoanauthorisedrepresentativetoremovethenameofadesignatedrepresentativefromthelistpursuanttosubsection(3)oroftheremovalofthenameofadesignatedrepresentativefromthelistbythemanagerpursuanttosubsection(5)andinthatcase,orinthecasethatthemanagerrefersamattertoNAMFISApursuanttosubsection(2)(g),theprovisionsofsection181doapplywithanychangesmaderequiredbythecontext. (7) Ifthenameofapersonisremovedfromalistbyamanagerorbytheauthorisedrepresentative,theregistrationofthatpersonasadesignatedrepresentativeiscancelled,andthatpersonmaynotactasadesignatedrepresentativeorbeincludedonanylistacopyofwhichissubmittedundersection182forsuchperiodasNAMFISAmaydetermine. (8) A personwho continues to operate, or engage in, the business of adesignated representative after the cancellation of registration under subsection (7),commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Approval of nominee company

184. (1) NAMFISAmay,onapplicationmadetoit,approveacompanyasanomineecompanyifthatcompany-

(a) hasasitsprincipalobjecttoactasnomineefororrepresentativeofanypersonintheholdingofanypropertyintrustforsuchperson;

(b) isprecludedbyitsmemorandum,articlesorrulesfromincurringanyliabilitiesexceptfor thosepersonsonwhosebehalf itholdspropertytotheextentoftheirrespectiverightstoandinterestsinsuchproperty;and

(c) has entered into an irrevocable agreement with amanager pursuanttowhichsuchmanagerhasundertakentopayalltheexpensesofandincidentaltoitsformation,operations,managementandliquidation,andhasappointeddirectorsresponsibleforthemanagementandcontrolofthenomineecompanyofwhommorethan50percentareindependent,withinthemeaningofthestandards,from-

(i) themanager;

(ii) anyholdingcompanyofthemanager;

(iii) anysubsidiaryofsuchholdingcompany;and

(iv) anyotheraffiliateofthemanager. (2) Anapplicationforapprovalpursuanttosubsection(1)mustbemadeinthemannerandformrequiredbythestandards. (3) NAMFISAmaysetoutadditionalrequirementsforanapplicationforapprovalasanomineecompanyandthegrantingofsuchapprovalbyNAMFISAinthestandards. (4) Apersonthatwasapprovedasanomineecompanypursuanttosection37(2)(a)oftheUnitTrustsControlActonthedateofcommencementofthisChapteris,subjecttosubsection(5),deemedtobeapprovedasanomineecompanyunderthissection. (5) Despite subsection (4), a person referred to in that subsectionmust,within12monthsafterthedateofcommencementofthisChapter,makeanapplicationtoNAMFISApursuanttothissectionforapprovalasanomineecompany. (6) Ifaperson referred to in subsection (4) fails tomakeanapplicationtoNAMFISAforapprovalwithintheperiodreferredtoinsubsection(5),thedeemedapprovalofthatpersoniscancelled. (7) A personwho continues to operate, or engage in, the business of anomineecompanyafterthecancellationofregistrationundersubsection(6),commitsan offence and is liable on conviction to a fine not exceeding N$5 000 000 or toimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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185. (1) Everymanagerof a collective investment schemeandeveryauthorisedrepresentativethatisacompanymust-




(ii) residentinNamibia.

(2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b), the registeredmanageror authorised representative referred to in subsection (1)must,within the period set out in the standards, inwritingNAMFISAnotify of theappointment. (4) NAMFISAmay, on the grounds that a principal officer is not a fitandproperpersonwithinthemeaningofthestandards,andaftergivingtheregisteredmanager or authorised representative referred to in subsection (1) and the principalofficerareasonableopportunitytobeheard,directtheregisteredmanagerorauthorisedrepresentativetoappointsomeotherpersontobetheprincipalofficerofthatregisteredmanagerorauthorisedrepresentative. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficer is terminatedbya registeredmanagerorauthorisedrepresentativereferred toinsubsection(1)orbytheexpiryofacontractofemployment,theregisteredmanagerorauthorisedrepresentativemust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredmanagerorauthorisedrepresentative,thereasonsfortheresignation. (6) Theprincipalofficerreferredtoinsubsection(1)(b)mustbeamemberoftheboardofthemanagerofacollectiveinvestmentscheme. (7) Theprincipalofficerofthemanagerofacollectiveinvestmentschemeisauthorised toactonbehalfof themanagerof thecollective investmentschemetoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswiththatmanagerofacollectiveinvestmentscheme,thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (8) Processinanylegalproceedingsmaybeservedonthemanagerofacollectiveinvestmentschemebyservingacopythereofatitsprincipaloffice.

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(9) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.


186. (1) A manager must, in accordance with section 401, appointandatalltimeshaveanauditororfirmofauditorstobetheauditorforthecollectiveinvestmentschemeoperatedbythemanager. (2) Themanagermay not appoint as auditor of a collective investmentscheme-


(b) afirmofauditorsanymemberofwhichis,

a director, an officer or employee or shareholder of themanager or of a trustee orcustodianofthecollectiveinvestmentscheme. (3) NAMFISAmaydirectthemanagerofacollectiveinvestmentschemetochangetheauditorofthecollectiveinvestmentschemeifNAMFISAissatisfiedthattheauditororanymemberof thefirmofauditorsappointedasauditor isadirector,officer, employee or shareholder of themanager or of a trustee or custodian of thecollectiveinvestmentscheme. (4) Anauditorappointedundersubsection(1)-





Limitation on investments

187. (1) NAMFISAmayprovideinthestandardsthemannerinwhichandthelimitsandconditionssubjecttowhichinvestmentsmaybeincludedinaportfolioofacollectiveinvestmentscheme. (2) NAMFISA may provide in the standards different manners, limitsandconditionsfordifferenttypesorclassesofinvestmentsordifferentportfoliosofacollectiveinvestmentscheme. (3) Withoutlimitingthegeneralityofsubsections(1)and(2),NAMFISAmayprovideinthestandardsfor-

(a) theminimumsizeofportfolios;

(b) themandatorypurchaseofunitsbymanagers;and

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(c) restrictionsandconditionsontheuseofleverageandderivativesinorinconnectionwithaportfolio.

Rules

188. NAMFISA may make rules in the standards for the operation andadministrationofcollectiveinvestmentschemesunderoneormoreofParts4to9ofthisChapter,andforthesolicitationofinvestmentsinaforeigncollectiveinvestmentschemeunderPart10ofthisChapter.

PART 3TRUSTEE OR CUSTODIAN

Appointment and termination of trustee or custodian

189. (1) Amanagermustappointeitheratrusteeoracustodianforitscollectiveinvestmentschemedependingonthestructureofthecollectiveinvestmentscheme. (2) Apersonmaynotbecomeoractasatrusteeorcustodianunlessthatpersonisregisteredundersection190ordeemedtoberegisteredundersection191. (3) Whentheappointmentofatrusteeorcustodianisterminated,otherwisethanpursuanttosection190(5),thattrusteeorcustodianmustassoonaspossiblesubmitareporttoNAMFISAstating-

(a) whether any irregularity or undesirable practice is being considered,hastakenplaceoris takingplaceintheconductoftheaffairsofthecollective investment schemewhichhas causedor is likely to causefinancial loss to investors in a portfolio of the collective investmentscheme;

(b) particularsofanysuchirregularityorundesirablepractice;and

(c) thereason,ifknown,fortheterminationoftheappointment. (4) Atrusteeorcustodianintendingtoresignfromanappointmentmadeunder this section,must give themanager andNAMFISAnot less than sixmonths’noticeofsuch intention,andduring thesaidperiodofsixmonths themanagermusttakestepstoappointastrusteeorcustodiansomeotherpersoncompetenttoactassuchpursuanttosection190. (5) Ifamanagerfailstotakethestepsreferredtoinsubsection(4)withinthe saidperiodof sixmonths,NAMFISAmay, after consultationwith themanager,directthemanagertoappointacompetentpersonastrusteeorcustodian. (6) Whenitisimpracticableforatrusteeorcustodiantoperformanyorallitsdutiesundersection192,thetrusteeorcustodianmayappointarepresentativewhoisindependent,withinthemeaningofthestandards,fromthemanagerandanyofitsauthorisedrepresentatives,toperformsuchduties. (7) A trustee or custodian of a collective investment scheme who hasappointedarepresentativeundersubsection(6),isnotdivestedofthefunctionsreferredtointhisPart.

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Registration

190. (1) Apersonmaynotbecomeoractasatrusteeorasacustodianunlessthatpersonis-

(a) apubliccompany;

(b) any other entity or institution, which is not a close corporation,establishedbyorincorporatedunderanylegislationinNamibia;

(c) abankinginstitution;

(d) aforeignentityorabranchofaforeignentitywhichisentitledtocarryonthebusinessofabankinginstitution;or

(e) aninsurerregisteredforlongterminsuranceundersection11. (2) NAMFISA,onapplicationmadetoit,mayregisteranentityreferredtoinsubsection(1)asatrusteeorcustodianaslongasthatentitycomplieswiththerequirementsofthestandards,includingbutnotlimitedto-

(a) capitalandreservesrequirements;

(b) requirementsrelatingtothegeneralfinancialandcommercialstandingoftheentity;and

(c) the experience, independence and operational ability of each personwhomanagestheentitythatmakesthatpersonfitandproperwithinthemeaningofthestandards.

(3) Anapplicationforregistrationpursuanttosubsection(2)mustbemadeinthemannerandformrequiredbythestandards. (4) NAMFISA may not register an entity referred to in subsection (1)pursuanttosubsection(2),iftheentityisanaffiliateofthemanager. (5) NAMFISAmay cancel or, subject to such conditions asNAMFISAmayimpose,suspendtheregistrationofatrusteeorcustodianifatanytimeNAMFISAissatisfiedthatthetrusteeorcustodiannolongermeetstherequirementscontainedinsubsection(1),(2)or(4). (6) NAMFISAmust,beforecancellingorsuspendingaregistrationpursuanttosubsection(5),notifythetrusteeorcustodianandthemanagerofthegroundsuponwhich such action is contemplated, andmust give it a reasonable opportunity to beheardandtoshowcausewhytheproposedactionshouldnotbetaken. (7) NAMFISAmay,subjecttosuchconditionsasNAMFISAmayimpose,suspenda registrationpursuant to subsection (5)withoutcomplyingwith subsection(6),ifNAMFISAissatisfiedthatitisnecessarytoactexpeditiouslyinordertoprotecttheinterestsofclientsofthemanagerortheinterestsoftheNamibianfinancialsystem,

187

butmustgivenoticetothetrusteeorcustodianandthemanagerassoonaspracticablethereafterandconsideranyrepresentationsmadebythemonthematter. (8) ThetrusteeorcustodianhastherighttopresentitscasetoNAMFISAandindoingsotoberepresentedbyanyotherperson. (9) Apersonwho-

(a) continuestooperate,orengagein,thebusinessoftrusteeorcustodianafterthecancellationofregistrationundersubsection(5)oranyotherprovisionofthisActoraftersuspensionofregistrationundersubsection(5)or(7);or

(b) fails to comply with a condition imposed by NAMFISA undersubsection(5)or(7),


Existing trustees

191. (1) Apersonthatwasregisteredundersection20(2)(b)oftheUnitTrustsControlActonthedateofcommencementofthisChapteris,subjecttosubsection(2),deemedtoberegisteredasatrusteeorcustodianundersection190(2). (2) Despite subsection (1), a person referred to in that subsectionmust,within12monthsafterthedateofcommencementofthisChapter,makeanapplicationtoNAMFISApursuanttosection190forregistrationasatrusteeorcustodian. (3) Ifapersonreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),thedeemedregistrationofthatpersoniscancelled. (4) Apersonwhocontinuestooperate,orengagein,thebusinessoftrusteeorcustodianafterthecancellationofregistrationundersubsection(3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

duties of trustee or custodian

192. (1) Atrusteeorcustodianmust-

(a) ensurethatthebasisonwhichthesale,issue,repurchaseorcancellation,asthecasemaybe,ofparticipatoryinterestseffectedbyoronbehalfofacollectiveinvestmentschemeiscarriedoutinaccordancewiththisActandthedeed;

(b) ensurethatthesellingorrepurchasepriceofparticipatoryinterestsiscalculatedinaccordancewiththisActandthedeed;

(c) carryouttheinstructionsofthemanagerunlesstheyareinconsistentwiththisActorthedeed;

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(d) verifythatintransactionsinvolvingtheassetsofacollectiveinvestmentscheme any consideration is remitted to the collective investmentschemewithintimelimitswhichareacceptablemarketpracticeinthecontextofaparticulartransaction;

(e) verifythattheincomeaccrualsofaportfolioareappliedinaccordancewiththisActandthedeed;

(f) enquire into and prepare a report on the operation of the collectiveinvestment scheme by the manager during each annual accountingperiod, inwhich itmust be statedwhether the collective investmentschemehasbeenoperatedinaccordancewith-

(i) the limitations imposed on the investment and borrowingpowersofthemanagerbythisChapter;and

(ii) theprovisionsofthisActandthedeed;

(g) if themanager does not complywith the limitations and provisionsreferredtoinparagraph(f),statethereasonforthenon-complianceandoutlinethestepstakenbythemanagertorectifythesituation;

(h) send the report referred to inparagraph (f) toNAMFISAand to themanageringoodtimetoenablethemanagertoincludeacopyofthereportinitsannualreport;and

(i) ensurethat-

(i) thereisalegalseparationofassetsheldundercustodyandthatthelegalentitlementofinvestorstosuchassetsisassured;and

(ii) appropriate internal control systems aremaintained and thatrecordsclearlyidentifythenatureandvalueofallassetsundercustody, the ownership of each asset and the place wheredocumentsoftitlepertainingtoeachassetarekept.

(2) A trustee or custodian must report to the manager any irregularityorundesirablepracticeconcerning thecollective investment scheme,whetherornotsuchpracticehasbeendeclared as irregularor undesirableunder thisAct, ofwhichitisawareandifstepstorectifytheirregularityorpracticeinquestionarenottakentothesatisfactionofthetrusteeorcustodian,itmustassoonaspossiblereportsuchirregularityorundesirablepracticetoNAMFISA. (3) The trustee or custodian must satisfy itself that every financialstatement,balancesheetorotherreturnpreparedbythemanagerpursuanttothisActfairly represents the assets and liabilities, aswell as the income and distribution ofincome,ofeveryportfolioofthecollectiveinvestmentschemeoperatedbythemanager. (4) At the requestof the trusteeorcustodian,everydirector,officerandemployeeofthemanagermustsubmittothetrusteeorcustodiananybookordocumentorotherinformationrelatingtotheoperationbythemanagerofitscollectiveinvestmentschemewhichisinthepossessionoratthedisposalofthatperson,andwhichthetrusteeorcustodianmayconsidernecessarytoperformitsfunctions.

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(5) ApersonwhointerfereswiththeperformancebyatrusteeorcustodianofitsfunctionscommitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment. (6) A trusteeorcustodianofacollective investmentschemewhichfailstoperformanyofitsdutiesreferredtointhissection,commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Status of assets

193. ForpurposesofthisChapter-

(a) moneyorotherassetsreceivedfromaninvestor;and

(b) assetsofaportfolio,

are regarded as being trust property and amanager, its authorised representative, adesignated representativeof thatauthorised representativeanda trusteeorcustodianmustdealwithsuchmoneyorotherassetsinconformitywiththisActandthedeedinthebestinterestsofinvestorsandinaccordancewiththeinstructions,ifany,ofsuchinvestors.

Liability for loss of assets

194. A trustee or custodian must indemnify the manager and investorsagainstanylossordamagesufferedinrespectofmoneyorotherassetsinthecustodyofthetrusteeorcustodian,whichiscausedbyawilfulornegligentactoromissionbythetrusteeorcustodian.

PART 4COLLECTIVE INVESTMENT SCHEMES IN SECURITIES


195. InthisPart,unlessthecontextotherwiseindicates-

“collective investment scheme in securities”means a scheme theportfolioofwhichconsists mainlyoflistedsecuritiesorunitsofacollectiveinvestmentschemeinlistedsecurities.

Determination of fair value

196. A securitymustbevaluedat its fair value, calculated in accordancewiththestandards.

Foreign securities

197. (1) Amanagermay,subjecttothisAct,investassetsofaportfolioofacollectiveinvestmentschemeinsecuritiesinforeignequitysecuritiesifsuchforeignequitysecurities-

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(a) aretradedonaforeignexchangeapprovedbyNAMFISApursuanttothestandards;and

(b) arelistedonaforeignexchangetowhichthemanagerhasappliedtheduediligencerequirementsprovidedforinthestandards.

(2) A manager may, subject to thisAct, invest assets of a portfolio ofa collective investment scheme in securities in foreign non-equity securities if suchforeignnon-equitysecurities-

(a) aresecuritiespermittedforcollectiveinvestmentschemesinsecuritiesbythestandards;and

(b) are securities to which the manager has applied the due diligencerequirementsforissuersprovidedforinthestandards.

PART 5COLLECTIVE INVESTMENT SCHEMES IN PROPERTY


198. (1) InthisPartunlessthecontextindicatesotherwise-

“collectiveinvestmentschemeinproperty”includesaschemetheportfolioofwhichconsistsofpropertyshares,immovableproperty,assetsdeterminedundersubsection(2)oranyinvestmentpermittedundersection199;

“fixedpropertycompany”meansacompanyalltheissuedsharesofwhichareincludedina portfolio,andtheprincipalbusinessofwhichconsistsintheacquisitionandholdingof-

(a) immovablepropertyoranyundividedshareorinterestthereinorleaseholdinrespectthereof;

(b) aparticipatoryinterestinanycollectiveinvestmentschemewheretheportfolioconsistspredominantlyofpropertyshares,immovablepropertyorotherassetsdeterminedbythestandardsreferredtoinsubsection(2);or

(c) suchother immovablepropertyoranyundividedshareor interest thereinorleaseholdinrespectthereofasNAMFISAhasapproved;

“propertyshares” meanssharesinandof-

(a) afixedpropertycompany;or

(b) a holding company which has no subsidiaries other than fixed propertycompanieswhichareitswhollyownedsubsidiaries;

“immovableproperty” meansanypieceoflandregisteredasanerf, lotorstandinadeeds registry,whicherf,lotorstandissituatedinatownshipasdefinedinsection1oftheTownshipsandDivisionofLandOrdinance,1963(OrdinanceNo.11of1963),and,forthepurposesofsection189,anypieceoflandregisteredasanerf,lotorstandinaforeigndeedsregistry.

191

(2) For the purposes of this Part, NAMFISA may provide for, in thestandards,assetsinadditiontothosereferredtointhedefinitionof“collectiveinvestmentschemeinproperty”whichmaybeincludedinaportfolioofacollectiveinvestmentschemeinproperty.

Foreign country in which collective investment scheme in property may invest

199. Amanagermay, subject to thisAct, invest assetsof aportfolioof acollectiveinvestmentschemeinpropertyin-

(a) immovablepropertyinaforeigncountry;and

(b) propertysharesorparticipatoryinterestsinacollectiveinvestmentschemeinpropertyinaforeigncountry,

ifsuchforeigncountryhasaforeigncurrencysovereignratingbyasecuritiesratingagencyasdefined in section78,which rating and rating agencymustbe acceptablepursuanttothestandards,andifthecountryhasbeenratedbymorethanoneagencytheloweroftheratingsmustapply.

Listing of participatory interests by exchange

200. (1) Themanager of a collective investment scheme in propertymayapply toNAMFISAforpermissionfor theparticipatoryinterests inacollectiveinvestmentschemeinpropertytobedealtinonanexchange. (2) Chapter 5 of the Companies Act applies to the repurchase of aparticipatoryinterestbyacollectiveinvestmentschemeinpropertyandforthepurposesof thissection,“shares”asreferredto in thatChaptermustberegardedas includingparticipatoryinterestsinacollectiveinvestmentschemeinproperty.

PART 6COLLECTIVE INVESTMENT SCHEMES IN PARTICIPATION BONDS



“collectiveinvestmentschemeinparticipationbonds”means,subjecttotheprovisionsofthis Part,aschemeofwhichtheportfolioconsistspredominantlyof-

(a) assets in the formofparticipationbonds,pursuant towhichmembersof thepublic are invited or permitted to acquire a participatory interest in all theparticipationbondsincludedinthescheme;or

(b) aparticipatoryinterestinacollectiveinvestmentschemeofwhichtheportfolioconsistspredominantlyofassetsreferredtoinparagraph(a);

“participationbond”meansamortgagebondoverimmovableproperty-

(a) whichisdescribedasaparticipationbondandisregisteredassuchinthenameofanomineecompanyand is included inacollective investment scheme inparticipationbonds;and

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(b) which is a first mortgage bond or which ranks equally with another firstparticipationbondandhasthesamemortgagor;and

“principaldebt” means thecashamount inmoneyactually receivedbyoronbehalfofthe mortgagorintermsofthemoney-lendingtransactionsecuredbyaparticipationbond.

Transitional provisions

202. (1) From the date of the commencement of this Part, a personcarryingonormanagingaschemeorarrangementpermittingofparticipationinspecifiedmortgagebondswhowasexemptedbyNAMFISAundersection37(2)(a)oftheUnitTrusts ControlAct, is deemed to be registered under this Chapter as amanager ofcollectiveinvestmentschemeinparticipationbondsandanomineecompanyapprovedbyNAMFISAunderthatsubsectionisdeemedtobeapprovedundersection184(1). (2) NAMFISAmustissueacertificateofregistrationinaformprovidedbythestandardstoapersonreferredtoinsubsection(1). (3) Within90daysafterthecommencementofthisPart,apersonreferredtoinsubsection(1)mustexchangeparticipationsinaparticipationbondregisteredundertheParticipationBondsAct,1981(ActNo.55of1981),foraparticipatoryinterestofequalvalueinacollectiveinvestmentschemeinparticipationbondsunderthisPart.

Capacity of manager

203. (1) Themanagerofacollectiveinvestmentschemeinparticipationbondsmayinrespectofanybusinessconductedbysuchmanager,actasprincipalorasagent. (2) WhenactingasaprincipalinrespectofacredittransactionwhichissubjecttotheprovisionsoftheCreditAgreementsAct,1980(ActNo.75of1980),themanagerisentitledtochargesuchchargesasmaybechargedintermsofthatActinconnectionwithsuchcredittransaction.

Registration of participation bonds in name of nominee company

204. (1) Despite any law to thecontrary, aparticipationbondclearlydescribed as suchmust be registered in a deeds registry in the name of a nomineecompanyasnomineefororrepresentativeoftheinvestors. (2) Thenamesoftheinvestorsneednotbelistedinaparticipationbond.

Rights of investor

205. The debt secured by a participation bond, to the extent of theparticipatoryinterestgrantedtoanyinvestor,isadebtowingbythemortgagortosuchinvestorandnottothenomineecompany,andtherightsconferredbytheregistrationofanysuchbondaredeemedtobeheldbytheinvestor,despitetheregistrationofthebondinthenameofthenomineecompany.

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Minimum investment period

206. Anagreementpursuanttothetermsofwhichamanageracceptsmoneyforinvestmentinacollectiveinvestmentschemeinparticipationbondsmustensurethatsuchmoneyisinvestedinsuchschemeforaperiodofnotlessthantheperiodspecifiedinthestandards.

Participatory interests rank in preference concurrently

207. Allparticipatoryinterestsgrantedinanyparticipationbond,whenevergranted,rankinpreferenceconcurrentlywithoneanotherasfromthedateofregistrationofthebond.

Restrictions on rights of nominee company

208. Anomineecompanymaynottransfer,cedeorinanywayencumberanyofitsownrightsunderaparticipationbondwithoutthepriorconsentofNAMFISA.

Collateral security in respect of participation bonds

209. (1) Any collateral security, including a surety mortgage bond,collateralmortgagebond,notarialbond,suretyship,guarantee,cession,pledgeorlienacceptedbyamanagerinadditiontoaparticipationbondinordertosecure-

(a) thedebtsecuredbyaparticipationbond;

(b) the due performance by a mortgagor of the obligations under aparticipationbond;or

(c) thedueperformancebyasuretyoftheobligationsunderacontractofsuretyshiprelatingtosuchdebtortotheobligationsofthemortgagor,

mustberegisteredinthenameofthenomineecompanyasnomineefororrepresentativeoftheinvestors,andanycontractrelatingtosuchsecuritymustbedrawnandexecutedinfavourofthatnomineecompany. (2) Despiteanylawtothecontrary,acontractofsuretyshiprelatingtoadebtsecuredbyaparticipationbondandacceptedbyamanagerpursuanttosubsection(1),isenforceablebythenomineecompanyinitsownnameagainstthesuretyonbehalfoftheinvestors. (3) Sections 204(2), 205, 206 and 207 applywith the changes requiredbythecontextinrespectofcollateralsecurityacceptedbyamanagerforthepurposesreferredtoinsubsection(1),andareferencetoaparticipationbondinthoseprovisionsmustbeconstruedtoincludeareferencetoaparticipationbondandcollateralsecurity,andareferencetoamortgagormustbeconstruedtoincludeareferencetoamortgagorandthegrantorofcollateralsecurity.

PART 7COLLECTIVE INVESTMENT SCHEMES IN UNLISTED SECURITIES



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“collectiveinvestmentschemeinunlistedsecurities” means,subjecttotheprovisionsofthis Part,aschemeofwhichtheportfolioconsistspredominantlyof-

(a) assets,intheformofunlistedinvestmentsinNamibiaorwhichqualifyassuchunder the regulations, pursuant towhichmembers of the public are invitedorpermittedtoacquireaparticipatoryinterestinall theunlistedinvestmentsincludedinthescheme;or

(b) aparticipatoryinterestinacollectiveinvestmentschemeofwhichtheportfolioconsistspredominantlyofassetsreferredtoinparagraph(a).

Minimum investment period

211. An agreement in terms of which a manager accepts money forinvestmentinacollectiveinvestmentschemeinunlistedsecuritiesmustprovidethatsuchmoneyisinvestedinsuchschemeforaperiodofnotlessthantheperiodspecifiedinthestandards.

Listing by exchange

212. (1) At any time when no investor in a particular collectiveinvestmentschemeinunlistedsecuritieshasmoneyinvestedwhichisstillsubject toaminimuminvestmentperiodpursuant tosection211, themanagerof thecollectiveinvestmentschemeinunlistedsecuritiesmayapplytoNAMFISAforapprovaltoallowtheparticipatoryinterestsintheschemetobedealtwithonaregisteredexchange.

(2) Chapter 5 of the Companies Act applies to the repurchase of aparticipatoryinterestbyacollectiveinvestmentschemeinunlistedsecurities,andforthepurposesofthissection,“shares”referredtointhatChaptermustberegardedasincludingparticipatoryinterestsinacollectiveinvestmentschemeinlistedsecurities.

PART 8COLLECTIVE INVESTMENT SCHEMES IN MONEY MARKET INSTRUMENTS



“collective investment scheme in money market instruments” means a scheme theportfolioof whichconsistsmainlyofmoneymarketinstruments.

Determination of fair value

214. Amoneymarketinstrumentmustbevaluedatitsfairvalue,calculatedinaccordancewiththestandards.

Foreign money market instruments

215. Amanagermay, subject to thisAct, invest assetsof aportfolioof acollectiveinvestmentschemeinmoneymarket instruments inforeignmoneymarketinstrumentsifsuchforeignmoneymarketinstrumentsaremoneymarketinstruments-

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(a) permitted for collective investment schemes in money marketinstrumentsbythestandards;and

(b) towhichthemanagerhasappliedtheduediligencerequirementsforissuersprovidedforinthestandards.

PART 9DECLARED COLLECTIVE INVESTMENT SCHEMES



“declaredcollectiveinvestmentscheme” meansacollectiveinvestmentschemewhichhasbeen declaredtobeacollectiveinvestmentschemeundersection217.

Declaration of specific type of business as collective investment scheme

217. (1) TheMinister,afterconsultationwithNAMFISA,maybynoticeintheGazettedeclareacollectiveinvestmentschemeortypeofcollectiveinvestmentschemecarryingonaspecificbusinessorinvestmentprogramortypeofbusinessorinvestmentprogramtobeacollectiveinvestmentschemetowhichthisChapteroranyPartorprovisionofthisChapterapplies. (2) In a notice issued under subsection (1), the Minister may, withoutlimitationonothermattersspecifiedinthenotice-

(a) define the business activity or investment program of a declaredcollectiveinvestmentscheme;and

(b) specify thematters thatmust be included in the deed of a declaredcollectiveinvestmentscheme.

(3) The Minister may under subsection (1) issue different notices fordifferenttypesofdeclaredcollectiveinvestmentschemes. (4) NAMFISAmayissuestandardstogiveeffecttoacollectiveinvestmentschemedeclaredunderthissection.

PART 10FOREIGN COLLECTIVE INVESTMENT SCHEMES



“foreigncollectiveinvestmentscheme”meansascheme,inwhateverform,carriedoninacountryotherthanNamibia,inpursuanceofwhichmembersofthepublic-

(a) areinvitedorpermittedtoinvestmoneyorotherassetsinoneormoregroupsofassets,whethercalledaportfolioorbyanyothername,ofsuchscheme;

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(b) acquireaninterestorundividedshare,whethercalledaunitorbyanyothername,insuchgroupofassetsuponsuchinvestment;and

(c) participateproportionatelyintheincomeorprofitsandtheriskderivedfromsuchinvestment.

Restrictions on foreign collective investment scheme

219. (1) NAMFISAmayapprove,subject to termsandconditionssetoutinthestandards,anapplicationbythemanageroroperatorofaforeigncollectiveinvestmentschemetosolicitinvestmentsinsuchschemefrommembersofthepublicinNamibiaif-

(a) theapplicationisintheformrequiredby,andtheapplicantcomplieswiththerequirementssetoutin,thestandards;

(b) acopyoftheapprovalorregistrationbytherelevantforeignauthorityauthorising the manager or operator and the foreign collectiveinvestmentschemetoactassuchissubmittedwiththeapplication;and

(c) the application is accompanied by the required fee set out in thestandards.

(2) A scheme approved under subsection (1) must, for the purposes ofsection 443, be regarded as a financial institution and the provisions of that sectionapplytosuchaschemewithanychangesmadenecessarybythecontext. (3) Apersonwhosolicits investments ina foreigncollective investmentschemewhen he or she or it is not approved under subsection (1) orwho does notcomply with the terms and conditions of an approval pursuant to that subsection,commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Reciprocity

220. (1) Ifpursuanttoany-

(a) lawofaforeigncountry;or

(b) regulatoryor supervisoryaction takenbyanyauthorityorbody inaforeigncountry,

a manager connected with Namibia is suspended, disqualified or restricted fromoperatingacollective investment scheme in thatcountryalthoughmeeting the samerequirementsunderwhichpersonsconnectedwiththatcountryareabletooperatesuchascheme,NAMFISAmay,bynoticeservedonapersonconnectedwiththatcountrywhoisoperatingorintendstooperateacollectiveinvestmentschemeinNamibia,takesuchactionasmaybesetoutinthestandards. (2) For thepurposesofsubsection(1)amanagerorpersonisconnectedwithNamibiaoraforeigncountry,asthecasemaybe,if-

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(a) inthecaseofanindividual,heorsheisanationalof,orresidentin,NamibiaorthatcountryandoperatesacollectiveinvestmentschemefromaprincipalplaceofbusinessinNamibiaorthatcountry;

(b) in the caseof a corporatebody, it is incorporatedor has a principalplaceofbusinessinNamibiaorthatcountryoriscontrolledbyapersonorpersonsconnectedwithNamibiaorthatcountry;

(c) in the case of a partnership, it has a principal place of business inNamibiaorthatcountryoranypartnerisconnectedwithNamibiaorthatcountry;or

(d) inthecaseofanunincorporatedentitywhichisnotapartnership,itisformedunderthelawofNamibiaorthatcountry,hasaprincipalplaceof business inNamibia or that country or is controlled by a personconnectedwithNamibiaorthatcountry.

Withdrawal of approval

221. (1) NAMFISA may at any time withdraw an approval grantedundersection219if-

(a) itisintheinterestofinvestorsorpotentialinvestors;

(b) the manager or operator has submitted inaccurate or misleadinginformationinitsapplication;or

(c) anyoftherequirementssetoutinthestandardsorreferredtoinsection219(1)arenolongermet.

(2) ApersonaffectedbyadecisionofNAMFISAundersubsection(1)hastherighttobeheardwithinareasonableperiodfollowingsuchdecision. (3) NAMFISAmustgivenotice to themanageroroperatorofa foreigncollectiveinvestmentschemeoftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(1),togetherwiththereasonstherefor,andmustgivethemanageroroperatorofaforeigncollectiveinvestmentschemeareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichthemanageroroperatormaymakerepresentationstoNAMFISAaboutthematter.

PART 11CONVERSION OF COLLECTIVE INVESTMENT SCHEME


222. (1) InthisPart,unlessthecontextindicatesotherwise-

“collectiveinvestmentscheme”includesoneormoreportfoliosundersuchschemeandmay,dependingonthestructureofthescheme,includeamanager;

“conversion” meansaconversionofacollectiveinvestmentschemetoanyotherformatofa collectiveinvestmentschemepermissibleunderthisChapter;

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“conversion scheme” means a scheme regulating a conversion and governing thereciprocalrightsandobligationsofthepartiestotheconversion;and

“qualifyinginterest”,inrelationtoacollectiveinvestmentschemewhichisconverted,means anyparticipatoryinterestinsuchschemewhichwasissuedbeforetheconversion. (2) Aconversionschememust-

(a) specifythebasis,terms,conditionsandcostoftheconversion;

(b) providefortheissueofparticipatoryinterestsinacollectiveinvestmentschemeestablishedbytheconversion;

(c) provideforanoffer,topersonswhoimmediatelybeforetheconversiondatewereinvestorswithaqualifyinginterestinthecollectiveinvestmentschemeandtomembersofthepublic,totakeupparticipatoryinterestsin the collective investment scheme established by the conversion,except thatparticipatory interestsmaybeoffered tomembersof thepublic only to the extent towhich they arenot takenupbypersonsholding a qualifying interest in the collective investment schemeconcernedimmediatelybeforetheconversiondate;and

(d) provide forpaymentof thevalueof theparticipatory interestofanyinvestor who chooses not to take up a participatory interest in thecollective investment scheme established by the conversion or whoholdsaqualifyinginterestofalesservaluethanthevaluedeterminedintheconversionschemeastheminimumforaqualifyinginterest.

Limitations on conversion of collective investment scheme

223. Amanagermaynotconvertacollectiveinvestmentschemeunless-

(a) thepriorapprovalofNAMFISAtotheconversionhasbeenobtained;and

(b) the conversion has been authorised by a resolution of the investorsadopted in accordance with, and in the manner described by thestandards.

Application for approval of NAMFISA

224. (1) AmanagermustapplytoNAMFISA,inthemannerandformprovidedbythestandards,forapprovalofaconversionbeforearesolutiononthematterispassedbyinvestors. (2) Anapplicationreferredtoinsubsection(1)mustbeaccompaniedbythedocumentsrequiredbythestandards. (3) AmanagermustfurnishanyadditionalparticularsinconnectionwiththeconversionthatNAMFISAmayrequire.

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Consideration of application

225. (1) NAMFISAmayapproveanapplicationforaconversionmadeunder section 224 if NAMFISA is satisfied that the application complies with therequirementsofsubsection(2). (2) NAMFISAmaynotapproveaconversionif-

(a) anyofthedocumentsreferredtoinsection224(2)areinconsistentwiththisActorcontainaprovisionwhich,intheopinionofNAMFISA,isundesirable;

(b) thebasisorconditionsonwhichaparticipatoryinterestintheproposedcollectiveinvestmentschemeisofferedonlytoinvestorsortoinvestorsand members of the public referred to in section 222(2)(c) are notreasonableorfairormighthavetheeffectthataparticipatoryinterestin theproposedschememaybeacquiredcontrary to thisActoranyotherlaw;or

(c) theapplicationdoesnotcomplywitharequirementofthisActoranyotherlaw.

(3) For the purposes of considering the basis or conditions onwhich aparticipatoryinterestinanyproposedcollectiveinvestmentschemeisofferedtoinvestorsortoinvestorsandmembersofthepublic,NAMFISAmay,afterconsultationwiththemanager,designateapersontoinvestigateandadviseNAMFISAonthereasonablenessandfairnessoftheproposedbasisandconditions. (4) Thecostsofaninvestigationundersubsection(3)mustbebornebythemanager. (5) NAMFISA may not refuse an application made under section 224withouthavingaffordedthemanagerareasonableopportunitytoamendtherelevantdocumentsinaccordancewithNAMFISA’srequirements.

Resolution by investors

226. (1) AssoonasNAMFISAhasapprovedaconversion,themanagermustobtainaresolutionpassedbyinvestorsauthorisingtheconversion. (2) Iftheinvestorspassaresolutionauthorisingtheconversion,NAMFISAmust, at the request of the manager, issue a certificate to the manager confirmingNAMFISA’sapprovaloftheconversion. (3) Forthepurposesofsubsection(1)itmustbepresumedthatholdersofamajorityinvalueofparticipatoryinterestcertificatesinanoriginalschemeorportfoliohavegiventheirconsenttotheproposedconversion,unlesstheholdersofamajorityinvalueofparticipatoryinterestcertificatesinsuchschemeorportfoliohavenotifiedthemanagerinwritingonorbeforeadatedeterminedbyNAMFISAthattheyrefusetheirconsenttotheproposedconversionandsuchrefusalhasbeendisclosedbythemanagertoallinvestors.

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Registration of memorandum and articles by Registrar of Companies

227. (1) Ifacollectiveinvestmentschemethatisnotacompanyistobeconvertedintoacollectiveinvestmentschemethatisacompany,thatnewcompanymust be incorporated under the CompaniesAct, with its memorandum and articlescomplyingwiththatAct,andsubjecttotherequirementsoftheCompaniesActandanyrequirementofNAMFISA,theconversionmustberegardedashavingtakenplaceupontheregistrationofthememorandumandarticlesunderthatAct. (2) TheRegistrar ofCompaniesmay not register thememorandum andarticlesofacompanypursuanttosubsection(1)unlesstheapplicationforregistrationisaccompaniedbyacertificateissuedundersection226(2). (3) Forthepurposesoftheregistrationofthememorandumandarticles,thepersonsdesignatedtoactasthefirstdirectorsofthecompanyaftertheconversionmust,iftheyaccepttheirappointmentasthefirstdirectors,signthememorandumandarticles as if theywere the subscribers of such company under section 61(2) of theCompaniesAct.

Certificate of registration of conversion and notice in Gazette

228. (1) Within 14 days after the conversion date, themanagermustforward four certified copies of its deed to NAMFISA, and NAMFISAmust issuethemanagerwithacertificateofregistrationasamanageroftheconvertedcollectiveinvestmentschemeuponpaymentoftheregistrationfeesetoutinthestandards. (2) NAMFISA must at the expense of the manager, give notice in theGazetteofanyconversionandtheconversiondateunderthisPart.

Effects of conversion

229. (1) The business of a converted collective investment schemewhichexistedbeforetheconversion,continuesthereafterbutintheconvertedformatandfromandaftertheconversiondate-

(a) areferenceinanydocumenttotheformercollectiveinvestmentschemeisconstrued,unlessinconsistentwiththecontextorotherwiseclearlyinappropriate,asareferencetothecollectiveinvestmentschemeinitsconvertedformat;

(b) ifapplicable,thepersonswhoimmediatelybeforetheconversionweredirectors of the manager must vacate their offices and the personsreferredtoinsection227(3)becomethedirectorsofthemanageroftheconvertedcollectiveinvestmentscheme;

(c) the investors holding a qualifying interest become investors in theconvertedcollectiveinvestmentscheme;and

(d) all participatory interests issued by the former collective investmentscheme and which were not repurchased or cancelled before theconversion,becomeparticipatoryinterestsintheconvertedcollectiveinvestmentscheme.

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(2) Exceptinsofarasthissectionprovidesotherwise,aconversiondoesnotderogatefromtheobligationsofthecollectiveinvestmentschemeortherightsofanycreditorofthecollectiveinvestmentschemebeforetheconversion.

Issue of participatory interests to former investors

230. (1) Anoffer to investorsholdingaqualifyinginterest to takeupaparticipatoryinterestinacollectiveinvestmentschemeestablishedbyaconversionunderthisPartmustbemadeinwritingtoeachindividualinvestor,andsuchoffermustbeaccompaniedbyastatementissuedbythemanagerandmustcontainparticularsinconnectionwith-

(a) the offer, the conversion and the converted collective investmentscheme’spotentialprofit;

(b) thescheme’sbusinessprospects;

(c) thescheme’sgeneralstateofaffairs;and

(d) suchotheraffairsoftheschemeasNAMFISAmayrequire. (2) The provisions of theCompaniesActwith respect to the issue of aprospectusoranofferofshares,donotapplytoanofferreferredtoinsubsection(1). (3) Onarequestbyaninvestorholdingaqualifyinginterestmadeinwritingtoamanager,otherthanamanagerofacollectiveinvestmentschemeinproperty,toapply the proceeds of such interest for the payment of a participatory interest in aconvertedcollectiveinvestmentscheme-

(a) such qualifying interest may be redeemed immediately despite theconditionsattachedthereto;and

(b) suchproceedsmaybeapplied for thepaymentof suchparticipatoryinterest.

PART 12GENERAL

Change of name of scheme or portfolio

231. (1) Amanagermaynot,withoutthepriorapprovalofNAMFISA,changethenameofitscollectiveinvestmentschemeoraportfolio. (2) The provisions of section 391 do apply to a change of name of acollectiveinvestmentschemeoraportfoliobyamanagerwithsuchchangesasmaybemadenecessarybythecontext. (3) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

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Prohibition of misleading names and acts

232. (1) Subjecttosubsection(2)apersonmaynot-

(a) useor include inorhave,aspartof thenameofhisorherbusinessoranydescriptionofhisorherbusiness,anyreferencetoacollectiveinvestment scheme, open-ended investment company, participatoryinterest, portfolio, unit, unit trust or mutual fund or any derivativethereof,unlessregisteredasamanagerunderthisChapterorapprovedas amanager or operator of a foreign collective investment schemeundersection219;and

(b) performanyactcalculatedtoleadthepublictobelievethatanybusinesscarriedonbysuchpersonconsistsoforisconnectedwiththeoperationoradministrationofacollectiveinvestmentscheme,unlessregisteredasamanager,trusteeorcustodian,authorisedrepresentativeordesignatedrepresentativeunderthisChapterorapprovedundersection219.

(2) NAMFISAmayonapplicationbyapersonwhoisrequiredtochangehisorhernamebyvirtueofsubsection(1)allowsuchpersontoeffectsuchchangeontheconditionsandwithintheperiod,notexceedingsixmonths,determinedbyNAMFISA. (3) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(1)andtheperson-



(c) satisfiesthatpersonorofficerthatthenamewaschangedasaresultoftheprohibitioncontainedinsubsection(1),

thatpersonorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonsuchdeedordocumentandinalltherelevantregisters. (4) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Restrictions on sale or lending of assets

233. (1) A manager may not sell or offer for sale any participatoryinterestinaportfolioofacollectiveinvestmentschemeunlessatthetimeofsuchoffertheportfolioincludesassetsinthemanner,withinthelimitsandontheconditionssetoutinthestandards.

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(2) Amanagermay, subject to section 237, lend or offer to lend assetsincludedinaportfoliointhemanner,withinthelimitsandontheconditionsdeterminedinthestandardsandthedeed. (3) Differentmanners,limitsandconditionsfordifferentassetsorportfoliosmaybedeterminedorprovidedforinanystandardsissuedundersubsection(1)or(2). (4) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Other business of manager

234. (1) AmanagermayconductbusinessotherthantheoperationofacollectiveinvestmentschemesubjecttothepriorapprovalofNAMFISA. (2) NAMFISA may on such conditions as NAMFISA may determineapprovetheapplicationofamanagertoconductotherbusiness,iftheinvestorsinthecollectiveinvestmentschemeoperatedbythemanagerarenotlikelytobeprejudiced. (3) Any person who carries on business without approval contrary tosubsection(1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Exercise of voting power by manager

235. Amanageror itsnomineeexercising thevotingpower conferredonitby theassetsheld in aportfoliomust, in accordancewith the requirementsof thestandards,exercisesuchpowerinthebestinterestoftheinvestors.

Unauthorised gain

236. (1) A person who controls a manager or a director, officer oremployeeofamanager,maynotdirectlyor indirectlyhaveapersonal interest inorderiveanypecuniaryadvantagefromtheacquisitionorsalebythatmanagerordirector,officeroremployeeofamanagerofanyassetsofaportfolioexceptifsuchadvantageaccruesintheordinarycourseofbusinessbyvirtueof-

(a) any difference between the price atwhich a participatory interest isacquiredandthepriceatwhichitissubsequentlysold;or

(b) anyunderwritingofparticipatoryinterestsundertakenbythemanager,oradirector,officeroremployeeofthatmanager.

(2) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

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Permissible deductions

237. Theamountswhichmaybedeductedfromaportfoliomustbeassetoutinthestandards.

Calculation of price

238. (1) Subject to subsection (2), a manager may not sell anyparticipatoryinterestatapricewhichexceedsorislessthanthenetassetvalue,withinthemeaningofthestandards,ofthatparticipatoryinterest. (2) Whereparticipatoryinterestsinanewportfolioareofferedtothepublicforthefirsttime,themanagermaymakeaninitialoffer-

(a) onaspecifieddate;

(b) foraspecifiedperiod;and

(c) ofaspecificnumberofparticipatoryinterestsatafixedpricebasedonthepriceoftheparticipatoryinterestsonapreviousdatenotmorethan28dayspriortotheclosingdateoftheoffer.

(3) In making payment to the investors in a portfolio of a distributionof incomeaccrualson theparticipatory interestsbelonging to them,amanagermustroundofftothenearestfourthdecimal,anyamountsopaidinrespectofsuchnumberof participatory interests as represents theminimumnumberwhich, in terms of theportfolio’sdeed,mustbepurchasedatanyonetime,butanyamountwhich,byvirtueofsuchrounding-off, is left intheportfolio,mustbecarriedforwardtothecreditofinvestorsinthenextensuingdistribution. (4) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Payment of full purchase price

239. (1) Amanagermaynot-

(a) sellorofferforsaleanyparticipatoryinterestexceptontermsrequiringpaymentof the full sellingprice tobemadeupon theacceptanceofan investor’s or prospective investor’s offer for the purchase of theparticipatory interestby themanager,anauthorisedrepresentativeordesignatedrepresentative;or

(b) lendorotherwise advanceanymoney to the investororprospectiveinvestorwithrespecttothesellingprice.

(2) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

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Power of manager to borrow

240. (1) Amanager, other than amanager of a collective investmentschemeinsecurities,mayfortheaccountofaportfolioborrowmoneyforthepurposesandsubjecttothelimitsandconditionsdeterminedinthedeed. (2) Themanagerofacollectiveinvestmentschemeinsecuritiesmay,inthecasewhereinsufficientliquidityexistsinaportfolioorwhereassetscannotberealisedto repurchase or cancel participatory interests, borrow the necessary funds for suchrepurchaseorcancellationonsecurityoftheassetsandfortheaccountoftheportfolioin question, from a banking institution, prudential and financial markets institutionorfinancial institutionat thebestcommercial termsavailableanduntilassetscanberealisedtorepaysuchaloan. (3) Themaximumamountthatmaybeborrowedundersubsection(2)mustnotexceed10percentofthemarketvalueoftheportfolioatthetimeofborrowing. (4) Any personwho contravenes or fails to complywith subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Matters to be provided in deed

241. (1) Everydeedmustsetouttherequirementsfortheoperationandadministrationofaportfolioandmustcontainprovisionstoregulatethemattersdetailedinthestandards. (2) NAMFISAmaybynotice in theGazetteexemptaparticular typeorcategory of collective investment scheme from the provisions of subsection (1) anddeterminethematterstobecompliedwithortobeprovidedforinadeedgoverningsuchtypeorcategoryofcollectiveinvestmentscheme. (3) NAMFISAmaybynotice in theGazette suspendaprovisionofanydeedandmaydeterminemattersinrespectofwhichanydeedmustbeamended.

Void provisions and amendment

242. (1) A provision in a deedwhich is inconsistentwith thisAct isvoid. (2) Thepartiestoadeedmaybysupplementaldeedamendthedeed,butnoamendmentofadeedisvalidunlesstheconsenttheretoofamajorityinvalueofinvestorshasbeenobtainedinthemannerdeterminedinthedeed. (3) IfNAMFISAissatisfiedthatanyamendmentreferredtoinsubsection(2) -

(a) isrequiredonlytoenabletheprovisionsofthisChapterorofthedeedtobegiveneffectmoreconvenientlyoreconomically;

(b) willbenefittheinvestors;

(c) willnotprejudicetheinterestsofinvestors;

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(d) doesnotamendthefundamentalprovisionsorobjectsofthedeed;and

(e) does not release the trustee, custodian or the manager from anyresponsibilitytotheinvestors,

NAMFISAmaydirectthatsuchconsentbedispensedwith. (4) Subjecttosubsection(3),thepartiestoadeedwhichimmediatelypriortothedateofcommencementofthisChapterwasadeedpursuanttoanylawrepealedbythisAct,mustwithin12monthsfromthedateofcommencementof thisChapteramend,supplementorreplacethedeedinordertocomplyfullywiththerequirementsofthisChapter.

Postponement of realisation of assets on winding-up

243. (1) IfitappearstoNAMFISAthatitwouldbeintheinterestsofinvestorstocontinueacollectiveinvestmentschemeforaperiodoftime,NAMFISAmay,withtheapprovalof thecourtwhichhasissuedanorderfor thewinding-upofthecollectiveinvestmentschemeunderPart7ofChapter10, issueadirectivetothemanagerandtrusteeorcustodianofthecollectiveinvestmentschemeortothemanageroroperatorofaforeigncollectiveinvestmentschemereferredtoinsection219 -

(a) topostponetherealisationofanyassetsforoneormoreperiods,eachperiodnottoexceedfiveyears,asNAMFISAmaydetermine;and

(b) pending such realisation, to carryon the scheme in accordancewiththe directives ofNAMFISAand to collect anddealwith all incomeaccruals, bonuses and other distributions in accordance with theprovisionsofPart7ofChapter10.

(2) Amanager, trusteeorcustodianoramanageroroperatorreferredtoinsection219,acting inaccordancewithadirectiveofNAMFISAundersubsection(1)may, on sixmonth’swritten notice toNAMFISA, terminate the appointment ofthemanager,trusteeorcustodianorofthemanageroroperatorundersection219andNAMFISAmustthereuponappointsomeotherfitandproperpersonwithinthemeaningofthestandardstotakeoverthefunctionsofsuchperson,subjecttoanyconditionsthatNAMFISAmaystipulate. (3) As remuneration for any services rendered under this section, amanager, trusteeor custodian, amanageroroperator referred to in section219or apersonappointedbyNAMFISAtotakeoverthefunctionsofsuchpersonpursuanttosubsection(2),isentitledtoafee,calculatedatsuchrateasNAMFISAmaydetermine,onallmoneysreceivedincarryingoutdutiesunderthissection,andNAMFISAmayauthorisetheamountofsuchfeetobededucted,insuchproportionsasNAMFISAmaydetermine,fromincomeaccrualsoranymoneysrealisedbythesaleofassetspursuanttoawinding-uporderissuedunderPart7ofChapter10.

Separation of assets

244. Forthepurposesofaclaimagainstamanager,trusteeorcustodianbyapersonwhohasthelegalrighttomakethatclaim,theremustbeexcludedfromtheassetsofthemanager,trusteeorcustodian-

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(a) anymoneyorotherassetshandedtothatmanager,trusteeorcustodianor toanauthorisedrepresentativeof thatmanageror toadesignatedrepresentativeofthatauthorisedrepresentative,byaninvestorforthesaleorrepurchaseofaparticipatoryinterest;and

(b) theassetsofaportfolio.

Segregation of funds

245. (1) Amanagermust-

(a) openandmaintainatabankinginstitutionaseparateoperationaltrustaccountcontrolledby the trusteeorcustodian foreachor forall theportfoliosadministeredunderthecollectiveinvestmentscheme;and

(b) onthedateofreceiptofanypayment,whetherincashorbydraftorotherinstrumentofpayment,fromoronbehalfofaninvestor,oronthefirstbusinessdaythereafter,depositinsuchaccounteitherthecash,draftorotherinstrumentofpaymentordepositforsamedayvalueinsuchaccountfundsequaltotheamountofsuchpayment.

(2) Funds deposited into an operational trust account referred to insubsection(1)mayonlybewithdrawnforthepurposesofmakingpayment-

(a) totheinvestor,personormanagerentitledtosuchpayment;or

(b) pursuanttothisAct,anyotherlawandthedeed,

exceptthatifsubsequenttosuchwithdrawalanydepositeddraftorotherinstrumentofpaymentagainstwhichsuchwithdrawalwasmadeisnothonoured,themanagermustimmediatelypaytheshortfallarisingfromsuchdefaultintotheoperationaltrustaccountorcancelanyparticipatoryinterestissuedinrespectofsuchdefaultingpayment. (3) Anyexcessremainingintheoperationaltrustaccountafterpaymentoforprovisionforallclaimsofinvestorswhosefundshaveorshouldhavebeendepositedinsuchaccount,isnottrustpropertyasdeterminedinsection193. (4) ThecourtmayonapplicationbyNAMFISAorbyanyotherpersonhaving a financial interest in or claim against an operational trust account, on goodcause shown,prohibit themanager fromoperating theaccount in anywayandmayappointapersontocontrolandadministersuchaccountwithsuchdutiesandpowersinrelationtheretoasthecourtmayconsiderfit.

Identity and source to be disclosed

246. (1) Apersonmaynotpublishor issue to thepublicor circulateanywrittencommentwhichmayinfluencethevalueofanyparticipatoryinterestunlesssuchcommentisaccompaniedby-

(a) thenameofthepersonwhocompiledthecommentorthenameofthepersonon the editorial staff of a newspaper or periodicalwhom theeditorregardsashavingcompiledthecomment;and

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(b) disclosureofthesourcefromwhichthecommentwasobtainedortheinformationonwhichitwasbased.

(2) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Application of Companies Act to manager

247. (1) Exceptwhere thisChapter expresslyprovidesotherwise, theapplicationoftheCompaniesActtoamanagerisnotaffectedbythisChapter. (2) Despitesubsection(1),noprovisionoftheCompaniesActprecludesthe establishment and operation of an open-ended investment company under thisChapter.


248. The Trust Moneys Protection Act does not apply to a collectiveinvestmentschemeoperatedandadministeredunderthisAct.

CHAPTER 5RETIREMENT FUNdS

PART 1PRELIMINARY



“activemember”,inrespectofafund,meansamemberwho,atanyrelevanttime,isaccruingbenefitsinthefundasaresultofcontinuingemploymentorservice;

“beneficiaryfund”meansanyassociationofpersonsoranybusinesscarriedonunderaschemeorarrangementestablishedwiththeobjectofreceiving,administering,investingandpaying,onbehalfofbeneficiaries,benefitsascontemplated in,or inaccordancewith,section276(2)(c),payableonthedeathofoneormorememberormembersofoneormorefunds;

“board”means theboardof trusteesofafundor,whereapplicable, the trusteesofafund;

“definedbenefitfund”meansaretirementfundinwhicheachmemberreceivesabenefitthatisdeterminedinaccordancewithapre-determinedformulathatincorporatesthemember’ssalaryasprovidedintherulesofthefund,pensionableserviceandadefinedaccrualrateonthedateoftheretirement,death,disability,withdrawalorterminationofemploymentofthatmember;

“definedcontributionfund”meansaretirementfundinwhich-

(a) eachmember receives a benefit the amount ofwhich is determinedbythebalanceinthatmember’sindividualaccountonthedateofthe

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retirement,death,disability,withdrawalorterminationofemploymentofthatmember;

(b) any benefit payable on retirementmust be fully secured through anannuity policy owned by the fund or purchased in the name of thememberorpaidtothememberinaccordancewithsuchotherformofpaymentthatispermittedunderthestandards;

(c) noreservesforguaranteesinrespectofcapital,investmentincomeorratesofreturn,longevityorothercontingencyaffectingtheamountordurationofbenefitsorofannuitypurchaseratesoradequacyofexpensechargesoramountsheldinsuchrespect,arerequiredtobeheldbythefund;and

(d) onlyanexpensereserverequiredby the termsof thefund isheldoris required to be held as stipulated in the standards or by generallyacceptableactuarialpractice;

“dependant”,inrelationtoamember,means -

(a) apersoninrespectofwhomthememberislegallyliableformaintenance;

(b) a person in respect of whom the member is not legally liable formaintenance,ifthatperson-

(i) was,intheopinionoftheboard,atthedeathofthememberinfactdependentonthememberformaintenance;

(ii) isthespouseofthemember;or

(iii) isachild,whohasnotattainedtheageofof18years,ofthemember,includingaposthumouschild,anadoptedchildandachildbornoutofmarriage;and

(c) apersonforwhomthememberwouldhavebecomelegallyliabletomaintainhadthemembernotdied;

“employer”,inrelationtoafund,meansanemployerwhoiseither-

(a) contributingtothefund;or

(b) participatinginthefund;

“fairvalue”,inrelationtoanassetofafund,meansthefairvalueofthatassetdeterminedinaccordancewithgenerallyacceptedaccountingpractice;

“fund”meansaretirementfundorabeneficiaryfund,andincludesanyotherfundorclassoffundsprescribedbyregulation;

“fundadministrator”meansafundadministratorasdefinedinsection363,andappointedpursuanttosection265(3);

“MaintenanceAct” meanstheMaintenanceAct,2003(ActNo.9of2003);

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“member”, in relation to a fund,means an individualwith a right to future benefitspayablefromthefund,andincludesanactivememberandaretiredmember;

“member’sindividualaccount”meanstheaccountoperatedforthememberasdefinedinthe rulesofthefund,wheretheaccountis-

(a) creditedwith-

(i) fixed-rate contributions paid, or amounts transferred, into the fund,byoronbehalfofthemember,wherethefixed-ratecontributionsaredefinedintherules;

(ii) amountsallocatedbytheboardforthebenefitofthemember;

(iii) additionalcontributionspaidvoluntarilybythememberortheemployeronthemember’sbehalf;and

(iv) investmentincomeandcapitalgains,asdeterminedbytheboard;and

(b) debitedwithexpensesandcapitallosses,asdeterminedbytheboard;

“nominee”,inrelationtoamember,meansapersonwhomthememberhasdesignatedtothe fund,bymeansofabeneficiarynominationform,toreceivealloraportionofanybenefitpayablebythatfundonthedeathofthatmemberasspecifiedonthebeneficiarynominationform;

“prescribedfund”meansafundprescribedbyregulation;

“retiredmember”inrespectofaretirementfund,meansamemberwho,atanyrelevanttime,isinreceiptofretirementbenefitsfromthefund;

“retirement”meanstheperiodcommencingonthemember’sretirementdate;

“retirementbenefits”meansbenefitspayabletoindividualsonoraftertheirretirementor on their disability, death or termination of employment prior to retirement or onseparationfromaretirementfundortotheirsurvivors,dependantsornominees;

“retirementdate”means thedateonwhichamemberbecomesentitled toretirementbenefitspursuanttotherulesofafund;

“retirement fund” means an association of persons established with the objects ofreceiving,holdingand investingcontributionsof individualsand theiremployers forthepurposeofprovidingretirementbenefitsinaccordancewiththerulesofthefundadoptedforsuchpurposesandincludessuchotherfundsastheMinistermayprescribebyregulation;

“rules”meanstherulesofafundreferredtoinsection271;and

“sponsor”meansthepersonwhoestablishedafundorwhoproposestoestablishafund.

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Prohibitions

250. (1) ApersonmaynotcarryonthebusinessofafundinNamibiaunlessthefundisregisteredpursuanttosection254ordeemedtoberegisteredundersection255or,inthecaseofabeneficiaryfund,wheresection256applies. (2) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Restriction on use of designation “retirement fund” or “beneficiary fund”

251. (1) Apersonmaynotuse,inconnectionwithabusiness,anamewhich includes the words “retirement fund”, “beneficiary fund” or any other namewhichisintendedtoindicateorislikelytoleadotherpersonstobelievethatthepersoncarriesonthebusinessofaretirementfundorbeneficiaryfund,unlessthatbusinessisregisteredorisdeemedtoberegisteredasaretirementfundorbeneficiaryfundunderthisChapteror,inthecaseofabeneficiaryfund,wheresection256applies. (2) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(1)andthatperson-


(b) producesanydeedordocument,bearingthepreviousnamewhichwasregisteredinanydeedsregistryorinanyotherofficewherearegisterorrecordoftheownershipof,orentitlementto,anypropertyiskept,tothepersonchargedwiththeregistrationofdeedsinthatregistryortotheofficerinchargeofthatotheroffice;and


thatpersonsochargedorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonsuchdeedordocumentandinalltherelevantregisters. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

PART 2REGISTRATION


252. (1) An application for registration as a fund must be made toNAMFISAinaccordancewithsubsection(2). (2) Anapplicationforregistrationasafundmustbe-


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(c) accompaniedbytheproposedrulesofthefund;

(d) accompaniedbythedocumentsandotherinformationrequiredbythestandards;

(e) accompaniedbysuchfurtherinformationthatNAMFISAonreasonablegroundsmayrequireinanyparticularcase;

(f) madesubjecttoandinaccordancewithanyotherapplicableprovisionofthisAct;and

(g) accompaniedbytherequiredfee.


253. (1) Before approving the application and registering the fund,NAMFISAmustbesatisfiedonreasonablegroundsthattherequirementsofsubsection(2)havebeenmetandthat-

(a) theboardcomplieswiththerequirementsofsection261or262;

(b) therulesofthefundarenotinconsistentwiththisActandarebasedonsoundfinancialprinciples;and

(c) thefunddoesnotandwillnotunfairlydiscriminatedirectlyorindirectlyagainstanyperson.

(2) Before approving an application referred to in subsection (1) andregisteringafundNAMFISAmustbesatisfiedthat-

(a) inrelationtotheproposedfund-

(i) everymemberoftheboardoftrustees,theprincipalofficerandotherofficersoftheproposedfund,arefitandproperwithinthemeaningofthestandards;

(ii) therulesoract,charter,deedofsettlement,memorandumofassociationorotherfoundingdocumentsoftheproposedfundarenotinconsistentwiththeprovisionsofthisAct;

(iii) thedirectorindirectcontroloftheproposedfundisnotlikelyto be contrary to the interest of consumers of the financialservicesconcerned;and

(iv) the proposed fund will be in a position to ensure that itsorganisationalorgroupstructurewillnotbesuchastohindereffectivesupervisionbyNAMFISA;


(i) thisAct;or

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(c) theproposedfundhastheattributesreasonablynecessaryandadequateto-




(d) thenameunderwhichtheproposedfundproposestoconductbusiness,or a translation, shortened formor derivative of that name is not incontraventionofsection391;


(f) theapplicanthascompliedandwillcontinuetocomplywithanyotherrequirementscontainedinthisActorinthestandardswhichapplytotheproposedfund.

Registration

254. (1) If NAMFISA is satisfied that the proposed fund complieswiththerequirementsofsection253NAMFISAmustregisterthefund,subjecttoanyconditionswhichNAMFISAmayconsiderappropriatepursuanttosubsection(4),andmustissueacertificateofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA.

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(6) A fund must comply with the conditions subject to which it wasregistered.

Existing pension funds

255. (1) Apension fund thatwas registeredunder thePensionFundsAct,1956(No.24of1956)isdeemedtobearetirementfundregisteredunderthisAct. (2) Despite subsection (1), a pension fund referred to in that subsectionmust, within 12months after the date of commencement of this Chapter, make anapplicationtoNAMFISApursuanttosection252forregistrationasaretirementfund. (3) Ifapensionfundreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),NAMFISAmaytakeactionthatNAMFISAconsidersappropriateagainstthepensionfundpursuanttosection259,412or439.

Existing beneficiary funds

256. (1) An association or business that is operating as a beneficiaryfundonthedateofcommencementofthisChaptermaycontinuetotransactbusinessforaperiodof12monthsfromthatdate,butbeforetheendofthatperiod,itmustmakeanapplicationforregistrationasabeneficiaryfundpursuanttosection252. (2) If a beneficiary fund fails tomake an application toNAMFISA forregistrationbeforetheendoftheperiodreferredtoinsubsection(1),thenthatassociationorbusinessmustceaseoperatingasabeneficiaryfund. (3) A person who continues to carry on or operate the business of abeneficiary fund in contravention of subsection (2) or fails to comply with thatsubsection commits an offence and is liable on conviction to a fine not exceeding N$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Effect of registration

257. (1) On registration of a fund under section 254, in so far as isapplicable-

(a) ithasthepowersofajuristicpersontotheextentthatitiscapableofsuing and being sued under the name bywhich it is registered, andofdoingallsuch thingsasmaybenecessaryforor incidental to theexerciseofitspowersortheperformanceofitsfunctionspursuanttoitsrules;

(b) despiteanythingtothecontrarycontainedinanylawortheact,charter,deedofsettlement,memorandumofassociation,rulesorotherfoundingdocumentsorthearticlesorrulesofthefundorofanycorporatebodyorunincorporatedentitythatcontrolsthebusinessofthatfund-

(i) all the assets, rights, liabilities and obligations pertaining tothebusinessof the fundwill be assets, rights, liabilities andobligationsofthatregisteredfundtotheexclusionofanyotherperson;and

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(ii) no personwill have any claim on the assets or rights or beresponsibleforanyliabilitiesorobligationsofthefund,exceptinsofarastheclaimhasarisenortheresponsibilityhasbeenincurredinconnectionwithtransactionsrelatingtothebusinessofthatfund;and

(c) any assets, rights, liabilities and obligations,which are held by anyperson in trust for the fund as it existed immediately prior to itsregistration,willvestinanddevolveupontheregisteredfundwithoutanyformaltransferorcession.

(2) Thepersoninchargeofthedeedsregistryoranyotherofficerinchargeofanyotherofficewherearegisterorrecordoftheownershipof,orentitlementto,anypropertyiskeptinwhichisregisteredadeedorotherdocumentrelatingtoanassetorrightwhichundersubsection(1)vestsinordevolvesuponafund,must,onproductionbythefundofitscertificateofregistrationandofthedeedorotherdocument,withoutpayment of transfer duty, stamp duty, registration fees or other charges, make theendorsementsuponthatdeedorotherdocumentandthealterationsintheregistersinordertoreflectthatvestingordevolution.


258. (1) At any time, a registered fund maymake an application toNAMFISAforcancellationoftheregistrationgrantedpursuanttothisActoravariationoftheconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-




(d) accompaniedbytherequiredfee. (3) Before making an application for the cancellation of a registrationor avariationof its conditions, theapplicantmustgivepriornoticeof theproposedapplicationintwonewspaperscirculatingnationallyinNamibiaattheexpenseoftheapplicantstating-


(b) either-




216

(4) Section 254 applieswith the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1). (5) Ifafterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsubsection(3),NAMFISAisoftheopinionthatitisreasonabletodosoandnot against thepublic interest,NAMFISAmay,bynotice to the registered fundconcerned-





259. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2),intheeventthatNAMFISA,actingreasonably,findsthataregisteredfund-










(j) amemberoftheboardoftrustees,theprincipalofficerorotherofficernolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredfund:


217



(3) NAMFISAmustgivenoticetotheregisteredfundoftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(2), togetherwiththereasonstherefor, andmust give the registered fund a reasonable opportunity to be heard byspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredfundmaymakerepresentationstoNAMFISAonthematter. (4) SubjecttosuchconditionsasNAMFISAmayimpose,NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredfund. (5) Onthecancellationoftheregistrationofafundundersection258(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct-

(a) the fundmust, be dissolved in accordancewith the requirements ofsection278orwound-upinaccordancewiththerequirementsofsection279,asapplicable,andtherulesofthefund;and

(b) NAMFISAmusttakesuchstepsandmayimposesuchconditionsasarenecessaryinthecircumstances,whichstepsmayincludethetransferof the business of the fund to another fund, as appropriate, but nodistributionof theassetsof the fundmaybemadewithout thepriorapprovalofNAMFISA.


(a) continues to operate, or carry on, the business of a fund after thecancellationofregistrationundersection258(5)(a),subsection(2)(a)or any other applicable provision of thisAct or after suspension ofregistrationundersubsection(4);or

(b) fails to complywith a condition imposed byNAMFISA undersubsection(4),




260. (1) Everyregisteredfundmust-

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(b) appointtobeitsprincipalofficerinNamibia,afitandproperpersonwithinthemeaningofthestandards,who-

(i) isaNamibiancitizenorpermanentresident;

(ii) isresidentinNamibia;and

(iii) mustbeamemberoftheboardofthefund. (2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),theregisteredfundmust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment. (4) NAMFISAmay,onthegroundsthataprincipalofficerisnotafitandproperperson,withinthemeaningofthestandards,andaftergivingtheregisteredfundandtheprincipalofficerareasonableopportunitytobeheard,directtheregisteredfundtoappointsomeotherpersontobetheprincipalofficerofthatregisteredfund. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregisteredfundorbytheexpiryofacontractofemployment,theregisteredfundmust,withintheperiodsetout in thestandards, inwritingnotifyNAMFISA and submit to NAMFISA a written statement of the reasons for theterminationor,intheopinionoftheregisteredfund,thereasonsfortheresignation. (6) TheprincipalofficerofaregisteredfundisauthorisedtoactonbehalfofthefundtoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA, communicateswith that fund, that personmay do so by addressing thecommunicationtotheprincipalofficer. (7) Processinanylegalproceedingsmaybeservedonaregisteredfundbyservingacopythereofatitsprincipaloffice. (8) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Board of fund

261. (1) Aregisteredfundmusthaveaboardconsistingofpersonswhoarefitandproperwithinthemeaningofthestandards. (2) Despiteanyruleofthefundtothecontrary,butsubjecttosection262,theboardofaregisteredfundmustconsistofaminimumoffourmembers.

219

(3) Theactiveandtheretiredmembersoftheregisteredfundhavetherighttoelect,whetherdirectlyorindirectly,atleasthalfofthenumberofboardmembersoftheregisteredfund. (4) Subsections(1), (2)and(3)comeintoforceon thedatewhich is90daysafterthedateofcommencementofthisChapter. (5) Apersonmaynotbeamemberoftheboardoftrusteesofaregisteredfund,ifthatpersonis-

(a) adirectororanofficeroremployeeof the fundadministratorof theregisteredfundoroftheholdingcompany,subsidiary,jointventureorassociateofthefundadministrator;

(b) a consultant to, or contractor under, an agreement with the fundadministrator;or

(c) afinancial institution orfinancial intermediary that rendersfinancialservicestotheregisteredfundoritsboardoftrustees.

(6) Subjecttosubsection(1),(2)and(3),therulesofafundmust-

(a) set out the constitution of the board, the election and appointmentprocedure for itsmembers, the terms of office of themembers, theproceduresatmeetings,thevotingrightsofmembers,thequorumforameetingandthebreakingofdeadlocks;

(b) provideacodeofconductforthemembersoftheboard;

(c) requirethattheboardmeetsatleastfourtimesayear;and

(d) providethatallmeetingsoftheboardareheldinNamibia. (7) The rules of a registered fundmust be amended in accordancewithsection272tocomplywithsubsections(1),(2),(3),(5)and(6)within90daysafterthedatereferredtoinsubsection(4). (8) Whereaboardconsistsof fourmembersorpursuant tosection262,lessthanfourmembers,allthemembersoftheboardconstituteaquorumforameetingofthatboard. (9) Ifaboardmemberisremovedfromofficeforreasonsotherthantheexpirationofthatmember’stermofappointmentorvoluntaryresignation-

(a) the board member must within 21 days of the removal submit awrittenstatement toNAMFISAof the reasons, in theopinionof theboardmember,fortheterminationandmustinadditioncomplywithsubsection(10);

(b) the board must within 21 days of the removal submit a writtenstatementtoNAMFISAofthereasons,intheopinionoftheboard,forthetermination.

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(10) Aboardmembermust,atanytime, informNAMFISAinwritingonbecomingawareofanymaterialmatterrelatingtotheaffairsofthefundwhich,intheopinionoftheboardmember,mayseriouslyprejudicethefinancialviabilityofthefundorthebenefitsorrightsofitsmembers. (11) A person who contravenes or fails to comply with subsection (10)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Exemptions

262. (1) NAMFISA may on written application by the board of aregisteredfundandsubjecttosuchconditionsasmaybedeterminedbyNAMFISA-

(a) authoriseafundtohaveaboardconsistingoflessthanfourmembersifthatnumberisimpracticalorunreasonablyexpensive,providedthattheactiveandretiredmembersofthefundhavetherighttoelectatleast50percentoftheboardmembers;or

(b) exemptafundthatisaprescribedfundorabeneficiaryfundfromtherequirementthattheactiveandretiredmembersofthefundhavetherighttoelectmembersoftheboard.

(2) NAMFISAmaywithdrawanexemptiongrantedundersubsection(1)ifafundnolongerqualifiesforsuchexemptionorifNAMFISAregardssuchexemptionnolongertobeinthepublicinterest.

Replacement of member of board

263. (1) Ontheterminationofofficeforanyreasonofamemberoftheboardofaregisteredfund,apersontoreplacesuchmembermust,subjecttosection261(1)and(2),beelectedorappointedinthemannersetoutintherulesofthefund,andtheboardmustnotifyNAMFISAforthwithoftheterminationandreplacement. (2) Apersonwhoiselectedorappointedasamemberoftheboardofthefundpursuanttosubsection(1)or(3)mustbeafitandproperpersonwithinthemeaningofthestandardsandsuchelectionorappointmentmustcomplywiththeprovisionsofsection261or262. (3) Atanytime,NAMFISAmay,onthegroundsthatanymemberoftheboardofaregisteredfundisnotafitandproperpersonwithinthemeaningofthisAct,theregulationsandthestandardsandaftergivingtheboardandthememberoftheboardinquestionareasonableopportunitytobeheard,direct-

(a) thatsuchmemberoftheboardberemovedfromoffice;and

(b) in case the remaining number of members is less than the numberrequiredby section261or262, as applicable,orby the rulesof thefund, that some other person who complies with the provisions ofsubsection(2)beelectedorappointedtotheboardofthefund.

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Objects of board

264. (1) The objects of the board of a registered fund are to direct,controlandoverseetheoperationsofthefundinaccordancewiththisActandtherulesofthefund. (2) Inpursuingitsobjectstheboardmust-

(a) takeallreasonablestepstoensurethattheinterestsofmembersundertherulesofthefundareprotectedandthatthefundcomplieswiththeprovisionsofthisActandtherules;

(b) actwithduecare,diligence,prudenceandgoodfaith;

(c) avoidconflictsofinterestwhereverpossibleandifnotpossiblemanagetheconflicts;

(d) discloseanyconflictofinterestofamemberoftheboard;and

(e) actwithimpartialityinrespectofallmembersandbeneficiaries. (3) The members of the board of trustees must, within 30 days of theend of each financial year, disclose inwriting toNAMFISA any payments or otherconsiderationsmade,whetherdirectlyorindirectly,totheminthatparticularyearbythefundorbyacontractorwiththefund. (4) Amemberoftheboardoftrusteeswhocontravenesorfailstocomplywithsubsection(3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Duties of board

265. (1) Inadditiontothedutiesofaboardofaregisteredfundsetoutintherulesofthefundandinsection395,thedutiesoftheboardofaregisteredfundareto-

(a) ensurethatproperregisters,booksandrecordsoftheoperationsofthefundarekept,includingproperminutesofallresolutionspassedbytheboard;

(b) ensure thatmembership records, contributions and benefit paymentsareadministeredinaccordancewiththerules;

(c) ensurethattheassetsofthefundareinvestedinaccordancewiththeinvestmentpolicyestablishedbytheboardwhichisappropriatetothenature andfinancial circumstancesof the fund, andwhich theboardimplementsandregularlyreviewsaftertakingexpertadvice;

(d) ensurethattherisksofthefundareappropriatelymanagedincludingensuringthatpropercontrolsystemsandfunctionalseparationofdutiesareemployedbyoronbehalfofthefund;

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(e) ensure that adequate and appropriate information is communicatedto members of the fund, employers and sponsors pursuant to acommunication strategy consistent with the standards issued byNAMFISA;

(f) takeallnecessarystepstoensurethatcontributionsarepaidinatimelymannertothefundinaccordancewiththisChapter;

(g) obtainexpertadviceonmatterswhereboardmemberslacksufficientexpertise;

(h) ensurethattherulesandtheoperationandadministrationofthefundcomplywiththisActandotherapplicablelaws;

(i) ensurethattheboardmeetsatleastfourtimeseachyear;

(j) continuouslymonitorthecomplianceofthemembersoftheboardwiththerequirementthattheybefitandproperwithinthemeaningofthestandards,asrequiredbysections261and263;

(k) prepareanannualreport,whichmustbesubmittedtoNAMFISA,thatsummarises-

(i) thefinancialpositionofthefund;

(ii) theinvestmentpolicyofthefund;

(iii) theactivitiesoftheboardduringtheyear;and

(iv) anyothermattersrequiredbythestandards;and

(l) comply with such other duties as NAMFISA may require in thestandards.

(2) If,despite thesteps takenbytheboardofaregisteredfundpursuanttosubsection(1)(f),contributionstothefundremainoutstandingforsuchperiodasisspecifiedbyNAMFISAinthestandards,theboardmust,withintheperiodspecifiedinthestandards,notifyallactiveandretiredmembersofthefundandNAMFISAofthisfact. (3) Theboardofafundmay,inaccordancewithasystemofdelegationsetoutintherulesofthefund,whichsystemmustmaximiseadministrativeandoperationalefficiencyandprovideadequatechecksandbalances,appointafundadministratortoexercise any of its powers of administration or to perform any of its administrativedutiesorfunctions,aslongas-

(a) thefundadministratorisregisteredbyNAMFISAasafundadministratorpursuanttosection368;

(b) the board has determined, after taking expert advice, that the fundadministrator has qualifications and experience relevant to theadministrationofthefundinquestion;and

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(c) theboardhasenteredintoacontractwiththefundadministratorthatcomplieswiththerulesofthefundandthepoliciesoftheboard.

(4) Theboardisnotdivestedorrelievedofanypowerordutyorfunctiondelegated or assigned under subsection (3), and may, if necessary, withdraw thedelegationorassignmentatanytimeonreasonablenotice. (5) Assoonaspossibleafteracontractreferredtoinsubsection(3)(c)hasbeenenteredinto,theboardmustfileacopyofthecontractwithNAMFISA. (6) Afundadministratorthatentersintoacontractwiththeboardofafundpursuanttosubsection(3)(c)hasafiduciarydutyandresponsibilitytothefundandmustexercisethepowersdelegatedorperformthedutyorfunctionassignedtoitwiththestandardexpectedofanexpert. (7) Whereaboarddelegatesapowerorassignsadutyorfunctionpursuantto this section, the board must monitor the performance of the fund administratorwithrespecttothestandardsdescribedinthecontractandtakeremedialactionifthatperformancefailstoachievethosestandards. (8) Administrationinrespectofafundmeanstherenderingofanyformofadministrationservice,asdefinedinsection363,tothefund. (9) Afundadministratormust,inrelationtoafund,performthefunctionsanddutiesentrustedtothefundadministratorbysection374.


266. (1) ExceptwheretheaccountsofafundaretobeauditedbytheAuditor-General pursuant to another lawofNamibia, theboardof a registered fundmust,inaccordancewithsection401andinthemannersetoutintherulesofthefund,appointandatalltimeshaveanauditororfirmofauditorstobetheauditorofthefund. (2) Theboardofafundmaynotappointastheauditorofthefund-



anemployeeorofficerofthefundorofanadministratorofthefund,amemberoftheboardofthefundorofafundadministratorofthefundoranemployee,orofficeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (3) NAMFISAmaydirecttheboardofafundtochangetheauditorofthefundifNAMFISAissatisfiedthat theauditororanymemberofthefirmofauditorsappointedasauditorisanemployeeorofficerofthefundorofafundadministratorofthefund,amemberoftheboardofthefundorofafundadministratorofthefundoranemployee,orofficeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (4) Anauditorappointedundersubsection(1)-


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267. (1) Theboardofaregisteredfundmust,inaccordancewithsection402andinthemannersetoutintherulesofthefund,appointandatalltimeshaveavaluator. (2) Eachboardofafundreferredtoinsection255or256must,ifthefundconcerneddoesnothaveavaluatoronthedateofcommencementofthisPart,appointavaluatorwithin90daysofthatdate. (3) Theboardof a fundmaynot appoint as thevaluatorof the fundanemployeeorofficerofthefundorofafundadministratorofthefund,amemberoftheboardofthefundorofafundadministratorofthefund,anemployee,orofficeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (4) NAMFISAmaydirect theboardofa fund tochange thevaluatorofthefundifNAMFISAissatisfiedthatthepersonappointedasvaluatorisanemployeeorofficerofthefundorofafundadministratorofthefund,amemberoftheboardofthefundorofafundadministratorofthefundoranemployee,officeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (5) Avaluatorappointedundersubsection(1)or(2)-




avaluatorbysection402.

Investigations by valuator

268. (1) Theboardofa registered fundmust, inaccordancewith theprovisionsofthestandards-

(a) at leastonce inevery threeyears,cause thefinancialpositionof thefund to be investigated by the valuator of the fund, and a valuationreportthereontobepreparedbythevaluatorasattheendofthethirdfinancialyear;and

(b) inthecaseofadefinedbenefitfund,onceeveryyear,causethefinancialpositionofthefundtobeinvestigatedbythevaluatorofthefund,andavaluationreportthereontobepreparedbythevaluatorasattheendofeachfinancialyear.

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(2) Despite subsection (1), if NAMFISA has reason to believe that aninvestigationwouldshowthatthefundisnotinasoundfinancialposition,NAMFISAmay,afternotlessthanonemonth’snoticeinwritingtotheboardofafund,requiretheboardtocausethefinancialpositionofthefundtobeinvestigatedbythevaluatorofthefundasattheendofanyfinancialyearasspecifiedbyNAMFISA,andavaluationandreportthereontobepreparedbythevaluator. (3) The report of the valuator referred to in subsection (1) or (2)mustincludeanyparticularssetoutinthestandards. (4) Theboardofafundmust,within180daysfromtheendofthevaluationperiod,andsubject tosection402(10)(b),depositacopyof thevaluationand reportreferredtoinsubsection(1)or(2)withNAMFISAandtheboardmustsendacopyofsuchreportorasummarythereof,preparedbythevaluatorintheformrequiredbythestandards,toeveryemployerwhocontributestothatfund. (5) Whenever theboardofa funddepositswithNAMFISAacopyofareportmadebyavaluatorunder this section, itmustalsodepositwithNAMFISAacertificateoftheboardandoftheprincipalofficerofthefundthattothebestoftheirknowledgeandbelieftheinformationfurnishedtothevaluatorforthepurposesofthereportwascorrectandcompleteineverymaterialrespectand,whereapplicable,thatacopyofthereportorasummarythereofreferredtoinsubsection(4)wassenttoeveryemployercontributingtothefund. (6) If the rules of a fund provide that the benefits which may becomepayable tomembersaresubject to thediscretionof theboardof the fund, theboardmustdetermineandinformNAMFISAwhatamountorscaleofbenefitsweretakenintoconsiderationforthepurposeofthevaluation. (7) Despite the provisions of this section, NAMFISA may, on suchconditions as are set out in the standards, exempt a defined contribution fund fromrequiringregularinvestigationsbyavaluator,butavaluatormust,atleastonceineverythreeyearscertifythat-

(a) thefundfulfilstheconditionsofexemptionsetoutinthestandards;and

(b) theassumptionsthatwillbeusedtoprojectthebenefitsthatthefundwillpaytoamemberatnormalretirementdateareappropriate.

(8) Theboardofafundmay,subjecttosuchtermsandconditionsasmaybeprescribedbytheregulations,afteritreceivesareportofthevaluatorandthereportrevealsanactuarialsurplusasprovidedforinthestandards,distributesomeorallofthatactuarialsurplus. (9) Any personwho contravenes or fails to complywith subsection (4)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

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PART 4CONDUCT OF BUSINESS AND MEMBER CONTRIBUTIONS

Business which may be carried on

269. (1) Aregisteredfundortheboardofthefundmaynotcarryonanybusinessotherthanthebusinessofafund.

(2) Despitesubsection(1),NAMFISAmay,onwrittenapplicationbytheboardofafund,approveandallowtheboardandthefundtocarryonsuchotherbusinessonsuchconditionsandforsuchperiodasNAMFISAmaydetermine,ifNAMFISAissatisfiedthatitisnecessaryinordertosafeguardaninvestmentmadebythefund. (3) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Payment of contributions

270. (1) Despite any provision in the rules of a registered fund, theemployerofanymemberofthatfundmustpayinfullthefollowingtothefund-

(a) anycontributionwhich,undertherulesofthefund,mustbedeductedfromthemember’sremuneration;and

(b) anycontributionforwhichtheemployerisliableunderthoserules. (2) NAMFISAmustsetoutinthestandardstheminimuminformationtobefurnishedtothefundbyanemployerwithrespecttothepaymentofcontributionsmadebythatemployer,andifthatinformationdoesnotaccompanythepaymentofacontribution,theemployermusttransmitthatinformationtothefundnotmorethan15daysaftertheendofthemonthinrespectofwhichthepaymentwasmade. (3) Any contribution to a fund under its rules, whether a contributionreferredtoinsubsection(1),acontributionforthepaymentofwhichamemberofthefundisresponsiblepersonallyoracontributiontobepaidonamember’sbehalf-

(a) must be deposited directly into the fund’s account with a bankinginstitution notmore than seven days after the end of themonth forwhichsuchcontributionispayable;

(b) mustbeforwardeddirectlytothefundinsuchamannerthatthefundreceivesthecontributionnotmorethansevendaysaftertheendofthemonth;or

(c) inthecaseofafundtheassetsofwhichconsistexclusivelyofoneormorepoliciesofinsurancewitharegisteredinsurercarryingonlong-term insurance business under Chapter 2,must be forwarded to theregisteredinsurerconcernedinsuchmannerthattheinsurerreceivesthecontributionnotmorethansevendaysaftertheendofthemonth.

(4) The board of a fundmust deposit or cause to be deposited into thebankaccountofthefundanycontributionforwardedtoandreceivedbythefundinthe

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circumstancesdescribedinsubsection(3)(b),onthefirstbusinessdayfollowingthedayofreceipt. (5) An amendment to the rules of a fund relating to the reduction ofcontributionsorthesuspensionordiscontinuationofthepaymentofcontributionsdoesnotaffectanyliabilitytopayanycontributionwhichbecamepayableatanytimebeforethedateonwhichtheamendmenttakeseffectundersection272. (6) Whenapersonwho,foranyreason,other thantheoccurrenceofaneventreferredtoinsection278,279or441-

(a) hasceasedtobeamemberofafund(inthissubsectionandsubsection(9)(c)calledthe“firstfund”);and

(b) is,undertherulesofanotherfundadmittedasamemberofthatotherfundandallowedtotransfertothatotherfundanybenefitoranyrighttoanybenefittowhichsuchpersonhadbecomeentitledundertherulesofthefirstfund,

thatfirstfundmust,notmorethan60daysfromthedatethat thepersonsorequestsinwriting, or, if applicable,within any longer period determined byNAMFISA onapplication by the first fund, transfer that benefit or right to that other fund in full,whichtransferissubjecttotherulesofthefirstfundasatthedateoftransferandtothedeductionsreferredtoinsection277. (7) For the purpose of monitoring and ensuring compliance with thissection, the principal officer of the fund or any other person authorised pursuant tosubsection (8)must submit reports to thecategoriesofpersonshavingan interest insuchcompliance,asspecifiedinthestandards,atthetimesandinthemannerandformatrequiredbythestandards. (8) Forthepurposesofsubsection(7),theboardofafundmayauthorisea person to perform the functions described in that subsection, and the boardmust,within the period set out in the standards, notifyNAMFISA inwriting of any suchauthorisation. (9) InterestatarateasprescribedbytheMinisterispayabletothefund-

(a) by the employer, member of the fund or any other person who isresponsible for transmission of the contributions to the fund on theamountofanycontributionnottransmittedintothebankaccountofafundbeforetheexpirationoftheperiodreferredtoinsubsection(3)(a);

(b) by the employer, member of the fund or any other person who isresponsible for transmission of the contributions to the fund on theamountofanycontributionnotreceived-

(i) byafundbeforetheexpirationoftheperioddeterminedundersubsection(3)(b);or

(ii) by the registered insurer concerned in the circumstancesreferred to in subsection (3)(c) before the expiration of theperioddeterminedunderthatsubsection;and

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(c) bythefirstfundonthevalueofanybenefit,orrighttoanybenefit,nottransferredbythefirstfundtotheotherfundreferredtoinsubsection(6)before theexpirationof theperiodof60days referred to in thatsubsectionoranylongerperioddeterminedbyNAMFISA.

(10) Forthepurposesofthissection,thefollowingpersonsarepersonallyliableforcompliancewiththissectionandforthepaymentofanycontributionsreferredtoinsubsection(1)-

(a) whereanemployerisacorporatebody,everydirectorofthatcorporatebody,includingtheprincipalofficer,whoisregularlyinvolvedinthemanagementoftheoverallfinancialaffairsofthecorporatebody;and

(b) whereanemployer isnotacorporatebody,everyperson, including,withoutlimitation,everytrusteeorpartner,whodirectsorinstructsthegoverningbodyoftheemployerorwhocontrolsorisregularlyinvolvedinthemanagementoftheoverallfinancialaffairsofthatemployer.

(11) DespiteanyprovisionoftheCompaniesAct,theInsolvencyActoranyotherlaw,ifacontributionbyanemployeroronbehalfoftheemployerandanyemployeeoremployees,isnotreceivedbytheduedateandtheemployerbecomesinsolventoranyclaimismadeagainst,orastatutorymanager,judicialmanager,aliquidator,oratrustee,asthecasemaybe,isappointedfor,theemployer,anamountequaltotheunpaidcontributionmustbesetasidefromtheassetsorestateoftheemployer,andconstitutesafirstchargeagainstsuchassetsorestateandtakesprecedenceover-

(a) anyclaimoforpaymenttoanycreditor,otherthanacreditorholdingsecurityonspecificandidentifiedmoveableor immoveablepropertyto the extent of that property, including any specialmortgage, legalhypothec,pledgeorrightofretention;and

(b) anypaymenttoshareholdersorotherowners,

including,withoutlimitation,thoseclaimsandpaymentsreferredtoinsections95to102oftheInsolvencyAct. (12) TheMinistermaymakeregulationsandNAMFISAmayissuestandardswithrespecttotheprotectionofunpaidcontributionsreferredtoinsubsection(11). (13) Any personwho contravenes or fails to complywith subsection (1)or(3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

PART 5RULES OF RETIREMENT FUND

Rules

271. (1) The rules of a registered fund must comply with therequirementsofthisActandmustcontainmattersthatmaybesetoutintheregulationsorinthestandards.

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(2) WheretherulesofafundareinconsistentwithanyprovisionofthisAct,therulesareinvalidtotheextentoftheinconsistency. (3) WheretherulesofafundareinconsistentwithanyprovisionofthisActandhavenotbeenamended,NAMFISAmustdirecttheboardofthefundtoamendtherulesofthefundandtheboardmustcomplywiththedirectionforthwith. (4) Despitesubsections(2)and(3),theboardofafundhasaperiodof12monthswithinwhichtoamendanyrulesofthefundwhichareinconsistentwiththisAct,whichperiodcommences,asapplicable,onthedate-

(a) ofcommencementofthisAct;

(b) onwhicharegulationrelatingtotherulescomesintoeffect;or

(c) onwhichastandardrelatingtotherulescomesintoeffect. (5) Aregisteredfundmustprovideanypersonwhobecomesamemberorbeneficiaryofthefundwithacopyoftherulesofthefund,freeofcharge,atthetimethatthepersonbecomesamember. (6) Any personwho contravenes or fails to complywith subsection (5)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Amendment of rules

272. (1) The board of a registered fundmay, in themanner directedbytherulesofthefund,amendorrescindanyruleormakeanyadditionalrule,butnosuchamendment,rescissionoradditionwillbevalidifitpurportstoaffectanyrightofacreditorofthefund,otherthanasamemberthereof. (2) Theboardofthefundmustsendacopyofanyamended,rescindedoradditionalruletoNAMFISAnotlessthan30daysbeforeitsimplementation,togetherwiththeparticularssetoutinthestandards. (3) If any such amendment, rescission or addition affects the financialpositionofthefund,theboardmustalsosendtoNAMFISAareportby-

(a) thevaluatorofthefund;or

(b) avaluatorretainedbythefundforthispurpose,ifnovaluatorhasbeenappointed,

astothesoundnessofthefinancialpositionofthefund,determinedinaccordancewiththestandards,havingregardtotherateofcontributionsbytheemployerandmembersand,ifthefundisnotinasoundfinancialposition,whatarrangementswillbemadetobringthefundintoasoundfinancialposition. (4) Inthecaseofanyamended,rescindedoradditionalruleofafundthatisadefinedcontributionfundorabeneficiaryfund,theboardmustalsosendtoNAMFISAareportconfirmingthattheamended,rescindedoradditionalrulehasnoeffectonthecurrentorprospectivefinancialpositionofthefund.

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(5) IfNAMFISA is not satisfiedwith a report referred to in subsection (3)or(4),NAMFISAmay,atthecostofthefund,requireareportbyanindependentvaluator that complies with the conditions set out in the standards and as may bespecifiedbyNAMFISA. (6) Theboardofafundmayatanytimeconsolidatetherulesofthefund,andinthatcasetheboardmustforwardtoNAMFISA,acopyoftheconsolidatedrules,butiftheconsolidatedrulesdifferfromtheoriginalrules,NAMFISAmustdirecttheboardtoamendtheconsolidatedrulessothattheydonotdifferfromtheoriginalrules. (7) Withrespecttotherulesofafund,NAMFISAmayrequestadditionalinformationregardinganyamendment,rescission,additionorconsolidationsubmittedto NAMFISA, as NAMFISA may consider necessary, and any such amendment,rescission,additionorconsolidationisvoidifthefundfailstofurnishtheinformationrequested byNAMFISAunder this subsectionwithin 30 days from the date of thatrequest. (8) IfatanytimeNAMFISAisoftheopinionthattherulesofafunddonotcomplywiththerequirementsofthisAct,NAMFISAmaydirecttheboardofthefundtoamendtherules. (9) The registered fund must send or cause to be send a copy of anyamendmentto,rescissionof,oradditionto,therulesofafundtoeverymemberofthefundfreeofcharge. (10) Any personwho contravenes or fails to complywith subsection (9)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Binding force of rules

273. SubjecttotheprovisionsofthisChapter,therulesofaregisteredfundare binding on the fund, the employer or employerswho subscribe to the fund, thesponsor,theboard,officersofthefund,membersofthefundandonanypersonwhoclaimsanybenefitundertherulesorwhoseclaimisderivedfromapersonsoclaiming.

PART 6SPECIAL PROVISIONS RELATING TO BENEFITS

Benefits not reducible, transferable or executable

274. (1) ExceptwherepermittedbythisChapter, theIncomeTaxActor theMaintenanceAct, a benefitwhich is provided for in the rules of a registeredfund,includinganannuitypurchasedortobepurchasedbythefundinthenameofthefund,thememberorabeneficiaryfromaregisteredfinancialinstitutionauthorisedbyNAMFISAfor thepurposeofproviding incomebenefitspayable in respectof fundsoriginatingfroma registeredfund,ora right tosuchbenefit,ora right in respectofcontributions made by or on behalf of a member, despite anything to the contrarycontainedintherulesofthefund-

(a) isnotcapableofbeingreduced,transferredorotherwiseceded;

(b) isnotcapableofbeingpledgedorhypothecated;

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(c) isnotliabletobeattachedorsubjectedtoanyformofexecutionunderajudgmentororderofacourt;or

(d) maynotbetakenintoaccountinadeterminationofadebtor’sfinancialpositionundersection65oftheMagistrates’CourtsAct,1944(ActNo.32of1944).

(2) If a member or beneficiary attempts to transfer or otherwise cede,pledgeorhypothecateabenefitorarightreferredtoinsubsection(1),theboardofthefundmaywithholdorsuspendpaymentthereof. (3) Subsections(1)and(2)donotapplytoatransfer,othercession,pledgeorhypothecationtosecureahousingloanmadetothememberorbeneficiary,ortoanattachmentorexecutionreferredtoinparagraph(c)ofsubsection(1)oradeterminationreferredtoinparagraph(d)ofthatsubsectioninconnectionwithsuchloan. (4) Subsection (1)doesnot apply toanythingdone towards reducingorobtainingsettlementofadebtwhich-

(a) inthecaseofafundtowhichtheFinancialInstitutionsAmendmentAct,1976(ActNo.101of1976)applies,arosebeforethecommencementofthatAct;

(b) in thecaseofa fund towhich theFinancial InstitutionsAmendmentAct, 1976 (Act No. 101 of 1976) does not apply, arose before thecommencement of the Financial InstitutionsAmendmentAct, 1977(ActNo.94of1977);

(c) theboardofafundmayreduceorsettleundersection277;or

(d) isowedtoafundbyamemberinrespectofcontributionsinarrears,but excludingamountswhichare inarrearsdue to the failureof theemployertopaythemember’scontributionstothefundafterdeductionthereoffromthemember’sremuneration.

Disposition of benefits upon insolvency

275. Iftheestateofanypersonentitledtoabenefitpayableundertherulesofaregisteredfund,includinganannuitypurchasedbythefundforthatpersonfromaregisteredfinancialinstitutionauthorisedbyNAMFISAforthepurposeofprovidingincome benefits payable in respect of funds originating from a registered fund, issequestratedorsurrenderedsuchbenefitoranypartthereofwhichbecamepayableafterthecommencementoftheFinancialInstitutionsAmendmentAct,1976(ActNo.101of1976) -

(a) is,subjecttotheprovisionsofsection274(4)andsection277,deemednottoformpartoftheassetsoftheinsolventestateofthatperson;and

(b) maynotinanywaybeattachedorappropriatedbythetrusteeintheinsolventestateorbythecreditorsofthatperson,despiteanythingtothecontraryinanylawrelatingtoinsolvency.

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Disposition of benefits upon death

276. (1) Despiteanythingtothecontrarycontainedinanylaworintherulesofaregisteredfund,anybenefitpayablebythatfunduponthedeathofamemberdoesnot,subjecttotheprovisionsofsection274(4)andsection277,formpartoftheassetsoftheestateofthatmember,butmustbedealtwithasfollows:

(a) theboardofafundmust,afterbeingnotifiedofthedeathofthemember,paynotmorethansuchpercentageofthebenefitastheboardconsidersprudent to thedependantsornomineesdesignatedonthebeneficiarynomination form in theproportionsspecifiedby thememberon thatform,butifthememberhadnot,onthebeneficiarynominationform,apportionedthebenefitamongthedependantsornominees,thebenefitmustbepaidtothemember’sdependantsornomineesintheproportionthattheboardofthefundconsidersequitable;

(b) iftheboardofthefundwithin12monthsofthenotificationofthedeathofthememberbecomesawareofortracesoneormoredependantsorone ormore nominees of themember, the remaining portion of thebenefitafterthepaymentreferredtoinparagraph(a),mustbepaidtosuchdependantsornominees in theproportion that theboardof thefund considers equitable, taking into account the amounts that mayalreadyhavebeenpaidtodependantsornomineesunderparagraph(a);

(c) iftheboardofthefunddoesnotbecomeawareoforcannottraceanymore dependants or nominees of the member within 12 months ofthe notification of the death of themember, the boardmust pay theremaining portion of the benefit referred to in paragraph (b) to thedependantsornomineeornomineesreferredtoinparagraph(a)insuchproportionsastheboardconsidersequitable;

(d) ifamemberhasadependantandthememberhasalsodesignatedinwritingtothefundanomineetoreceivethebenefitorsuchportionofthebenefitasisspecifiedbythemember,theboardofthefundmustwithin12monthsofthenotificationofthedeathofsuchmemberpaythe benefit or such portion thereof to that dependant or nominee insuchproportionastheboardmayconsiderequitable,exceptthatthisparagraphdoesnotprohibitafundfrompayingthebenefiteithertoadependantortoanomineereferredtointhisparagraphor,ifthereismorethanonesuchdependantornominee,proportionatelytoanyorallofthosedependantsandnominees;or

(e) iftheboardofthefunddoesnotbecomeawareoforcannottraceanydependantofthememberwithin12monthsofthenotificationofthedeathofthememberandifthememberhasnotdesignatedanomineeor inacasewherethebeneficiarynominationformisnotcompletedandreturnedtotheboardoriftheformisillegibleorincomprehensible,or mutilated beyond repair or otherwise invalid, the automaticbeneficiaries,inorderofpreferenceare-

(i) childrenofthememberwhohaveattainedtheageof18yearsinequalshares;andifnoneexist

(ii) parentsofthememberinequalshares;andifnoneexist

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(iii) siblingsofthememberinequalshares;andifnoneexist

(iv) theestateof themember, and ifno inventory relating to theestateofthememberhasbeenreceivedbytheMasteroftheHighCourtundertheAdministrationofEstatesAct,1965(ActNo.66of1965),intotheGuardian’sFund.

(2) Forthepurposeofthissection,paymentbytheboardofafundforthebenefitofadependantornomineewillbeconsideredtobeapaymenttosuchdependantornominee,ifpaymentismadeto-

(a) atrusteeundertheTrustMoneysProtectionAct,nominatedby-

(i) themember;

(ii) subjecttoparagraph(iii),amajordependantornominee;or

(iii) apersonrecognisedinlaworappointedbythecourtasacuratorresponsibleformanagingtheaffairsofaminordependantornomineeoramajordependantornomineenotabletomanagehisorherownaffairs;

(b) a person recognised in law or appointed by the court as the personresponsibleformanagingtheaffairsofadependantoranominee;or

(c) aregisteredbeneficiaryfund.

(3) Any benefit dealtwith under this section that is payable to aminordependantorminornomineemaybepaidinmorethanonepaymentinsuchamountsas theboardof thefundmayfromtime to timeconsiderappropriateand in thebestinterestsofsuchdependantornominee,exceptthat-

(a) interest at a reasonable rate, having regard to the investment returnearnedbythefundinrespectoftheoutstandingbalance,mustbeaddedtothebalance,atsuchtimesastheboardmaydetermine;and

(b) anybalanceowingtothedependantornomineeatthedateonwhichheorsheattainsmajorityordies,whicheveroccursfirst,mustbepaidinfull.

(4) Abenefitreferredtointhissection,andwhichmustbepaidtoamajordependantormajornominee,maybepaidinmorethanonepaymentifthedependantornomineehasconsentedtheretoinwriting,exceptthat-

(a) theamountofthepayments,intervalsofpayment,interesttobeaddedandother termsandconditionsaredisclosed inawrittenagreement;and

(b) theagreementmaybecancelledbyeitherpartyonwrittennoticenotexceeding90days.

(5) Iftheagreementreferredtoinsubsection(4)iscancelledthebalanceofthebenefitmustbepaidtothedependantornomineeinfull.

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(6) Theprovisionsofsubsections(3)and(4)donotapplytoaregisteredbeneficiaryfund,andanyremainingassetsheldforthebenefitofthedeceasedbeneficiaryinsuchafundmustbepaid-

(a) intotheestateofsuchbeneficiary;or

(b) if no inventory relating to the estate of the beneficiary has beenreceivedbytheMasteroftheHighCourtpursuanttosection9oftheAdministration of EstatesAct, 1965 (ActNo. 66 of 1965), into theGuardian’sFund.

Deductions from benefits

277. (1) Theboardofaregisteredfundmaydeductfromabenefit towhich amember or a beneficiary becomes entitled under the rules of the fund anyamount-

(a) dueandpayablebythememberastaxinaccordancewiththeIncomeTaxAct;

(b) dueonthebenefitinquestionbythememberinrespectof-

(i) aloanprescribedbytheregulationsgrantedtothemember;or

(ii) any amount for which the fund becomes liable under aguarantee furnished in respect of amember for such a loangrantedbysomeotherpersontothemembernotexceedingtheamountwhich,undertheIncomeTaxAct,maybetakenbyamemberorbeneficiaryasalumpsumbenefit;

(c) dueby themember tohisorher employeron thedateofhisorherretirementoronwhichthememberceasestobeamemberofthefund,inrespectof-

(i) aloangrantedbytheemployertothememberforanypurposereferredtointheregulations;or

(ii) anyamountforwhichtheemployerisliableunderaguaranteefurnished in respect of a loan by some other person to themember for any purpose referred to in the regulations notexceedingtheamountwhich,undertheIncomeTaxAct,maybetakenbyamemberorbeneficiaryasalumpsumbenefit;or

(d) whichthefundhaspaidorwillpaybyarrangementwith,andonbehalfof,amemberorbeneficiaryinrespectof-

(i) thatmember’s or beneficiary’s subscription to amedical aidfund,registeredunderChapter7;

(ii) funeralexpensesassociatedwiththedeathofthemember;or

(iii) anyinsurancepremiumpayablebysuchmemberorbeneficiarytoaninsurerregisteredunderChapter2;

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andthatamountmustbepaidtothemedicalaidfund,insurerorpersonconcerned,asthecasemaybe. (2) Theboardofafundmaydeductfromabenefitorinterestofamemberorfromthecapitalvalueoftheretirementbenefitofaformermember,asthecasemaybe,anyamount-

(a) payablepursuanttoamaintenanceorderasdefinedinsection1oftheMaintenanceAct;or

(b) requiredtobedeductedorwithheldasemployee’staxundertheFourthScheduletotheIncomeTaxActasaresultofadeductionreferredtointhissubsectionorsubsection(1).

(3) Theboardofafundmayreduceamember’s individualaccount inadefinedcontributionfundorthemember’sbenefitinanyotherfundwithanactuarialequivalentreductioninthebenefitspayablebysuchafundinfuture,inordertopaysuchamounttotherelevantpersoninrespectof-

(a) aloangrantedtoamemberpursuanttotheregulations;

(b) an amount for which the fund becomes liable under a guaranteefurnished in respect of amember for a loan granted by some otherpersontothemember;or

(c) an amount payable pursuant to a maintenance order as defined insection1oftheMaintenanceAct,

if-

(i) themember is transferring to another fund and theboardofthefundissatisfiedthatitisnototherwisereasonablypossibletonegotiaterepaymentortotransfertheloanguaranteetothetransfereefund;

(ii) thememberhasdefaultedontherepaymentoftheloangrantedto themember by the fundpursuant to the regulations or inrespectofwhichthefundhasprovidedaguaranteepursuanttotheregulationsincircumstanceswherehisorhermembershipof the fund is not terminated, and such reduction is onlyeffectedasalastresortaftertheboardofthefundissatisfiedthatnootherarrangementfortherepaymentcanbemade;or

(iii) theboardisorderedbyacourttomakesuchadeduction. (4) Forthepurposesofsubsection(3)(a)and(b),theamountssodeductedwillbeconsideredtobeabenefittowhichthememberbecomesentitledonterminationofhisorhermembershipofthefundforreasonsotherthanasaresultofretirementordeatharisingatthedateofthetransfer,defaultorcourtorder. (5) Anyamountthatmaybedeductedpursuanttosubsection(2)(a)or(3)(c)mayonlybedeductedaftertheamountofanybenefitavailablehasbeenreducedbyanyloanamountorguaranteeamountreferredtoinsubsection(1)(b),(3)(a)or(3)(b)wheretheloanorguaranteewasprovidedpriortothegrantingofthemaintenance

236

order,irrespectiveofwhetherornotthatamountisdueandpayable,providedthattheaggregateofallamountsdeductedunderthissubsectionmustnotexceedthemember’sbenefitavailableatanygiventime.

PART 7GENERAL

Voluntary dissolution of fund

278. Subject to the requirementsofanyregulationsmadeby theMinisterandstandardsissuedbyNAMFISAunderthisAct,aregisteredfundmaybeterminatedordissolved,whollyorinpart,insuchcircumstances,ifany,asmaybespecifiedforthatpurposeinitsrulesandinthemannerprovidedbysuchrules,andsubjecttothepriorapprovalofNAMFISA,theassetsofthefundmustinthatcasebedistributedinthemannerprovidedbytherules.

Winding-up by court

279. (1) If-

(a) NAMFISA is satisfied that a fund is in such an unsound financialcondition that any scheme as contemplated byPart 7 ofChapter 10wouldbeineffective,impracticableorunsatisfactory;or

(b) afundisrequiredunderanyprovisionofthisActtowound-upunderthissection,

NAMFISAor a person actingwith the approval ofNAMFISAmay, if the fundhasassetsandliabilitiesequaltoorexceedingthevaluesthataresetoutinthestandards,applytotheHighCourtforanorderthatthewholeoranypartofthebusinessofthefundbewound-up. (2) An application for the winding-up, and the winding-up, of a fundpursuanttosubsection(1)mustbedoneaccordancewiththeregulationsmadebytheMinisterandstandardsissuedbyNAMFISAunderthisAct.

Special provisions relating to liquidation of funds

280. When applying the provisions of theCompaniesAct in a voluntarydissolutionorwinding-upofaregisteredfund,themembersofthefundmustbetreatedaspreferredcreditors,andtheirclaimsagainstthefundintheircapacityasmembersmustbesettledbeforethedebtsowedtoordinarycreditorsofthefund.

Right to obtain and inspect documents

281. (1) Theboardofaregisteredfundmustonrequestbyamemberor a person authorised by amember, provide thatmember or authorised person, onpaymentofsuchfeeasmaybedeterminedbythestandardsandreflectedintherulesofthefund-

(a) withacopy,additionaltotheoneprovidedundersection271(5),oftherulesofthefund;

(b) withacopyofthemostrecentfinancialstatementsofthefund;and

237

(c) withacopyofthemostrecentreportbyavaluatorpreparedpursuanttosection268.

(2) Amemberorapersonauthorisedbyamembermay,withoutcharge,attheprincipalofficeofafund,inspectacopyofanyofthefollowingdocumentsandmakeextractstherefrom-

(a) thedocumentsreferredtoinsubsection(1);

(b) anyschemewhichisbeingcarriedoutbythefundinaccordancewiththeprovisionsofthisAct;

(c) suchotherdocumentsasNAMFISAmaydirect. (3) NAMFISAmayissuestandardswithrespecttoanyreportsandotherinformationthattheboardofaregisteredfundmustprovidetomembersofthefundfreeofcharge. (4) Any personwho contravenes or fails to complywith subsection (1)or(2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Investments

282. (1) Subject to the provisions of this section and the regulationsmadebytheMinisterandstandardsissuedbyNAMFISA,afundmayinvestitsfundsinanymannerprovidedbyitsrulesandinvestmentpolicy. (2) Afundmay,where its rules soprovide,bywayof investmentof itsfunds, grant loans secured by first mortgages of immovable property to any of itsmembers, if themortgagedpropertyispropertyonwhichadwellinghousehasbeenoristobeerected,buttheloansmaynotexceedthepercentageofthefairvalueoftheimmovablepropertyconcerned,asprovidedinthestandards. (3) NAMFISA may, under exceptional circumstances, and on suchconditionsand for suchperiodsasNAMFISAmaydetermine, temporarilyexemptafundfromcompliancewiththeprovisionsofsubsection(2). (4) Despitesubsection(1),aregisteredfundmaynotinvestanyofitsassetsinthebusinessofanemployerwhoparticipatesintheschemeorarrangementwherebythefundhasbeenestablishedorinanysubsidiaryofthatemployer’sbusinessorlendanyofitsassetstotheemployerorsubsidiary,but-

(a) theMinistermay,inaccordancewiththeregulations,exemptwhollyorinpartanyfundestablishedorconductedbytheState,byapublicenterpriseasdefinedinsection1ofthePublicEnterprisesGovernanceAct, 2006 (Act No. 2 of 2006) or by any statutory body or utilityundertakingestablishedbyorunderanylawfromcomplyingwiththeprovisionsofthissubsection;and

(b) NAMFISA may, subject to such conditions that may be set in thestandards,onapplicationmadetoitinaccordancewiththestandards,exemptafundfromcomplyingwiththeprovisionsofthissubsection.

238

(5) TheMinistermaymakeregulationsandNAMFISAmayissuestandardsinrespectoftheinvestmentsby,orof,afund. (6) Anypersonwhocontravenesorfailstocomplywithanyconditiononwhichanexemptionhasbeengrantedpursuanttosubsection(4)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.


283. Withtheexceptionofsection276(2)(a),theTrustMoneysProtectionActdoesnotapplytoafundregisteredunderthisChapter.

CHAPTER 6FRIENdLY SOCIETIES

PART 1PRELIMINARY



“assets”,inrelationtoafriendlysociety,meanstheassetsofthatsocietyastheywouldbereflectedinanystatementofitsassetspreparedinaccordancewiththerequirementsofthestandards;

“boardoftrustees”or“board”meanstheboardoftrusteeschargedwithmanagingtheaffairsofafriendlysociety,whichhasbeenelectedorappointedunderitsrules;

“fairvalue”,inrelationtoanassetofafriendlysociety,meansthefairvalueofthatassetdeterminedinaccordancewithgenerallyacceptedaccountingpractice;

“friendlysociety”means-

(a) anassociationof individualsestablishedforanyof theobjects referred to insection285;or

(b) a business carriedonunder a schemeor arrangement for anyof theobjectsreferredtoinsection285;

“liabilities”,inrelationtoafriendlysociety,meanstheliabilitiesofthatsocietyastheywouldbe reflected inanystatementof its liabilitiesprepared inaccordancewith therequirementsofthestandards;

“member”meansapersonwhocontributestoafriendlysocietyinordertoobtainanybenefitreferredtoinsection285eitherforthatpersonorforanyotherpersonreferredtointhatsection;

“rules”meanstherulesofasocietyreferredtoinsection307;

“society”meansafriendlysociety;

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“society administrator”means a society administrator as defined in section 363 andappointedpursuanttosection301(3);and

“sponsor” meansthepersonwhoestablishedasocietyorwhoproposestoestablishasociety. (2) Any reference in this Chapter to a friendly society referred to inparagraph(b)ofthedefinitionof“friendlysociety”mustbeconstruedasareferencetothatfriendlysocietyortotheindividualorentitythatcontrolstheaffairsofthatfriendlysociety,asthecasemaybe.

Objects of friendly society

285. (1) Subjecttosubsection(2),afriendlysocietymaybeestablishedforoneormoreofthefollowingobjects:

(a) therelieformaintenanceduringminority,oldageorwidowhood,orsickness or other infirmity,whether physical ormental, ofmembersor their spouses, widows, widowers, children or other relatives ordependants;

(b) thegrantingofannuities,whetherimmediateordeferred,tomembersortheirnomineesortheendowmentofmembersortheirnominees;

(c) thepaymentofasumofmoneyorotherbenefittobepaidorprovided-

(i) onthebirthofachildofamember;

(ii) onthedeathofamemberoranypersonreferredtoinparagraph(a),whichmaybeintheformofanendowmentinsuranceonthelifeofthememberorthatperson;

(iii) towardstheexpensesincurredinconnectionwiththedeathorfuneralofamemberoranypersonreferredtoinparagraph(a);or

(iv) during a period of mourning by a member or any personreferredtoinparagraph(a);

(d) theinsuranceagainstfireorothercontingenciesoftheimplementsoftradeorcallingofmembers;

(e) thepaymentofasumofmoneywhenamemberleavestheserviceofhisorheremployerduetodismissal,resignationorotherwise,unlesstheprincipalobject is thepaymentofasumofmoneyonamemberleavingsuchservicebecauseofmarriageorintendedmarriage;

(f) the relief or maintenance of members or any group of members,when unemployed or in distressed circumstances otherwise than inconsequenceof theexistenceofastrikeor lockoutasdefined in theLabourAct,2007(ActNo.11of2007);

(g) thepaymentofsumsofmoneyfortheadvancementoftheeducationortrainingofmembersorofthechildrenofmembers;and

240

(h) suchotherobjectsastheMinistermaybynoticeundersubsection(3)declare to be objects in respect ofwhich a friendly societymay beestablished.

(2) Anassociationorbusinessisnotafriendlysocietyif-

(a) thepersonsentitledtothebenefitsreferredtoinsubsection(1)donotcontributetothatassociationorbusiness;

(b) any of the activities of the association or business are those of aretirementfundgovernedbyChapter5;

(c) undertherulesoftheassociationorbusiness,eachmemberisentitledatalltimestowithdrawthefullamountofthemember’scontributions,onsuchnoticeasmayberequiredinthoserules;or

(d) thebenefitsreferred to insubsection(1)areprovidedexclusivelybywayofloanswhichundertherulesoftheassociationorbusinessmustberepaid.

(3) TheMinistermayforthepurposesofsubsection(1)(h)bynoticeintheGazette declareotherobjectsinrespectofwhichafriendlysocietymaybeestablished. (4) TheMinistermay,bynoticeintheGazette,declarethatanymonetarybenefit paid under subsection (1) may not exceed such amounts as the Ministerdeterminesinthatnotice.

Application of Chapter

286. (1) This Chapter does not apply to a friendly society if theaggregatevalueoftheincomeofthatsocietydoesnotexceedtheamountprescribedbytheMinister,butthatsocietymustneverthelesscomplywiththeprovisionsofanystandardthatmaybemadebyNAMFISAinrelationtosuchsocieties. (2) NAMFISAmayinitsdiscretionandsubjecttoanyconditionsprovidedby the standards exempt a friendly society from the operation of any or all of theprovisionsofthisChapter. (3) NAMFISA may at any time by notice to a society referred to insubsection (2), withdraw, wholly or in part and on any grounds which NAMFISAconsiderssufficient,anyexemptiongrantedundersubsection(2). (4) Anypersonwhocontravenesorfailstocomplywithanyconditiononwhichanexemptionhasbeengrantedpursuanttosubsection(2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Prohibitions

287. (1) ApersonmaynotcarryonthebusinessofafriendlysocietyinNamibiaunlessthatpersonisregisteredasasocietypursuanttosection291ordeemedtoberegisteredundersection292orsection286(1)or(2)applies.

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Restriction on use of designation “friendly society”

288. (1) Apersonmaynotuse,inconnectionwithabusiness,anamewhich includes thewords“friendlysociety”oranyothernamewhich is intended toindicateorislikelytoleadotherpersonstobelievethatthepersoncarriesonthebusinessofafriendlysociety,unlessthatbusinessisregisteredordeemedtoberegisteredasafriendlysocietyunderthisChapterorsection286(1)or(2)applies. (2) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(1)andtheperson-


(b) producesanydeedordocument,bearingthepreviousnamewhichwasregisteredinanydeedsregistryorinanyotherofficewherearegisterorrecordoftheownershipof,orentitlementto,anypropertyiskept,tothepersonchargedwiththeregistrationofdeedsinthatregistryortotheofficerinchargeofthatotheroffice;and

(c) satisfiesthatpersonorofficerthatthenamewaschangedasaresultoftheprohibitioncontainedinsubsection(1),

thatpersonorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonsuchdeedordocumentandinalltherelevantregisters. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

PART 2REGISTRATION


289. (1) An application for registration as a friendly societymust bemadetoNAMFISAinaccordancewithsubsection(2). (2) Anapplicationforregistrationasafriendlysocietymustbe-





242


(f) accompaniedbytherequiredfee. (3) In addition to the requirements of subsection (2), an application forregistrationreferredtoinsubsection(1)mustinclude-

(a) therulesofthefriendlysociety;and

(b) suchfinancialguaranteesasmaybesetout inthestandardsandthatNAMFISAmaydemandfromthepersonwhowillmanagethebusinessof the society, to ensure the future financial stability of the friendlysociety.


290. (1) Beforeapprovingtheapplicationandregisteringtheapplicantas a friendly society, NAMFISA must be satisfied on reasonable grounds that therequirementsofsubsection(2)havebeenmetandthat-

(a) therulesofthesocietyarenotinconsistentwiththisActandarebasedonsoundfinancialprinciples;

(b) thesocietyhasasufficientnumberofmemberswhowillcontributetothesociety,asrequiredbythestandards;

(c) the society does not and will not unfairly discriminate directly orindirectlyagainstanyperson;and

(d) theguaranteereferredtoinsection289(3)(b)issatisfactory. (2) Before approving an application referred to in subsection (1) andregisteringasocietyNAMFISAmustbesatisfiedthat-

(a) inrelationtotheproposedsociety-

(i) everymemberoftheboardoftrustees,theprincipalofficerandotherofficersoftheproposedsociety,arefitandproperwithinthemeaningofthestandards;

(ii) theconstitutionandrulesorotherfoundingdocumentsoftheproposed society are not inconsistentwith the provisions ofthisAct;

(iii) the direct or indirect control of the proposed society is notlikelytobecontrarytotheinterestofconsumersofthefinancialservicesconcerned;and

(iv) the proposed societywill be in a position to ensure that itsorganisationalorgroupstructurewillnotbesuchastohindereffectivesupervisionbyNAMFISA;


243

(i) thisAct;or


(c) the proposed society has the attributes reasonably necessary andadequateto-




(d) the name under which the proposed society proposes to conductbusiness,oratranslation,shortenedformorderivativeofthatnameisnotincontraventionofsection391;


(f) theapplicanthascompliedandwillcontinuetocomplywithanyotherrequirementscontainedinthisActorinthestandardswhichapplytotheproposedsociety.

Registration

291. (1) If NAMFISA is satisfied that the applicant complies withthe requirementsofsection290,NAMFISAmust register theapplicantasa friendlysociety,subjecttoanyconditionswhichNAMFISAmayconsiderappropriatepursuanttosubsection(4),andmustissueacertificateofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA.

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(6) Afriendlysocietymustcomplywiththeconditionssubjecttowhichitwasregistered.

Existing friendly societies

292. (1) AfriendlysocietythatwasregisteredinNamibiapriortothecommencementofthisChapterunderanylawrepealedbythisActisdeemedtobeasocietyregisteredunderthisAct. (2) Despitesubsection(1),afriendlysocietyreferredtointhatsubsectionmust, within 12months after the date of commencement of this Chapter, make anapplicationtoNAMFISApursuanttosection289forregistrationasafriendlysociety. (3) If a friendly society referred to in subsection (1) fails to make anapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),NAMFISAmaytakeactionthatNAMFISAconsidersappropriateagainstthefriendlysocietypursuanttosection295,412or439.


293. (1) Onregistrationofafriendlysocietyundersection291,insofarasisapplicable-


(b) despite anything to the contrary contained in any law or in theconstitution, rules or other founding documents or of any corporatebodyorunincorporatedentitythatcontrolsthebusinessofthesociety-

(i) all the assets, rights, liabilities and obligations pertaining tothebusinessofthesocietywillbeassets,rights,liabilitiesandobligationsof that registered society to theexclusionof anyotherperson;and

(ii) no personwill have any claim on the assets or rights or beresponsible for any liabilities or obligations of the society,exceptinsofarastheclaimhasarisenortheresponsibilityhasbeen incurred in connectionwith transactions relating to thebusinessofthesociety;and

(c) any assets, rights, liabilities and obligations,which are held by anyperson in trust for the society as it existed immediately prior to itsregistration,willvestinanddevolveupontheregisteredsocietywithoutanyformaltransferorcession.

(2) Thepersoninchargeofthedeedsregistryoranyotherofficerinchargeofanyotherofficewherearegisterorrecordoftheownershipof,orentitlementto,anypropertyiskeptinwhichisregisteredadeedorotherdocumentrelatingtoanassetorrightwhichundersubsection(1)vestsinordevolvesuponafriendlysocietymust,onproductionbythefundofitscertificateofregistrationandofthedeedorotherdocument,

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withoutpaymentoftransferduty,stampduty,registrationfeesorothercharges,maketheendorsementsuponthatdeedorotherdocumentandthealterationsintheregistersinordertoreflectthatvestingordevolution.


294. (1) Atanytime,aregisteredsocietymaymakeanapplicationtoNAMFISAforcancellationoftheregistrationgrantedpursuanttothisActoravariationoftheconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-






(b) either-








246


295. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2), in the event that NAMFISA, acting reasonably, finds that a registered friendlysociety-










(j) amemberof theboardof trustees, theprincipalofficer,otherofficernolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredfund:




(3) NAMFISAmustgivenoticetotheregisteredfundoftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(2), togetherwiththereasonstherefor, andmust give the registered fund a reasonable opportunity to be heard byspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredfriendlysocietymaymakerepresentationstoNAMFISAonthematter. (4) Subject to such conditions as NAMFISA may impose, NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredfriendlysociety.

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(5) On the cancellation of the registration of a friendly society undersection294(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct-

(a) the friendly society must be dissolved in accordance with therequirements of section 316 or wound-up in accordance with therequirementsofsection317,asapplicable,andtherulesofthefund;and

(b) NAMFISAmusttakesuchstepsandmayimposesuchconditionsasarenecessaryinthecircumstances,whichstepsmayincludethetransferof thebusinessof the friendlysociety toanother friendlysociety,asappropriate,butnodistributionoftheassetsofthefriendlysocietymaybemadewithoutthepriorapprovalofNAMFISA.


(a) continuestooperate,orcarryon,thebusinessofafriendlysocietyafterthecancellationofregistrationundersection294(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(4);or





296. (1) Everyregisteredfriendlysocietymust-





(iii) mustbeamemberoftheboardofthefriendlysociety. (2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiod

248

asmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),theregisteredfundmust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment. (4) NAMFISAmay,onthegroundsthataprincipalofficerisnotafitandproperperson,withinthemeaningofthestandards,andaftergivingtheregisteredsocietyand the principal officer a reasonable opportunity to be heard, direct the registeredsocietytoappointsomeotherpersontobetheprincipalofficeroftheregisteredsociety. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregisteredsocietyorbytheexpiryofacontractofemployment,the registered society must, within the period set out in the standards, in writingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredsociety,thereasonsfortheresignation. (6) TheprincipalofficerofregisteredfundisauthorisedtoactonbehalfofthefriendlysocietytoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswiththatfriendlysociety,thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (7) Processinanylegalproceedingsmaybeservedonaregisteredfriendlysocietybyservingacopythereofatitsprincipaloffice. (8) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Board of friendly society

297. (1) Aregisteredfriendlysocietymusthaveaboardconsistingofpersonswhoarefitandproperwithinthemeaningofthestandards. (2) Despiteanyruleofthefriendlysociety,butsubjecttosection298,theboardofaregisteredfriendlysociety,mustconsistofaminimumofthreemembersallofwhomareelectedorappointed,whetherdirectlyorindirectly,bythemembersofthefriendlysocietyinaccordancewiththerulesofthatsociety. (3) Subsections(1)and(2)comeintoforceonthedatewhichis90daysafterthedateofcommencementofthisChapter. (4) Apersonmaynotbeamemberof theboardofa registeredfriendlysociety,ifthatpersonis-

(a) a director or an officer or employee of the friendly society or anadministrator of the friendly society or of the holding company,subsidiary, jointventureorassociateof thefriendlysocietyorof thesocietyadministrator;

(b) a consultant to or contractor under an agreement with the societyadministrator;or

249

(c) afinancial institution orfinancial intermediary that rendersfinancialservicestotheregisteredfriendlysocietyoritsboardoftrustees.

(5) Subjecttosubsection(1),therulesofafriendlysocietymust-



(c) requirethattheboardmeetatleastfourtimesayear;and

(d) providethatallmeetingsoftheboardareheldinNamibia. (6) Therulesofaregisteredfriendlysocietymustbeamendedinaccordancewithsection308tocomplywithsubsections(1),(2),(4)and(5)within90daysafterthedatereferredtoinsubsection(3). (7) Whereaboardconsistsofthreemembersorpursuanttosection298,lessthanthreemembers,allthemembersoftheboardconstituteaquorumforameetingofthatboard. (8) Ifaboardmemberisremovedfromofficeforreasonsotherthantheexpirationofthatmember’stermofappointmentorvoluntaryresignation-

(a) theboardmembermustwithin21daysoftheremovalsubmitawrittenstatement to NAMFISA of the reasons, in the opinion of the boardmember,forthetermination;


(9) Aboardmembermust,atanytime, informNAMFISAinwritingonbecomingawareofanymaterialmatter relating to theaffairsof the friendly societywhich, in the opinion of the board member, may seriously prejudice the financialviabilityofthefriendlysocietyorthebenefitsorrightsofitsmembers. (10) A person who contravenes or fails to comply with subsection (9)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Exemptions

298. (1) NAMFISA may on written application by the board of aregistered friendly society and subject to such conditions asmay be determined byNAMFISAauthorisethefriendlysocietytohaveaboardconsistingoflessthanthreemembersifthatnumberisimpracticalorunreasonablyexpensive.

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(2) NAMFISAmaywithdrawanexemptiongrantedundersubsection(1)ifafriendlysocietynolongerqualifiesforsuchexemptionorifNAMFISAregardssuchexemptionnolongertobeinthepublicinterest.


299. (1) Ontheterminationofofficeforanyreasonofamemberoftheboardofaregisteredfriendlysociety,apersontoreplacesuchmembermust,subjecttosection297(1)and(2),beelectedorappointedinthemannersetoutintherulesofthefriendlysociety,andtheboardmustnotifyNAMFISAforthwithoftheterminationandreplacement. (2) Apersonwhoiselectedorappointedasamemberoftheboardofthefriendlysocietypursuanttosubsection(1)or(3)mustbeafitandproperpersonwithinthemeaningofthestandardsandsuchelectionorappointmentmustcomplywiththeprovisionsofsections297and298. (3) Atanytime,NAMFISAmay,onthegroundsthatanymemberoftheboardofaregisteredfriendlysocietyisnotafitandproperpersonwithinthemeaningofthisAct,theregulationsandthestandardsandaftergivingtheboardandthememberoftheboardinquestionareasonableopportunitytobeheard,direct-


(b) in case the remaining number of members is less than the numberrequiredby section297or298, as applicable,orby the rulesof thefriendly society, that some other person who complies with theprovisionsofsubsection(2)beelectedorappointedtotheboardofthefriendlysociety.

Objects of board

300. (1) Theobjectsoftheboardofaregisteredfriendlysocietyaretodirect,controlandoverseetheoperationsofthefriendlysocietyinaccordancewiththisActandtherulesofthesociety. (2) Inpursuingitsobjectstheboardmust-

(a) takeallreasonablestepstoensurethattheinterestsofmembersunderthe rules of the friendly society are protected and that the friendlysocietycomplieswiththeprovisionsofthisActandtherules;




(e) actwithimpartialityinrespectofallmembersandbeneficiaries. (3) Themembersoftheboardofthefriendlysocietymust,within30daysof theendofeachfinancialyear,disclose inwriting toNAMFISAanypaymentsor

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otherconsiderationsmade,whetherdirectlyorindirectly,totheminthatparticularyearbythefriendlysocietyorbyacontractorwiththefriendlysociety. (4) Amemberoftheboardoftrusteeswhocontravenesorfailstocomplywithsubsection(3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Duties of board

301. (1) In addition to the duties of a board of a registered friendlysocietysetoutintherulesofthefriendlysocietyandinsection395,thedutiesoftheboardofaregisteredfriendlysocietyareto-

(a) ensurethatproperregisters,booksandrecordsoftheoperationsofthefriendly societyarekept, includingproperminutesof all resolutionspassedbytheboard;


(c) ensurethattheassetsofthefriendlysocietyareinvestedinaccordancewiththeinvestmentpolicyestablishedbytheboardwhichisappropriateto thenatureandfinancialcircumstancesof the friendlysociety,andwhichtheboardimplementsandregularlyreviewsaftertakingexpertadvice;

(d) ensurethattherisksofthefriendlysocietyareappropriatelymanagedincludingensuringthatpropercontrolsystemsandfunctionalseparationofdutiesareemployedbyoronbehalfofthefriendlysociety;

(e) ensure that adequate and appropriate information is communicatedtomembersofthefriendlysociety,employersandsponsorspursuantto a communication strategy consistentwith the standards issuedbyNAMFISA;

(f) takeallnecessarystepstoensurethatcontributionsarepaidinatimelymannertothefriendlysocietyinaccordancewiththisChapter;


(h) ensurethattherulesandtheoperationandadministrationofthefriendlysocietycomplywiththisActandotherapplicablelaws;



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(i) thefinancialpositionofthefriendlysociety;

(ii) theinvestmentpolicyofthefriendlysociety;




(2) If,despitethestepstakenbytheboardofaregisteredfriendlysocietypursuant tosubsection(i)(f),contributions to thefriendlysocietyremainoutstandingforsuchperiodasisspecifiedbyNAMFISAinthestandardstheboardmust,withintheperiodspecifiedinthestandards,notifyallactiveandretiredmembersofthefriendlysocietyandNAMFISAofthisfact. (3) Theboardofafriendlysocietymay, inaccordancewithasystemofdelegation set out in the rules of the friendly society,which systemmustmaximiseadministrativeandoperational efficiencyandprovideadequatechecksandbalances,appoint a society administrator to exercise anyof itspowersof administrationor toperformanyofitsadministrativedutiesorfunctionsaslongas-

(a) the society administrator is registered by NAMFISA as a societyadministratorpursuanttosection368;

(b) theboardhasdetermined,after takingexpertadvice, that thesocietyadministrator has qualifications and experience relevant to theadministrationofthefriendlysocietyinquestion;and

(c) theboardhasenteredintoacontractwiththesocietyadministratorthatcomplieswiththerulesofthefriendlysocietyandthepoliciesoftheboard.

(4) Theboardisnotdivestedorrelievedofanypowerordutyorfunctiondelegated or assigned under subsection (3), and may, if necessary, withdraw thedelegationorassignmentatanytimeonreasonablenotice. (5) Assoonaspossibleafteracontractreferredtoinsubsection(3)(c)hasbeenenteredinto,theboardmustfileacopyofthecontractwithNAMFISA. (6) Asocietyadministratorthatentersintoacontractwiththeboardofafriendly societypursuant to subsection (3)(c)has afiduciaryduty and responsibilitytothefriendlysocietyandmustexercisethepowersdelegatedorperformthedutyorfunctionassignedtoitwiththestandardexpectedofanexpert. (7) Whereaboarddelegatesapowerorassignsadutyorfunctionpursuantto this section, theboardmustmonitor theperformanceof the societyadministratorwithrespecttothestandardsdescribedinthecontractandtakeremedialactionifthatperformancefailstoachievethosestandards.

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(8) Administrationinrespectofafriendlysocietymeanstherenderingofanyformofadministrationserviceasdefinedinsection363tothesociety. (9) Asocietyadministratormust,inrelationtoafriendlysociety,performthefunctionsanddutiesentrustedtothesocietyadministratorbysection374.


302. (1) ExceptwheretheaccountsofafriendlysocietyaretobeauditedbytheAuditor-GeneralpursuanttoanotherlawofNamibia,aregisteredfriendlysocietymust, in accordancewith section 401 and in themanner set out in the rules of thesociety,appointandatalltimeshaveanauditororfirmofauditorstobetheauditorofthesociety. (2) Thefriendlysocietymaynotappointastheauditorofthesociety-



an -

(i) employeeorofficerofthesociety,anindividualwhocontrolstheaffairsofthesociety,oranemployee,officerormemberoftheboardofanentitythatcontrolstheaffairsofthesociety;or

(ii) employeeorofficerofasocietyadministratorofthesocietyoramemberoftheboardofasocietyadministratorofthesociety.

(3) NAMFISAmaydirectafriendlysocietytochangetheauditorofthesocietyifNAMFISAissatisfiedthattheauditororanymemberofthefirmofauditorsappointedasauditorisan-

(a) employee or officer of the society, an individual who controls theaffairsofthesocietyoranemployee,officerormemberoftheboardofanentitythatcontrolstheaffairsofthesociety;or

(b) employee or officer of a society administrator of the society or amemberoftheboardofasocietyadministratorofthesociety.

(4) Anauditorappointedundersubsection(1)-






303. (1) Afriendlysocietywhich,pursuanttosection304,isrequiredto have its financial position investigated and reported upon by a valuator,must, in

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accordancewithsection402,andinthemannersetoutintherulesofthefund,appointandatalltimeshaveavaluator. (2) Aboardofasocietyreferredtoinsection292must,ifthatsocietydoesnothaveavaluatoronthedateofcommencementofthisPart,appointavaluatorwithin90daysofthatdate. (3) Afriendlysocietymaynotappointasthevaluatorofthesocietyan-



(4) NAMFISAmaydirectafriendlysocietytochangethevaluatorofthesocietyifNAMFISAissatisfiedthatthepersonappointedasvaluatorisan-



(5) Avaluatorappointedundersubsection(1)-






304. (1) A registered society carrying on any business which underitsrulesissubjecttoactuarialscrutinymust,inaccordancewiththeprovisionsofthestandards,atleastonceineverythreeyears,cause-

(a) avaluationoftheliabilitiesofthesocietyinrespectofthatbusinesstobemade-

(b) theassetsofthesocietytobevaluated,monitoredandassessed,

andtobereportedonbythevaluatorofthesocietyasattheendofthethirdfinancialyear. (2) Despite subsection (1), if NAMFISA has reason to believe that aninvestigationwouldshowthatthesocietyisnotinasoundfinancialposition,NAMFISAmay,afternotlessthanonemonth’snoticeinwritingtotheboardofasociety,requiretheboardtocausethefinancialpositionofthesocietytobeinvestigatedbythevaluator

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of the society as at the end of any financial year as specified byNAMFISA, and avaluationreportthereontobepreparedbythevaluator. (3) The report of the valuator referred to in subsection (1) or (2)mustincludeanyparticularssetoutinthestandards. (4) The board of a society must, within 180 days from the end of thevaluation period, and subject to section 402(10)(c), deposit a copy of the valuationreportreferredtoinsubsection(1)or(2)withNAMFISA. (5) Whenever theboardofa funddepositswithNAMFISAacopyofareportmadebyavaluatorunder this section, itmustalsodepositwithNAMFISAacertificateoftheboardandoftheprincipalofficerofthesocietythattothebestoftheirknowledgeandbelieftheinformationfurnishedtothevaluatorforthepurposesofthereportwascorrectandcompleteineverymaterialrespect. (6) If therulesofasocietyprovide that thebenefitswhichmaybecomepayabletomembersaresubjecttothediscretionoftheboardofthesociety,theboardmustdetermineandinformNAMFISAwhatamountorscaleofbenefitsweretakenintoconsiderationforthepurposeofthevaluation. (7) Theboardofafriendlysocietymay,subjecttosuchtermsandconditionsasmaybeprescribedbytheregulations,afteritreceivesareportofthevaluatorandthereportrevealsanactuarialsurplusasprovidedforinthestandards,distributesomeorallofthatactuarialsurplus. (8) Any personwho contravenes or fails to complywith subsection (4)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Business which may be carried on

305. (1) Aregisteredsocietymaynotcarryonanybusinessotherthanthebusinessconnectedwiththeobjectsforwhichafriendlysocietymaybeestablishedas set out in section 285, but NAMFISAmay, on written application by a society,approveandallowthesocietytocarryonsuchotherbusinessonsuchconditionsandforsuchperiodasNAMFISAmaydetermine,ifNAMFISAissatisfiedthatitisnecessaryinordertosafeguardaninvestmentmadebythesociety. (2) A person who contravenes or fails to comply with subsection (1)commitsandoffenceandisliableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Investments

306. (1) Subjecttotheprovisionsofthissectionandtheregulations,afriendlysocietymayinvestitsfundsinanymannerprovidedbyitsrules. (2) A societymay,where its rules so provide, byway of investment ofitsfunds,grantloanssecuredbyfirstmortgagesofimmovablepropertytoanyofitsmembers, if themortgagedpropertyispropertyonwhichadwellinghousehasbeen

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oristobeerected,buttheloansmaynotexceedthepercentageofthefairvalueoftheimmovablepropertyconcerned,asprovidedinthestandards. (3) NAMFISA may, under exceptional circumstances, and on suchconditionsand for suchperiodsasNAMFISAmaydetermine, temporarilyexemptasocietyfromcompliancewiththeprovisionsofsubsection(2). (4) TheMinistermaymakeregulationsandNAMFISAmayissuestandardsinrespectoftheinvestmentsby,orof,afriendlysociety. (5) Any personwho contravenes or fails to complywith subsection (2)oranyconditiononwhichanexemptionhasbeengrantedpursuanttosubsection(3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

PART 4RULES OF FRIENDLY SOCIETY

Rules

307. (1) The rules of a friendly society must comply with therequirementsofthisActandmustcontainmattersthatmaybesetoutintheregulationsorinthestandards. (2) WheretherulesofasocietyareinconsistentwithanyprovisionofthisActtherulesareinvalidtotheextentoftheinconsistency. (3) WheretherulesofasocietyareinconsistentwithanyprovisionofthisAct andhavenot been amended,NAMFISAmust direct theprincipal officer of thesocietytoamendtherulesofthesocietyandtheprincipalofficermustcomplywiththedirectionforthwith. (4) Despite subsections (2) and (3), the principal officer of a societyhasaperiodof12monthswithinwhichtoamendanyrulesofthesocietywhichareinconsistentwiththisAct,whichperiodcommences,asapplicable,on-

(a) thedateofcommencementofthisAct;

(b) thedateonwhicharegulationrelatingtotherulescomesintoeffect;or

(c) thedateonwhichastandardrelatingtotherulescomesintoeffect.

(5) A society must provide any person who becomes a member of thesocietywithacopyoftherulesofthesociety,freeofcharge,atthetimethatthepersonbecomesamember. (6) Any personwho contravenes or fails to complywith subsection (5)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

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Amendment of rules

308. (1) A society may, in the manner directed by the rules of thesociety,amendorrescindanyruleormakeanyadditionalrule,butnosuchamendment,rescissionoradditionwillbevalidifitpurportstoaffectanyrightofacreditorofthesociety,otherthanasamemberthereof. (2) Theprincipalofficerofasocietymustsendacopyofanyamended,rescindedoradditionalruletoNAMFISAnotlessthan30daysbeforeitsimplementation,togetherwithanyparticularssetoutinthestandards. (3) If any such amendment, rescission or addition affects the financialpositionoftheregisteredsociety,theprincipalofficermustalsosendtoNAMFISAareportby-

(a) thevaluatorofthesociety;or

(b) ifnovaluatorhasbeenappointed,byavaluatorretainedbythesocietyforthispurpose,

astothesoundnessofthefinancialpositionofthesociety,determinedinaccordancewiththestandards,havingregardtotherateofcontributionsbymembersand,if thesocietyisnotinasoundfinancialposition,whatarrangementswillbemadetobringthesocietyintoasoundfinancialposition. (4) IfNAMISAisnotsatisfiedwiththereportreferredtoinsubsection(3),NAMFISAmay,atthecostofthesociety,requireareportbyanindependentvaluatorthatcomplieswiththeconditionssetoutinthestandardsandasmaybespecifiedbyNAMFISA. (5) Theprincipalofficerofasocietymayatanytimeconsolidatetherulesofthesociety,andinthatcasetheprincipalofficermustforwardtoNAMFISAacopyof theconsolidated rules,but if theconsolidated rulesdiffer from theoriginal rules,NAMFISAmustdirecttheboardtoamendtheconsolidatedrulessothattheydonotdifferfromtheoriginalrules. (6) With respect to the rules of a society, NAMFISAmay request thatadditionalinformationregardinganyamendment,rescission,additionorconsolidationbe submitted to NAMFISA, as NAMFISA may consider necessary, and any suchamendment,rescission,additionorconsolidationisvoidifthesocietyfailstofurnishtheinformationrequestedbyNAMFISAunderthissubsectionwithin30daysfromthedateofthatrequest. (7) IfatanytimeNAMFISAisoftheopinionthattherulesofasocietydonotcomplywiththerequirementsofthisAct,NAMFISAmaydirectthesocietytoamendtherules. (8) Thesocietymustsendacopyofanyamendmentto,rescissionof,oradditionto,therulesofasocietytoeverymemberofthesocietyfreeofcharge. (9) Any personwho contravenes or fails to complywith subsection (8)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

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309. SubjecttotheprovisionsofthisChapter,therulesofaregisteredsocietyarebindingonthesociety,itsmembersandofficersandonanypersonwhoclaimsanybenefitundertherulesorwhoseclaimisderivedfromapersonsoclaiming.

PART 5MEMBERSHIP AND BENEFITS

Membership of minors

310. Where the rules of a registered society so provide, a personwho isundertheageof18yearsandisassistedbyaparentorguardianmaybeamemberofasociety,andheorshemayexecuteallnecessarydocumentsandgiveallnecessaryconsents,butmaynotmanagetheaffairsorbetheprincipalofficerofthatsociety.

Membership of married persons

311. DespitetheprovisionsoftheMarriedPersonsEqualityAct,1996(ActNo.1of1996),apersonwhoismarriedincommunityofpropertyandwhoisamemberof a friendly society may execute all necessary documents and give all necessaryconsentswithouttheconsentofhisorherspouse,andanybenefitgrantedtohimorhermust,asbetweenhusbandandwife,behisorhersoleandseparatepropertyandmaynotformpartofthejointestate.

Payment of benefits to nominees

312. (1) Where the rules of a society so provide, and subject to anyconditionsorlimitationsthatmaybespecifiedintherules,amemberorformermemberof a societymay, inwriting delivered or sent to the principal office of the society,nominateanypersontowhomanymoneypayablebythesocietyonthedeathofsuchmemberorformermembermustbepaid,andmayfromtimetotimerevokeorvaryanysuchnominationinwritingsimilarlydeliveredorsent. (2) Onproofof thedeathofamemberor formermemberreferred to insubsection(1),thesocietymustpaytothenomineeofthedeceasedtheamountdueandpayabletothenomineeunderthenomination.

Restriction of payments on death of children under 16 years

313. (1) Asocietymaynotinsurethelifeofachildwhoisundertheageof16yearsforanysumofmoneywhich,eitheraloneortogetherwithanyamountthattotheknowledgeofthesocietyispayableonthedeathofthatchildbyanyothersocietyorbyaninsurer,exceedstheamountsetoutinthestandards. (2) Incircumstanceswhereasocietyhasinsuredthelifeofachildforabenefitnotconsistingofasumofmoney,thesocietywillforthepurposesofthissectionbedeemedtohaveinsuredthelifeofthatchildforasumofmoneyequaltothevalueofsuchbenefit. (3) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment

259

Protection of moneys due on cessation of membership

314. (1) Moneysduebywayofabenefitundertherulesofafriendlysocietyonthecessationofmembershipofamemberwhowasamemberofthesocietyforaperiodofatleastthreeyearsoranyotherassetintowhichthememberconvertedsuchmoneyorpart thereof, isnot,duringaperiodoffiveyears fromthedateuponwhichthemoneybecamedue,liabletobeattachedinexecutionofajudgmentororderofthecourtattheinstanceofhisorhercreditors,anddoesnotformpartofhisorherinsolventestate. (2) Where the benefit referred to in subsection (1) was pledged, theprovisionsofthatsubsectionwillapplyonlytosomuchofthevalueofthatbenefitasexceedstheamountoftheliabilitysecuredbythepledge.

Protection of moneys due on death of member

315. Moneysduebywayofabenefitundertherulesofafriendlysocietyonthedeathofamemberwhowasamemberofthesocietyforaperiodofatleastthreeyears,andanymoneyorotherassetprotectedundersection314,isnot,totheextentofsuchprotection,availableonthedeathofthememberforthepaymentofhisorhercreditorsasagainsttheclaimof-

(a) hisorhersurvivingspouse,parent,childorstepchild,underhisorherwill;or

(b) his or her surviving spouse, parent or childor stepchild, by right ofsuccessionab intestatio.

PART 6GENERAL

Voluntary dissolution of society

316. SubjecttotherequirementsofanyregulationsmadebytheMinisterandstandardsissuedbyNAMFISAunderthisAct,aregisteredsocietymaybeterminatedordissolved,whollyorinpart,insuchcircumstances,ifany,asmaybespecifiedforthatpurposeinitsrulesandinthemannerprovidedbysuchrules,andsubjecttothepriorapprovalofNAMFISA,theassetsofthesocietymustinthatcasebedistributedinthemannerprovidedbytherules.

Winding-up by court

317. (1) If-

(a) NAMFISA is satisfied that a society is in suchanunsoundfinancialcondition that any scheme as contemplated byPart 7 ofChapter 10wouldbeineffective,impracticableorunsatisfactory;or

(b) afriendlysocietyisrequiredunderanyprovisionofthisActtowound-upunderthissection,

NAMFISAor a person actingwith the approval ofNAMFISAmay, if the fundhasassetsandliabilitiesequaltoorexceedingthevaluesthataresetoutinthestandards,

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applytotheHighCourtforanorderthatthewholeoranypartofthebusinessofthesocietybewound-up. (2) Anapplication for thewinding-up, and thewinding-up,of a societypursuanttosubsection(1)mustbedoneaccordancewiththeregulationsmadebytheMinisterandstandardsissuedbyNAMFISAunderthisAct.

Special provisions relating to liquidation of societies

318. When applying the provisions of theCompaniesAct in a voluntarydissolutionorwinding-upof a friendly society, themembersof the societymust betreatedaspreferredcreditors,andtheirclaimsagainstthesocietyintheircapacityasmembersmustbesettledbeforethedebtsowedtoordinarycreditorsofthesociety.


319. (1) Aregisteredsocietymustonrequestbyamemberorapersonauthorisedbyamember,providethatmemberorauthorisedperson,onpaymentofsuchfeeasmaybedeterminedbythestandardsandreflectedintherulesofthesociety-

(a) withacopy,additionaltotheoneprovidedundersectiontherulesofthesociety,butsubjecttosection307(5);

(b) withacopyofthemostrecentincomestatementandbalancesheetofthesociety,preparedinaccordancewiththisAct;and

(c) withacopyofthemostrecentvaluationandreport,ifany,byavaluatorpreparedpursuanttosection304.

(2) Amemberorapersonauthorisedbyamembermay,withoutcharge,at theprincipalofficeofa registeredsociety, inspectacopyofanyof the followingdocumentsandmakeextractstherefrom-

(a) thedocumentsreferredtoinsubsection(1);

(b) themostrecentstatementofliabilitiespreparedunderthisChapter;and

(c) themostrecentstatementofassetspreparedunderthisChapter. (3) NAMFISAmayissuestandardswithrespecttoanyreportsandotherinformation thata registeredsocietymustprovide tomembersof thesociety freeofcharge. (4) Any personwho contravenes or fails to complywith subsection (1)or(2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.


320. TheTrustMoneysProtectionActdoesnotapplytoasocietyregisteredunderthisChapter.

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CHAPTER 7MEdICAL AId FUNdS

PART 1PRELIMINARY



“beneficiary”meansamemberorapersonadmittedtoamedicalaidfundasadependantofamember;

“boardoftrustees”or“board”meanstheboardoftrusteeschargedwithmanagingtheaffairsofamedicalaidfund,whichhasbeenelectedorappointedunderitsrules;

“businessofamedicalaidfund”meansthebusinessofundertakingliabilityinreturnfor contributions-

(a) tomakeprovisionforobtaininganyhealthservice;

(b) to grant assistance in defraying expenditure incurred in connectionwith therenderingofanyhealthservice;and

(c) whereapplicable,inconnectionwiththebusinessreferredtoinparagraph(a)or(b),therenderingofahealthservicebyanysupplierorgroupofsuppliersofahealthserviceorbyanyperson,inassociationwithorintermsofanagreementwithamedicalaidfund,

butexcludesthebusinessofprovidingbenefitsunderinsurancepoliciesprescribedbytheregulations;

“condition-specificwaiting period”means the period provided in the standards thatimmediately followsthedateofapplicationformembership,duringwhichabeneficiaryisnotentitledtoclaimbenefitsinrespectofaconditionforwhichahealthservicewasrecommendedorreceived,andwhichperiodendsonadateasspecifiedinthestandards;

“contribution”meanstheamountpayableonaregularbasisbyoronbehalfofamemberofamedicalaidfund;

“dependant”means-

(a) apersoninrespectofwhomamemberislegallyliableformaintenance,iftheperson-

(i) isthespouseofthemember;or

(ii) is a child of themember, including a posthumous child, an adoptedchildandachildbornoutofmarriage,

andisnotamemberofthatmember’sfundoranothermedicalaidfund;or

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(b) anyotherpersonwho,undertherulesofamedicalaidfund,isrecognisedasadependantofamemberunlessthatpersonisamemberofthatmember’sfundoranothermedicalaidfund;

“fund”or“medicalaidfund”meansafundthatisinthebusinessofamedicalaidfund;

“fundadministrator” meansafundadministratorasdefinedinsection363,andappointedpursuanttosection344(3);

“generalwaitingperiod”means theperiodprovided in thestandardsduringwhichabeneficiaryisnotentitledtoclaimanybenefits;

“healthservice”includes-

(a) ahealthcaretreatmentadministeredtoanindividualbyanypersonregisteredunderanylaw,whichtreatmenthasasitsobject-

(i) thephysicalormentalexaminationofthatindividual;

(ii) thediagnosis,treatmentorpreventionofanyphysicalormentaldefect,illnessordeficiency;

(iii) thegivingofadviceinrelationtoanysuchdefect,illnessordeficiency;

(iv) thegivingofadviceinrelationto,ortreatmentof,anyconditionarisingoutofapregnancy;

(v) theprescribingorsupplyingofanymedicine,applianceorapparatusinrelationtoanysuchdefect,illnessordeficiencyorapregnancy;or

(vi) therenderingofnursingormidwiferyservices;

(b) anambulanceservice;

(c) thesupplyofaccommodationinaninstitutionestablishedorregisteredunderanylawasahospital,maternityhome,nursinghomeorsimilarinstitutionwherenursingispracticed;

(d) thesupplyofaccommodationinaninstitutionwheresurgicalorothermedicalactivities are performed, and such accommodation is necessitated by anyphysicalormentaldefect,illnessordeficiencyorbyapregnancy;and

(e) anyotherservicesetoutinthestandards;

“medical aid fundbroker”means a registeredfinancial intermediary the business ofwhich,orpartthereof,entailsprovidingmedicalaidfundbrokerservicesand,whereapplicable,includesacorporatemedicalaidfundbroker;

“medicalaidfundbrokerservices”means-

(a) service or advice in respect of the introduction or admission of amembertoamedicalaidfund;

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(b) ongoingserviceoradviceinrespectofaccessto,orbenefitsofferedby,amedicalaidfund;and

(c) collectionofcontributionsfrommembersorprospectivemembersonbehalfofamedicalaidfund;

“member”meansapersonwhohasbeenenrolledoradmittedasamemberofamedicalaidfundorwhoisamemberundertherulesofthatmedicalaidfund;

“restrictedmembershipfund”meansamedicalaidfund,therulesofwhichrestrictthe eligibilityformembershipbyreferenceto-

(a) employmentor formeremploymentorbothemploymentand formeremploymentinaprofession,trade,industryorcalling;

(b) employmentor formeremploymentorbothemploymentand formeremploymentbyaparticularemployerorbyanemployerincludedinaparticularclassofemployers;

(c) membership or formermembership or bothmembership and formermembership of a particular profession, professional association orunion;or

(d) anyothermatterprovidedforinthestandards;

“rules”meanstherulesofamedicalaidfundreferredtoinsection352;and

“sponsor” means thepersonwhoestablishedamedicalaid fundorwhoproposes toestablishamedicalaidfund. (2) AnyreferenceinthisChaptertoamedicalaidfundmustbeconstruedasareferencetothatmedicalaidfundortotheboardoftrusteesofthatmedicalaidfund,asthecasemaybe.

Application of Chapter to medical aid fund established by State

322. ThisChapterdoesnotapply toamedicalaidfundestablishedundersection34(1)(d)ofthePublicServiceAct,1995(ActNo.13of1995).

Prohibitions

323. (1) ApersonmaynotcarryonthebusinessofamedicalaidfundinNamibiaunlessthatpersonisregisteredasamedicalaidfundpursuanttosection328orisdeemedtoberegisteredundersection329. (2) Apersonmaynotcarryonthebusinessofamedicalaidfundbrokerunlessthatpersonisregisteredasamedicalaidfundbrokerpursuanttosection335orisdeemedtoberegisteredundersection336. (3) Any personwho contravenes or fails to complywith the provisionsofsubsection (1)or (2)commitsanoffenceand is liableonconviction toafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Restriction on use of designation “medical aid fund”

324. (1) Apersonmaynotuse,inconnectionwithabusiness,anamewhichincludesthewords“medicalaidfund”oranyothernamewhichisintendedtoindicateorislikelytoleadotherpersonstobelievethatthepersoncarriesonthebusinessofamedicalaidfundormedicalaidfundbroker,unlesssuchbusinessisregisteredordeemedtoberegisteredasamedicalaidfundormedicalaidfundbrokerunder thisChapter. (2) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(1)andtheperson-




thatpersonsochargedorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonthatdeedordocumentandinalltherelevantregisters. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Prohibited marketing

325. (1) Apersonmaynotmarket,advertiseorinanyotherwaypromotethebusinessofanypersoninamannerlikelytocreatetheimpressionthatsuchpersonconducts,willconduct,orisentitledtoconduct,thebusinessofamedicalaidfundormedicalaidfundbrokerunlessthatpersonisregisteredordeemedtoberegisteredasamedicalaidfundoramedicalaidfundbrokerunderthisChapter. (2) Theadmissionofapersonasamemberofamedicalaidfundorasadependantofthatmembermaynotbemadedirectlyorindirectlyconditionaluponthatpersonpurchasingorparticipatinginanyproduct,benefitorserviceprovidedbyanypersonotherthanthemedicalaidfundunderitsrules. (3) Apersonmay not advertise or in any otherway promote amedicalaidfundinamannerlikelytocreatetheimpressionthatmembershipofsuchmedicalaidfundisconditionaluponthepurchaseoforparticipationinanyproduct,benefitorserviceprovidedbyapersonotherthanthemedicalaidfundunderitsrules. (4) Anypersonwhocontravenesorfailstocomplywithsubsection(1),(2)or(3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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PART 2REGISTRATION


326. (1) AnapplicationforregistrationasamedicalaidfundmustbemadetoNAMFISAbytheboardoftheproposedfundinaccordancewithsubsection(2). (2) Anapplicationforregistrationasamedicalaidfundmustbe-






(f) accompaniedbytherequiredfee. (3) In addition to the requirements of subsection (2), an application forregistrationreferredtoinsubsection(1)mustinclude-

(a) therulesofthefund;

(b) areportofavaluatorappointedbythefundwithrespecttothecurrentfinancial position of the fund and its projected financial soundness,preparedinaccordancewiththestandards;and

(c) suchfinancialguaranteesasmaybesetout inthestandardsandthatNAMFISAmaydemandfromthepersonwhowillmanagethebusinessofthemedicalaidfund,toensurethefuturefinancialstabilityofthemedicalaidfund.


327. (1) Before approving the application and registering the fund,NAMFISAmustbesatisfiedonreasonablegroundsthattherequirementsofsubsection(2)havebeenmetandthat-

(a) therulesofthefundarenotinconsistentwiththisActandarebasedonsoundfinancialprinciples;

(b) thefundhasasufficientnumberofmemberswhowillcontributetothefund,asrequiredbythestandards;

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(c) thefunddoesnotandwillnotunfairlydiscriminatedirectlyorindirectlyagainstanyperson;

(d) thereportofthevaluatorreferredtoinsection326(3)(b)issatisfactory;and

(e) theguaranteereferredtoinsection326(3)(c)issatisfactory. (2) Before approving an application referred to in subsection (1) andregisteringafundNAMFISAmustbesatisfiedthat-

(a) inrelationtotheproposedfund-

(i) everymemberoftheboardoftrustees,theprincipalofficerandotherofficersoftheproposedfund,arefitandproperwithinthemeaningofthestandards;

(ii) therulesoract,charter,deedofsettlement,memorandumofassociationorotherfoundingdocumentsoftheproposedfundarenotinconsistentwiththeprovisionsofthisAct;

(iii) thedirectorindirectcontroloftheproposedfundisnotlikelyto be contrary to the interest of consumers of the financialservicesconcerned;and

(iv) the proposed fund will be in a position to ensure that itsorganisationalorgroupstructurewillnotbesuchastohindereffectivesupervisionbyNAMFISA;


(i) thisAct;or


(c) theproposedfundhastheattributesreasonablynecessaryandadequateto-




(d) thenameunderwhichtheproposedfundproposestoconductbusiness,or a translation, shortened formor derivative of that name is not incontraventionofsection391;


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(f) theapplicanthascompliedandwillcontinuetocomplywithanyotherrequirementscontainedinthisActorinthestandardswhichapplytotheproposedfund.

Registration

328. (1) IfNAMFISA is satisfied that theproposedmedical aid fundcomplieswiththerequirementsofsection327,NAMFISAmustregisterthefund,subjecttoanyconditionswhichNAMFISAmayconsiderappropriatepursuanttosubsection(4)andmustissueacertificateofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) Uponregistrationofanapplicant,NAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct.

(5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Amedicalaidfundmustcomplywiththeconditionssubjecttowhichitwasregistered.

Existing medical aid funds

329. (1) AmedicalaidfundthatwasregisteredinNamibiapriortothecommencementofthisChapterunderanylawrepealedbythisAct,isdeemedtobeamedicalaidfundregisteredunderthisAct. (2) Despitesubsection(1),amedicalaidfundreferredtointhatsubsectionmust, within 12months after the date of commencement of this Chapter, make anapplicationtoNAMFISApursuanttosection326forregistrationasamedicalaidfund. (3) If amedical aid fund referred to in subsection (1) fails tomake anapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),NAMFISAmaytakeactionthatNAMFISAconsidersappropriateagainstthemedicalaidfundpursuanttosection332,412or439.

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330. (1) Onregistrationofamedicalaidfundundersection328,insofarasisapplicable-


(b) despiteanythingtothecontrarycontainedinanylaworintherulesoract,charter,deedofsettlement,memorandumofassociationorotherfoundingdocumentsortherulesoffundorofanycorporatebodyorunincorporatedentitythatcontrolsthebusinessofthefund-

(i) all the assets, rights, liabilities and obligations pertaining tothebusinessof the fundwill be assets, rights, liabilities andobligationsofthatregisteredfundtotheexclusionofanyotherperson;and

(ii) no personwill have any claim on the assets or rights or beresponsibleforanyliabilitiesorobligationsofthefund,exceptinsofarastheclaimhasarisenortheresponsibilityhasbeenincurredinconnectionwithtransactionsrelatingtothebusinessofthefund;and

(c) any assets, rights, liabilities and obligations,which are held by anyperson in trust for the fund as it existed immediately prior to itsregistration,willvestinanddevolveupontheregisteredfundwithoutanyformaltransferorcession;and

(d) itassumesliabilityforandguaranteesthebenefitsofferedtoitsmembersandtheirdependantsunderitsrules.

(2) Apersonmaynothaveaclaimontheassetsorrightsorberesponsibleforanyliabilitiesorobligationsofamedicalaidfund,exceptinsofarastheclaimhasarisenortheresponsibilityhasbeenincurredinconnectionwithtransactionsrelatingtothebusinessofthefund. (3) Thepersoninchargeofthedeedsregistryoranyotherofficerinchargeofanyotherofficewherearegisterorrecordoftheownershipof,orentitlementto,anypropertyiskeptinwhichisregisteredadeedorotherdocumentrelatingtoanassetorrightwhichundersubsection(1)vestsinordevolvesuponamedicalaidfund,must,onproductionbythemedicalaidfundofitscertificateofregistrationandofthedeedorotherdocument,withoutpaymentoftransferduty,stampduty,registrationfeesorothercharges,maketheendorsementsuponthatdeedorotherdocumentandthealterationsintheregistersinordertoreflectthatvestingordevolution.


331. (1) At any time, a registered fund maymake an application toNAMFISAforcancellationoftheregistrationgrantedpursuanttothisActoravariationoftheconditionssubjecttowhichthatregistrationwasgranted.

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(2) Anapplicationmadeundersubsection(1)mustbe-






(b) either-









332. (1) NAMFISAmaytakeanyof theactionssetout insubsection(2),intheeventthatNAMFISA,actingreasonably,findsthataregisteredmedicalaidfund-


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(j) amemberoftheboardoftrustees,theprincipalofficerorotherofficernolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredmedicalaidfund-




(3) NAMFISAmustgivenoticetotheregisteredfundoftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(2), togetherwiththereasonstherefor, andmust give the registered fund a reasonable opportunity to be heard byspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredfundmaymakerepresentationstoNAMFISAonthematter. (4) Subject to such conditions as NAMFISA may impose, NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredmedicalaidfund. (5) On the cancellation of the registration of a medical aid fund undersection331orsubsection(2)-

(a) the fundmust be dissolved in accordance with the requirements ofsection358orwound-upinaccordancewiththerequirementsofsection359,asapplicable,andtherulesofthemedicalaidfund;and

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(b) NAMFISAmusttakesuchstepsandmayimposesuchconditionsasarenecessaryinthecircumstances,whichstepsmayincludethetransferofthebusinessofthemedicalaidfundtoanothermedicalaidfund,asappropriate,butnodistributionof theassetsof themedicalaid fundmaybemadewithoutthepriorapprovalofNAMFISA.


(a) continues tooperate,orcarryon, thebusinessofamedicalaidfundafterthecancellationofregistrationundersection331(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(4);or



Application for registration as medical aid fund broker

333. (1) An individual or an entity may make an application forregistrationasamedicalaidfundbrokertoNAMFISAinaccordancewithsubsection(2). (2) Anapplicationforregistrationasamedicalaidfundbrokermustbe-








334. (1) Beforeapprovinganapplicationandregisteringanindividualas amedical aid fund broker,NAMFISAmust be satisfied that the requirements ofsubsection(3)havebeenmetandthat-

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(b) theindividualhasmettherequirementsforregistrationthatmayfromtimetotimebeincludedinthestandards;

(c) there are reasonable grounds for believing the individual is not in apositiontoofferinducementorusecoercionorundueinfluenceinordertocontrol,directorsecurethebusinessofamedicalaidfundbroker;

(d) the individual has not been refused registration as a financialintermediary or had such a registration suspended or revoked underthisActoranyotherfinancialserviceslaw;

(e) theindividualhasnotbeenconvictedofanoffencethenatureofwhichrendershim,intheopinionofNAMFISA,unfittoholdaregistrationunderthisAct;


(g) therearereasonablegroundsforbelievingthattheindividualwillcarryonwithintegrityandhonestytheactivitiesofamedicalaidfundbroker;

(h) theindividualhasmet,orwillbeabletomeet,anyotherrequirementsof thisActandany instructionsandguidelines issuedbyNAMFISAunderthisActthatapplytomedicalaidfundbrokers;

(i) theindividualdoesnot,andwillnotbelikelyto,engageinconductofakindidentifiedinthestandardsasmisconduct;


(k) anyrequiredfeehasbeenpaid. (2) Beforeapprovinganapplicationandregisteringanentityasacorporatemedicalaidfundbroker,NAMFISAmustbesatisfiedthattherequirementsofsubsection(3)havebeenmetandthat-

(a) the individualswhowill carryonactivitiesof thekind towhich theregistration relates on behalf of the entity will be registered undersubsection(1);and

(b) anyrequiredfeehasbeenpaid. (3) Before approving the application and registering the applicant as amedicalaidbroker,NAMFISAmustbesatisfiedthat-

(a) inrelationtotheapplicantentity-

(i) everyshareholderorotherowner thatcontrols theapplicant,and every director, the principal officer or other officers oftheapplicant,andwhereapplicable,membersofanyboardof

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trusteesorotherboard,arefitandproperwithinthemeaningofthestandards;





(i) thisAct;or









(4) In addition to the applicable requirements for a registration set outinsubsections(1),(2)and(3)ifanapplicationforaregistrationismadeafteradatedeterminedby theMinisterbynotice in theGazette an individualorentitymaynotbegrantedaregistrationasamedicalaidfundbrokeroracorporatemedicalaidfundbroker,unlessNAMFISAissatisfiedthat-

(a) aninsurancepolicyisinplaceprovidingerrorsandomissionscoverageinrespectoftheactivitiesoftheindividualorentityasbroker,inaformapprovedbyNAMFISAandinanamountthathasbeenprescribedin respectofanyoneoccurrence,withextendedcoverageforfraudulent

274

actsorsomeotherfinancialguaranteeaffordingcomparableprotectionacceptabletoNAMFISA;and

(b) iftheindividualorentitywillhaveemployeescarryingontheactivitiesofabroker,afidelityinsurancepolicyisinplaceprovidingcoveragein respectof lossesarising fromdishonestyofemployees, ina formapprovedbyNAMFISAandinanamountthathasbeenprescribedinrespectofanyoneoccurrence.


335. (1) IfNAMFISAissatisfiedthattheapplicantcomplieswiththerequirementsofsection334,NAMFISAmustregistertheapplicantasamedicalaidfundbrokerorcorporatemedicalaidfundbroker,subjecttoanyconditionswhichNAMFISAmay consider appropriate pursuant to subsection (4), andmust issue a certificate ofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) Amedicalaidfundbrokermustcomplywiththeconditionssubjecttowhichitwasregistered. (7) ThetermofregistrationasamedicalaidfundbrokerunderthissectionexpiresonMarch31ofeachyearoronsuchotherdateasNAMFISAmayspecify,butiftheappropriaterenewalfeeasdeterminedbyNAMFISAinrespectofeachmedicalaidfundbrokerispaidtoNAMFISAinthemannersetoutinthestandards,theregistrationmust,subjecttocompliancewithanyrequirementsthatmaybesetoutinthestandards,berenewedforaperiodof12monthsasfromtheexpirydate. (8) Therenewalfeeispayablewithintheperiodsetoutinthestandards,andanypaymentreceivedafterthatperiodbearsinterestataratedeterminedbyNAMFISAinthestandards,whichratemaynotexceedtherateprescribedbyregulationsforthispurpose. (9) If-

275



NAMFISAmaynotrenewtheregistrationofthemedicalaidfundbrokerwhoserenewalfeewasnotpaidorinrespecttowhomtherequirementsofthestandardshavenotbeencompliedwith. (10) A person who continues to operate, or carry on, the business of amedical aid fund broker after the non-renewal of registration under subsection (9)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Existing medical aid fund brokers

336. (1) ApersoncarryingonthebusinessofamedicalaidfundbrokeronthedateofcommencementofthisChapterisdeemedtobeamedicalaidfundbrokerregisteredunderthisAct. (2) Despitesubsection(1),apersonreferredtointhatsectionmust,within12months after the date of commencement of thisChapter,make an application toNAMFISApursuanttosection333forregistrationasamedicalaidfundbroker. (3) Ifapersonreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),theregistrationofthatpersoniscancelledandthepersonmustceasetocarryonthebusinessofmedicalaidfundbroker. (4) A person who continues to operate, or carry on, the business ofamedical aid fund broker after the cancellation of registration under subsection (3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.


337. (1) Atanytime,aregisteredmedicalaidfundbrokermaymakeanapplicationtoNAMFISAforcancellationoftheregistrationgrantedpursuanttothisActoravariationoftheconditionssubjecttowhichthatregistrationwasgranted. (2) Anapplicationmadeundersubsection(1)mustbe-




(d) accompaniedbytherequiredfee.

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(3) Before making an application for the cancellation of a registrationor avariationof its conditions, theapplicantmustgivepriornoticeof theproposedapplicationintwonewspaperscirculatingnationallyinNamibiaattheexpenseoftheapplicantstating-


(b) either-




(4) Section 335 applieswith the changes required by the context to anapplicationforavariationofconditionsreferredtoinsubsection(1). (5) Ifafterconsiderationofanyobjectionreceivedasaresultofthenoticereferredtoinsubsection(3),NAMFISAisoftheopinionthatitisreasonabletodosoandnotagainstthepublicinterest,NAMFISAmay,bynoticetotheregisteredmedicalaidfundbrokerconcerned-





338. (1) NAMFISAmaytakeanyoftheactionssetoutinsubsection(2),intheeventthatNAMFISA,actingreasonably,findsthataregisteredmedicalaidfund broker-







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(i) isinvolvedinafinancialcrime,

(j) in the case of an individual, no longer meets the fit and properrequirementswithin themeaningof the standardsorhas engaged inconductidentifiedinthestandardsasmisconduct;or

(k) inthecaseofanentity,anydirector,theprincipalofficer,otherofficerormemberofaboardnolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredmedicalaidfundbroker-




(3) NAMFISAmustgivenoticetotheregisteredmedicalaidfundbrokeroftheintentionofNAMFISAtotakeanyactionreferredtoinsubsection(2),togetherwiththereasonstherefor,andmustgivetheregisteredmedicalaidfundbrokerareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheregisteredmedicalaidfundbrokermaymakerepresentationstoNAMFISAaboutthematter. (4) Subject to such conditions as NAMFISA may impose, NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredmedicalaidfundbroker. (5) On the cancellation of the registration of amedical aid fund brokerundersection337(5),subsection(2)(a)oranyotherapplicableprovisionof thisAct,oronsuspensionofregistrationundersubsection(4),themedicalaidfundbrokermustceasetocarryonthebusinessofamedicalaidfundbroker. (6) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranyotherstepstakenunderthissection and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (7) Apersonwho-

(a) continues tooperate,orcarryon, thebusinessofamedicalaidfundbroker after the cancellation of registration under section 337(5)(a),

278

subsection(2)(a)oranyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(4);or





339. (1) Everyregisteredmedicalaidfundandeveryregisteredmedicalaidfundbrokermust-


(b) whereapplicable,appointtobeitsprincipalofficerinNamibia,afitandproperpersonwithinthemeaningofthestandards,who-



(iii) mustbeamemberoftheboardofthemedicalaidfundorofthemedicalaidfundbroker.

(2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),theregisteredmedicalaidfundormedicalaidfundbrokermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment. (4) NAMFISAmay,onthegroundsthataprincipalofficerisnotafitandproper person, within themeaning of the standards, and after giving the registeredmedical aid fund ormedical aid fund broker and the principal officer a reasonableopportunity to be heard, direct the registeredmedical aid fund ormedical aid fundbrokertoappointsomeotherpersontobetheprincipalofficeroftheregisteredmedicalaidfundormedicalaidfundbroker. (5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregisteredmedicalaidfundormedicalaidfundbrokerorbytheexpiryofacontractofemployment,theregisteredmedicalaidfundormedicalaidfundbrokermust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredmedicalaidfundormedicalaidfundbroker,thereasonsfortheresignation.

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(6) Theprincipalofficerofa registeredmedicalaid fundormedicalaidfundbrokerisauthorisedtoactonbehalfofthemedicalaidfundoramedicalaidfundbrokertoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswiththatmedicalaidfundormedicalaidfundbroker,thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (7) Processinanylegalproceedingsmaybeservedonaregisteredmedicalaidfundbyservingacopythereofatitsprincipaloffice. (8) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Board of medical aid fund

340. (1) A registeredmedical aid fundmusthave aboardof trusteesconsistingofpersonswhoarefitandproperwithinthemeaningofthestandards. (2) Despiteanyruleofthefund,butsubjecttosections341,theboardofaregisteredmedicalaidfundmustconsistofaminimumoffourmembers. (3) Theactiveandtheretiredmembersofamedicalaidfundhavetherighttoelect,whetherdirectlyorindirectly,atleasthalfofthenumberofboardmembersofthemedicalaidfund. (4) Subsections(1), (2)and(3)comeintoforceon thedatewhich is90daysafterthedateofcommencementofthisChapter. (5) Apersonmaynotbeamemberoftheboardofaregisteredmedicalaidfund,ifthatpersonis-

(a) adirectororanofficeroremployeeof the fundadministratorof theregisteredmedicalaidfundoroftheholdingcompany,subsidiary,jointventureorassociateofthefundadministrator;

(b) a consultant to or contractor under an agreement with the fundadministrator;or

(c) afinancial institution orfinancial intermediary that rendersfinancialservicestotheregisteredmedicalaidfundoritsboardoftrustees.

(6) Subjecttosubsections(1),(2)and(3),therulesofamedicalaidfundmust-



(c) requirethattheboardmeetatleastfourtimesayear;and

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(d) providethatallmeetingsoftheboardareheldinNamibia. (7) The rules of a registered medical aid fund must be amended inaccordancewithsection353tocomplywithsubsections(1),(2),(3),(5)and(6)within90daysafterthedatereferredtoinsubsection(4). (8) Whereaboardconsistsof fourmembersorpursuant tosection341,lessthanfourmembers,allthemembersoftheboardconstituteaquorumforameetingofthatboard. (9) Ifaboardmemberisremovedfromofficeforreasonsotherthantheexpirationofthatmember’stermofappointmentorvoluntaryresignation-

(a) the board member must within 21 days of the removal submit awrittenstatement toNAMFISAof the reasons, in theopinionof theboardmember,fortheterminationandmustinadditioncomplywithsubsection(10);and


(10) Aboardmembermust,atanytime, informNAMFISAinwritingonbecomingawareofanymaterialmatterrelatingtotheaffairsofthefundwhich,intheopinionoftheboardmember,mayseriouslyprejudicethefinancialviabilityofthefundorthebenefitsorrightsofitsmembers. (11) A person who contravenes or fails to comply with subsection (10)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Exemptions

341. (1) NAMFISA may on written application by the board of aregisteredmedicalaid fundandsubject tosuchconditionsasmaybedeterminedbyNAMFISA -

(a) authoriseafundtohaveaboardconsistingoflessthanfourmembersifthatnumberisimpracticalorunreasonablyexpensive,providedthattheactiveandretiredmembersofthemedicalaidfundhavetherighttoelectatleast50percentoftheboardmembers;or

(b) exempt amedical aid fund from the requirement that the active andretiredmembersofthemedicalaidfundhavetherighttoelectmembersoftheboard.

(2) NAMFISAmaywithdrawanexemptiongrantedundersubsection(1)ifamedicalaidfundnolongerqualifiesforsuchexemptionorifNAMFISAregardssuchexemptionnolongertobeinthepublicinterest.

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342. (1) Ontheterminationofofficeforanyreasonofamemberoftheboardofaregisteredmedicalaidfund,apersontoreplacesuchmembermust,subjectto section340(1)and (2),beelectedorappointed in themanner setout in the rulesof the fund, and the boardmust notifyNAMFISA forthwith of the termination andreplacement. (2) Apersonwhoiselectedorappointedasamemberoftheboardofthefundpursuanttosubsection(1)or(3)mustbeafitandproperpersonwithinthemeaningofthestandardsandsuchelectionorappointmentmustcomplywiththeprovisionsofsection340or341. (3) Atanytime,NAMFISAmay,onthegroundsthatanymemberoftheboardofaregisteredfundisnotafitandproperpersonwithinthemeaningofthisAct,theregulationsandthestandardsandaftergivingtheboardandthememberoftheboardinquestionareasonableopportunitytobeheard,direct-


(b) in case the remaining number of members is less than the numberrequiredby section340or341, as applicable,orby the rulesof thefund, that some other person who complies with the provisions ofsubsection(2)beelectedorappointedtotheboardofthefund.

Objects of board

343. (1) Theobjectsoftheboardofaregisteredmedicalaidfundaretodirect,controlandoverseetheoperationsofthemedicalaidfundinaccordancewiththisActandtherulesofthemedicalaidfund. (2) Inpursuingitsobjectstheboardmust-

(a) takeallreasonablestepstoensurethattheinterestsofmembersundertherulesofthemedicalaidfundareprotectedandthatthemedicalaidfundcomplieswiththeprovisionsofthisActandtherules;




(e) actwithimpartialityinrespectofallmembersandbeneficiaries. (3) Themembersoftheboardofthemedicalaidfundmust,within30daysof theendofeachfinancialyear,disclose inwriting toNAMFISAanypaymentsorotherconsiderationsmade,whetherdirectlyorindirectly,totheminthatparticularyearbythemedicalaidfundorbyacontractorwiththemedicalaidfund. (4) Amemberoftheboardofamedicalaidfundwhocontravenesorfailstocomplywithsubsection(3)commitsanoffenceandisliableonconvictiontoafine

282

notexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Duties of board

344. (1) Inadditiontothedutiesofaboardofaregisteredmedicalaidfundsetoutintherulesofthemedicalaidfundandinsection395,thedutiesoftheboardofaregisteredmedicalaidfundareto-

(a) ensurethatproperregisters,booksandrecordsoftheoperationsofthemedicalaidfundarekept,includingproperminutesofallresolutionspassedbytheboard;


(c) ensurethattheassetsofthemedicalaidfundareinvestedinaccordancewiththeinvestmentpolicyestablishedbytheboardwhichisappropriatetothenatureandfinancialcircumstancesofthemedicalaidfund,andwhichtheboardimplementsandregularlyreviewsaftertakingexpertadvice;

(d) ensurethattherisksofthefundareappropriatelymanagedincludingensuringthatpropercontrolsystemsandfunctionalseparationofdutiesareemployedbyoronbehalfofthemedicalaidfund;

(e) ensurethatadequateandappropriateinformationiscommunicatedtomembers of themedical aid fund, employers and sponsors pursuantto a communication strategy consistentwith the standards issuedbyNAMFISA;

(f) takeallnecessarystepstoensurethatcontributionsarepaidinatimelymannertothemedicalaidfundinaccordancewiththisChapter;


(h) ensurethattherulesandtheoperationandadministrationofthemedicalaidfundcomplywiththisActandotherapplicablelaws;




(i) thefinancialpositionofthemedicalaidfund;

(ii) theinvestmentpolicyofthemedicalaidfund;


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(2) If,despitethestepstakenbytheboardofaregisteredmedicalaidfundpursuanttosubsection(1)(f),contributionstothemedicalaidfundremainoutstandingforsuchperiodasisspecifiedbyNAMFISAinthestandards,theboardmust,withinthetimespecifiedinthestandards,notifyallactiveandretiredmembersofthemedicalaidfundandNAMFISAofthisfact. (3) Theboardofamedicalaidfundmay,inaccordancewithasystemofdelegationsetoutintherulesofthemedicalaidfund,whichsystemmustmaximiseadministrativeandoperational efficiencyandprovideadequatechecksandbalances,appointafundadministratortoexerciseanyofitspowersofadministrationortoperformanyofitsadministrativedutiesorfunctionsaslongas-

(a) thefundadministratorisregisteredbyNAMFISAasafundadministratorpursuanttosection368;

(b) the board has determined, after taking expert advice, that the fundadministrator has qualifications and experience relevant to theadministrationofthemedicalaidfundinquestion;and

(c) theboardhasenteredintoacontractwiththefundadministratorthatcomplieswiththerulesofthemedicalaidfundandthepoliciesoftheboard.

(4) Theboardisnotdivestedorrelievedofanypowerordutyorfunctiondelegated or assigned under subsection (1), and may, if necessary, withdraw thedelegationorassignmentatanytimeonreasonablenotice. (5) Assoonaspossibleafteracontractreferredtoinsubsection(3)(c)hasbeenenteredinto,theboardmustfileacopyofthecontractwithNAMFISA. (6) A fund administrator that enters into a contractwith the board of amedicalaidfundpursuanttosubsection(3)(c)hasafiduciarydutyandresponsibilitytothemedicalaidfundandmustexercisethepowersdelegatedorperformthedutyorfunctionassignedtoitwiththestandardexpectedofanexpert. (7) Whereaboarddelegatesapowerorassignsadutyorfunctionpursuantto this section, the board must monitor the performance of the fund administratorwithrespecttothestandardsdescribedinthecontractandtakeremedialactionifthatperformancefailstoachievethosestandards. (8) Administrationinrespectofamedicalaidfundmeanstherenderingofanyformofadministrativeserviceasdefinedinsection363tothemedicalaidfund. (9) Afundadministratormust,inrelationtoamedicalaidfund,performthefunctionsanddutiesentrustedtothefundadministratorbysection374.

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345. (1) Except where the accounts of a medical aid fund are to beaudited by theAuditor-General pursuant to another law ofNamibia, the board of aregisteredmedicalaidfundmust,inaccordancewithsection401andinthemannersetoutintherulesofthefund,appointandatalltimeshaveanauditororfirmofauditorstobetheauditorofthefund. (2) The board of a registeredmedical aid fundmay not appoint as theauditorofthefund-



anemployeeorofficerofthefundorofafundadministratorofthefundoramemberoftheboardoftrusteesofthefundoramemberoftheboardofafundadministratorofthefundoranemployeeorofficeroftheboard,ofaparticipatingemployer. (3) NAMFISAmaydirecttheboardofamedicalaidfundtochangetheauditor of the fund ifNAMFISA is satisfied that the auditor or anymember of thefirmofauditorsappointedasauditorisanemployeeorofficerofthefundorofafundadministratorofthefundoramemberoftheboardoftrusteesofthefundoramemberoftheboardofafundadministratorofthefundoranemployee,orofficeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorfund. (4) Anauditorappointedundersubsection(1)-






346. (1) Theboardofaregisteredmedicalaidfundmust,inaccordancewithsection402 andinthemannersetoutintherulesofthefundappointandatalltimeshaveavaluator. (2) Theboardofafundreferredtoinsection336must,ifthatfunddoesnothaveavaluatoronthedateofcommencementofthisPart,appointavaluatorwithin90daysofthatdate. (3) Theboardof amedical aid fundmaynot appoint as thevaluatorofthefundanemployeeorofficerofthefundorofafundadministratorofthefundoramember of the board of trustees of the fund or amember of the board of a fundadministrator of the fundor an employee, or officer of the board, of a participatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (4) NAMFISAmaydirecttheboardofamedicalaidfundtochangethevaluatorofthefundifNAMFISAissatisfiedthatthepersonappointedasvaluatoris

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anemployeeorofficerofthefundorofafundadministratorofthefundoramemberoftheboardoftrusteesofthefundoramemberoftheboardofafundadministratorofthefundoranemployee,orofficeroftheboard,ofaparticipatingemployeroranemployee,orofficeroftheboard,ofthesponsorofthefund. (5) Avaluatorappointedundersubsection(1)-






347. (1) Theboardofaregisteredmedicalaidfundmust,inaccordancewiththeprovisionsofthestandards,atleastonceineverythreeyears,causethefinancialpositionofthefundtobeinvestigatedbythevaluatorofthefund,andavaluationreportthereontobepreparedbythevaluatorasattheendofthethirdfinancialyear. (2) Despite subsection (1), if NAMFISA has reason to believe that aninvestigationwouldshowthatthemedicalaidfundisnotinasoundfinancialposition,NAMFISAmay, after not less than onemonth’s notice inwriting to the board of amedical aid fund, require theboard to cause thefinancialpositionof the fund tobeinvestigatedbythevaluatorofthefundasattheendofanyfinancialyearasspecifiedbyNAMFISA,andavaluationreportthereontobepreparedbythevaluator. (3) The report of the valuator referred to in subsection (1) or (2)mustincludeanyparticularssetoutinthestandards. (4) Theboardofamedicalaidfundmust,within180daysfromtheendofthevaluationperiod,andsubjecttosection402(10)(d),depositacopyofthevaluationreportreferredtoinsubsection(1)or(2)withNAMFISAandtheboardmustsendacopyofsuchreportorasummarythereof,preparedbythevaluatorintheformrequiredbythestandards,toeveryemployerwhocontributestothatfund. (5) Whenever theboardof amedical aid funddepositswithNAMFISAa copy of a reportmade by a valuator under this section, itmust also depositwithNAMFISAacertificateoftheboardandoftheprincipalofficerofthefundthattothebest of their knowledge and belief the information furnished to the valuator for thepurposesofthereportwascorrectandcompleteineverymaterialrespectand,whereapplicable,thatacopyofthereportorasummarythereofreferredtoinsubsection(3)wassenttoeveryemployercontributingtothefund. (6) If the rules of a fund provide that the benefits which may becomepayable tomembersaresubject to thediscretionof theboardof the fund, theboardmustdetermineandinformNAMFISAwhatamountorscaleofbenefitsweretakenintoconsiderationforthepurposeofthevaluation. (7) Any personwho contravenes or fails to complywith subsection (4)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000

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or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Financial arrangements

348. (1) Amedicalaidfundmaynotcarryonanybusinessotherthanthebusinessofamedicalaidfund,butNAMFISAmayapproveofaregisteredfundcarryingonsuchotherbusinessonsuchconditionsandforsuchperiodasNAMFISAmaydetermine ifNAMFISAissatisfied that it isnecessary inorder tosafeguardaninvestmentmadebythefund. (2) Amedicalaidfundmustatalltimesmaintainitsbusinessinafinanciallysoundpositionby-

(a) complying with the minimum solvency requirements set out in thestandards;and

(b) generallyconductingitsbusinesssoastobeatalltimesinapositiontomeetitsobligationstomembers.

(3) Thedeterminationof-

(a) thekindsorcategoriesofassetsthatmustbeheldinNamibiaoroutsideNamibiabyafund;

(b) theitemstobeincludedintheliabilitiesofafund;

(c) thevaluationoftheassetsandliabilitiesofafund;and

(d) theminimumsolvencyrequirementsforafund,andthedeterminationofthefinancialpositionofafundforthatpurpose,

mustbeinaccordancewiththeregulations. (4) AmedicalaidfundisdeemednottoholdanassetforthepurposesofthisChaptertotheextenttowhichsuchassetisencumberedasprovidedinsubsection(5). (5) Amedicalaidfundmay-

(a) encumberitsassets;

(b) allowitsassetstobeheldbyanotherpersononitsbehalf;

(c) directlyorindirectlyborrowmoney;or

(d) bymeansofsuretyshiporanyotherformofpersonalsecurity,whetherunder a primary or accessory obligation, give security in relation toobligationsbetweenotherpersons,

onlytotheextentprovidedforbythestandards. (6) Amedical aid fundmay not, directly or indirectly, invest any of itsassetsinthebusinessoforgrantloansto-

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(a) anemployerwhoparticipatesinthemedicalaidfund;

(b) anyothermedicalaidfund;

(c) thefundadministrator;

(d) anydirector,officer,memberof theboardof trusteesor trusteeof apersonreferredtoinparagraphs(a)to(c);or

(e) anyassociateofapersonreferredtoinparagraphs(a)to(d);

otherthaninvestinginpubliclytradedsharesofanyoftheabovepersonsandsubjecttothestandards. (7) Amedicalaidfundwhichfails tocomplywithanyprovisionof thissectionmust,within30daysafterbecomingawarethereof,notifyNAMFISAofsuchfailureandstatethereasonstherefore. (8) NAMFISAmay,ifamedicalaidfundgivesnoticetoNAMFISAundersubsection(7)orifNAMFISAissatisfiedthatamedicalaidfundisfailing,orislikelytofailwithinareasonableperiod,tocomplywithanyprovisionofthissection,directthatthemedicalaidfundsubmittoNAMFISA,withinaspecifiedperiodandintheformrequired-

(a) information relating to the nature and causes of the failure or likelyfailure;and

(b) the course of action that themedical aid fund proposes to adopt toensurecompliance.

(9) WhenNAMFISAhasreceivedtheinformationreferredtoinsubsection(8)andisreasonablysatisfiedthattheproposedcourseofactionwillensurecompliancebythemedicalaidfundwithanyofprovisionofthissection,NAMFISAmayrequirethefund,withintheperiodspecifiedbyNAMFISAtoadopt-

(a) theproposedcourseofaction;

(b) theproposedcourseofactionwithsuchmodificationsasNAMFISAconsidersappropriate;or

(c) someothercourseofaction. (10) If NAMFISA is satisfied that it is necessary in the interest of themembersandbeneficiariesofthemedicalaidfund,NAMFISAmay,atthesametimethatitrequiresthemedicalaidfundtotakeactionundersubsection(9)oratanytimethereafter,anddespiteanystepsalreadytakenbyNAMFISA,takeanyotheractionorpursueanyremedyprovidedforbythisAct. (11) Apersonthatcontravenesorfailstocomplywithsubsection(1),(2),(5),(6),(7)or(8)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

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Insurance of liabilities

349. (1) A medical aid fund may not purchase any insurance orreinsurancepolicyinrespectofanyhealthserviceotherthantoinsureorreinsurewithaninsurerorreinsurerregisteredunderChapter2,aliabilityreferredtoinsection326(3)(c)or356(2). (2) Where a medical aid fund intends to enter into an insurance orreinsurancecontractortoeffectanamendmenttoaninsuranceorreinsurancecontractascontemplatedinsubsection(1),theboardoftrusteesmustsubmittoNAMFISA-

(a) acopyofthatinsuranceorreinsurancecontractoramendment;and

(b) an evaluation of the need for the proposed insurance or reinsurancecontractundertakenbythevaluatorofthefund.

(3) NAMFISAmay,notlessthan30daysfromthedayitreceivesthecopyoftheinsuranceorreinsurancecontract,amendmentorevaluation,raiseanymatterinrespectthereof,takingintoaccountwhether-

(a) dueconsiderationhasbeengiventotheneedforinsuranceorreinsurance,baseduponanassessmentoftheriskstowhichthemedicalaidfundisexposed;

(b) the insurance or reinsurance contract is in the best interests of themembersofthemedicalaidfund;and

(c) there is a possible conflict of interests between the parties to theinsuranceorreinsurancecontract.

(4) The board of trustees is obliged to address, to the satisfaction ofNAMFISA,anymatterraisedbeforetheimplementationoftheinsuranceorreinsurancecontractoramendmenttoanysuchcontract. (5) The board of trustees must certify that an insurance or reinsurancecontractoramendmentsubmittedundersubsection(2)constitutestheentireagreementbetweenthemedicalaidfundandinsurerorreinsurerwithrespecttothebusinessbeinginsuredorreinsured,andthattherearenoarrangementsbetweenthemedicalaidfundandtheinsurerorreinsurerotherthanthoseexpressedinthecontractoramendment. (6) Failure to complywith subsection (2), (4) or (5)will result in suchinsuranceorreinsurancecontractoramendmentbeingnullandvoid.

Investments

350. (1) Subjecttotheprovisionsofthissectionandtheregulations,amedicalaidfundmayinvestitsfundsinanymannerprovidedbyitsrules. (2) TheMinistermaymakeregulationsandNAMFISAmayissuestandardsinrespectoftheinvestmentsby,orof,amedicalaidfund. (3) Anypersonwhomakesaninvestmentincontraventionof,orfailstocomplywith,subsection(1)commitsanoffenceandisliableonconvictiontoafinenot

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exceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Membership of more than one fund prohibited

351. (1) A person, including a personwho is amember of any fundestablishedbytheStatemaynot-

(a) beamemberofmorethanonemedicalaidfund;

(b) beadmittedasadependantof-

(i) morethanonememberofaparticularfund;

(ii) membersofdifferentfunds;or

(iii) amemberofafundifthepersonhasbeenadmittedasamemberofanotherfund;or

(c) makeaclaimoracceptabenefitfromanymedicalaidfundotherthanthemedicalaidfundofwhichthepersonisamember.

(2) Despitesubsection(1),butsubjecttosuchconditionsasmaybeimposedinthestandards,NAMFISAmay,whereitconsidersthatitisreasonablynecessaryinthe interestof themedicalaid fund industryor thepublic interest,allowadeviationfromtheapplicationoftheprovisionsofsubsection(1)inrespectofgroups,classesorcategoriesofpersonsasmaybespecifiedinthestandards.

PART 4RULES OF MEDICAL AID FUND

Rules

352. (1) The rules of a medical aid fund must comply with therequirementsofthisAct. (2) WheretherulesofafundareinconsistentwithanyprovisionofthisActtherulesareinvalidtotheextentoftheinconsistency. (3) WheretherulesofafundareinconsistentwithanyprovisionofthisActandhavenotbeenamended,NAMFISAmustdirecttheboardofthefundtoamendtherulesofthefundandtheboardmustcomplywiththedirectionforthwith. (4) Despitesubsections(2)and(3),theboardofafundhasaperiodof12monthswithinwhichtoamendanyrulesofthefundwhichareinconsistentwiththisAct,whichperiodcommences,asapplicable,on-

(a) thedateofcommencementofthisAct;

(b) thedateonwhicharegulationrelatingtotherulescomesintoeffect;or

(c) thedateonwhichastandardrelatingtotherulescomesintoeffect.

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(5) Inadditiontoanyothermatterthatmayberequiredbythestandardsorthatmaybeprescribed,therulesofafundmustprovidefor-

(a) the terms and conditions applicable to the admission of a person asamemberandof thatperson’sdependants, and thedeterminationofcontributions;

(b) thepaymentofbenefits;

(c) thedependantsofamemberbeingentitledtoparticipateinthesamebenefitoptionasthemember;

(d) theconditionsforcontinuationof themembershipofamemberwhoretiresfromtheserviceofhisorheremployerorwhoseemploymentisterminatedonaccountofage,illhealthorotherdisability,andofthemembershipofhisorherdependants;

(e) the conditions for continuation of the membership of a member’sdependants after the death of that member, until such dependantbecomesamemberofthefundorisadmittedasadependantofanothermemberofthefundorbecomesamemberofanothermedicalaidfundorisadmittedasadependantofamemberofanotherfund;

(f) the admission, as from the date of receipt of the application formembership,tothefundasamemberthereof,subjecttothetermsandconditionsapplicabletotheadmissionofothermembers,butwithoutawaitingperiodortheimpositionofnewrestrictionsonaccountofthestateofhisorherhealthorthehealthofanyofhisorherdependants,ofanypersonwho-

(i) has been a member of any other registered fund for acontinuousperiodofatleasttwoyearsandwhoseapplicationformembershipofthefirst-mentionedfundisnecessitatedbyhisorherchangingofemployment;or

(ii) has,foracontinuousperiodofnot less thantwoyears,beenadependantofapersonwho,during thatperiod,hasbeenamemberofthatfundoranyotherfund,

andwhoapplieswithinthreemonthsafterthedateonwhichheorsheceasedtobeamemberofsuchotherfundoradependantofamemberofthatfundorsuchotherfund,asthecasemaybe,tobecomeamember;

(g) theamountofanymembershipcontributionthatispayable,calculatedafterconsultationwithavaluator;

(h) thesettlementofanycomplaintordispute;and

(i) subjecttotheprovisionsofthisActorofanyotherlaw,themannerinwhichandthecircumstancesunderwhichamedicalaidfundmaybeterminatedordissolved.

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(6) Therulesofamedicalaidfundmaynotprovideforthecancellationorsuspensionofaperson’smembershiporthatofanyofhisorherdependants,exceptonthegroundsof-

(a) failure to pay,within the time allowed in the rules of the fund, thecontributionsrequiredbytherules;

(b) failuretorepayanydebtduetothefund;

(c) submissionoffraudulentclaims;

(d) commissionofanyfraudulentact;or

(e) nondisclosureofmaterialinformation. (7) Therulesofamedicalaidfundmaynotprovidefortheimpositionofwaitingperiodsotherthanthoseprovidedforinsection354. (8) Amedicalaidfundmustprovideanypersonwhobecomesamemberofthefundwithacopyoftherulesofthefund,freeofcharge,atthetimethatthepersonbecomesamember. (9) Any personwho contravenes or fails to complywith subsection (8)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Amendment of rules

353. (1) The board of a registered fundmay, in themanner directedbytherulesofthefund,amendorrescindanyruleormakeanyadditionalrule,butnosuchamendment,rescissionoradditionwillbevalidifitpurportstoaffectanyrightofacreditorofthefund,otherthanasamemberthereof. (2) Theboardofafundmustsendacopyofanyamended,rescindedoradditionalruletoNAMFISAnotlessthan30daysbeforeitsimplementation,togetherwiththeparticularssetoutinthestandards. (3) If any such amendment, rescission or addition affects the financialpositionofthemedicalaidfund,theboardmustalsosendtoNAMFISAareportby-

(a) thevaluatorofthefund;or

(b) avaluatorretainedbythefundforthispurpose,ifnovaluatorhasbeenappointed,

astothesoundnessofthefinancialpositionofthefund,determinedinaccordancewiththestandards,havingregardtotherateofcontributionsbytheemployerandmembersand,ifthefundisnotinasoundfinancialposition,whatarrangementswillbemadetobringthefundintoasoundfinancialposition. (4) IfNAMFISAisnotsatisfiedwiththereportreferredtoinsubsection(3),NAMFISAmay,atthecostofthefund,requireareportbyanindependentvaluator

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thatcomplieswiththeconditionssetoutinthestandardsandasmaybespecifiedbyNAMFISA. (5) Theboardofafundmayatanytimeconsolidatetherulesofthefund,andin thatcase theboardmustforward toNAMFISAacopyofsuchconsolidation,butiftheconsolidatedrulesdifferfromtheapprovedrules,NAMFISAmustdirecttheboardtoamendtheconsolidatedrulessothattheydonotdifferfromtheapprovedrules. (6) Withrespecttotherulesofafund,NAMFISAmayrequestadditionalinformationregardinganyamendment,rescission,additionorconsolidationsubmittedto NAMFISA, as NAMFISA may consider necessary, and any such amendment,rescission,additionorconsolidationisvoidifthefundfailstofurnishtheinformationrequested byNAMFISAunder this subsectionwithin 30 days from the date of thatrequest. (7) IfatanytimeNAMFISAisoftheopinionthattherulesofamedicalaidfunddonotcomplywiththerequirementsofthisAct,NAMFISAmaydirecttheboardofthefundtoamendtherules. (8) Themedical aid fundmust send or cause to be send a copy of anyamendmentto,rescissionof,oradditionto,therulesofthefundtoeverymemberofthefundfreeofcharge. (9) Any personwho contravenes or fails to complywith subsection (8)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

Waiting periods

354. (1) Whereanapplicationismadeformembershipofamedicalaidfundorforadmissionasadependant,andtheapplicantwasnotamemberorbeneficiaryofanother fund forat least90dayspreceding thedateofapplication, the fundmayimposeupontheapplicant-

(a) ageneralwaitingperiod;or

(b) acondition-specificwaitingperiod,

whichmaynotbelongerthantheperiodprovidedbythestandards. (2) Whereanapplicationismadeformembershipofamedicalaidfundorforadmissionasadependant,andtheapplicantwaspreviouslyamemberorbeneficiaryofanotherfundforacontinuousperiodof24monthsorlessandtheapplicantappliesformembershipofthenewfundwithinaperiodof90daysaftertheterminationofhisorhermembershipofthepreviousfund,thenewfundmayimposeupontheapplicant-

(a) acondition-specificwaitingperiodwhichmaynotbelongerthantheperiodprovidedbythestandards;or

(b) wherethatpreviousfundhadimposedageneralorcondition-specificwaiting period, which had not expired at the timemembershipwasterminated, a general or condition-specific waiting period for theunexpiredportionofthewaitingperiodimposedbythatpreviousfund.

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(3) The other fund referred to in subsection (2) ofwhich a personwaspreviouslyamemberorbeneficiary,maynotunreasonablywithholdanyinformationwhichwillenablethefundtowhichthepersonhasmadeanapplicationformembershiptomakeanydeterminationwithrespecttothatapplicant. (4) Whereanapplicationismadeformembershipofamedicalaidfundorforadmissionasadependant,andtheapplicantwaspreviouslyamemberorbeneficiaryofanotherfundforacontinuousperiodofmorethan24monthsandtheapplicantappliesformembershipofthenewfundwithinaperiodof90daysaftertheterminationofhisorhermembershipinthepreviousfund,thenewfundmayimposeupontheapplicanta generalwaiting period,whichmay not be longer than the period provided by thestandards. (5) Amedicalaidfundmaynotimposeageneraloracondition-specificwaitingperiodon amemberor beneficiarywho changes fromonebenefitoption toanotherwithinthesamefundunlessthatmemberorbeneficiaryissubjecttoawaitingperiodonthefirstbenefitoption,inwhichcaseanyremainingportionofthewaitingperiodmaybeapplied. (6) Amedicalaidfundmaynotimposeageneraloracondition-specificwaiting period on a child-dependant born during the period of membership of thememberthechild-dependantistobeabeneficiary. (7) Subjecttosubsection(8),whereanapplicationismadeformembershipofamedicalaidfundorforadmissionasadependant,andtheapplicantwaspreviouslyamemberorbeneficiaryofanother fundforacontinuousperiodofnot less than24monthsandtheapplicantappliesformembershipofthenewfundwithinaperiodof90daysaftertheterminationofhisorhermembershipinthepreviousfund,thenewfundmaynotimposeageneralorcondition-specificwaitingperiod,wherethetransferof,orapplicationfor,membershipisrequiredasaresultof-

(a) achangeofemployment;or

(b) an employer changing or terminating the medical aid fund of itsemployees.

(8) Despitetheprovisionsofsubsection(7),inthecasewhereamedicalaid fund fromwhich amember is transferring had imposed a general or condition-specificwaitingperiodwhichhadnotexpiredatthetimeofterminationofmembership,themedicalaidfundtowhichanapplicationhasbeenmadepursuanttosubsection(7)mayimposeageneralorcondition-specificwaitingperiodfortheunexpiredportionoftheoriginalwaitingperiodimposedbythefirstmedicalaidfund. (9) Amedicalaidfundmaynotrequireanapplicanttoprovidethefundwithamedicalreportonanyproposedbeneficiary,exceptinthecircumstanceswhereahealthservicewasrecommendedorreceivedforaconditionduringthewaitingperiodsetoutinthestandardsandendingonthedateonwhichtheapplicationformembershipismade.


355. SubjecttotheprovisionsofthisChapter,therulesofamedicalaidfundarebindingonthefund, theboard, itsmembersandofficersandonanypersonwhoclaimsanybenefitundertherulesorwhoseclaimisderivedfromapersonsoclaiming.

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PART 5BENEFIT OPTIONS

Additional benefit options

356. (1) Amedicalaidfundmayprovidememberswithmorethanonebenefitoptionifsuchadditionalbenefitoptionoroptionsarefinanciallysoundandwillnotjeopardisethefinancialsoundnessofanyexistingbenefitoptionofthefund. (2) Despitesubsection(1),ifabenefitchangeoccursduringthecourseofafund’sfinancialorbenefityearthatbenefitchangerequirestheapprovaloftheboardofthefund,unlessthebenefitchangeisoccasionedbyalifeevent,asdeterminedinthestandards,affectingthemember. (3) TheprincipalofficerofthefundmustfilethedetailsofanyadditionalbenefitoptionoroptionswithNAMFISA,and ifNAMFISAisof theopinion that itis advisable,NAMFISAmaydemand that theprincipal officerobtain suchfinancialguaranteesaswill,intheopinionofNAMFISA,ensurethefinancialsoundnessofallbenefitoptions. (4) Where as a result of an inspectionor investigationof amedical aidfundunder thisActorasa resultofany report,document, statementor informationfurnishedtoNAMFISA,NAMFISAisoftheopinionthatabenefitoptionisnotormaynotbefinanciallysound,NAMFISAmay,aftergivingthefundareasonableopportunitytobeheard,requirethefundtowithdrawsuchbenefitoption,andtoamenditsrulesaccordinglywitheffectfromthedatedirectedbyNAMFISA. (5) BeforeNAMFISArequiresthewithdrawalofabenefitoptionpursuanttosubsection(4),NAMFISAmusthaveregardtoanycorrectivemeasuresproposedbythefundtoensurethatabenefitoptionbecomesfinanciallysound. (6) IfamedicalaidfundfailstoamenditsruleswithintheperiodspecifiedbyNAMFISApursuant to subsection (4),NAMFISAmaydirect the fund to amendthoserules.

Prohibition on cession and attachment of benefits

357. (1) A benefit or right in respect of a benefit payable under thisChapterisnotcapableofbeingassignedortransferredorotherwisecededorofbeingpledgedorhypothecatedorliabletobeattachedorsubjectedtoanyformofexecutionunderajudgmentororderofacourt. (2) Amedicalaidfundmaywithhold,suspendordiscontinuethepaymentofabenefittowhichamemberisentitledunderthisChapteroranyrightinrespectofsuchbenefitorpaymentofsuchbenefittothatmember,ifthememberattemptstoassignortransferorotherwisecede,pledgeorhypothecatesuchbenefit.

PART 6GENERAL

Voluntary dissolution of fund

358. SubjecttotherequirementsofanyregulationsmadebytheMinisterandstandardsissuedbyNAMFISAunderthisAct,amedicalaidfundmaybeterminatedor

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dissolved,whollyorinpart,insuchcircumstances,ifany,asmaybespecifiedforthatpurposeinitsrulesandinthemannerprovidedbysuchrules,andsubjecttothepriorapprovalofNAMFISA,theassetsof thefundmust inthatcasebedistributedtothemembersinthemannerprovidedbytherules.

Winding-up by court

359. (1) If-

(a) NAMFISAissatisfiedthatamedicalaidfundis insuchanunsoundfinancial condition that any scheme as contemplated by Part 7 ofChapter10wouldbeineffective,impracticableorunsatisfactory;or

(b) afundisrequiredunderanyprovisionofthisActtowound-upunderthissection,

NAMFISAor a person actingwith the approval ofNAMFISAmay, if the fundhasassetsandliabilitiesequaltoorexceedingthevaluesthataresetoutinthestandards,applytotheHighCourtforanorderthatthewholeoranypartofthebusinessofthefundbewound-up. (2) An application for the winding-up, and the winding-up, of a fundpursuanttosubsection(1)mustbedoneaccordancewiththeregulationsmadebytheMinisterandstandardsissuedbyNAMFISAunderthisAct.


360. (1) Amedicalaidfundmustonrequestbyamemberorbeneficiary,orapersonauthorisedbyamemberorbeneficiary,providethatmember,beneficiaryorauthorisedperson,onpaymentofsuchfeeasmaybedeterminedbythestandardsandreflectedintherulesofthefund-

(a) withacopy,additionaltotheoneprovidedundersection352(8),oftherulesofthefund;

(b) withacopyofthemostrecentfinancialstatementsofthefund;and

(c) with a copy of the most recent report by the valuator of the fundpreparedpursuanttosection347(1).

(2) Amember,beneficiaryorpersonauthorisedbyamemberorbeneficiarymay,withoutcharge,attheprincipalofficeofamedicalaidfund,inspectacopyofanyofthedocumentsreferredtoinsubsection(1)andmakeextractstherefrom. (3) NAMFISAmayissuestandardswithrespecttoanyreportsandotherinformationthatamedicalaidfundmustprovidetomembersandbeneficiariesofthefundfreeofcharge. (4) Any personwho contravenes or fails to complywith subsection (1)or(2)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

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Charges by suppliers of health services

361. (1) Asupplierofhealthserviceswhohasprovidedahealthservicetoamemberorbeneficiaryforwhichanaccounthasbeenrendered,must,despitetheprovisionsofanyotherlaw,furnishtothememberconcernedanaccountorstatementreflectingsuchparticularsasmayberequiredbythestandards. (2) Aregisteredmedicalaidfundmust,whereanaccounthasbeenrendered,subjecttotheprovisionsofthisChapterandtherulesofthefund,paytoamemberorasupplierofhealthservices,anybenefitowingtothatmemberorsuppliernotlaterthanthedaterequiredbythestandardsfollowingthedateonwhichtheaccountwasreceivedby the fundor thedateonwhich thememberor the supplier of health serviceshassubmittedtheaccounttothefundforpayment,iflater. (3) Despiteanythingtothecontrarycontainedinanyotherlaw,amedicalaidfundmaydeductfromanybenefitpayabletoamemberortoasupplierofhealthservicesanyamountofmoneywhichhasbeenpaidbona fideinaccordancewiththeprovisionsofthisChaptertowhichthatmemberorthatsupplierofhealthservicesisnotentitled. (4) Amedicalaidfundmaytakeproceedingsinacourtagainstamemberorhealthsupplierfortherepaymentofanyamountreferredtoinsubsection(3),whichithasnotbeenabletorecoverthroughadeductionreferredtointhatsubsection.

Offences relating to medical aid funds

362. Anypersonwho-

(a) makesorcausestobemadeanyclaimforthepaymentofanybenefitallegedlydueundertherulesofamedicalaidfund,knowingsuchclaimtobefalse;

(b) knowinglymakesorcauses tobemadeafalserepresentationofanymaterialfacttoamedicalaidfund,foruseindetermininganyrighttoanybenefitallegedlydueundertherulesofthefund;

(c) havingknowledgeofanyfactortheoccurrenceofanyeventaffectinghisorherrighttoreceiveanybenefitundertherulesofafundfailstodisclosesuchfactoreventtothefundwiththeintenttoobtainfromthefundabenefittowhichheorsheisnotentitledoralargerbenefitthanthattowhichheorsheisentitled;or

(d) renders a statement, account or invoice to a member or any otherperson,knowing thatsuchstatement,accountor invoice is falseandwhichmaybeusedbysuchmemberorotherpersontoclaimfromafundanybenefitorabenefitgreaterthanthebenefittowhichheorsheisentitledundertherulesofthefund,

commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

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CHAPTER 8FUNd ANd SOCIETY AdMINISTRATORS

PART 1PRELIMINARY



“administrationservices”include-

(a) themaintenance,safe-keepingandpreservationoftherecordsofmembersofaretirementfund,afriendlysocietyoramedicalaidfund;

(b) themaintenanceofcontributions;

(c) claimsandbenefitpaymentservices;

(d) debtmanagementservices;

(e) enquiryservices;

(f) servicesrelatedtoinvoicing,financialrecordkeepingandothersimilarservicesrelatedtothemanagementofthefund;

(g) preparation of member statements and reports to the board or other partiesrequiringreportsinrespectofthefund;

(h) datamanagement;

(i) theperformanceofsimilarorrelatedduties;and

(j) anyotherservicethatmaybedeterminedbyNAMFISAinthestandards;

“board”meanstheboardofdirectorsofafundadministratororsocietyadministrator;

“fund administrator”means a company registered as such byNAMFISA to provideadministrationservicestoaretirementfundoramedicalaidfundpursuanttosection368ordeemedtoberegisteredundersection369;

“friendlysociety”meansafriendlysocietyasdefinedinsection284;

“medicalaidfund”meansamedicalaidfundasdefinedinsection321;

“retirement fund”meansa retirement fundasdefined in section249,and includesabeneficiaryfundasdefinedinthatsection;and

“society administrator” means a natural person or an entity registered as such byNAMFISAtoprovideadministrationservicestoafriendlysocietypursuanttosection368ordeemedtoberegisteredundersection369.

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Prohibitions

364. (1) ApersonmaynotcarryonthebusinessofafundadministratororsocietyadministratorinNamibia,unlessthatpersonisregisteredasafundadministratororsocietyadministratorpursuanttosection368ordeemedtoberegisteredundersection369. (2) NAMFISAmayinitsdiscretionandsubjecttoanyconditionsprovidedbythestandardsexemptasocietyadministratorfromtheoperationofanyoralloftheprovisionsofthisChapter. (3) NAMFISAmayatanytimebynoticetoasocietyadministratorreferredtoinsubsection(2),withdraw,whollyorinpartandonanygroundswhichNAMFISAconsiderssufficient,anyexemptiongrantedundersubsection(2). (4) Anypersonwhocontravenesorfailstocomplywiththeprovisionsofsubsection(1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Restriction on use of designation “fund administrator”, “society administrator” or “administrator”

365. (1) Apersonmaynotuse,inconnectionwithabusiness,anamewhichincludesthewords“fundadministrator”,“societyadministrator”,“administrator”oranyothernamewhichisintendedtoindicateorislikelytoleadotherpersonstobelievethatthepersoncarriesonthebusinessofafundadministratororsocietyadministrator,unlesssuchbusinessisregisteredasafundadministratororsocietyadministratorundersection368ordeemedtoberegisteredundersection369.

(2) If at the commencement of this Chapter any person was using, inconnectionwiththatperson’sbusiness,anynameordescriptionreferredtoinsubsection(1)andtheperson-




thatpersonsochargedorofficermust,withoutanycharge,substitutethenewnameforthepreviousnameonsuchdeedordocumentandinalltherelevantregisters. (3) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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PART 2REGISTRATION


366. (1) Onlya-

(a) company may make an application for registration as a fundadministrator;and

(b) naturalpersonoranentitymaymakeanapplicationforregistrationasasocietyadministrator,

toNAMFISAinaccordancewithsubsection(2). (2) An application for registration as a fund administrator or societyadministratormustbe-







(3) In addition to the requirements of subsection (2), an application forregistrationreferredtoinsubsection(1)mustbeaccompaniedbythememorandumandarticlesofassociation,constitution,rulesorotherfoundingdocumentsoftheapplicant.


367. (1) Before approving the application and registering a fundadministrator or society administrator, NAMFISA must be satisfied on reasonablegroundsthattherequirementsofsubsection(2)havebeenmetandthat-

(a) thefundadministratororsocietyadministratorisinpositiontocomplywiththerequirementsofsection372;and

(b) inthecaseofanentity,thememorandumandarticlesofassociation,constitution,rulesorotherfoundingdocumentsofthefundadministratororsocietyadministratorarenotinconsistentwiththisActandarebasedonsoundfinancialprinciples.

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(2) Before approving an application referred to in subsection (1) andregisteringafundadministratororsocietyadministrator,NAMFISAmustbesatisfiedthat-

(a) inthecaseofanentity,theapplicantentity-

(i) everyshareholderorotherowner thatcontrols theapplicant,the principal officer and other officers of the applicant, andwhere applicable, members of the board of directors of theapplicantorotherboard,arefitandproperwithinthemeaningofthestandards;

(ii) the memorandum and articles of association, constitution,rules or other founding documents of the applicant are notinconsistentwiththeprovisionsofthisAct;

(iii) thedirectorindirectcontroloftheapplicantisnotlikelytobecontrarytotheinterestofconsumersofthefinancialservicesconcerned;and



(i) thisAct;or



(i) providetheadministrationservicesinquestionwithprofessionalintegrity,prudence,properskillandduediligence;






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Registration

368. (1) IfNAMFISAissatisfiedthattheproposedfundadministratoror society administrator complies with the requirements of section 367, NAMFISAmustregisterthefundadministratororsocietyadministrator,subjecttoanyconditionswhichNAMFISAmayconsiderappropriatepursuanttosubsection(4),andmustissueacertificateofregistrationpursuanttosubsection(3). (2) Theregistrationreferredtoinsubsection(1)mustspecify-


(b) theplacesinNamibiafromwhichtheapplicantmayoperate. (3) UponregistrationofanapplicantNAMFISAmustissuetotheapplicantacertificateofregistrationinaformprovidedbythestandards. (4) NAMFISA may impose such conditions on the registration of theapplicantas itconsidersnecessary,having regard,without limitation, toall the factsandinformationavailabletoNAMFISApertainingtotheapplicant,andanyguidelinesissuedbyNAMFISAunderthisAct. (5) If an application is refused by NAMFISA or is granted subject toconditions,NAMFISAmustadvisetheapplicantoftherefusalorconditionsbygivingnoticetotheapplicantcontainingthereasonsfortherefusalortheconditions,andmustgivetheapplicantareasonableopportunitytobeheardbyspecifyingaperiodofnotlessthan21daysduringwhichtheapplicantmaymakerepresentationsinwritingtoNAMFISA. (6) A fund administrator or society administratormust complywith theconditionssubjecttowhichitwasregistered.

Existing fund administrators and society administrators

369. (1) ApersoncarryingonthebusinessofafundadministratororsocietyadministratoronthedateofcommencementofthisChapterisdeemedtobeafundadministratoror societyadministrator registered, as thecasemaybe,under thisAct. (2) Despitesubsection(1),apersonreferredtointhatsectionmust,within12months after the date of commencement of thisChapter,make an application toNAMFISApursuanttosection366forregistrationasafundadministratororsocietyadministrator. (3) Ifapersonreferredtoinsubsection(1)failstomakeanapplicationtoNAMFISAforregistrationwithintheperiodreferredtoinsubsection(2),theregistrationofthatpersoniscancelled.


370. (1) At any time, a registered fund administrator or societyadministratormaymakeanapplicationtoNAMFISAforcancellationoftheregistrationgranted pursuant to thisAct or a variation of the conditions subject to which thatregistrationwasgranted.

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(2) Anapplicationmadeundersubsection(1)mustbe-






(b) either-







(6) NAMFISA must make public any cancellation of registration orvariationofconditionsofregistrationintermsofsubsection(5)andthereasonstherefor,bynoticeintheGazetteorbymeansofanyotherappropriatepublicstatement.


371. (1) NAMFISAmaytakeanyoftheactionssetoutinsubsection(2),intheeventthatNAMFISA,actingreasonably,findsthataregisteredfundadministratororsocietyadministrator-


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(d) has provided administration services without professional integrity,prudence,properskillandduediligence;






(j) anydirector,theprincipalofficer,otherofficerormemberofaboardnolongermeetsthefitandproperrequirementswithinthemeaningofthestandardsorhasengagedinconductidentifiedinthestandardsasmisconduct.

(2) IfNAMFISA is satisfied that any of the circumstances described insubsection(1)exist,NAMFISAmaytakeanyofthefollowingactionswithrespecttotheregisteredfundadministratororsocietyadministrator:




(3) NAMFISAmust give notice to the registered fund administrator orsocietyadministratorof the intentionofNAMFISA to takeanyaction referred to insubsection (2), togetherwith the reasons therefor, andmustgive the registered fundadministratororsocietyadministratorareasonableopportunitytobeheardbyspecifyinga period of not less than 21 days duringwhich the registered fund administrator orsocietyadministratormaymakerepresentationstoNAMFISAonthematter. (4) SubjecttosuchconditionsasNAMFISAmayimpose,NAMFISAmayprovisionallysuspendtheregistrationortakecontroloftheassetsofaregisteredfundadministratororsocietyadministrator. (5) Onthecancellationoftheregistrationofafundadministratororsocietyadministratorundersection369(3),370(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct,thefundadministratororsocietyadministratormustceasetocarrythebusinessoffundadministratororsocietyadministrator. (6) NAMFISA must make public any suspension or cancellation ofregistration,variationofconditionsofregistrationoranyotherstepstakenunderthis

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section and the reasons therefor, by notice in theGazette or bymeans of any otherappropriatepublicstatement. (7) Apersonwho-

(a) continuestooperate,orcarryon,thebusinessofafundadministratororsocietyadministratorafterthecancellationofregistrationundersection369(3),370(5)(a),subsection(2)(a)oranyotherapplicableprovisionofthisAct,oraftersuspensionofregistrationundersubsection(4);or





372. (1) Every registered fund administrator or society administratormust-





(iii) mustbeamemberof theboardof the fundadministratororsocietyadministrator.

(2) Despite subsection (1)(b)(i), NAMFISA may, in exceptionalcircumstances,grantpermission thataprincipalofficer referred to in thatsubsectionmay,subjecttotheImmigrationControlAct,1993(ActNo.7of1993),forsuchperiodasmaybe determinedbyNAMFISA, be a person other than aNamibian citizen orpermanentresident. (3) Aftertheappointmentofaprincipalofficerpursuanttosubsection(1)(b),theregisteredfundadministratororsocietyadministratormust,withintheperiodsetoutinthestandards,inwritingNAMFISAnotifyoftheappointment. (4) NAMFISAmay,onthegroundsthataprincipalofficerisnotafitandproperperson,withinthemeaningofthestandards,andaftergivingtheregisteredfundadministratororsocietyadministratorandtheprincipalofficerareasonableopportunitytobeheard,directtheregisteredfundadministratororsocietyadministratortoappointsomeotherperson tobe theprincipalofficerof that registeredfundadministratororsocietyadministrator.

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(5) Wheneveraprincipalofficerresignsortheappointmentofaprincipalofficeristerminatedbyaregisteredfundadministratororsocietyadministratororbythe expiryof a contractof employment, the registered fundadministratoror societyadministratormust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionoftheregisteredfundadministratororsocietyadministrator,thereasonsfortheresignation. (6) The principal officer of a registered fund administrator or societyadministrator is authorised to act on behalf of the fund administrator or societyadministratortoensurecompliancewiththisAct,andinanycasewhereaperson,includingNAMFISA,communicateswith thatfundadministratororsocietyadministrator, thatpersonmaydosobyaddressingthecommunicationtotheprincipalofficer. (7) Processinanylegalproceedingsmaybeservedonaregisteredfundadministratororsocietyadministratorbyservingacopythereofatitsprincipaloffice. (8) A person who contravenes or fails to comply with subsection (3)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$1000000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.


373. (1) ExceptwheretheaccountsofaregisteredfundadministratororsocietyadministratoraretobeauditedbytheAuditor-GeneralpursuanttoanotherlawofNamibia,theboardofaregisteredfundadministratororsocietyadministratormust,inaccordancewithsection401andinthemannersetoutintherulesofthefund,appointandatalltimeshaveanauditororfirmofauditorstobetheauditorofthefundadministratororsocietyadministrator. (2) Theboardofaregisteredfundadministratororsocietyadministratormaynotappointastheauditorofthefund-



anemployeeorofficerofthefundadministratororsocietyadministratororamemberoftheboardofthefundadministratororsocietyadministrator. (3) NAMFISAmay direct the board of a fund administrator or societyadministratortochangetheauditorofthefundifNAMFISAissatisfiedthattheauditororanymemberofthefirmofauditorsappointedasauditorisanemployeeorofficerofthefundadministratororsocietyadministratororamemberoftheboardofthefundadministratororsocietyadministrator. (4) Anauditorappointedundersubsection(1)-




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Duties of fund administrators and society administrators

374. Afundadministratororsocietyadministratormust-

(a) endeavour to avoid conflict between the interests of the fundadministrator or society administrator and the duties owed to aretirementfund,afriendlysocietyoramedicalaidfund,as thecasemaybe,andanyconflictofinterestorpotentialconflictofinterestmustbedisclosedbythefundadministratororsocietyadministratortotheboardof the retirement fund, the friendly societyor themedical aidfund,asthecasemaybe,settingoutfullparticularsofhowsuchconflictwillbemanaged;

(b) administertheretirementfund,thefriendlysocietyorthemedicalaidfund,asthecasemaybe,inaresponsiblemanner;

(c) maintainproperrecordsandensurethattheyarekept-

(i) secureandcontinuouslybacked-up;and

(ii) separatelyfromallotherrecordsofthefundadministratororsocietyadministrator;

(d) employadequatelytrainedstaffandensuretheyareproperlysupervised;

(e) havewell-definedcomplianceprocedures;

(f) maintainadequatefinancialresourcestomeetitscommitmentsandtomanagetheriskstowhichthefundadministratororsocietyadministratorisexposed;

(g) provide the board of the retirement fund, the friendly society or themedical aid fund, as the casemay be,with amonthly report on itsadministrationservices;

(h) furnishNAMFISAwithinformationuponrequest;

(i) assist the auditor and valuator of the retirement fund, the friendlysocietyorthemedicalaidfund,asthecasemaybe,intheperformanceoftheirduties;and

(j) perform any other functions or duties that may be required by thestandards.

Other business of fund administrator or society administrator

375. Aregisteredfundadministratororsocietyadministrator thatengagesin any other business concurrently with the business of fund administrator orsocietyadministratormustnotallowsuchoutside interest to jeopardise the integrity,independence or competence of the fund administrator or society administrator toperformitsfunctionsunderthisAct.

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Application of Companies Act to fund administrator or society administrator

376. ExceptwherethisChapterexpresslyprovidesotherwise,theapplicationoftheCompaniesActtoafundadministratororsocietyadministratorisnotaffectedbythisChapter.

CHAPTER 9PROPERTY HELd IN TRUST


377. InthisChapter,unlessthecontextindicatesotherwise-

“agreement” means the agreement, written or verbal, power of attorney, will, deedofsettlement,orderofacourtorotherinstrumentpursuanttowhichtrustpropertyisinvested,keptinsafecustody,controlled,administered,alienatedorotherwiseheldintrustbyaninstitutionaltrusteeornomineecompanyonbehalfofaprincipal;

“institutionaltrustee”meansafinancialinstitutionorfinancialintermediarythatholdstrustpropertyintrustonbehalfofaprincipal;

“nomineecompany” meansacompanycontrolledbyafinancialinstitutionorfinancial intermediary,which-

(a) hasasitsprincipalobjecttoactasnomineefor,orrepresentativeof,aprincipalforthepurposeofholdingtrustpropertyintrustforsuchprincipal;

(b) isprecludedbyitsmemorandumandarticlesfromincurringanyliabilitiesotherthanthosetotheprincipalonwhosebehalfitholdstrustproperty;and

(c) hasenteredintoanirrevocablewrittenagreementwiththefinancialinstitutionor financial intermediary which controls it, pursuant to which the financialinstitutionorfinancialintermediaryhasundertakentopayalltheexpensesof,andincidentalto,itsformation,operationsandliquidation;

“principal”means anypersonor persons onwhosebehalf an institutional trustee ornomineecompanyholdstrustpropertyintrustpursuanttoanagreement,andincludesabeneficiary;

“trustproperty”meansfunds,assetsorotherpropertyofaprincipalheldintrustbyaninstitutionaltrusteeoranomineecompanypursuanttothisChapter;

Duties with respect to trust property

378. (1) Aninstitutionaltrusteeornomineecompany,andanydirector,officer, employee, agent, shareholder or other owner of the institutional trustee ornomineecompany,thatinvests,holds,keepsinsafecustody,controls,administersoralienatestrustpropertyonbehalfofaprincipal-

(a) must,withregardtothetrustpropertyandthetermsoftheagreement,observe the utmost good faith and exercise the care and diligencerequiredofatrusteeintheexerciseordischargeofthattrustee’spowersandduties;and

308

(b) maynotalienate, invest,pledge,hypothecateorotherwiseencumberormakeuseofthetrustpropertyorfurnishanyguaranteeinamannercalculated to gain directly or indirectly any improper advantage forthattrustee,nomineecompanyorpersonorforanyotherpersontotheprejudiceoftheprincipal.


declaration of interest

379. (1) A director, officer, employee, agent, shareholder or otherownerofaninstitutionaltrusteeoranomineecompanywhotakespartinadecisiontoinvest,withinthemeaningofsubsection(2),anytrustpropertyinanentityinwhichthatpersonhasadirectorindirectfinancialinterest,mustdeclarethatinterestinwritingtotheboardofdirectorsorotherboardoftheinstitutionaltrusteeornomineecompany,indicatingthenatureandextentofsuchinterest,beforethedecisionismade. (2) Forthepurposesofsubsection(1),“invest”includes-

(a) thepurchaseofsharesinacorporatebodyoraninterestinapartnershiporotherunincorporatedentity;

(b) thegrantofasecuredorunsecuredloan;and

(c) theacquisitionofafinancialinterestinanagreementorothermatterinwhichtheinstitutionaltrusteeornomineecompanyhasamaterialinterest.

(3) A declaration of interest made pursuant to subsection (1) must berecordedintheminutesofthemeetingoftheboardofdirectorsorotherboardatwhichthedeclarationismade. (4) A person who contravenes or fails to comply with subsection (1)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Investment of trust property

380. (1) Aninstitutionaltrusteeornomineecompanywhichadministerstrustproperty,andadirector,officer,employee,agent,shareholderorotherownerofthatinstitutionaltrusteeornomineecompany,maynotinvestthattrustpropertyorcausethattrustpropertytobeinvestedotherwisethaninamannerdirectedin,orrequiredby,the agreementgoverning the trustproperty thatwas entered intoby the institutionaltrusteeornomineecompany. (2) Intheabsenceofadirectionorrequirementreferredtoinsubsection(1), the institutional trustee or nominee company or any director, officer, employee,agent,shareholderorotherownerofthatinstitutionaltrusteeornomineecompany,maynotcauseanytrustpropertytobeinvestedotherwisethaninthenameof-

309

(a) theprincipal;

(b) theinstitutionaltrusteeinitscapacityasadministrator,trustee,curatororagent;or

(c) thenomineecompany. (3) Despitesubsections(1)and(2)-

(a) where the articles of association of a corporate body prohibit theregistrationofitssharesordebenturesinthenameof-

(i) atrust;

(ii) aninstitutionaltrusteeinitscapacityasadministrator,trustee,curatororagent;or

(iii) anomineecompany;and

(b) where such shares or debentures form part of the trust propertyadministeredbyaninstitutionaltrusteeornomineecompany,

thosesharesordebenturesmustberegisteredinthenameofadirector,officer,employee,agent,shareholderorotherownerofthatinstitutionaltrusteeornomineecompany. (4) In any situation described in subsection (3), the director, officer,employee,agent,shareholderorotherowneroftheinstitutionaltrusteeorthenomineecompany-

(a) mustholdthosesharesordebenturesinafiduciarycapacityonbehalfoftheprincipalconcerned;and

(b) priortotheregistrationofanysharesordebenturesinthenameofsuchdirector, officer, employee, agent, shareholder or other owner, mustfurnish security to the satisfaction of theMaster of theHighCourt,if suchsecurityhasnotalreadybeen furnishedpursuant to theTrustMoneysProtectionAct.

(5) Aninstitutionaltrusteeornomineecompanymustkeeptrustpropertyseparatefromitsownassets,andmustinitsbooksofaccountclearlyindicatethetrustpropertyasbeingpropertybelongingtoanidentifiedprincipal. (6) Despite anything to the contrary in any law or the common law,trust property invested, held, kept in safe custody, controlled or administered by aninstitutionaltrusteeornomineecompany,maynotformpartoftheassetsorfundsofthatinstitutionaltrusteeornomineecompany. (7) Theprovisions of this section also applies in the situationwhere aninstitutionaltrusteeornomineecompanyinvests,holds,keepsinsafecustody,controls,administersoralienatestrustpropertyjointlywithanotherpersonunderanagreementtowhichthatotherpersonisalsoaparty. (8) Apersonwhocontravenesorfailstocomplywithsubsections(1)or(5)commitsanoffenceandis liableonconvictiontoafinenotexceedingN$5000

310

000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Alienation of trust property

381. (1) Subjecttosubsection(2),ifaninstitutionaltrusteeornomineecompany or a director, officer, employee, agent, shareholder or other owner of aninstitutional trustee or nominee company sells, transfers or otherwise alienates trustpropertytoanotherpersonincontraventionof,orwithoutcomplyingwith,theprovisionsofthisChapter,thesale,transferorotheralienationisvoid. (2) Subsection(1)doesnotapplyifthepersontowhomtrustpropertyissold,transferredoralienatedprovesthat-

(a) thetrustpropertywasacquiredforvaluableconsideration;and

(b) thepersonhadnoknowledgeof,orreasontosuspect,acontraventionof,ornon-compliancewith,thisChapter.

Records and documents as evidence

382. Theprovisionsofsection458applytotrustpropertyheldintrustbyaninstitutionaltrusteeornomineecompanypursuanttothisChapter.

Statutory manager

383. (1) IfitcomestotheattentionofNAMFISAthataninstitutionaltrusteeornomineecompanyoradirector,officer,employee,agent,shareholderorotherownerofthatinstitutionaltrusteeornomineecompanyis-

(a) incontraventionofanyprovisionofthisChapter;or

(b) inanyotherway,actingnegligentlyorrecklesslywithrespecttotrustproperty;

NAMFISAmayapplytothecourtfortheappointmentofastatutorymanagerfortheinstitutionaltrusteeornomineecompanypursuanttosections443and444. (2) For the purposes of this section, sections 443 and 444 apply to afinancialintermediarythatisaninstitutionaltrusteeortoanomineecompanyasthoughsuchfinancialintermediaryornomineecompanywereafinancialinstitution.

Consequences of criminal conviction

384. (1) Acourt thathasconvictedapersonofanoffenceunder thisChaptermay,inadditiontoanypenaltyitmayimposeunderthisChapter,orderthatpersonto-

(a) paytheprincipalconcernedanyprofitmadebythatperson;and

(b) compensate the principal concerned for any damage suffered, as aresultofthecontraventionorfailure.

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(2) Wherethepersonreferredtoinsubsection(1)isanindividualwhoisadirector,officer,employee,agent,shareholderorotherownerofaninstitutionaltrusteeor nominee company, the courtmay, in addition to any penalty imposed under thisChapterandanyordermadeundersubsection(1),orderthatthepersonmaynotserveasadirector,officer,employeeoragent,orbecomeashareholderorotherowner,ofanyinstitutionaltrusteeornomineecompanyforsuchperiodasthecourtmayconsiderfit. (3) Wherethepersonreferredtoinsubsection(1)or(2)isanindividualreferredtoinsubsection(2),thecourtmay,ifthecourtconsidersitappropriate,whenissuing an order pursuant to subsection (1), declare that the institutional trustee ornominee company ofwhich the individualwas a director, officer, employee, agent,shareholder or other owner at the time the offence was committed, is jointly andseverallyliablewithsuchindividualtotheprincipalconcerned.

CHAPTER 10GENERAL PROVISIONS

PART 1PRELIMINARY


385. For the purposes of this Chapter “Board of NAMFISA”means theboardreferredtoinsection1oftheNAMFISAAct.

Application of Chapter

386. TheprovisionsofthisChapterapplyonlytotheextentthatthesubjectmatterdealtwithinthisChapterisnotdealtwithspecificallyintheotherChaptersofthisAct.

General prohibition

387. (1) A person may not, in Namibia, provide a financial servicethatrequiresapersonprovidingthatservicetoberegisteredunderthisAct,unlessthatpersonisregisteredordeemedtoberegisteredunderthisActasafinancialinstitutionorfinancialintermediary. (2) Subsection(1)doesnotapplyto-

(a) aforeigninsurerorreinsurerreferredtoinsection5(2);

(b) aforeignexchangereferredtoinsection101(1)or197(1);

(c) a foreigncollective investmentschemereferred to insection219(1);and

(d) apersonwhoprovidesaservicebyvirtueofanauthority,approvalorrightgrantedtothatproviderunderalawofNamibiaotherthanthisAct.

(3) IfNAMFISAissatisfiedthatapersonhasobtainedanymonies,assetsorotherpropertyincontraventionofthissection,NAMFISAmustinwritingdirectthepersontorepayallsuchmonies,assetsorotherpropertysoobtainedbythatperson,

312

includinganyinterestorotheramountswhichmaybeowingbythatpersoninrespectofsuchmonies,assetsorotherpropertytotherespectivepersonsfromwhomsuchpersonhasobtainedthemonies,assetsorotherpropertyasverifiedbyNAMFISA. (4) Themonies,assetsorotherpropertyandanyinterestorotheramountsreferred to in subsection (3) must be repaid in themanner, in accordance with therequirementsandwithintheperiodoftimedirectedbyNAMFISAandspecifiedinthedirection. (5) A person who contravenes of fails to comply with subsection(1) or contravenes or fails to comply with a directive given by NAMFISA undersubsection(4)commitsanoffenceandisliableonconvictiontoafinenotexceeding N$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Transitional provisions

388. (1) Despitesection387,anypersonwhowasprovidingafinancialservicethatrequiresapersonprovidingthatservicetoberegisteredunderthisActonorbeforethedateofcommencementofthisActorthedateofcommencementofanyapplicableChapterorprovisionof thisAct,withoutbeingregisteredor licensedandwho-

(a) wasnottherebyincontraventionofanylawofNamibiaassuchlawsexistedpriortosuchdate;

(b) is required under thisAct to be registered in order to provide thatfinancialservice;and

(c) isnotthesubjectofaspecifictransitionalorexceptionalprovisionofthisActwithrespecttothatregistration,

maycontinuetoprovidesuchfinancialserviceunderthisActwithoutbeingregisteredfortheperiodendingonthedatedeterminedundersubsection(3). (2) Apersonreferredtoinsubsection(1)must,withinsixmonthsofthedate of commencement of thisAct or the date of commencement of any applicableChapterorprovisionofthisAct,orwithinsuchlongerperiodasNAMFISAmayspecify,butwhichperiodmaynotexceed12months,applytoNAMFISAforregistrationundertheapplicableprovisionsofthisAct. (3) Apersonreferredtoinsubsection(1)mustceaseprovidinganyfinancialserviceifanapplication-

(a) to NAMFISA for registration has not been made within the periodreferredtoinsubsection(2);or

(b) hasbeenmadebutregistrationhasbeenrefused.

(4) A person who contravenes of fails to comply with subsection (3)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

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Unregistered persons to furnish information

389. (1) Where NAMFISA has reason to suspect that any person iscarryingonthebusinessofafinancialinstitutionorfinancialintermediaryandhasnotbeenregisteredunderthisAct,NAMFISAmay,bynoticeinwriting,requirethatpersontosendtoNAMFISA,withintheperiodstatedinthenotice,acopyofanydocumentsandotherinformationthatNAMFISAmayrequire. (2) IfNAMFISAisnotsatisfiedwiththedocumentsorotherinformationreferredtoinsubsection(1)orifthepersonfailstosupplythosedocumentsandthatinformation,NAMFISAmayrequiresuchpersontoproduceatanyplacewherethatperson carries on the business in question, the records, documents, statements andaccountsrelatingtothatbusinessinordertoenableNAMFISAtoascertainwhetherthatbusinessconstitutesthebusinessofafinancialinstitutionorfinancialintermediary. (3) Apersonwhocontravenesof fails to complywith subsection (1)or(2)commitsanoffenceand is liableonconviction toafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

PART 2GENERAL MATTERS

Financial year

390. (1) Afinancialinstitutionorfinancialintermediarymust,notmorethan30daysfromthedateofitsregistration,notifyNAMFISAinwritingofthedateonwhichitsfinancialyearends. (2) Thefinancial year of afinancial institutionorfinancial intermediarymaynotexceedaperiodof12months. (3) Afinancial institutionorfinancial intermediarymaynot,without thepriorwrittenapprovalofNAMFISA,changeitsfinancialyear.

Name and change of name

391. (1) Every financial institution and financial intermediary mustfor all purposes and in everydocument issuedby it use thenameunderwhich it isregistered. (2) NAMFISA may not register a financial institution or a financialintermediaryunderanameorapproveachangeofnametoanamewhichis-

(a) thesameasthatofafinancialinstitutionorfinancialintermediarythathasalreadybeenregistered;

(b) confusinglysimilartothatofanotherregisteredfinancialinstitutionorregisteredfinancialintermediary;or

(c) likelytomisleadthepublic. (3) Afinancial institution orfinancial intermediary registered under thisActmaynot,withoutthepriorwrittenapprovalofNAMFISA-

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(a) changethenameunderwhichitisregistered;

(b) useorrefertoitselfbyanameotherthanthenameunderwhichitisregistered;or

(c) useorrefertoitselfbyashortenedformorderivativeofthenameunderwhichitisregistered.

(4) Anapplicationforapprovalofachangeofname,useofanothernameoruseofashortenedformorderivativeofanamepursuanttosubsection(3)mustbemadetoNAMFISAinthemannerandformandbeaccompaniedbysuchdocumentsandfeessetoutinthestandards. (5) Upon receipt of an application referred to in subsection (4), ifNAMFISAissatisfiedthattheproposednamedoesnotcontravenetherequirementsofsubsection(2)andthattheapplicantisincompliancewiththeprovisionsofanyotherlawapplicable toachangeofname,NAMFISAmustregister theapplicantunder itsnewnameandissuetosuchapplicant, in theformprovidedbythestandards,anewcertificateofregistrationunderthatname. (6) Despite subsection (2)(a) and (b) and subsection (3)(b), a financialinstitutionorfinancialintermediarymay,withtheconsentofNAMFISA,inconjunctionwithitsregisteredname,useorrefertoitselfbythenameofafinancialinstitutionorfinancial intermediarywithwhich it has amalgamatedor the assets and liabilitiesofwhichhavebeentransferredtoit,or,inthecaseofachangeofname,thenamebywhichitwaspreviouslyknown.

Notification of certain matters

392. AfinancialinstitutionorafinancialintermediarymustnotifyNAMFISAinwritingwithin30days-

(a) ofanychangeofitsprincipalofficer;

(b) ofanychangeoftheaddressofitsprincipaloffice;

(c) of any location in addition to its principal officewhere it intends tocarryonbusiness;and

(d) subjecttosection390(3),ofanychangeinthedateofitsfinancialyear.

PART 3 GOVERNANCE

Application of this Part

393. (1) TheprovisionsofthisPartapply-

(a) to theboardsofallfinancial institutionsexcept for theprovisionsofsections394(a),395(a)and397whichapply tomembersofaboardof trustees or any other board of a financial institution that is not acompanytotheextentprovidedforinthestandards,withsuchchangesasmayberequiredbythecontext;and

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(b) unless otherwise expressly provided in this Part, to financialintermediaries to the extent provided for in the standards,with suchchangesasmayberequiredbythecontext.

(2) Despitesubsection(1),NAMFISAmay,inexceptionalcircumstances,exemptthemembersofaparticularboardoftrusteesoranyotherboardreferredtoinsubsection(1)fromoneormorerequirementsofsections394(a),395(2),397and402.

Board of financial institution

394. Despite anything to the contrary in any of the provisions of theCompaniesActoranyotherlaw-

(a) onethirdoftheboardofdirectorsofeveryfinancialinstitutionthatisacompanymustbe independentdirectorswithin themeaningof thestandards;and

(b) thechairpersonoftheboardofafinancialinstitutionmaynotalsobethe principal officer, general manager or other senior officer of thefinancialinstitution.

Duties of board

395. (1) Subject to this Act, the directors of a financial institutionmustmanageorsupervisethemanagementofthebusinessandaffairsofthefinancialinstitution,withtheobjectiveofmaximizingthereturnsofshareholdersorotherowners,subjecttotheoverridingresponsibilityofensuringthat-

(a) the financial resources of the financial institution are sufficient todischargeitsobligations;

(b) consumers are fairly treated in accordance with the contractualarrangementsapplicabletothem;and

(c) theprovisionsofthisActarefullycompliedwith. (2) Without limiting the generality of subsection (1), the directors of afinancialinstitutionmust-

(a) establishanauditcommitteetoperformthedutiesreferredtoinsection397;

(b) establish procedures for identifying and dealing with conflicts orpotential conflicts of interest, and for identifying andvetting relatedpartytransactions,asdefinedinthestandards,withaviewtoavoidingthosethatareprohibitedbythestandards;

(c) designate a committee of the board of directors to monitor theproceduresreferredtoinparagraph(b);

(d) establishinvestmentandlendingpolicies,standardsandproceduresinaccordancewiththestandards;

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(e) establishprocedureswithrespecttothefairtreatmentofconsumersandclients,includingthedisclosureofinformationtothem,theprotectionoftheirpersonalinformation,thepromptassessmentandpaymentofthelegitimateclaimsofsuchconsumersandclientsandthehandlingofconsumerandclientcomplaints;

(f) appoint and dismiss senior officers and establish the level ofremunerationforofficersof thefinancial institutionbasedoncriteriathatpromotetheinterestsofthefinancialinstitutionandarenotsuchastoencourageimprudentbehaviour;

(g) establish internal risk management strategies and policies for theidentification,measurement,monitoringandcontrollingofsignificantrisksonanon-goingbasis;

(h) establish procedures for the outsourcing of functions in accordancewiththestandards;

(i) monitortheprocedures,strategiesandpoliciesreferredtointhissectiontoensurethattheyarebeingadheredtobythefinancialinstitutionandthattheyaremodifiedfromtimetotimetotakeaccountofchangingcircumstances;and

(j) prepare the annualfinancial statementsof thefinancial institution inaccordance with generally accepted accounting practice, except asotherwisespecifiedbyNAMFISA,andapprovethosestatements.

directors to act in good faith

396. (1) Everydirectorandofficerofafinancialinstitutioninexercisinganyofthepowers,anddischarginganyoftheduties,ofadirectororanofficermust-

(a) acthonestlyandingoodfaithwithaviewtothebestinterestsofthefinancialinstitutionanditsclients;and

(b) exercisethecare,diligenceandskillthatareasonablyprudentpersonwouldexerciseincomparablecircumstances.

(2) Every director, officer and employee of a financial institution mustcomply with this Act, and the memorandum, articles and rules or other foundingdocumentsofthefinancialinstitution. (3) Noprovisioninanycontract,inanyresolutionorintherulesorotherdocumentsof afinancial institution relieves anydirector, officeror employeeof thefinancialinstitutionfromthedutytoactinaccordancewiththisActorrelievesadirector,officeroremployeefromliabilityforacontraventionthereof.

Audit committee

397. Everyfinancialinstitutionmustestablishanauditcommitteecomprisedofatleasttwodirectors,atleastoneofwhommustbeanindependentdirectorwithinthemeaningofthestandards,to-

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(a) reviewtheannualfinancialstatementsofthefinancialinstitutionbeforethey are approved by the board andmake any recommendations orcommentsthereontotheboard;

(b) review such transactions and conditions that could significantly andadversely impact thefinancial position of thefinancial institution astheauditororanyofficerofthefinancialinstitutionmaybringtotheattentionofthecommittee;

(c) meetwiththeauditorofthefinancialinstitutiontodiscusstheannualfinancialstatements;

(d) inthecaseofafinancialinstitutionthatisrequiredtoappointavaluator,meet with the valuator to discuss the parts of the annual financialstatementspreparedorreviewedbythevaluator;

(e) meet with the chief internal auditor of the financial institution, ortheofficeroremployeeofthefinancialinstitutionactinginasimilarcapacity,andwithmanagementof thefinancial institution todiscusstheeffectivenessoftheinternalcontrolproceduresestablishedforthefinancialinstitution;

(f) withregardtoanyannualreturnorotherreturnsofafinancialinstitutionthatunder thisActmustbeapprovedby theboard, report to thefullboardwithregardtoanycommentsorfindingsoftheauditcommitteebeforeboardapprovalisrequested;

(g) callameetingoftheboardofthefinancialinstitutiontoconsideranymattersthattheauditcommitteeconsiderstobeofconcern;and

(h) carry out any other responsibilities that may be delegated to thecommitteebytheboard.

Other committees

398. The board of a financial institution may appoint from among theirnumber suchother committees, in addition to the audit committee, as they considernecessaryandmaydelegatetoanysuchcommitteesuchoftheirpowersastheyconsiderappropriatebutanysuchdelegationdoesnotlimittheresponsibilitiesofthemembersoftheboard.

Indemnification of directors and officers

399. Afinancialinstitutionmayindemnifyadirectororofficeragainstanyliability,includinglegaldefencecosts,thatheorshemayincurasaresultofanythingdoneoromittedtobedoneasadirectororofficerbutonlyifheorshehasactedhonestlyand ingoodfaithwithaview to thebest interestsof thefinancial institutionand itsclients,andthefinancialinstitutionmaypurchaseandmaintaininsuranceforthebenefitofanydirectororofficeragainstsuchliability.

Information to be made available

400. Everyfinancialinstitutionmustmakeavailable,forexaminationbyitsdirectors,suchinformationaboutthefinancialinstitution,includingaccountingrecords,

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aswillenable thedirectors toperformtheir responsibilitiesandexercise theirdutiesunderthisAct.


401. (1) Every-

(a) registeredfinancialinstitutionthatis-

(i) aninsurer;

(ii) acollectiveinvestmentschemeofaregisteredmanager;

(iii) aretirementfund;

(iv) afriendlysociety,unlessexemptedundersection286;

(v) amedicalaidfund;

(vi) aregulatedpersonreferredtoinsection103(1);

(b) registeredfinancialintermediarythatis-

(i) aregulatedpersonreferredtoinsection103(1);

(ii) fundadministrator;or

(iii) societyadministrator,unlessexemptedundersection364;and

(c) financialinstitutionorfinancialintermediarythathasbeenidentifiedbyNAMFISAinthestandards,

mustappointandatalltimeshaveanauditororfirmofauditorstobeitsauditor. (2) If afirmofauditors is appointedauditorofafinancial institutionorfinancialintermediaryreferredtoinsubsection(1),thefirmofauditorsandthefinancialinstitutionorfinancialintermediarymustjointlydesignatethememberofthefirmwhowillconducttheauditonbehalfofthefirm. (3) Anaturalpersonorfirmofauditorsisqualifiedtobetheauditorofafinancialinstitutionorfinancialintermediaryreferredtoinsubsection(1)if-

(a) inthecaseofanaturalperson,thatpersonisanauditorwho-

(i) isregisteredunderthePublicAccountants’andAuditors’Actand admitted to membership of the Institute of CharteredAccountantsofNamibiareferredtointhatAct;

(ii) hasatleastfiveyears’experienceataseniorlevelinperformingauditsofafinancialinstitutionorfinancialintermediary;

(iii) isordinarilyresidentinNamibia;

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(iv) isafitandproperpersonwithinthemeaningofthestandards;and

(v) is independent of the financial institution or financialintermediarywithinthemeaningofthestandards;and

(b) in thecaseof afirmof auditors, thememberof thefirmdesignatedpursuanttosubsection(2)isqualifiedinaccordancewithparagraph(a).

(4) After the appointmentof an auditoror thedesignationof amemberofafirmofauditorswhowillconduct theaudit, thefinancial institutionorfinancialintermediarymust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointmentordesignation. (5) NAMFISAmay,onthegroundsthatanauditorisnotafitandproperpersonorisnotindependent,withinthemeaningofthestandards,andaftergivingthefinancialinstitutionorfinancialintermediaryandtheauditorareasonableopportunitytobeheard,directthefinancialinstitutiontoappointsomeotherauditororfirmofauditorstobetheauditorofthefinancialinstitutionorfinancialintermediary. (6) Wheneveranauditorresigns,theappointmentofanauditorterminatesdueto theexpiryof thecontractor theappointmentofanauditor is terminatedbyafinancialinstitutionforwhateverreason-

(a) the financial institution or financial intermediary must, within theperiodsetoutinthestandards,notifyNAMFISAinwritingandsubmittoNAMFISAawrittenstatementofthereasonsfortheterminationor,intheopinionofthefinancialinstitutionorfinancialintermediary,thereasonsfortheresignation;and

(b) theauditormust,withintheperiodsetout inthestandards,submitawrittenstatement toNAMFISAof thereasonsfor theresignationor,in theopinionof theauditor, the reasons for the termination, statinganymatterrelatingtotheaffairsofthefinancialinstitutionorfinancialintermediaryofwhich the auditorbecameaware in theperformanceofthedutiesasauditor,whichintheopinionoftheauditormaybeofconcerntoNAMFISA.

(7) Theauditorofafinancialinstitutionorfinancialintermediarymay-

(a) atalltimesaccesstheaccountingrecordsandotherbooksandrecordsofthatfinancial institutionorfinancialintermediaryandmayrequirefromthedirectors,principalofficer,otherofficersorthemanagerofacollectiveinvestmentschemetheinformationandexplanationsthattheauditorconsidersnecessaryforthecarryingoutofthedutiesofauditor;and

(b) attendandspeakatanymeetingoftheboardofthefinancialinstitutionorfinancialintermediary.

(8) In addition to the duties imposed upon auditors by the PublicAccountants’ andAuditors’Act and thisAct, the auditorof afinancial institutionorfinancialintermediarymustperformthedutiessetoutinthestandards.

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(9) WhenevertheauditorofafinancialinstitutionorfinancialintermediaryfurnishescopiesofareportorotherdocumentorparticularsrequiredunderthePublicAccountants’andAuditors’Actoranyotherlawinrespectofthatfinancialinstitutionorfinancialintermediary,theauditormustalsofurnishacopytoNAMFISA. (10) The auditor of a financial institution or financial intermediarymust,at thecostof thefinancial institutionorfinancial intermediary,undertakesuchotherexaminationoftheaffairsofthefinancialinstitutionorfinancialintermediaryasmayberequiredbyNAMFISA. (11) The auditor of a financial institution or financial intermediarymustaudittheannualfinancialstatementsofthefinancialinstitutionorfinancialintermediaryinaccordancewithInternationalAuditingStandards,exceptasotherwisespecifiedbyNAMFISA,andmustreportonthosefinancialstatements. (12) Afinancialinstitutionorfinancialintermediarymust,commencing12monthsafterthedateofcommencementofthisActandwithin90daysoftheendofthefinancialyearendofthefinancialinstitutionorfinancialintermediary,sendacopyofitsannualfinancialstatements,togetherwiththereportoftheauditortoNAMFISA. (13) An auditormust report inwriting to the board and principal officerofthefinancialinstitutionorfinancialintermediaryandtothemanagerofacollectiveinvestmentscheme,withacopytoNAMFISA,onanytransactionsorconditionsthathavecome to theattentionof theauditorwhich, in theopinionof theauditor,couldsignificantlyandadverselyimpactthefinancialpositionofthefinancialinstitutionorfinancial intermediary, whether or not those transactions or conditions are reflectedin the financial statements or annual return of the financial institution or financialintermediary. (14) An auditor of a financial institution or financial intermediary willnotincuranyliabilitytoanypersonforhavingfurnishedtoNAMFISAingoodfaithinformationonanyirregularityorothermatterofwhichtheauditorhasbecomeawareinthecapacityofauditorofthefinancialinstitutionorfinancialintermediary,andwhich,intheopinionoftheauditor,maybeofconcerntoNAMFISA. (15) Subject to the auditing standards referred to in subsection (11), theauditorofafinancialinstitutionorfinancialintermediary,inexpressinganopinionwithrespecttothefinancialaffairsofthefinancialinstitutionorfinancialintermediaryunderthisActoranyotherlaw,mayrelyontheworkperformedbythevaluator,ifany,ofthefinancialinstitutionorfinancialintermediary. (16) Anauditormustsendacopyofanyreportorotherdocumentreferredtointhissectiontothevaluator,ifany,ofthefinancialinstitutionorfinancialintermediary. (17) Apersonwho-

(a) contravenesorfailstocomplywithsubsection(4),(6)or(12);or

(b) hindersorobstructsanauditorintheperformanceofthedutiesortheexerciseofthepowersofanauditorunderthisAct,

commitsanoffence,andisliableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

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402. (1) Everyregisteredfinancialinstitutionthatis-

(a) aninsurer;

(b) aretirementfund;

(c) afriendlysocietyreferredtoinsection303(1);or

(d) amedicalaidfund,

mustappointandatalltimeshaveavaluator. (2) Avaluatormustbe-

(a) afitandproperpersonwithinthemeaningofthestandards;and

(b) independent of the financial institution within the meaning of thestandards.

(3) Aftertheappointmentofavaluator,thefinancialinstitutionmust,withintheperiodsetoutinthestandards,inwritingnotifyNAMFISAoftheappointment. (4) NAMFISAmay,onthegroundsthatthevaluatorisnotafitandproperpersonorisnotindependent,withinthemeaningofthestandards,andaftergivingthefinancial institutionand thevaluatora reasonableopportunity tobeheard,direct thefinancial institution to appoint someother person to be the valuator of thefinancialinstitution. (5) Wheneveravaluatorresigns,theappointmentofavaluatorterminatesdue to theexpiryof thecontractor theappointmentofavaluator is terminatedbyafinancialinstitution-

(a) thefinancialinstitutionmust,withintheperiodsetoutinthestandards,notify NAMFISA in writing and submit to NAMFISA a writtenstatementof thereasonsfor the terminationor, in theopinionof thefinancialinstitution,thereasonsfortheresignation;and

(b) thevaluatormust,withintheperiodsetoutinthestandards,submitawrittenstatement toNAMFISAof thereasonsfor theresignationor,intheopinionofthevaluator,thereasonsforthetermination,statinganymatter relating to theaffairsof thefinancial institutionofwhichthevaluatorbecameawareintheperformanceofthedutiesasvaluator,whichintheopinionofthevaluatormaybeofconcerntoNAMFISA.

(6) Avaluatorofafinancialinstitutionmay-

(a) atalltimesaccesstheaccountingrecordsandotherbooksandrecordsof that financial institution and may require from the directors, theprincipal officer or other officers of the financial institution theinformationandexplanationsthatthevaluatorconsidersnecessaryforthecarryingoutofthedutiesofvaluator;and

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(b) attendandspeakatanymeetingoftheboardofthatfinancialinstitution. (7) InadditiontothedutiesimposeduponvaluatorsbythisAct,anyotherlaworacodeofprofessionalpractice,thevaluatorofafinancialinstitutionmustperformthedutiessetoutinthestandards. (8) Thevaluatorofafinancialinstitutionmust,atthecostofthefinancialinstitution,undertakesuchotherevaluationorexaminationoftheaffairsofthefinancialinstitutionasmayberequiredbyNAMFISA. (9) A valuatormust conduct the valuation in accordancewith generallyaccepted actuarial or other practice, as applicable, with such changes as may bedeterminedbyNAMFISAandanyadditionaldirectivesthatmaybemadebyNAMFISA. (10) Afinancialinstitutionmust,commencing12monthsafterthedateofcommencementofthisAct,sendacopyofitsvaluationtoNAMFISAwithin180daysof-

(a) theendofeachfinancialyear,inthecaseofaninsurer;

(b) theendofthefinancialyearreferredtoin-

(i) section268(1)(a), in thecaseofaretirementfundotherthantheonereferredtoinsubparagraph(ii);

(ii) section 268(1)(b), in the case of a retirement fund that is adefinedbenefitfund;or

(iii) section268(2),inthecaseofeveryretirementfund;

(c) theendofthefinancialyearreferredtoinsection304(1)or(2),inthecaseofafriendlysociety;or

(d) theendofthefinancialyearreferredtoinsection347(1)or(2),inthecaseofamedicalaidfund.

(11) Avaluatormustreportinwritingtotheboardandprincipalofficerofthefinancialinstitution,withacopytoNAMFISA,onanytransactionsorconditionsthathavecometotheattentionofthevaluator,which,intheopinionofthevaluator,couldsignificantlyandadverselyimpactthefinancialpositionofthefinancialinstitution,whetherornotthosetransactionsorconditionsarereflectedinthevaluation,financialstatementsorannualreturnofthefinancialinstitution. (12) ThevaluatorofafinancialinstitutionwillnotincuranyliabilitytoanypersoninconsequenceofhavingfurnishedtoNAMFISAingoodfaithinformationonanyirregularityorothermatterofwhichthevaluatorhasbecomeawareinthecapacityofvaluatorofthefinancialinstitutionandwhich,intheopinionofthevaluator,maybeofconcerntoNAMFISA. (13) Subject to subsection (9), the valuator of a financial institution, inexpressinganopinionwith respect to thefinancial affairsof thefinancial institutionunderthisActoranyotherlaw,mayrelyontheworkperformedbytheauditorofthefinancialinstitution.

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(14) Avaluatormustsendacopyofanyreportorotherdocumentreferredtointhissectiontotheauditorofthefinancialinstitution. (15) Apersonwho-

(a) contravenesorfailstocomplywithsubsection(3),(5)or(10);or

(b) hindersorobstructsavaluatorintheperformanceofthedutiesortheexerciseofthepowersofavaluatorunderthisAct,

commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Return of directors and auditors

403. (1) A financial institution and a regulated person referred to insection 83(1) must, after each annual meeting of the financial institution, file withNAMFISAareturnshowing-

(a) thenameandresidentialandmailingaddressofeachdirectorholdingofficeimmediatelyfollowingthemeeting;

(b) theentitiesofwhicheachdirectorisadirectororofficerorwhichiscontrolledbythedirector;

(c) theexperienceandqualificationsofeachdirector;

(d) thedateofexpiryofthetermofeachdirector;

(e) thename,businessandmailingaddressanddateofappointmentoftheauditorofthefinancialinstitution;

(f) theexperienceandqualificationsoftheauditor;

(g) thename,businessandmailingaddressanddateofappointmentofthevaluator,ifany,ofthefinancialinstitution;and

(h) theexperienceandqualificationsofthevaluator. (2) Ifavacancyinapositionofdirector,auditororvaluatoroccursandisfilledbyanotherperson,thefinancialinstitutionmust,withintheperiodsetoutinthestandardsafterthenewappointment,provideNAMFISAwithsuchinformationasisrequiredtomaintainthereturnreferredtoinsubsection(1)incompleteandaccurateform. (3) Apersonwhocontravenesor fails to complywith subsection (1)or(2)commitsanoffenceand is liableonconviction toafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

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Duties of financial institutions and financial intermediaries

404. Everyregisteredfinancial institutionandfinancial intermediarymustacthonestlyandingoodfaith,inthebestinterestofitsclientsandinaccordancewithanyadditionaldutiessetoutinthestandards.

PART 4GENERAL MARKET CONDUCT REQUIREMENTS

Application of this Part and other financial services laws

405. ThisPartappliesinadditiontotheotherprovisionsofthisActandtotheprovisionsofanyotherapplicablefinancialserviceslaws.

Prohibition of false and misleading statements

406. (1) A person may not engage in conduct that is misleading ordeceptiveorislikelytomisleadordeceiveinrelationtoafinancialservicewhetherthatfinancialserviceisprovidedbythepersoninquestionorbyanotherperson. (2) Withoutlimitingthegeneralityofsubsection(1),apersonmaynot-

(a) falsely represent that a financial service is of a particular standard,quality,valueorgrade;

(b) falsely represent that a particular person has agreed to acquire aspecifiedfinancialservice;

(c) falsely represent that a financial service has sponsorship, approval,performancecharacteristics,usesorbenefits;

(d) falselyrepresentthatthepersonhas,inrelationtoafinancialservice,asponsorship,approvaloraffiliation;

(e) makeafalseormisleadingrepresentationwithrespecttothepriceofafinancialservice;

(f) makea falseormisleading representationconcerning theneed for aspecifiedfinancialservice;

(g) make a false ormisleading representation concerning the existence,exclusion or effect of any condition, warranty, guarantee, right orremedyinrelationtoafinancialservice;or

(h) makeanystatement,promiseorforecastknowingthat-

(i) itismisleading,falseordeceptiveinanymaterialrespect;or

(ii) itconcealsanymaterialfact;

forthepurposeofinducingorattemptingtoinduceanyotherperson-

(aa) to enter intooroffer to enter intoor to refrain fromenteringintoorofferingtoenterintoanycontract,or

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toterminateacontractortransaction,inrelationtoafinancialservice;or

(bb) toexerciseorrefrainfromexercisinganyrightsundersuchcontract,

regardlessofwhethersuchotherpersonisthepersontowhomthestatement,promiseorforecastwasmadeorfromwhomthematerialfactswereconcealed. (3) A person who contravenes or fails to comply with the provisionsofsubsection (1)or (2)commitsanoffenceand is liableonconviction toafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Declaration of practices as irregular or undesirable

407. (1) NAMFISAmay, by notice in theGazette, declare a specificpracticeormethodofconductingbusinessasan“irregularorundesirablepractice”oran“undesirablemethodofconductingbusiness”foraspecificcategoryorcategoriesoffinancialinstitutions,financialintermediariesorfinancialservicesorforallfinancialinstitutions,financialintermediariesorfinancialservices. (2) ThefollowingprinciplesmustguideNAMFISAinconsideringwhetheradeclarationpursuanttosubsection(1)maybemade-

(a) thepracticeconcerned,directlyorindirectly,hasorislikelytohavetheeffectof-

(i) harmingtherelationsbetweenfinancialinstitutionsorfinancialintermediariesandclientsorthegeneralpublic;

(ii) unreasonablyprejudicinganyclient;

(iii) deceivinganyclient;or

(iv) unfairlyaffectinganyclient;or

(b) if the practice is allowed to continue, oneormoreof the objects ofNAMFISAorofthisActwillorislikelytobedefeated.

(3) NAMFISAmaynot issue a declaration referred to in subsection (1)unlessNAMFISA-

(a) has,inthemannersetoutinthestandards,invitedinterestedpersonstomakewrittenrepresentationstoNAMFISAconcerningtheintendeddeclarationwithinaperiodofnotlessthan21daysbeforetheproposeddateofpublicationofthenotice;and

(b) hasconsultedwiththeadvisorycommittee. (4) Afinancialinstitutionorfinancialintermediarymaynot,onorafterthedateofthenoticereferredtoinsubsection(1),carryonabusinesspracticeormethodofconductingbusinessthathasbeendeclaredasan“irregularorundesirablepractice”oran“undesirablemethodofconductingbusiness”.

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(5) NAMFISA may, by notice to the financial institution or financialintermediaryconcernedandpublished in theGazette,directafinancial institutionorfinancial intermediarywhichcarriesonabusinesspracticeormethodof conductingbusinessreferredtoinsubsection(4)onorafterthedateofpublicationofthenoticereferredtoinsubsection(1),torectify,repairorrepaytothesatisfactionofNAMFISAanydamageorotherundesirableconsequencewhichwascausedby,oraroseoutof,thatbusinesspracticeormethodofconductingbusiness. (6) A financial institution or financial intermediarywhich is directed torectify,repairorrepayanydamageorundesirableconsequencepursuanttosubsection(5)mustdosowithin60daysafterthefinancialinstitutionorfinancialintermediaryissodirected. (7) Apersonwhocontravenesor fails to complywith theprovisionsofsubsection(4)orfailstocomplywithadirectiveissuedundersubsection(5)withintheperiodspecifiedinsubsection(6)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

Market conduct: powers of NAMFISA

408. (1) InadditiontoanyotherpowergrantedtoNAMFISAunderthisAct,NAMFISAmay-

(a) investigate or instruct that an investigation take place regarding anyallegedmarketconductormatterrelatingtoanallegedoffencerelatingtomarketconduct;

(b) instituteanyproceedingswithrespecttopoormarketconductpracticereferredtointhisAct;

(c) handlecomplaintsarisingoutoftheobligationsoftheparties,ifany,underanyprovisionofthisAct,andensuringthatNAMFISAisabletoperformitsfunctionsunderthisActwithrespecttocomplaintsonmarketconduct;

(d) issuestandardswithrespectto-

(i) principlesrelatingtomarketconductandtheiradministrationbyNAMFISA;

(ii) themannerinwhichinvestigationsintomarketconductunderthisActaretobeconducted;

(iii) the procedure for the lodging complaints with respect tocontraventionsrelatingtomarketconduct;and

(e) afterconsultationwithfinancialinstitutionsorfinancialintermediariesthatmaybeaffected,requiretheimplementationofprocessesortoolsthatare-

(i) necessaryfortheidentificationandmonitoringofcontraventionsor likely contraventionsof themarket conduct provisionsofthisAct;and

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(ii) desirableasapre-requisiteforthefairtreatmentofcustomersunderthisAct.

(2) Any principle contained in standards made by NAMFISA undersubsection(1)inrelationtomarketconductisbindingonallfinancialinstitutionsandfinancialintermediariestowhichitisapplicable,andonmembersofthepublic. (3) The provisions of sections 418 to 429 do apply with the changesrequiredbythecontexttoaninvestigationreferredtoinsubsection(1)(a).

PART 5POWERS OF NAMFISA TO REGULATE AND SUPERVISE

Power to issue standards

409. (1) NAMFISAmay,bynoticeintheGazette,issuesuchstandardsthatNAMFISAmayconsidernecessaryor advisable for theduecarryingoutof theprovisionsofthisActandtoachievetheobjectsandintentofthisAct. (2) Thenoticereferredtoinsubsection(1)muststatethedateonwhichthestandardwillcomeintoeffect. (3) Beforeissuingastandard,NAMFISAmust-

(a) obtaintheapprovaloftheBoardofNAMFISA;

(b) publishadraftoftheproposedstandardintheGazetteandbringittotheattentionofthefinancialinstitutionsorfinancialintermediariestowhichthestandardwillapply,andtotheirindustryassociationsorself-regulatoryorganisations;

(c) give those financial institutions, financial intermediaries, industryassociationsorself-regulatoryorganisationsnotlessthan30daysafterthedateofpublicationoftheproposedstandardtomakerepresentationsinwritingtoNAMFISAwithrespecttotheproposedstandard;and

(d) takeanysuchrepresentationsintoaccountindeterminingwhethertoissuethestandardasoriginallypublishedorinamodifiedform.

(4) IfNAMFISAconsidersitnecessaryonanurgentbasis,NAMFISAmayissueastandardwithoutfollowingtheproceduresetoutinsubsection(3),butanysuchstandardceasestohaveeffectattheendof90daysafterithasbeenissued,unlesstheprocedurereferredtoinsubsection(3)hasbeenfollowed. (5) NAMFISAmay,bynoticeintheGazette,revokeormodifyastandard,subjecttotheprocedurereferredtoinsubsection(3).

Standards

410. (1) Without derogating from the generality of section 409(1),NAMFISAmayissuethestandardsreferredtoinsubsections(2)to(8),inclusive. (2) ForthepurposesofthisAct,NAMFISAmayissuestandardsrelatingto-

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(a) thecategoriesofprofessionsandpersonsofwhichanexpertmustbeamemberforthepurposesofthedefinitionof“valuator”insection1;

(b) theformofanycertificaterequiredunderthisAct;

(c) the form and content of any application required to be made toNAMFISA under thisAct, the documents, information andmaterialwhichmustaccompanysuchapplicationandanyrequiredfee;

(d) fitandproper requirements foranyperson registeredunder thisAct,andfordirectors,membersofaboard,principalofficers,otherofficers,trustees,custodians,auditorsandvaluatorsoffinancialinstitutionsandfinancialintermediaries,andforanyotherpersonsubjecttothisAct;

(e) theindependenceofdirectors,membersofaboard,trustees,custodians,auditorsandvaluatorsandofanyotherpersonrequiredtobeindependentunderthisAct;

(f) the identification of acts and omissions that will be consideredmisconductonthepartofanypersonregisteredunderthisAct,andonthepartofanyotherpersonsubjecttothisAct;

(g) theongoingrequirementsforanypersonregisteredunderthisActorotherwisesubjecttothisAct;

(h) theappointmentofprincipalofficers;

(i) thedocumentsrelatingtoafinancialinstitutionthatmustbekeptandmaintainedattheprincipalofficeofthefinancialinstitution;

(j) financialreportingandtheadditionaldutiesofauditorsandvaluators;

(k) compliance officers and compliance arrangements for registeredfinancialinstitutionsandfinancialintermediaries;

(l) the conduct of the business of financial institutions and financialintermediarieswithintegrity,prudenceandprofessionalskillandinawaythatensuresthattheymaintainasoundfinancialpositionanddonotcauseorpromoteinstabilityinthefinancialsystemofNamibia;

(m) theexemptionofsecuritiesratingagenciesandnomineecompaniesfromcompliancewithcertainprovisionsrelatingtofinancialintermediaries;

(n) thegovernanceoffinancialinstitutionsandfinancialintermediaries;

(o) thedefinitionofrelatedpartytransactionsandidentifyingthosethatareprohibited;

(p) additionaldutiesoffinancialintermediaries;

(q) minimumcapital,capitaladequacy,solvencyandliquidityoffinancialinstitutionsandfinancialintermediaries;

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(r) the determination, calculation and valuation of assets of financialinstitutions and financial intermediaries, including the power ofNAMFISAto-

(i) direct a financial institution or a financial intermediary tochange a valuation under circumstances determined in suchstandard;

(ii) appointanindependentvaluatortodoanindependentvaluationwhere NAMFISA is not satisfied with a valuation reportpreparedbyavaluatorappointedbyafinancialinstitutionorafinancialintermediary;and

(iii) resolvedisputesarisingfromanyvaluationreportsubmittedtoNAMFISAintermsofthisAct;

(s) thedetermination,calculationandvaluationof liabilitiesoffinancialinstitutions and financial intermediaries, including the power ofNAMFISAto-

(i) direct a financial institutions or a financial intermediary tochange a valuation under circumstances determined in suchstandard;

(ii) appointanindependentvaluatortodoanindependentvaluationwhere NAMFISA is not satisfied with a valuation reportpreparedbyavaluatorappointedbyafinancialinstitutionorafinancialintermediary;and

(iii) resolvedisputesarisingfromanyvaluationreportsubmittedtoNAMFISAintermsofthisAct;

(t) thedeterminationofwhatconstitutesasoundfinancialposition;

(u) theextenttowhichsections394(a)and395(2)andsection397doapplytoaboardoftrusteesorotherboardofafinancialinstitutionthatisnotacompany,andtherequirementsforanyfurtherexemptionfromanyofthoseprovisionsandsection402;

(v) theusebyfinancialinstitutionsandfinancialintermediariesoffinancialinstruments, including derivatives, the entering into of off-balancesheettransactions,andlimitations,ifany,oninvestments;

(w) insuranceandreinsurancearrangementsmadebyfinancialinstitutionsandfinancialintermediariesincludingadequateprofessionalindemnityandfidelityinsurancecoverandsuitableguaranteesandmechanismsfor the adjustment of such cover or guarantees by NAMFISA in aparticularcase;

(x) outsourcingof functions and responsibilitiesbyfinancial institutionsandfinancialintermediaries;

(y) risk management and internal control mechanisms employed byfinancialinstitutionsandfinancialintermediaries;

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(z) requirementsforanyfilingofafinancialnature;

(aa) themaximumlimitstobeimposedonspecificassetclassesforsolvencystandardsoffinancialinstitutionsandfinancialintermediaries;

(bb) adequate and appropriate record-keeping by financial institutionsand financial intermediaries, including accounting records and thepreparationoffinancialstatements;

(cc) the fiduciary responsibilities of financial institutions and financialintermediaries and of their directors, members of boards, principalofficersandotherofficers;

(dd) standards and other requirements regarding financial products,including the actuarial soundness of financial products offered byfinancialinstitutionsandfinancialintermediaries;

(ee) unclaimedbenefits;

(ff) accounting and auditing requirements for financial institutions andfinancialintermediaries;

(gg) thecombatingoffinancialcrime;

(hh) thecontentofinvestmentmandates;

(ii) making adequate and meaningful disclosure of relevant, materialinformation toclients, including thedisclosureof actualorpotentialowninterests;

(jj) obtaining sufficient and appropriate information from clients wherea financial institution or financial intermediary is required to makea proper needs assessment of clients in order to determine suitablefinancialservicesforthem;

(kk) reports to be made or information to be given to NAMFISA aboutfinancialinstitutions,financialintermediariesorfinancialservices;

(ll) the prevention of inordinate or excessive incentives or inducementsbeing offered or paid to financial intermediaries or to prospectiveclients;

(mm) the prohibition of unfair terms in contracts and other transactionsbetween financial institutions or financial intermediaries and theircustomers or the general public, and the prohibition of undesirabletradepractices,includinguntenableconflictsofinterests;

(nn) trainingrequirementsforfinancialintermediaries;

(oo) theprotection,segregationandsafe-keepingofclientassets,fundsandtransactiondocuments;

(pp) advertising,marketingorotherwisepromotingfinancialservices;

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(qq) fees and pricing structures charged by financial institutions andfinancialintermediaries,includingdisclosureofthosefeesandpricingstructures;

(rr) theformofanydocumentreferredtointhisActforwhichprovisionisnototherwisemade;

(ss) applyingtheprovisionsofsection433 tofinancialintermediariesandfor thepurposesof thatsection, identifyingcertaintypesoffinancialintermediaries;

(tt) for the purposes of Part 7, identifying certain types or classes offinancialintermediariestowhichtheprovisionsofPart7doapply;

(uu) for the purposes of section 442, the application for approval of aschemeandthepublicationof,exclusionsfrom,modificationsto,andimplementationof,schemes;

(vv) forthepurposesofsections443and444,thequalificationsofapersonappointedasastatutorymanagerandanyadditionalpowersanddutiesofastatutorymanager;

(ww) for the purposes of section 445, the priority and ranking of claimsagainstanyparticulartypeoffinancialinstitutionbeingwound-up,thequalificationsfora liquidatorrecommendedbyNAMFISAandothercriteriarelatingtosuchliquidatorandanyothermatterthatisnecessaryordesirableforthewinding-upofafinancialinstitution;

(xx) forthepurposesofPart8,identifyingcertaintypesorclassesoffinancialinstitutions and financial intermediaries that may amalgamate or towhichbusinessmaybetransferredandtheconditionsandlimitationsapplicabletosuchamalgamationsandtransfers;

(yy) the documents to be deposited with NAMFISA pursuant to section451(d);

(zz) the requirements for disclosure of fees and charges by financialinstitutionsorfinancialintermediaries,includingthemannerandformofsuchdisclosure;and

(aaa) the funding of, and other matters regarding the Financial ServicesCompensationSchemereferredtoinPart9;

(bbb) any other matter which under this Act is required, permitted orappropriatetobeprovidedforinthestandards.

(3) ForthepurposesofChapter2,NAMFISAmayissuestandardsrelatingto-

(a) thecapitaladequacyrequirementsforregisteredinsurersorreinsurers;

(b) thenatureofanytermsandconditionsthatmayapplywithrespecttoforeigninsurersandforeignreinsurersreferredtoinsection5(2);

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(c) thenatureoftheconditionsorlimitationsthatmayapplytoaregisteredinsurer or registered broker when effecting or renewing insuranceoutsideNamibiapursuanttosection5orsection70,asapplicable;

(d) businessthatwillbeconsideredtobeancillarytotheclassorclassesofinsuranceforwhichaninsurerisregistered;

(e) thedefinitionof“unit-linkedproducts”andanyparticularswithregardtoreporting,accounting,recordkeepingorlegalstatusofsuchproducts;

(f) the accounts and other information that must be kept in Namibiarelatingtotheinsurancebusinessofaregisteredinsurer;

(g) thedetermination,calculationandvaluationoftheassetsandliabilitiesof registered insurersfor thepurposesofcapitaladequacy, includingNAMFISA’s right to change a valuation under circumstancesdeterminedinsuchstandard;

(h) thetermsandconditionsunderwhicharegisteredinsurermayreinsurethewholeoranypartofitsbusiness;

(i) theinvestmentofthefundsofaregisteredinsurerorreinsurerpursuanttosection20anditsmemorandum,articlesorrules,includingmattersto be included in an investment policy statement and limits on theamountandextenttowhichtheinsurerorreinsurermayinvest-

(i) outsideNamibia;

(ii) inaparticularassetorinparticularkindsorcategoriesofassetswhetherinNamibiaorelsewhere,thebasisonwhichthelimitmust be determined and defining the kinds or categories ofassetstowhichthelimitapplies;

(j) theestablishmentofpoliciesfordeterminingthedividendsandbonusestobepaidtoparticipatingpolicyholders;

(k) thedescriptionofplainlanguageforthepurposesofsection29;

(l) theamountofprotectionthatwillbeaffordedinrespectofalifepolicyreferredtoinPart5ofChapter2;

(m) the aggregate amount that may be paid under, and the aggregaterealisablevalueof,lifepolicies,andothermattersreferredtoinPart5ofChapter2;

(n) thetrustaccounttobeopenedbyLloyd’sandtheminimumvalueoffundstherein;

(o) particulars regarding the business of Lloyd’s in Namibia for thepurposesofsection46(3);

(p) themediumandformof,andinformationtobecontainedin,returnstobefurnishedbyLloyd’sandthedatebywhichsuchreturnsmustbefurnishedinconnectionwith-

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(i) the short-term insurance business carried on by Lloyd’sunderwritersinNamibia;

(ii) thetrustaccountoperatedbyLloyd’s;and

(iii) thecalculationofthetrustfundrequirementsforLloyd’s;

(q) therequirementsfortheregistration,operationanddutiesofaLloyd’sintermediaryinNamibia;

(r) the requirements for registration of insurance agents and insurancebrokers;

(s) the information and material regarding insurance agents who areincludedinanylistpursuanttosection55thatmustbeprovidedbytheregisteredinsurer;

(t) financialreportingrequirementforinsurancebrokers;

(u) theimpositionofpenaltiesonregisteredinsurers;

(v) thefairtreatmentofclientsandpolicyholdersbyregisteredagentsandregisteredbrokers;

(w) matterswithrespecttoentitiescommonlyknownascellcaptives;

(x) theamountofcommissionthatmaybepaidtoinsurancebrokers;

(y) point-of-saleinformationtobeprovidedbyinsurers,insuranceagentsandinsurancebrokerstopolicyholdersandpotentialpolicyholders;

(z) provisionsgoverningtheregistrationandon-goingrequirementsforacorporatebodytoactasanagent;

(aa) exemptingapersonorclassofpersonsfromtheprovisionsofsection6;

(bb) the manner in which NAMFISAmay approve additional classes oflong-term insurance business and additional classes of short-terminsurancebusinessforthepurposesofsection8;

(cc) thedeterminationofassetsthatmayberegardedasfreeassetsforthepurposesofsection21;and

(dd) any other matter which under Chapter 2 is required, permitted orappropriatetobeprovidedforinthestandards.


(a) theconditionsthatapplytoapersonwhobuysorsellslistedsecuritiesforthepurposesofsection82(1)(e);

(b) theinformationandmaterialtobeprovidedpursuanttosection91(6);

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(c) theimpositionofpenaltiesonlistapplicantspursuanttosection92andonanauthoriseduserwherearegisteredexchangehasreferredamattertoNAMFISApursuanttosection96(2)(g)andtheprovisionsofsection92applypursuanttosection96(6);

(d) matters to be included by a registered exchange in its listingrequirements;

(e) the conditionspursuant towhich a registered exchangemay includesecuritiesissuedbyitinitsownlist;

(f) contributions that a registered exchange may require its authorisedusersandtheirclientstomaketowardsthefundsoftheexchange;

(g) additionalmatterswhichmustbeprovidedintheexchangerulesofaregisteredexchange;

(h) matters tobe included ina report referred to insection113,and themannerandtimingofsuchreport;

(i) themannerofappealstoNAMFISApursuanttosection120;

(j) additionalfunctionsforcentralsecuritiesdepositoriesandparticipants;

(k) additionalrequirementsforissuersofuncertificatedsecurities;

(l) additionalmatterswhichmustbeprovidedinthedepositoryrulesofacentralsecuritiesdepository;

(m) the process to be followedwhen applying for recognition as a self-regulatory organisation, functions and supervisory powers of a self-regulatoryorganisationoveritsmembersandothermattersregardingself-regulatoryorganisations;

(n) the process to be followed for the incorporation of a self-regulatoryorganisation that is an exchange, a central securities depository orsecuritiesclearinghousewithoutasharecapitalasacompanyhavingasharecapitalundertheCompaniesAct;

(o) theamalgamationof,andthetransferof,assetsandliabilitiesby-

(i) exchanges;

(ii) centralsecuritiesdepositories;and

(iii) securitiesclearinghouses;

(p) theannualreportandtheannualfinancialstatementsofaself-regulatoryorganisation;

(q) codesofconductforoneormorecategoriesofregulatedpersons,asdefinedinsection78;

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(r) informationaboutanissuerandsecuritiesbeingissuedbytheissuertoclientsorpotentialclientsofaregulatedperson,asdefinedinsection78,whenthesecuritiesarebeingsoldbyorthroughtheservicesofthatregulatedperson;

(s) limitsforthepurposesofsection155(b)ofthedefinitionof“affectedtransaction”insection155;and

(t) any other matter which under Chapter 3 is required, permitted orappropriatetobeprovidedforinthestandards.


(a) thedeterminationofcapitalandreservesofapubliccompanyregisteredas the manager of a collective investment scheme which must beavailableforemploymentinthecollectiveinvestmentscheme;

(b) additional information required to enable an investor to make aninformeddecisionpursuanttosection172(1)(b);

(c) theinformationandmaterialtobeprovidedpursuanttosection180(4);

(d) theimpositionofpenaltiesonanauthorisedrepresentativepursuanttosection181andonadesignatedrepresentativewhereamanagerhasreferredamattertoNAMFISApursuanttosection183(2)(g)andtheprovisionsofsection181applypursuanttosection183(6);

(e) additional requirements for the granting of approval of a nomineecompany;

(f) themanner inwhich and the limits and conditions subject towhichinvestmentsmaybeincludedinaportfolioofacollectiveinvestmentscheme, and different manners, limits and conditions for differenttypesorclassesof investmentsordifferentportfoliosofacollectiveinvestmentscheme,includingwithoutlimitation-

(i) theminimumsizeofportfolios;

(ii) themandatorypurchaseofunitsbymanagers;and

(iii) restrictions and conditions on the use of leverage in or inconnectionwithaportfolio;

(g) rules for the administration of collective investment schemes underone ormore ofParts 4 to 9 ofChapter 4 and for the solicitation ofinvestmentsinaforeigncollectiveinvestmentschemeunderPart10ofChapter4;

(h) thefeepayableonanapplicationbythemanageroroperatorofaforeigncollective investment scheme for approval to solicit investments inNamibia,pursuanttosection219(1);

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(i) securitiesorclassesofsecuritiesthatmaybeincludedinaportfolioofacollectiveinvestmentschemeinsecurities;

(j) thecalculationofthefairvalueofasecurity;

(k) moneymarket instruments thatmay be included in a portfolio of acollectiveinvestmentschemeinmoneymarketinstruments;

(l) thecalculationofthefairvalueofmoneymarketinstruments;

(m) foreignexchanges,ratingsandratingagencies,andtheduediligencerequirementswhichamanagermustapplytoexchangesandsecurities;

(n) additionalassetswhichmaybeincludedintheportfolioofacollectiveinvestmentschemeinproperty;

(o) minimuminvestmentperiodsforinvestmentsinacollectiveinvestmentschemeinparticipationbonds;

(p) minimuminvestmentperiodsforinvestmentsinacollectiveinvestmentschemeinunlistedsecurities;

(q) defining the business activity or investment program of a declaredcollective investmentscheme, thematters tobe included in thedeedand notices to be issued with respect to different types of declaredcollectiveinvestmentschemes;

(r) theactionsthatmaybetakenbyNAMFISApursuanttosection215;

(s) requirementswithrespecttotrusteesandcustodians;

(t) resolutions of investors authorising the conversion of a collectiveinvestmentscheme;

(u) assetsthatmustbeincludedintheportfolioofacollectiveinvestmentschemeat the time thataparticipatory interest is soldoroffered forsale;

(v) the requirements for the exercise of voting power conferred on amanagerbytheassetsheldinaportfolio;

(w) permissibledeductionsfromaportfolio;

(x) themeaningof“netassetvalue”forthepurposesofsection238;

(y) matterstoberegulatedbyadeedpursuanttosection241;

(z) thecircumstancesunderwhichthemanagerofacollectiveinvestmentscheme in securities may suspend the repurchase of participatoryinterestsandtheconditionsofsuchsuspension;

(aa) different requirements for managers which are members of a self-regulatory organisation and those which are not, and managers of

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differenttypesofcollectiveinvestmentschemesordifferenttypesofportfolios;

(bb) theconditionsunderwhichthetermsofanypricelist,advertisement,brochureorsimilardocumentrelatingtoacollectiveinvestmentschemewillbeconsideredascalculatedtomisleadorconsideredobjectionableorundesirable;and

(cc) any other matter which under Chapter 4 is required, permitted orappropriatetobeprovidedforinthestandards.


(a) thedefinitionof“actuarialsurplus”;

(b) alternativeformsorpaymentofpensionsforthepurposesofdefinedcontributionfunds;

(c) theconditionspursuanttowhichafundmaybeexemptedfromsection262,268(7)or282(3);

(d) the requirements of a communication strategy to be adopted by theboardofafundtoensurethatadequateandappropriateinformationiscommunicatedtomembers,employersandsponsors;

(e) requirementsfortheannualreportofafund;

(f) additionaldutiesoftheboardofafund;

(g) the period after which the fact that contributions to a fund remainoutstanding must be notified to all active and retired members andNAMFISA;

(h) the requirements foran investigationbyand the reportofavaluatoronthefinancialpositionofafundandtheformofasummaryofsuchreport;

(i) theconditionsonwhichadefinedcontributionfundmaybeexemptedfromtherequirementofregularinvestigationsbyavaluator;

(j) the minimum information that must be furnished to a fund by anemployerwithrespecttothepaymentofcontributions;

(k) the categories of persons having an interest in the compliance of afundwiththeprovisionsofsection270(7),andthereportsthatmustbesubmittedbytheprincipalofficerorapersonauthorisedundersection270(8)tosuchcategoriesofpersonswithrespecttosuchcompliance;

(l) theprotectionofunpaidcontributionsbyanemployerconsistentwiththerequirementssetoutintheregulations;

(m) requirementsfortherulesofafundandanyamendmentofsuchrules;

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(n) thedeterminationofthesoundnessofthefinancialpositionofafundforthepurposesofsection272(3);

(o) the conditions for a report of an independent valuator pursuant tosection272(5);

(p) therequirementsforthevoluntaryterminationordissolutionofafundpursuanttosection278andinthecircumstancesspecifiedinitsrules,andthewinding-upofafundbythecourtpursuanttosection279,butsubjecttotherequirementsoftheregulations;

(q) theminimumbenefitsthatafundmustprovidetoitsmembers;

(r) provisionforcompulsorybeneficiarynominationformstobecompletedbymembersofafundforthepurposeofenablingamembertodesignateanomineeornominees to receivebenefits fromsuch fundupon thedeathofsuchmember;

(s) theinvestmentofthefundsofaregisteredfundpursuanttosection282anditsrules,includingmatterstobeincludedinaninvestmentpolicystatementandlimitsontheamountandextenttowhichthefundmayinvest-

(i) outsideNamibia;


(t) matters tobecommunicatedtomembersandcontributingemployersandminimumstandardsforsuchcommunication;

(u) matterstobeincludedinthecodeofconducttobeadoptedbythefundandsanctionsthatmaybetakenagainsttheboardorindividualboardmembers,inrespectofbreachesofthatcodeofconduct;

(v) earlywithdrawalsfromafund;

(w) further amountswhichmaybe deducted for the purposes of section277;

(x) requirementsregardingannuitiespurchasedbyaretirementfundfromaregisteredfinancialinstitution;

(y) thetransferofanybusinessfromafundtoanotherfundorthetransferofanybusinessfromanyotherpersontoafund;

(z) thefeethatmaybechargedtomembersforcopiesofcertaindocuments,and the reports and other information thatmust be provided by theboardofafundtoitsmembersfreeofcharge;and

(aa) any other matter which under Chapter 5 is required, permitted orappropriatetobeprovidedforinthestandards.

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(a) astatementoftheassetsofafriendlysociety;

(b) astatementoftheliabilitiesofafriendlysociety;

(c) the requirementswithwhicha friendlysociety referred to in section286(1)mustcomply;

(d) theconditionsunderwhichafriendlysocietymaybeexemptedfromanyoralloftheprovisionsofChapter6;

(e) the financial guarantees that may be required from a person whomanagesthebusinessofafriendlysocietywhichisintheprocessofbeingestablished;

(f) theminimumnumberofmembersofafriendlysociety;

(g) themanagementandgovernanceofafriendlysociety;

(h) requirementsfortheannualreportofafriendlysociety;

(i) requirementsfortherulesofafriendlysocietyandanyamendmentofsuchrules;

(j) theinvestmentofthefundsofafriendlysocietypursuanttosection306anditsrules,includingmatterstobeincludedinaninvestmentpolicystatement and limits on the amount and extent to which a friendlysocietyfundmayinvest-

(i) outsideNamibia;


(k) thevaluationandreportofthevaluatorofafriendlysocietyreferredtoinsection304;

(l) thepercentageofthefairvalueofpropertyreferredtoinsection306(2);

(m) thedeterminationofthesoundnessofthefinancialpositionofafriendlysocietyforthepurposesofsection308(3);

(n) the conditions for a report of an independent valuator pursuant tosection308(4);

(o) themaximumamountofinsurancereferredtoinsection313;

(p) thebooksofaccountandrecordsthatmustbekeptandmaintainedwithrespecttothemoneysandassetsbelongingtoafriendlysociety;

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(q) thepersonswhomaykeep,inthenameofafriendlysociety,themoneyandassetsofafriendlysociety;

(r) the requirements for the voluntary termination or dissolution of afriendly society pursuant to section 316 and in the circumstancesspecifiedinitsrules,andthewinding-upofafriendlysocietybythecourtpursuant to section317,but subject to the requirementsof theregulations;

(s) thefeethatmaybechargedtomembersforcopiesofcertaindocuments,and the reports and other information that must be provided by afriendlysocietytoitsmembersfreeofcharge;and

(t) any other matter which under Chapter 6 is required, permitted orappropriatetobeprovidedforinthestandards.


(a) businessthathasbeenexcludedfromthebusinessofamedicalaidfundbytheMinisterthroughregulations;

(b) thedemarcationbetween thebusinessofamedicalaid fundand thebusinessofinsurance;

(c) additionalservicesforthepurposeofhealthservices;

(d) additionalrestrictionsforthepurposeofarestrictedmedicalaidfund;

(e) investmentsofamedicalaidfundpursuanttosection350anditsrules,including matters to be included in an investment policy statementandlimitsontheamountandextenttowhichamedicalaidfundmay invest-

(i) outsideNamibia;


(f) thedetermination,calculationandvaluationof-

(i) thekindsorcategoriesofassetsthatamedicalaidfundmustmaintaininNamibia;

(ii) theitemstobeincludedintheliabilitiesofafund;

(iii) thevaluationoftheassetsandliabilitiesofafund;

(iv) the minimum solvency requirements for a fund and thedetermination of the financial position of a fund for thatpurpose;

341

includingNAMFISA’srighttochangeavaluationinthecircumstancesdeterminedinthestandard;

(g) requirementsforthereportofthevaluatorofamedicalaidfundwithrespect to thecurrentfinancialpositionof the fundand itsprojectedfinancialsoundness;

(h) requirementsforthefinancialguaranteesthatmayberequiredfromapersonwhowillmanagethebusinessofamedicalaidfundwhichisintheprocessofbeingestablished;

(i) theminimumnumberofmembersofamedicalaidfund;

(j) theperiodafterwhichpaymentofsubscriptionsorcontributionstoamedicalaidfundbecomedue;

(k) thedirectorindirectelectionofmembersoftheboardoftrusteesbymembersofamedicalaidfund;

(l) thedutiesoftheboardoftrusteesofamedicalaidfund;

(m) requirementsfortheannualreportofamedicalaidfund;

(n) theextenttowhichamedicalaidfundmayencumberitsassets,allowthemtobeheldbyanotherperson,borrowmoneyorgivesecurity;

(o) theinvestmentsofamedicalaidfundinpubliclytradedsharespursuanttosection348(6);

(p) therulesofamedicalaidfundandanyamendmentofsuchrules;

(q) thedeterminationofthesoundnessofthefinancialpositionofamedicalaidfundforthepurposesofsection353(3);

(r) the conditions for a report of an independent valuator pursuant tosection353(4);

(s) theperiodforgeneralandcondition-specificwaitingperiodsandotherperiodsreferredtoinsection354;

(t) theprovisionbymedicalaidfundstotheirmembersofwrittenproofofmembership,andtheparticularssuchproofmustormaycontain;

(u) theconditionssubjecttowhichanypersonwhohasterminatedhisorhermembershipofamedicalaidfundmaybeenrolledasabeneficiaryofanyothermedicalaidfund;

(v) themannerinwhichanypaymentduebyamedicalaidfundmustbemade;

(w) theadministrationof theaffairsofamedicalaid fund, including theregulation,control,restrictionsorprohibitionofanyactrelatingtosuchadministration;

342

(x) requirementsrelatingtoatransactionmonitoringsystemtobeusedbyamedicalaidfundtopreventfraudulentclaims;

(y) openenrolment,andconditionsandmeasuresthatmaybeimposedonopenenrolment,premiumpenaltieswithindefinedbandsforpersonsjoining only late in life and such other measures against adverseselectionasmaybeappropriate;

(z) provisionsassociatedwiththemannerofprovidingmanagedhealthcaretobeneficiariesandrequirementsformanagedhealthcarecontracts;

(aa) reporting acts or omissions of any person in contravention of theprovisionsofChapter7;

(bb) the requirements for the voluntary termination or dissolution of amedical aid fund pursuant to section 358, and in the circumstancesspecifiedinitsrules,andthewinding-upofamedicalaidfundbythecourtpursuant to section359,but subject to the requirementsof theregulations;

(cc) theparticularsthatmustbeincludedinanaccountorstatementprovidedbyahealthserviceprovidertoamember;

(dd) thedatebywhichabenefitmustbepaidtoamemberorasupplierofhealthservicesbyamedicalaidfundpursuanttosection361(2);

(ee) thefeethatmaybechargedtomembersforcopiesofcertaindocuments,and the reports and other information that must be provided by amedicalaidfundtoitsmembersandbeneficiariesfreeofcharge;and

(ff) any other matter which under Chapter 7 is required, permitted orappropriatetobeprovidedforinthestandards.

(9) For the purposes ofChapters 8 and 9, thisChapter andChapter 11,NAMFISAmayissuestandardsrelatingtoanymatterwhichNAMFISAisempowered,permittedorrequiredtoissuestandardsonorwhichisappropriatetobeprovidedforin the standards and which NAMFISA considers it necessary or expedient to issuestandardsinordertoachievetheobjectsofChapters8and9,thisChapterandChapter11. (10) The standards issued pursuant to this section and section 409 mayprovideforpenaltiesforanycontraventionthereof,notexceedingsuchamountsasmaybeprescribedbytheMinister.

Guidelines, bulletins, rules, directives and other measures

411. (1) NAMFISAmayissuesuchguidelines,bulletins,rules,generaldirectivesandanyothersubordinatemeasuresasitconsidersnecessaryordesirableforcarryingoutitsdutiesandfunctionsunderthefinancialserviceslawsandtoachievetheobjectsandintentofthisAct. (2) NAMFISAmay publish the guidelines, rules, general directives andothermeasuresreferredtoinsubsection(1)intheGazette, andNAMFISAmusttakemeasures that are necessary to ensure that the guidelines, bulletins, rules, general

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directivesandothermeasuresreferredtointhatsubsectionarebroughttotheattentionofthepersonsorentitiestowhomtheyapply. (3) Theguidelines,rules,generaldirectivesandothersubordinatemeasuresreferredtoinsubsection(1)arebindingonthosepersonstowhomtheyapply.

Power to issue directives

412. (1) NAMFISAmayissuedirectivestoanyfinancialinstitutionorfinancialintermediaryortoanyotherpersonorentitythatisgovernedbythisActorregulatedbyNAMFISAunderthisActwithrespecttoanymattergovernedbythisActoranyotherapplicablefinancialserviceslawsinanysituationwhereNAMFISAisoftheopinionthatthefinancialinstitution,financialintermediaryorotherpersonorentityiscontraveningorfailingtocomplywith,orhascontravenedorfailedtocomplywith,anyprovisionsofthisActorofanyotherapplicablefinancialserviceslaws,orif-

(a) anactorcourseofactionhasbeenorisabouttobeundertaken;or

(b) anomissionhasoccurredorisabouttooccur,

onthepartofthefinancialinstitution,financialintermediaryorotherpersonorentitythatmaybedamagingtothefinancialsoundnessorreputationofthatfinancialinstitution,financialintermediaryorotherpersonorentityortoitsclientsortothefinancialstabilityofthefinancialsystemofNamibiaorthatisagainstthepublicinterest. (2) For the purposes of this section, NAMFISA may issue a directiverequiringafinancialinstitution,financialintermediaryoranyotherpersonorentitytoeither-

(a) furnishNAMFISAwithanyinformationordocumentsinthepossessionorunderthecontrolofthatfinancialinstitution,financialintermediaryorpersonorentitywithintheperiodspecifiedinthedirective;or

(b) appearbeforeNAMFISAforquestioningbyNAMFISAatatimeandplacespecifiedinthenotice,ortodoboth.

(3) A financial institution, financial intermediary or person or an entitytowhomadirectivehasbeen issuedpursuant to this sectionmust complywith thatdirectivedespiteanythingtothecontraryinitsmemorandum,articlesorrulesorotherfoundingdocuments,anddespiteanycontractorarrangementtowhichitisaparty. (4) Without to thecontraryderogating fromthegeneralityofsubsection(1),NAMFISAmayissueadirectivetoafinancial institution,financial intermediaryoranyotherpersonorentitywithrespecttothemannerinwhichitsaffairsaretobeconducted,ifitappearstoNAMFISAthatthe-

(a) financialinstitution,financialintermediaryorotherpersonorentityhascontravenedthisActoranyotherfinancialserviceslawsinamannerthatislikelytoaffectitsfinancialstabilityortoprejudicetheinterestsofitsclients;

(b) financialinstitution,financialintermediaryorotherpersonorentityisconductingitsaffairs inanimproper,recklessorfinanciallyunsoundmanner;

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(c) financialinstitution,financialintermediaryorotherpersonorentityisinvolvedinafinancialcrime;or

(d) directiveisnecessarytoprotecttheinterestsofclientsofthefinancialinstitution,financialintermediaryorotherpersonorentity.

(5) Withoutderogatingfromthegeneralityofsubsection(1),adirectivemayrequireafinancialinstitution,financialintermediaryoranyotherpersonorentityto-

(a) complywiththewholeoraspecifiedpartofthisActorthefinancialserviceslaws;

(b) causeanauditornominatedbyNAMFISAtobeappointedattheexpenseof the financial institution, financial intermediary or other person orentity,toaudititsrecordsandtosubmitareporttoNAMFISA;

(c) cause avaluatoror anyother expert nominatedbyNAMFISA tobeappointedtoprepareareportonitsaffairs,andtosubmitthereporttoNAMFISA;

(d) prevent a specified director, member of a board, principal officer,otherofficeroremployeeof,orapersonwhocontrols, thefinancialinstitution,financialintermediaryorotherpersonorentityfromtakingpart in the management or conduct of the business of the financialinstitution,financial intermediaryorotherpersonorentity,exceptaspermitted byNAMFISA, after giving the person concerned and thefinancialinstitution,financialintermediaryorotherpersonorentityareasonableopportunitytobeheard;

(e) appointaspecifiedpersonorpersonstoaspecifiedofficeofthefinancialinstitution,financialintermediaryorotherpersonorentityforaperiodspecifiedinthedirective;

(f) remove an auditor or valuator of the financial institution, financialintermediary or other person or entity from office after giving thepersonconcernedand thefinancial institution,financial intermediaryorotherpersonorentityareasonableopportunitytobeheard;

(g) refrainfromborrowingmorethanaspecifiedamountoranyamount;

(h) refrainfrompayingadividendonanyshares;

(i) refrainfrompayingortransferringanyamounttoanypersonorcreatinganobligation,contingentorotherwise,todoso;

(j) refrainfromundertakingafinancialobligation,contingentorotherwise,onbehalfofanotherperson;

(k) makearrangementstothesatisfactionofNAMFISAforthedischargeofalloranypartoftheobligationsofthefinancialinstitution,financialintermediaryorotherpersonorentityunder thisActor thefinancialserviceslaws;or

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(l) takeanyothercorrectiveactionwhichNAMFISAconsidersnecessaryor desirable in the interests of the financial institution, financialintermediaryorotherpersonorentity,itsclientsorthefinancialsystemofNamibia.

(6) InthecasewhereNAMFISAhascausedareporttobepreparedpursuanttosubsection(5)(c),NAMFISAmay,atanytimeuptotheendofaperiodof30daysfollowing receiptof the report, direct thefinancial institution,financial intermediaryor other personor entity concerned to assume the expense thereof,whereupon suchexpensebecomespayablebythatfinancialinstitution,financialintermediaryorotherpersonorentity. (7) Adirectiveundersubsection(5)(d)mayonlybeissuedifNAMFISAissatisfiedthatthepersonreferredtointhatsubsection-

(a) wasknowinglyinvolvedinthecommissionofafinancialcrime;

(b) acted recklessly orwith intent to defraud creditors or clients of thefinancialinstitution,financialintermediaryorotherpersonorentity;

(c) has contravened the financial services laws in the manner stated insubsection(4)(a);or

(d) isotherwisenotfitandproperwithinthemeaningofthestandards. (8) Adirectiveundersubsection(5)(i)doesnotapply to thepaymentortransferofmoneyunderanorderofacourtorawritofexecution. (9) Adirectivemust-

(a) beintheappropriateformspecifiedinthestandards,andmustbeservedon thefinancial institution,financial intermediaryorotherpersonorentityinthemannerprovidedforinthestandards;and

(b) specifythetimebywhich,orperiodduringwhich,itmustbecompliedwith.

(10) Adirective issuedunder thisAct isnotagroundonwhichapersonmay terminate, repudiate or cancel a contract with a financial institution, financialintermediaryoranyotherpersonorentity,accelerateanydebtdueundersuchacontractorcloseoutatransactionwithsuchfinancialinstitution,financialintermediaryorotherpersonorentity,despiteanyprovisiontothecontraryinanydocument. (11) A court may, on application by a party to a contract referred to insubsection (10), other than the financial institution, financial intermediary or otherpersonorentityconcerned,makeanorderrelatingtotheeffectofthedirectiveonthatcontract. (12) Withoutderogatingfromtheextentofanorderundersubsection(11),theordermayrequirethefinancialinstitution,financialintermediaryorotherpersonorentity-

(a) toperformitsobligationsunderthecontract;or

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(b) tocompensatetheapplicantasspecifiedintheorder.

butmaynotrequireapersontotakeanyactionthatwouldcontravenethedirective. (13) NAMFISAmayrevokeadirectiveatanytimebynoticetothefinancialinstitution,financialintermediaryorotherpersonorentityconcerned. (14) AnypersonwhofailstocomplywithadirectiveissuedbyNAMFISAunderthissectioncommitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Application to court

413. IfNAMFISA has reason to believe that as a result of any situationreferred to in section 412(1), prejudice to any person has occurred ormight occur,NAMFISAmayapplytotheHighCourtforanorderrestrainingthefinancialinstitutionor financial intermediary from continuing business or dealing with trust propertypendinganapplicationtothecourtbyNAMFISApursuanttosection443orpendingtheexerciseofanyotherlegalremedythatmaybeavailabletoNAMFISA.

Reporting obligations

414. (1) NAMFISA may issue a directive imposing reportingrequirementson-

(a) afinancialinstitution;

(b) afinancialintermediary;

(c) anaffiliateofafinancialinstitutionorfinancialintermediary;and

(d) a person who is or has at any time been a director, member of aboard,principalofficer,otherofficer,auditororvaluatorofafinancialinstitutionorfinancialintermediary.

(2) The directive referred to in subsection (1) may require the personsreferred to in that subsection tomake reports toNAMFISAand togive informationor documents to NAMFISA on matters with respect to the financial institution orfinancialintermediaryconcernedorinconnectionwiththeperformanceoffunctionsbyNAMFISAunderthefinancialserviceslaws. (3) Without derogating from the provisions of subsections (1) and (2),NAMFISAmayrequire-

(a) thefilingwithNAMFISAofperiodicandotherreturns,includingbutnotlimitedtoquarterlyreports,annualreportsandfinancialstatements;

(b) notification of changes in management and control of financialinstitutionsandfinancialintermediaries;

(c) reportsonfinancialdifficultiesorsuspectedfinancialdifficulties;or

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(d) reportsoncontraventionsorsuspectedcontraventionsofthefinancialservices laws, and the commission or suspected commission of anyfinancialcrime.

(4) ApersonwhomakesareporttoNAMFISA-

(a) withrespectto-

(i) financial difficulties or suspected financial difficulties of afinancialinstitutionorfinancialintermediary;or

(ii) a contravention or suspected contravention of the financialserviceslawsorthecommissionorsuspectedcommissionofafinancialcrime;or

(b) pursuanttosubsection(3);

whether or not the report is required by thisAct, is not liable for damages or othersanctioninrelationtoanylosscausedbythereport,providedthatthereportismadeingoodfaith. (5) Apersonmaynotsubjectanotherperson(in thissubsectioncalleda“reporter”)toanyprejudiceinhisorheremploymentorpenaliseareporterinanyway,onthegroundsthatthereporterhasmadeareportreferredtoinsubsection(4),whetherornotthereportisrequiredunderthisAct. (6) Apersonwhocontravenesor fails tocomplywithadirective issuedpursuant to subsection (1) and (2) or subsection (5) or fails to comply with anyrequirementsimposedbyNAMFISAunderthissectioncommitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Fees

415. (1) NAMFISA may, after considering any representation madeundersubsection(2),determine-

(a) thosemattersunderthisActinrespectofwhichfeesarepayableunderthisAct;

(b) theamountofthefeepayableinrespectofeachsuchmatter;

(c) the persons by whom the fees must be payable and the manner ofpayment;and

(d) wherenecessary,thepaymentofinterestonoverduefees. (2) Beforemakingadeterminationwithrespecttofeesundersubsection(1),NAMFISAmustpublishinformationabouttheproposedfeesintheGazetteandinsuchmannerasmaybeappropriateinordertobringtheproposedfeestotheattentionoffinancialinstitutions,financialintermediariesandpersonswhomaybeaffectedthereby,togetherwithastatementthatrepresentationsontheproposedfeesmaybemadetotheAuthoritywithinaspecifiedtime.

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(3) AfeedeterminedbyNAMFISAundersubsection(1),oranychangetosuchfee,comesintoeffect30daysafterthedateofthenoticeannouncingthefinalfeeorwithinsuchextendedperiodasmaybedeterminedbyNAMFISA,whichperiodmaynotexceed90daysfromthedatethatthenoticewaspublishedintheGazette.

Removal of board member

416. If anymember of a board of directors or other board of a financialinstitutionorfinancialintermediaryisnotincompliancewiththefinancialserviceslawsorisnolongerafitandproperpersonwithinthemeaningofthestandards,NAMFISAmay, after giving the person, the board and the financial institution or financialintermediaryconcernedanopportunitytobeheard,requiretheremovalofthatpersonfromofficeandtheappointmentofanotherpersoninhisorherplace.

Enquiries to principal officer

417. (1) NAMFISAmay address any enquiry in relation to amatterconnectedwith thebusinessofafinancial institutionorfinancial intermediary to theprincipalofficerofthatfinancialinstitutionorfinancialintermediary,andtheprincipalofficermustreplyinwritingnotlaterthanthedatespecifiedbyNAMFISAintheenquirynotice. (2) NAMFISAmust,uponrequestandwithoutcharge,informanypersonoftheaddressoftheprincipalofficeofafinancialinstitutionorfinancialintermediary,andthenameofitsprincipalofficer.

Inspections

418. (1) For the purposes of this sectionNAMFISAmay,with priornotification to thefinancial institutionorfinancial intermediaryconcerned, authorisean employee ofNAMFISA or an inspector appointed under section 419 to conductanon-site inspectionof thebusinessandaffairsofafinancial institutionorfinancialintermediary, in this section and sections427, 428 and429 referred to as a “personunderinspection”. (2) Apersonconductinganon-site inspectionpursuant tosubsection(1)may,atanytimeduringbusinesshours-

(a) enterthepremisesofthepersonunderinspectionandrequestthepersonunderinspectiontoprovideanydocumentwhichmayfurnishproofofanyfailuretocomplywiththeprovisionsofthefinancialserviceslaws;

(b) examine,make extracts from and copy any document referred to inparagraph(a),or,againsttheissueofareceipt,temporarilyremovethedocument;

(c) requestanyinformationaboutanydocumentorarticlefrom-

(i) theownerofthepremises;

(ii) thepersonincontrolofthepremises;

(iii) anypersonwhohascontrolofthedocumentorarticle;or

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(iv) anyotherpersonwhomayhavetheinformation;

(d) requirethepersonunderinspectiontoproduceataspecifiedtimeandplaceanydocumentsordocumentsofaspecifieddescriptionthatareinthepossessionorunderthecontrolofthepersonunderinspection;or

(e) requireanypersonholdingoraccountableforanydocumenttoprovideinformationandanexplanationofthatdocument.

(3) Followinganinspectionundersubsection(2),ifNAMFISAconsidersthat the person under inspection is contravening or failing to comply with, or hascontravened or failed to comply with, any provision of the financial services laws,NAMFISAmay-

(a) takeanyactionorapplytoacourtforanyorderunderPart6;

(b) applytoacourtundersection443fortheappointmentofastatutorymanager to take control and manage the whole or any part of thebusinessofthepersonunderinspection;

(c) issue a directive to the person under inspection or any other personconcernedwiththebusinessofthepersonunderinspectiontotakeanystepsortorefrainfromperformingorcontinuingtoperformanyact,inordertoterminateorremedyanyirregularity,undesirablepracticeorstateofaffairsdisclosedbytheinspection;

(d) issue a directive to the person under inspection or any other personreferred to inparagraph (c) toprohibit or restrict specifiedactivitiesperformed by an individual who is a director, member of a board,principal officer, other officer, trustee, or employee of the personunderinspectionortheotherperson,ifNAMFISAbelievesthatsuchindividualisnotfitandproperwithinthemeaningofthestandards;or

(e) refer thematter to theappropriateauthority to investigatewhetherafinancialcrimehasbeencommitted.

(4) NAMFISAmay, by notice in theGazette or bymeans of any otherappropriatepublicstatement,makeknownthestatus,outcomeanddetailsofanon-siteinspectionifsuchdisclosureisinthepublicinterest. (5) ApersonwhocontravenesorrefusesorfailstocomplywithadirectiveofNAMFISAreferredtoinsubsection(3)(c)or(d)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Appointment of inspectors

419. (1) NAMFISA may from time to time appoint, from personsemployedbyNAMFISAor frompersonswhoarenotemployedbyNAMFISA,oneormoreinspectorsunderthisAct,andmustissuetoanysuchinspectororinspectorsa certificate of appointment containing information, and in the form, set out in thestandards.

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(2) Any inspectormay,with the consent ofNAMFISA, appoint one ormore persons to assist in carrying out an inspection or investigation and upon suchappointment,NAMFISAmust issueanysuchpersonorpersonswithacertificateofappointmentsignedbyapersonauthorisedbyNAMFISA. (3) When exercising any power or performing any duty under thisAct,aninspectorandanypersonreferredtoinsubsection(2)mustbeinpossessionofthecertificateofappointmentreferredtoinsubsection(1)or(2),asapplicable,andmustproduce the certificate at the request of anypersonhaving amaterial interest in thematterconcerned.

Investigations

420. (1) NAMFISAmayatanytimeinstructoneormoreinspectorstocarryoutaninvestigationofthebusinessoraffairsoranypartofthebusinessoraffairs,of-

(a) afinancialinstitutionorfinancialintermediary;or

(b) any person not registered under thisAct, if NAMFISA has reasonto believe that the person is carrying on the business of a financialinstitutionorfinancialintermediaryorisprovidingafinancialservice.

(2) Beforeinstructingoneormoreinspectorstocarryoutaninvestigationpursuanttosubsection(1),NAMFISAmustbereasonablysatisfiedthattheinspectororinspectorswillbeabletoreporttoNAMFISAobjectivelyandimpartially. (3) Any person who holds shares in a financial institution or financialintermediaryasanomineeorintrustonbehalfofanotherpersonmust,upontherequestofaninspectororNAMFISA,disclosethenameofthatotherperson. (4) Forthepurposesofaninvestigationunderthissectionaninspectormayvisitanyofficeorplaceofbusinessofanyfinancialinstitution,financialintermediaryorofapersonreferredtoinsubsection(1)(b),andmayinspecttherecordsrelatingtothebusinesscarriedoutandmayrequestanyinformationreasonablyrequiredtoproperlyinvestigatethesituation. (5) Everyfinancialinstitution,financialintermediaryorofapersonreferredto in subsection (1)(b)must do everything possible to facilitate any inquiries by aninspectorandmustmakeallrequiredinformationavailableonatimelybasis. (6) Aninspectorisentitledtoquestionanyfinancialinstitution,financialintermediary or a person referred to in subsection (1)(b) and any employee, officeror director of a financial institution, financial intermediary or person under oath oraffirmation. (7) NAMFISA may in the standards describe conduct that affirmationconstitutemisconductonthepartofafinancialinstitutionorfinancialintermediaryforthepurposesofthisPart.

Investigations on request of other agencies

421. Forthepurposesofimplementinganyarrangementsenteredintowithanagencyororganisationundersection30oftheNAMFISAAct,attherequestofsuch

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agencyororganisation,NAMFISAmayinstructoneormoreinspectorstocarryoutaninvestigationofthebusinessoraffairsorpartofthebusinessoraffairsofanypersonpresentorresidentinNamibia,identifiedbytheagencyororganisation.

Powers of inspectors

422. (1) Afinancial institution,financial intermediaryorotherpersonreferred to in section 420(1)(b) and a person referred to in section 414 are, for the purposesofthissectionandsections427,428and429,referredtoasa“personunderinvestigation”. (2) In carrying out an investigation pursuant to section 420 or 421 aninspectormay,subjecttosubsection(3),withoutawarrantorpriornoticetothepersonunderinvestigation-

(a) enteranypremises,otherthanpremisesthatareahomeorarebeingusedasahome,occupiedbythepersonunderinvestigationandrequiretheproductionofanydocumentorotheritemrelatingtoitsbusinessoraffairs;

(b) openanystrongroom,safeorothercontainerinwhichtheinspector,onreasonablegrounds,suspectsanydocumentorotheritemrelatingtothebusinessoraffairsofthepersonunderinvestigationiskept;

(c) searchthepremisesoranypersononthepremisesiftherearereasonablegroundsforbelieving that thepersonhaspersonalpossessionofanydocumentorarticlethathasabearingontheinspection;

(d) useanycomputersystemonthepremisesorrequireassistanceofanypersononthepremisestousethatcomputersystem,to-

(i) search any data contained in or available to that computersystem;

(ii) reproduceanyrecordfromthatdata;and

(iii) seize any output from that computer for examination andcopying;

(e) iftheinspectorisoftheopinionthatanydocumentorotheritemrelatingto the business or affairs of the person under investigation containsinformationrelevanttotheinvestigation,examine,makeextractsfromandcopythedocumentorotheritem;

(f) against the issue of a receipt, remove any document or other itemreferredtoinparagraph(e)temporarilyforthepurposesreferredtointhatsubsection;or

(g) if the inspector is of the opinion that any document or other itemreferredtoinparagraph(e)containsevidenceofanoffenceunderthisActoranyotherlaw,againsttheissueofareceipt,seizesuchdocumentorother itemand retain it for so longas itmaybe required for anycriminalorotherproceedings.

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(3) AninspectororNAMFISAmaytakeanyactionreferredtoinsubsection(2)inrespectofpremisesorpartofpremisesthatareahomeorarebeingusedasahome,onlyif-

(a) authorisedtodosobyawarrantissuedundersubsection(4);

(b) therearereasonablegroundsfortheinspectortobelievethat-

(i) the delay in obtaining awarrant would prejudice the objectof the investigation, or failure to act immediately mayprejudicesecuringdocumentsorotheritemsforsupervisoryorenforcementactionbyNAMFISA;and

(ii) awarrantwillbeissuedundersubsection(4)iftheinspectororNAMFISAappliesforsuchwarrant;or

(c) consenttosuchactionshasbeengivenby-

(i) thepersonlawfullyincontrolofanypremisesorlawfullyinpossessionorhavingcustodyofdocumentsorotheritems;or

(ii) apersonwiththepowertogivesuchconsent. (4) A judge or magistrate in chambers having jurisdiction in the areawherethepremisesinquestionarelocatedmay,onapplicationbyaninspectororbyNAMFISA,issueawarrantreferredtoinsubsection(3). (5) Awarrantmayonlybeissuedpursuanttosubsection(4)ifitappearsfrominformationgivenunderoathoraffirmationthatthereisreasontobelievethatoneormoredocumentsrelatingtothebusinessoraffairsofthepersonunderinvestigationiskeptatthepremisesconcerned. (6) Incarryingoutaninvestigationaninspectormay-

(a) if theinspectorisof theopinionthatanyindividualwhoisorwasadirector,memberofaboard,principalofficer,otherofficer,employee,partner,shareholderorotherownerofthepersonunderinvestigationis in possessionof or has under his or her control anydocument ordocumentsorotheritemoritemsrelatingtothebusinessoraffairsofthepersonunderinvestigation,summonthatindividualto-

(i) producethedocumentorotheritem;or

(ii) appear at a time and place specified in the summons, to beexaminedortoproducesuchdocumentorotheritem;or

(b) administeranoathoraffirmationorotherwiseexamineanyindividualreferredtoinparagraph(a)andexamineorretain,againsttheissueofareceipt,anydocumentorotheritem.

(7) Apersonunderinvestigationpursuanttothissectionortheauthorisedrepresentativeofsuchpersonmay,duringbusinesshours,examineandmakeextractsfromanydocumentorotheritemseizedpursuanttosubsection(2)(f)or(g),underthesupervisionofNAMFISAoraninspector.

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(8) If it transpires during or after an investigation conducted under thissection that a document or other item referred to in subsection (2)(f) or (g) has norelationtothebusinessoraffairsofthepersonunderinvestigationorispatentlyofaprivatenature,theinspectormayreleasesuchdocumentoritemtoitsrightfulowner. (9) Insofaras thissectionprovidesfora limitationonthefundamentalrightscontemplatedinSub-Article(1)ofArticle13oftheNamibianConstitution,inthatitauthorisesinterferencewiththeprivacyofaperson’shome,correspondenceorcommunication,thatlimitationisenactedupontheauthorityofSub-Article(2)ofthatArticle.

Time and place of examinations

423. (1) An inspector may determine the time and place of anyexaminationpursuanttosection422(6)andmaydeterminewhomaybepresentatsuchexamination. (2) Despite subsection (1), an individual examined pursuant to section422(6),whetherunderoathoraffirmation,mayberepresentedbyalegalpractitioner.

Entry upon or search of premises

424. (1) Anyentryuponorsearchofanypremisespursuanttosection422mustbeconductedwithdueregardtodecency,goodorderandthedignityofpersonsunder investigation andmust be executedduringbusiness hours unless execution atsomeothertimeisjustified. (2) AninspectororNAMFISAwhenexercisingthepowersconferredbysection422(2)or (3)maybeaccompaniedandbeassistedbyanassistantappointedpursuanttosection419(2),aninterpreterandoneormorepoliceofficers. (3) If,duringanentryorsearchofanypremises,apersonclaimsthatanydocumentorotheritemcontainsprivilegedinformationandforthatreasonrefusestheinspectionorremovalofthatdocumentoritem,providedthattheinspectorisreasonablysatisfiedthatthedocumentoritemcontainsinformationrelevanttotheinvestigation,theinspectororthepoliceofficeraccompanyingtheinspectormayseizeandremovethatdocumentoritemforsafecustodyuntilacourthasmadearulingonthequestionofprivilege.

Professional privilege and incriminating evidence

425. (1) Sections422and424(3)maynotbeconstruedasinfringingonthecommonlawrightofprofessionalprivilegebetweenalegalpractitionerandhisorherclientinrespectofinformationcommunicatedtothelegalpractitionertoenablehimorhertoprovideadvice,renderlitigationassistanceordefendtheclient. (2) Anyindividualexaminedundersection422mayberequiredtoanswerany question put to that person at the examination, despite that the answer mightincriminatethatperson. (3) An incriminatinganswerdirectlyobtainedor incriminatingevidencedirectly derived from an examination pursuant to section 422 is not admissible asevidenceincriminalproceedingsinacourtagainsttheindividualorthepersonunderinvestigationofwhichtheindividualisorwasadirector,memberofaboard,principal

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officer,otherofficeroremployeeorwhichtheindividualcontrolsorusedtocontrol,exceptincriminalproceedingswheretheindividualischargedwithanoffencerelatingto-

(a) anoathoraffirmation;

(b) givingfalseevidence;

(c) makingafalsestatement;or

(d) deliberatefailuretoanswerquestionsfullyorsatisfactorily. (4) Whereanypersongivingevidence in termsof theprovisionsof thissectionisobligedtoanswerquestionswhichmayincriminatehimorheror,whereheorsheistobetriedonacriminalchargeandtheevidencemayprejudicehimorheratthetrial,theinspectormayorderthatsuchpartoftheexaminationbeheldin camera andthatnoinformationregardingsuchquestionsandanswersmaybepublishedinanymannerwhatsoever. (5) Anypersonwhocontravenesanyprovisionofanordercontemplatedinsubsection(4)commitsanoffenceandisliableonconvictiontothepenaltymentionedinsubsection(5)ofsection154oftheCriminalProcedureAct,1977(ActNo.51of1977).

Observance of secrecy

426. AninspectororotherpersoncarryingoutaninspectionorinvestigationunderthisAct,includingapersonappointedundersection419(2),mustkeepsecretallmattersthatmaycometotheattentionofthepersonintheperformanceoftheinspectionorinvestigationandmustnotcommunicateanysuchmattertoanypersonotherthanNAMFISA,unlesscommunicationofthematterisnecessarytocarryouttheinspectionorinvestigationorismadepursuanttoanorderofacourt.

Disclosure to certain parties

427. (1) If, in the opinion ofNAMFISA, it is necessary or desirabletodoso,onthebasisoftheprovisionsprescribedinthisActorotherapplicablelaws,NAMFISAmayconveyanyinformationobtainedduringaninspectionorinvestigationto-

(a) anorganoftheState;

(b) theAdjudicatororanycompetentcourtoflaw;

(c) aregulatoryorsupervisoryauthorityestablishedbylaw;

(d) aself-regulatoryorself-supervisoryauthority;

(e) a director, member of a board, principal officer, auditor, valuator,shareholderorotherowner,partner,liquidator,curatororexecutorortrusteeofapersonunderinspectionorapersonunderinvestigation;

(f) a participating employer in a retirement fund that is a person underinspectionorapersonunderinvestigation;or

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(g) anyagencyororganisationwhichhasenteredintoanarrangementwithNAMFISAundersection30oftheNAMFISAAct.

(2) Forpurposesofsubsection(1)andsections430and464,“organoftheState”means-

(a) any office,ministry or agency as defined in the Public ServiceAct,1995(ActNo.13of1995);

(b) any local authority council as defined in the LocalAuthoritiesAct,1992(ActNo.23of1992);

(c) anyregionalcouncilasdefinedintheRegionalCouncilsAct,1992(ActNo.22of1992);and

(d) anyotherfunctionaryorinstitutionexercisingapowerorperformingafunctionintermsoftheNamibianConstitutionorexercisingapublicpowerorperformingapublicfunctionintermsofanylaw.

Costs of investigation

428. If, after considering the results of an investigation, NAMFISA issatisfiedthatitisreasonabletodoso,theexpensesincurredbyandtheremunerationof,aninspectorappointedundersection419(1)orapersonappointedundersection419(2),mayberecoveredfromthepersonunderinvestigationorfromadirector,memberofaboard,principalofficerorotherofficerof,orpersonwhocontrols,thepersonunderinvestigation.

Offences relating to inspections

429. Apersonwho-

(a) withoutlawfulexcuse,refusestotakeanoathortomakeanaffirmation,whenrequestedtodosobyaninspector;

(b) intentionallyorrecklessly-

(i) givesanyfalseinformationtoaninspector;or

(ii) hindersaninspectorintheexerciseofthepowersorperformanceofthedutiesoftheinspector;

(c) withoutlawfulexcuse,refusesorfailsto-

(i) answeraquestionputbyaninspectorwhichrelatestotheaffairsofapersonunderinspectionorpersonunderinvestigation;or

(ii) complywithanyreasonablerequestbyaninspector;

(d) hasbeendulysummonedundersection422(6)(a)andwithoutsufficientorreasonablecausefailsto-

(i) appearatthetimeandplacespecifiedinthesummons;

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(ii) remain in attendance before being excused by the inspectorfromfurtherattendance;or

(iii) filewiththeinspectoranydocumentoritemreferredtointhesummons;or

(e) contravenessection426,

commits an offence and is liable on conviction to a fine not exceedingN$500 000or to imprisonment for a period not exceeding 12months, or to both suchfine andimprisonment.

Power of NAMFISA to verify information

430. ForthepurposesofadeterminationinaccordancewiththisActastowhetherapersonisfitandproperwithinthemeaningofthestandards,NAMFISAmayverifyanyinformationatNAMFISA’sdisposalbymakingenquiriesatanyorganoftheState,creditbureauauthorisedbylawtokeepinformationaboutthecreditworthinessofanypersonoranyotherlawfulsourceofinformationorbyobtainingtheevidenceofanyotherperson.

Decisions to be in writing

431. Alldecisions,notices,directivesorotherofficialcommunicationsofNAMFISAortheMinisterunderthisAct,unlessspecificallyprovidedforotherwiseinthisAct,mustbeinwriting.

Representative self-regulatory organisations

432. (1) NAMFISA may enter into an arrangement with any entity(inthissectionreferredtoasa“representativeself-regulatoryorganisation”),thathasfunctionsinrelationtoaclassoffinancialinstitutionsorfinancialintermediariesaimedat the performanceby the representative self-regulatoryorganisationof functions ofa regulatoryor supervisorynature in relation to thatclassoffinancial institutionsorfinancialintermediaries. (2) NAMFISAmay,under anarrangement referred to in subsection (1),delegatesomeofthepowersorassignsomeofthefunctionsofNAMFISAunderthisActtotherepresentativeself-regulatoryorganisation. (3) Thearrangementmayprovidefor-

(a) the supervisionbyNAMFISAof themanner inwhich the functionsassignedorpowersdelegatedundersubsection(2)areperformed;

(b) theattendancebyNAMFISAoritsauthorisedrepresentativeatmeetingsof the representative self-regulatory organisation or its executivecommitteeorasubcommitteeofthatcommittee;

(c) the filing with the representative self-regulatory organisation ofcopies of all directives, notices and other documents which aresent by NAMFISA to the class of financial institutions or financialintermediariesinquestion;

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(d) the filing with NAMFISA of any rules of the representative self-regulatoryorganisationrelatingtotheclassoffinancialinstitutionsorfinancialintermediariesinquestion;and

(e) the variation or termination of the arrangement in a casewhere therepresentativeself-regulatoryorganisationisnotperformingdelegatedor assigned regulatory or supervisory powers or functions to thesatisfactionofNAMFISA.

(4) NAMFISAmayatanytimecancelanarrangementmadepursuanttothissection.

Changes in control of financial institution

433. (1) Apersonmaynotenter intoaproposed transactionwherebythepersonwouldacquireorrelinquishcontrolofafinancialinstitutionwithoutthepriorapprovalofNAMFISA. (2) Theperson referred to in subsection (1) and thefinancial institutionconcerned must, within 14 days of entering into the transaction referred to in thatsubsection,reportthefinalisationofthetransactiontoNAMFISA. (3) Ifaperson-

(a) controlsafinancialinstitutionbyvirtueofthedegreeofvotingpowerthatthepersonisabletoexerciseorcontrolinrelationtothefinancialinstitution;and

(b) byvirtueofaproposedtransaction, thedegreeofsuchvotingpowerwould be varied by more than the percentage determined by theMinisterbynoticeintheGazette,

thatpersonmaynotenterintotheproposedtransactionwithoutthepriorapprovalofNAMFISA. (4) Thevariationreferredtoinsubsection(3)maybebywayofincreaseordecreaseinthepercentageofsuchvotingpower. (5) Theperson referred to in subsection (3) and thefinancial institutionconcerned must, within 14 days of entering into the transaction referred to in thatsubsection,reportthefinalisationofthetransactiontoNAMFISA. (6) NAMFISAmayissuestandardsapplyingtheprovisionsofthissectiontocertainfinancialintermediariesasthoughthereferencesto“financialinstitution”wereto“financialintermediary”,andidentifyingthetypeortypesoffinancialintermediaryinquestion. (7) Ifapersonentersintoatransactionreferredtoinsubsection(1)or(3)withoutobtainingthepriorapprovalofNAMFISA,thatpersoncommitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment. (8) Apersonwhocontravenesor fails to complywith subsection (2)or(5) commitsanoffenceand is liableonconviction toafinenotexceedingN$2500

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000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Right to be heard

434. A financial institution, financial intermediary or any other personaffectedbyadecisionofNAMFISAunderthisActhastherighttobeheardandtherighttomakerepresentationstoNAMFISAbeforethedecisionismade.

Late filing or payment

435. Afinancial institution,financial intermediaryor other person that orwhofailsto-

(a) filewithNAMFISAareturn,report,statement,financialstatementoranyotherdocumentorinformationrequiredbyorunderthisActwithintheperiodspecified;or

(b) paytheannualfeerequiredfortherenewalofregistrationoranyotherfeeonorbeforetheduedate,

may,withthepriorconsentofNAMFISA,furnishthereturn,report,statementorotherdocumentorinformationorpaytherequiredannualfeeorotherfeeafterthespecifiedperiodorduedate,subjecttoanyadministrativesanctionreferredtoinsection439.

PART 6ENFORCEMENT

Enforceable undertakings

436. (1) If, under normal circumstances, NAMFISA could impose aconditionontheregistrationofapersonunderthisAct,NAMFISAmayinitsdiscretion,inplaceofsuchcondition,requireawrittenundertakingfromthepersoninconnectionwithamattergovernedbythisAct,andwithoutlimitationtheundertakingincludes-

(a) a written undertaking that the person will, in order to comply withthisActoranyregulations,standards,directivesorothersubordinatemeasuresmadeorissuedunderthisAct,takespecifiedaction;

(b) a written undertaking that the person will, in order to comply withthisActoranyregulations,standards,directivesorothersubordinatemeasuresmadeorissuedunderthisAct,refrainfromtakingspecifiedaction;

(c) awrittenundertakingthatthepersonwilltakespecifiedactiondirectedtowardsensuringthatthepersondoesnotcontravenethisActoranyregulations,standards,directivesorothersubordinatemeasuresmadeorissuedunderthisActorthatitisunlikelyforthepersontocontravenethisActoranyregulations,standards,directivesorothersubordinatemeasuresmadeorissuedunderthisAct,inthefuture,

andthatpersonmustcomplywithsuchundertaking.

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(2) Thepersonreferredtoinsubsection(1)maynotwithdraworvarytheundertakingwithouttheconsentofNAMFISA. (3) IfNAMFISAconsiders that thepersonhasbreachedanundertakingmadeundersubsection(1),NAMFISAmayapplytotheHighCourtforanorderundersubsection(4). (4) If the High Court is satisfied that the person has breached theundertaking,thecourtmaymake-

(a) anorderdirectingthepersontocomplywiththeundertaking;and

(b) anyotherorderthattheHighCourtconsidersappropriate. (5) NAMFISAmay,ifappropriate,makeavailabletoanyinterestedpersonacopyoftheundertakingreferredtoinsubsection(1). (6) IfNAMFISAmakes a copyof an undertaking available pursuant tosubsection(5),NAMFISAmustdeletefromthecopyanyinformationwhichNAMFISAissatisfied-

(a) isconfidentialinformationwithcommercialvalue;

(b) shouldnotbedisclosedasitwouldbeagainstthepublicinteresttodoso;or

(c) consistsofirrelevantpersonaldetailsrelatingtoanindividual. (7) Ifinformationhasbeendeletedfromacopyofanundertakingpursuantto subsection (6), the copymust includeanote stating that informationhasbeen sodeleted. (8) Aperson contravenes or fails to complywith the requirement of anundertakingmadeundersubsection(1)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$2500000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Compensation for contraventions of Act

437. (1) A person (in this section called the “claimant”)who sufferslossasaconsequenceofacontraventionoforfailuretocomplywiththisActbyanotherperson(inthissectioncalledthe“offender”),mayrecovertheamountofthelossbyactioninacourtorothercompetenttribunalagainst-

(a) theoffender;

(b) anyotherpersonwhowasknowinglyinvolvedinthecontravention;or

(c) boththeoffenderandanyotherpersonwhowasknowinglyinvolvedinthecontraventionjointlyandseverally.

(2) NAMFISAmayinstituteanactionofakindreferredtoinsubsection(1)onbehalfofaclaimantorgroupofclaimantsinacourtifintheopinionofNAMFISAitisappropriatetodoso.

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(3) With respect to proceedings institutedbyNAMFISA, the courtmaymakeanyappropriateorderrelatingtotheconductoftheproceedings. (4) If-

(a) proceedingsinstitutedbyNAMFISAunderthissectionrelatetoalosssufferedbyagroupofclaimants;and

(b) aspecificclaimant,eitherbeforeoraftertheinstitutionofproceedingsby NAMFISA but before any determination is made, institutes aproceedingunderthissectioninrespectofthesameloss,

thatclaimantisnotentitledtorecoveranycompensationintheproceedingsinstitutedbyNAMFISA,andthecourtmaymakeanyappropriateorderforthefurtherconductoftherelevantproceedings. (5) Where NAMFISA has instituted proceedings, it may conduct theproceedingswithoutjoinderoftheclaimantsconcerned,andmaywithdraw,abandon,settleorcompromisetheproceedings,butanysuchwithdrawal,abandonment,settlementorcompromiseissubjecttotheapprovalofthecourt. (6) WithrespecttoproceedingsinstitutedbyNAMFISA,thecourtmay,inadditiontoorderingcompensationpursuanttosubsection(1)-

(a) order an offender to pay a penalty for punitive purposes in a sumdeterminedbythecourt;and

(b) awardinterestonanyamountorderedtobepaidfromthedateofthecontraventionorfailuretocomply.

(7) In giving judgment in an action instituted byNAMFISA under thissectionorinapprovingawithdrawal,abandonment,settlementorcompromiseinrelationtosuchanaction,thecourtmustmakeanorderforthepublicationofthejudgmentandanyrelatedmatterintheGazetteandotherwiseasthecourtdirects. (8) A judgment in an action instituted byNAMFISA under this sectionbindsallclaimantsotherthanaclaimantreferredtoinsubsection(4)(b). (9) Anyamount recoveredbyNAMFISA inproceedings institutedby itmustbedepositedintoaspeciallydesignatedaccountestablishedbyNAMFISAwithabankinginstitutionorbuildingsocietyandthereupon-

(a) NAMFISA, as a first charge against the account, is entitled toreimbursement of all expenses reasonably incurred in bringing theproceedings and in administering the distribution made under thissubsection;

(b) NAMFISA must take reasonable steps to identify claimants anddeterminetheamountoftheirlossesinconnectionwiththecontravention,includingbyfurtherpublicationoftheorderofthecourt;and

(c) the balance of the amount recovered (in this section called the“distributablebalance”),aftermakingprovisionforexpensesreferredto inparagraph (a),mustbedistributedamong theclaimants so that

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eachclaimantentitledtheretoispaidtheamountdeterminedusingtheformula:

__________________________ amountoftheclaimant’sloss x distributablebalance totalamountofallclaimants’losses

(10) Apersonwhowasknowinglyinvolvedinthecontraventionorfailuretocomplyinquestionisnotentitledtoadistributionpursuanttosubsection(9). (11) DistributionsmaybemadeinstagesasdeterminedbyNAMFISA. (12) Any surplus of the distributable balance not allocated or claimed attheendof30yearsafterthefirstpaymentpursuanttosubsection(9),becomesfundsofNAMFISA. (13) Nothingcontainedinthissectionaffectsanyliabilitywhichapersonmayincurunderthecommonlaworanyotherlaw,butanydamagespreviouslyawardedunderthissectionwhicharisefromthesamecausemustbetakenintoconsiderationforpurposesofanyfurtherclaimreferredtointhissubsection.

Court orders to enforce Act

438. (1) WhereapersonhascontravenedorfailedtocomplywithanyprovisionofthisAct,theHighCourtmayattheinstanceofNAMFISA,makeanyorderconsideredappropriateforthepurposesofenforcingthisActorprotectingtheinterestsofclients. (2) Withoutderogatingfromthegeneralityofsubsection(1),anorderofthecourtunderthatsubsectionmay-

(a) directthepersontoundertakeaspecifiedactorrefrainfromundertakingaspecifiedact,inorderto-

(i) remedytheeffectsofthecontravention;

(ii) preserve the assets of any relevant financial institution orfinancialintermediary;

(iii) compensate persons who have suffered loss because of thecontravention;

(iv) ensurethatthepersondoesnotcommitfurthercontraventionsofthisAct;and

(v) preventthedisposalofevidence;and

(b) includeanorderfortheattachmentofassetstopreventtheirconcealment,removal,dissipationordestruction.

(3) The court may in appropriate circumstances issue an interim orderpendingthefinaldeterminationofthematter.

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(4) NAMFISA is deemed to have the necessary locus standi or otherprocedural requirement for an applicant or plaintiff for the purposes of launchingproceedingsinacourt. (5) NAMFISA may apply to the court for a declaratory order on theinterpretationorapplicationofanyprovisionofthisAct.

Administrative sanctions

439. (1) NAMFISAmayimposeanadministrativesanctionreferredtoin subsection (4) on any financial institution, financial intermediary or other persontowhom thisAct applieswhen satisfied on available facts and information that thefinancialinstitution,financialintermediaryorperson-

(a) has failed to complywith a provision of thisAct or any regulation,standard,directiveorothersubordinatemeasuresmadeorissuedunderthisAct;

(b) has failed to complywith a condition of a registration, approval orauthorisation issued or amended in accordancewith thisAct or anyotherlaw;or

(c) hasfailedtocomplywithastandard,guideline,rule,directiveorothersubordinatemeasureissuedundersection409,410,411or412.

(2) Before imposinganadministrativesanction referred to in subsection(4), NAMFISAmust give the financial institution, financial intermediary or personreasonablenoticeinwriting-

(a) ofthenatureoftheallegednon-compliance;

(b) oftheintentiontoimposeanadministrativesanction;

(c) of the amountorparticularsof the intendedadministrative sanction;and

(d) advisethatthefinancialinstitution,financialintermediaryorpersonmay,inwriting,withinaperiodspecifiedinthenotice,makerepresentationsastowhytheadministrativesanctionshouldnotbeimposed.

(3) Indetermininganappropriateadministrativesanction,NAMFISAmustconsiderthefollowingfactors-

(a) the nature, duration, seriousness and extent of the relevant non-compliance;

(b) whetherthefinancialinstitution,financialintermediaryorpersonhaspreviouslyfailedtocomplywithanylaw;

(c) any remedial steps taken by the financial institution, financialintermediaryorpersontopreventarecurrenceofthenon-compliance;

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(d) anystepstakenortobetakenagainstthefinancialinstitution,financialintermediary or person by any voluntary association of which thefinancialinstitution,financialintermediaryorpersonisamember;and

(e) anyotherrelevantfactor,includingmitigatingfactors. (4) After considering any representations and the factors referred to insubsection(3),NAMFISAmay-

(a) givethefinancialinstitution,financialintermediaryorpersonawrittenwarning;

(b) give the financial institution, financial intermediary or person areprimand;

(c) issueadirective to thefinancial institution,financial intermediaryorperson requiring the financial institution, financial intermediary orperson to undertake a specified act or to refrain fromundertaking aspecifiedactinorderto-

(i) remedytheeffectsofthecontraventionand;

(ii) ensure that thefinancial institution,financial intermediaryorpersondoesnotcommitanyfurthercontraventionsofthisAct;

(d) require the financial institution, financial intermediary or person toestablishcomplianceprograms,correctiveadvertisingorchangesinthemanagementpracticesofthefinancialinstitution,financialintermediaryorperson;

(e) suspendtheregistration,approvalorauthorisationtocarryonbusinessof the financial institution, financial intermediary or person for aspecifiedperiod,andsubjecttosuchconditionsasmaybe,determinedbyNAMFISA;

(f) subjecttootherprovisionsofthisAct,canceltheregistration,approvalor authorisationof thefinancial institution,financial intermediaryorpersontocarryonbusiness;or

(g) imposeafinancialpenaltynotexceedingN$10000000,payablebythatfinancialinstitution,financialintermediaryorpersontoNAMFISAinthemannerprovidedforinthestandards.

(5) NAMFISAmay-

(a) in addition to the imposition of an administrative sanction, makerecommendations to the relevant financial institution, financialintermediaryorpersoninrespectofcompliancewiththisActoranyregulation,standard,directiveorothersubordinatemeasuresmadeorissuedunderthisAct;

(b) direct that a financial penalty must be paid by a natural person orperson for whose actions the relevant financial institution, financial

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intermediaryorpersonisaccountableinlaw,ifthatpersonorpersonswasorwerepersonallyresponsibleforthenoncompliance;

(c) suspend any part of any administrative sanction on any conditionNAMFISAconsidersappropriateforaperiodnotexceedingfiveyears.

(6) OnimposingtheadministrativesanctionNAMFISAmust,inwriting,notifythefinancialinstitution,financialintermediaryorpersonof-

(a) thedecisionandthereasonstherefor;

(b) inthecaseofafinancialpenalty,theamountpayableasapenaltyandany interest thatmay become payable and the interest rate, and theperiodwithinwhichthepenaltymustbepaidtoNAMFISA;

(c) therighttoappealagainstthedecisioninaccordancewithsection45oftheNAMFISAAct.

(7) Anyfinancialpenaltyimposedundersubsection(4)(g)mustbepaidtoNAMFISA,withintheperiodandinthemannerspecifiedinthenoticereferredtoinsubsection(6). (8) Ifthefinancialinstitution,financialintermediaryorpersonfailstopaythefinancialpenaltyandanyinterestchargedwithintheperiodreferredtoinsubsection(6),andanappealhasnotbeenlodgedwithintheperiodprescribedintheNAMFISAActoranappealhasbeenlodgedtimeouslybuthasbeendismissedbytheAppealBoard,NAMFISAmay,forthwithandintheprescribedmanner,filewiththeclerkorregistrarofacompetentcourtacertifiedcopyofthenoticecontemplatedinsubsection(6),andthenoticethereuponhastheeffectofaciviljudgmentlawfullygiveninthatcourtinfavourofNAMFISA. (9) In assessing the penalty to be imposed on a person convicted of anoffenceintermsofthisAct,thecourtmaytakeintoaccountanyadministrativesanctionimposedunderthissectioninrespectofthesamesetoffacts. (10) An administrative sanction imposed in terms of this section doesnot constitute a previous conviction as contemplated inChapter 27 of theCriminalProcedureAct,1977(ActNo.51of1977). (11) Ifthefinancialinstitution,financialintermediaryorpersonrequestsanadministrativehearingon thematter,NAMFISAmayholdahearingbefore takingafinaldecisionontheaction. (12) Thehearingreferredtoinsubsection(11)mustbeheldinprivateunlessthepersonconsentstothehearingbeingheldinpublic. (13) Unless NAMFISA is of the opinion that there are exceptionalcircumstancespresentthatjustifythepreservationoftheconfidentialityofanydecision,NAMFISAmustmakepublicthedecisionandthenatureofanysanctionimposedif-

(a) the financial institution, financial intermediary or person does notappealagainstadecisionofNAMFISAwithintherequiredperiod;or

(b) theAppealBoardconfirmsthedecisionofNAMFISA.

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(14) Section436(3)to(7)applieswiththechangesrequiredbythecontexttoadirectiveissuedundersubsection(4)(c).

PART 7SCHEMES,STATUTORYMANAGEMENTANDWINDING-UP

Interpretation

440. (1) InthisPart-

“Chapter12order”meansanordermadepursuanttosection317or319oftheCompaniesAct;

“scheme” means a scheme of any of the following kinds in relation to a financialinstitutionthatmaybesubjecttoaChapter12order-

(a) aschemeforacompromiseorarrangement;

(b) aschemeforthetransferofsomeorallofthebusinessofthefinancialinstitutioninrespectofwhichitisregisteredtoanotherperson,otherthanatransferunderPart8;or

(c) aschemefor theamalgamationofsomeorallof thebusinessof thefinancialinstitutioninrespectofwhichitisregisteredwiththebusinessofanotherperson,otherthananamalgamationunderPart8.

(2) ThisPartappliestofinancialinstitutions,andwithanychangesmadenecessarybythecontext,to-

(a) financial intermediaries and other persons, where it is so expresslyprovidedforinthisPart;and

(b) certaintypesoffinancialintermediariestotheextentthatNAMFISAhas issued a standard identifying these as the types of financialintermediariestowhichtheprovisionsofthisPartapply.

(3) Despite subsection (2), the provisions of sections 441(2)(c)(iii) and445donotapplytoafinancialinstitutionthatisaretirementfund,friendlysocietyormedicalaidfund.

Failure to maintain sound financial position

441. (1) IfNAMFISAissatisfiedthatafinancialinstitutionisfailing,orislikelytofail,withinareasonableperiod,tocomplywiththefinancialsoundnessrequirements of thisAct, NAMFISA may direct the financial institution to furnishNAMFISA,withinaspecifiedperiod,with-

(a) informationrelatingtothenatureandcauseofthefailure;and

(b) thecourseofactionthatthefinancialinstitutionproposestoadopttoensurecompliancewiththefinancialsoundnessrequirements.

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(2) OnreceiptbyNAMFISAoftheinformationandproposalsreferredtoinsubsection(1),withoutderogatingfromthepowersofNAMFISAunderanyotherprovisionofthisAct,NAMFISAmay-

(a) afterconsideringtheproposalsand,ifnecessary,afterconsultationwiththeauditororvaluatorofthefinancialinstitution,requirethefinancialinstitutiontoadoptacourseofactionorenterintoaschemeapprovedby NAMFISA which NAMFISA is reasonably satisfied will ensurethat the financial institution complies with the financial soundnessrequirementsofthisAct;

(b) at that time, or at any time thereafter, and if necessary after furtherconsultationwith theauditororvaluator, require themodificationofthatcourseofactionorschemetotheextentthatNAMFISAconsidersappropriateinthecircumstance;and

(c) ifitisreasonablynecessaryintheinterestsoftheclientsofthefinancialinstitutionandtheprotectionandfurtheranceoftheintegrity,stabilityandgrowthofthefinancialsysteminNamibia,atthattimeoratanytimethereafter,anddespiteanystepsalreadytakenbyNAMFISAinaccordancewithparagraph(a)or(b)oranyotherprovisionofthisAct-

(i) makeanapplicationtotheHighCourtforaChapter12orderpursuanttosection442(1)inrelationtoascheme;

(ii) appoint a statutory manager for the financial institutionpursuanttosection443;or

(iii) apply to theHighCourt for thewinding-up of the financialinstitutionpursuanttosection445.

Schemes

442. (1) Despite anything to the contrary in any provision of theCompaniesAct,NAMFISAmaymakeanapplicationtotheHighCourtforaChapter12orderinrelationtoascheme. (2) A financial institution may not enter into a scheme or make anapplicationtotheHighCourtforaChapter12orderinrelationtotheschemewithoutthepriorapprovalofNAMFISA. (3) EachfinancialinstitutioninvolvedinaproposedschememustensurethatacopyoftheproposedschemeandacopyofallproposedapplicationstothecourtinrelationtotheschemearesubmittedtoNAMFISAandthattheapprovalofNAMFISAisobtainedpriortoanyapplicationbeingmadetotheHighCourt. (4) The High Court may not make a Chapter 12 order in relation to aschemetowhichafinancialinstitutionisapartyunlesstheschemehasbeenapprovedbyNAMFISA. (5) Subsection(4)doesnotapplytoaninterlocutoryorprovisionalorder.

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(6) NAMFISAisentitledtobeheardatanyproceedingonanapplicationforaChapter12ordermadepursuanttosubsection(1)or(2). (7) Ifafinancialinstitutionentersintoaschemethathasnotbeenapprovedby NAMFISA, the purported compromise, arrangement, transfer of business oramalgamationthatisthesubjectoftheschemeisvoid. (8) NAMFISA may issue standards with respect to an application byafinancialinstitutionforapprovalofaschemebyNAMFISA,thepublicationofthescheme,exclusionsfromthescheme,modificationofaschemeandimplementationoftheschemefollowingaChapter12order.

Appointment of statutory manager

443. (1) Chapter15oftheCompaniesActdoesnotapplytoafinancialinstitutionandtoafinancialintermediaryorpersonreferredtoinsection440(2). (2) The provisions of this section and section 444 apply to financialinstitutionsorfinancialintermediariesandtoapersonwhoisnotregisteredunderthisActandwhoiscarryingonthebusinessofafinancialinstitutionorprovidingafinancialserviceincontraventionofthisAct. (3) TheHighCourtmay,onapplicationbyNAMFISA,appointapersonapprovedbyNAMFISAtobethestatutorymanagerofafinancialinstitution. (4) Aperson,otherthanNAMFISA,maynotmakeanapplicationreferredtoinsubsection(3). (5) ApersonmaynotbeappointedorholdofficeasastatutorymanagerofafinancialinstitutionunlessthepersonisapprovedbyNAMFISA. (6) TheHighCourtmayappointapersonas the statutorymanagerofafinancialinstitutionifsatisfiedthatthefinancialinstitution-

(a) hasinamaterialrespectfailedtocomplywiththisAct;

(b) isorislikelytobeinanunsoundfinancialposition;

(c) isormaybeinvolvedinafinancialcrime;or

(d) is or may be acting negligently or recklessly with respect to trustpropertywithinthemeaningofChapter9;

and theHighCourt considers that it is in the interestsof theclientsof thefinancialinstitutionorthefinancialsystemofNamibiatomaketheappointment. (7) NAMFISAmay, beforemaking an application under subsection (1),appointapersontobethestatutorymanagerofafinancialinstitutiononatemporarybasisifNAMFISAissatisfiedthatthefinancialinstitution-

(a) hasinamaterialrespectfailedtocomplywiththisAct;

(b) isorislikelytobeinanunsoundfinancialposition;

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(c) isormaybeinvolvedinafinancialcrime;or

(d) is or may be acting negligently or recklessly with respect to trustpropertywithinthemeaningofChapter9;

andthat it isnecessarytoappointastatutorymanageronanurgentbasis inordertoprotect the interestsof clients, trustpropertyor the stability, fairness, efficiencyandorderlinessofthefinancialsystemofNamibia,includingthesafetyandsoundnessoffinancialinstitutionsingeneral. (8) Anappointmentmadeundersubsection(7)takeseffectimmediately,butNAMFISAmust,assoonaspracticablethereafterandinanyeventwithin30daysaftertheappointment,applytotheHighCourtforanorderconfirmingtheappointment. (9) Onhearingtheapplicationundersubsection(8),theHighCourtmustconfirmtheappointment,unlessthatcourtissatisfiedthatthegroundsformakingtheappointmentnolongerexist.

Power and duties of statutory manager

444. (1) Thestatutorymanagerofafinancialinstitution-

(a) mustcontrolthemanagementoftheaffairsofthefinancialinstitutionto the exclusionof its directors,members of a board,managers andprincipalofficer;

(b) haspowertorepudiateacontracttowhichthefinancialinstitutionisaparty,ifthestatutorymanagerconsidersthecontractdetrimentaltotheinterestsofclients;and

(c) isentitledtoreceivesuchremunerationfromthefinancialinstitutionastheHighCourtmayorder.

(2) Thestatutorymanagermustmanagetheaffairsofthefinancialinstitutionwithcompatibleefficiency,andassoonaspracticable,mustreporttoNAMFISA-

(a) whatstepsshouldbetakentoensurethatthefinancialinstitution-

(i) complieswiththisAct;

(ii) becomesfinanciallysound;or

(iii) willnotbeinvolvedinafinancialcrime;or

(b) ifthestatutorymanagerconsidersthatitisnotpracticabletotakethestepsreferredtoinparagraph(a),whether-

(i) stepsshouldbetakentotransferthebusinessofthefinancialinstitution to another appropriate person and, if so, onwhatterms;or

(ii) thefinancialinstitutionshouldbewoundup.

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(3) ThestatutorymanagermustcomplywithanywrittendirectivesfromNAMFISA. (4) Thestatutorymanagermay,onnoticetoNAMFISA,atanytimeapplytotheHighCourtfordirections. (5) NAMFISAmayatanytimeapplytotheHighCourtfortheremovalofastatutorymanagerfromofficeand,ifnecessaryandsubjecttosection443(7)and(8),applytotheHighCourttoappointareplacement. (6) Thestatutorymanagerisnotliableforalossthatthefinancialinstitutionsuffersunlessitisestablishedthatthelosswascausedbythefraudordishonestyof,orintentionalfailuretocomplywiththelawby,thestatutorymanager. (7) NAMFISAmayissuestandardswithrespecttothequalificationsofapersonapprovedbyNAMFISAtoactasastatutorymanagerandtheadditionalpowersanddutiesofastatutorymanager.

Winding-up

445. (1) A resolution, demand or other step to wind-up a financialinstitutionoraportionofitsbusinessoraportfoliomanagedbythatfinancialinstitutionisofnoeffectwithoutthepriorapprovalofNAMFISA. (2) DespiteanyprovisionoftheCompaniesActbutsubjecttosubsection(3),apersonmaynotmakeanapplicationtotheHighCourtforthewinding-upofafinancial institution, aportionof itsbusinessor aportfolio that itmanages,whethermadeundertheCompaniesActoranyotherlaw. (3) OnlyNAMFISAorapersonactingwiththepriorapprovalofNAMFISAmaymakeanapplicationreferredtoinsubsection(2)totheHighCourt. (4) NAMFISA may apply to the High Court for the winding-up of afinancialinstitutionthatcontravenesorfailstocomplywiththisAct,whetherornotthefinancialinstitutionisinsolvent,inaccordancewith-

(a) theCompaniesAct;or

(b) anyotherapplicablelaw. (5) NAMFISAmaynotgrantapprovalundersubsection(3)unless-

(a) theregistrationofthefinancialinstitutionhasbeencancelled;and

(b) NAMFISAissatisfiedthatadequateprovisionhasbeenmadetoprotectthe interests of the shareholders or other owners and clients of thefinancialinstitution.

(6) Where an application for thewinding-upof afinancial institution ismade,NAMFISAmay-

(a) appearbeforetheHighCourtatthehearingoftheapplication;and

(b) makerepresentationstotheHighCourtrelatingtotheapplication.

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(7) Indecidingonanapplicationforthewinding-upofafinancialinstitutionmadepursuanttothissection,theHighCourtmay-

(a) takeintoaccountwhetherthewinding-upofthefinancialinstitutionisreasonablynecessary-

(i) toprotecttheinterestsofclients;or

(ii) fortheintegrityandstabilityofthefinancialsystemofNamibia;

(b) subject to any applicable standard issued by NAMFISA undersubsection(9),makeanorderconcerningthemannerinwhichclaimsagainstthefinancialinstitutionmaybeproved;and

(c) appointastrusteeorliquidatorapersonnominatedorrecommendedbyNAMFISA.

(8) DespiteanythingtothecontraryintheCompaniesActoranyotherlaw,theHighCourt-

(a) maynotappointapersonastrusteeorliquidatororprovisionaltrusteeorliquidatorofafinancialinstitution,otherthanapersonnominatedorrecommendedbyNAMFISAundersubsection(7)(c);

(b) must, 30 days before appointing a person as trustee or liquidator orprovisionaltrusteeorliquidator,submittheparticulars,qualificationsand experience of the person and other relevant information toNAMFISAforitsrecommendation;and

(c) mustappointapersondesignatedbyNAMFISA,whointheopinionofNAMFISA,haswide experienceof, and isknowledgeable about,thelatestdevelopmentsinthetypeofbusinessinwhichthefinancialinstitution concerned is engaged, to assist a trustee or liquidator orprovisional trustee or liquidator referred to in paragraph (a) in theperformanceofhisorherfunctionsinrespectofthefinancialinstitution.

(9) NAMFISAmayissuestandardswithrespectto-

(a) the priority and ranking of claims against any particular financialinstitutionortypeoffinancialinstitutionthatissubjecttoawinding-uporder,havingregardtotheprovisionsofsection460;

(b) the qualifications necessary for a person to be recommended byNAMFISA as liquidator and other criteria with respect to suchliquidator;or

(c) anyothermatterthatisnecessaryordesirableforthewinding-upofafinancialinstitutionunderthissection.

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PART 8AMALGAMATIONS AND TRANSFERS IN THE ORDINARY

COURSE OF BUSINESS

Amalgamations

446. (1) SubjecttotheprovisionsofthisPart,afinancialinstitutionorfinancialintermediarymaynotamalgamatewithanyotherentityorentitiesexcept-

(a) withoneormorefinancialinstitutionsorfinancialintermediaries;and

(b) withthepriorapprovalinwritingofNAMFISA. (2) NAMFISAmaynotapproveanamalgamationreferred insubsection(1)unlesssatisfiedthattheinterestsofclientsoftheamalgamatingfinancialinstitutionsorfinancial intermediaries are adequatelyprotected and that the amalgamated entitywillsatisfytherequirementsforregistrationunderthisAct.

Transfers

447. (1) SubjecttotheprovisionsofthisPart,afinancialinstitutionorfinancialintermediarymaynottransferalloranyportionofitsbusinessexcept-

(a) tooneormorefinancialinstitutionsorfinancialintermediaries;and

(b) withthepriorapprovalinwritingofNAMFISA. (2) NAMFISAmay not approve a transfer referred to in subsection (1)unless satisfied that the interests of clientsof the transferringfinancial institutionorfinancial intermediary and of the other party or parties to the proposed transactionareadequatelyprotectedandthattheotherpartyorpartiesareregisteredasfinancialinstitutionsorfinancialintermediariesunderthisAct.

Standards and exemptions

448. (1) NAMFISAmayissuestandardsrelatingto-

(a) thetypesorclassesoffinancialinstitutionsorfinancialintermediariesthatmayamalgamatewithoneanotherortowhichafinancialinstitutionorfinancial intermediarymaytransferalloranypartof itsbusiness;and

(b) the conditions and limitations that apply to suchamalgamationsandtransfers.

(2) In exceptional circumstances, NAMFISA may exempt a particularfinancial institutionorfinancial intermediaryfromtherequirementsofanystandardsissuedundersubsection(1)(a).

Application for amalgamation or transfer

449. (1) Themembers of the board (hereafter in thisPart referred to

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asthe“applicants”),ofeachfinancial institutionorfinancial intermediaryreferredtoinsection446or447maymakeanapplicationtoNAMFISAintheformandmannerprovidedbythestandards,togetherwith-

(a) adraftof thedocumentsunderwhichtheproposedamalgamationortransferistotakeeffect;

(b) annualfinancial statements in respect of the business of eachof thefinancialinstitutionsorfinancialintermediariesconcerned;

(c) any report on which the proposed amalgamation or transfer wasfounded;and

(d) anyotherdocumentsthatNAMFISAmayrequire. (2) Thedocumentsreferredtoinsubsection(1)mustbeexecutedasatthedateatwhichtheproposedamalgamationortransferistotakeeffect,whichdatemustnotbemorethan12monthsbeforeorafterthedateoftheapplicationtoNAMFISA. (3) An applicant must, before any application is made to NAMFISA,publish a notice of intention tomake the application in theGazette and in at leastonenewspapercirculatingnationallyinNamibiaorinanyothermannerapprovedbyNAMFISA. (4) Thenoticereferredtoinsubsection(3)must-

(a) indicate that any client of the financial institution or financialintermediary concerned or any other interested person has theopportunitytoobjecttotheamalgamationortransferwithinaperiodof30daysfromthedateofthepublicationofthenotice;

(b) describetheprocedureformakingsuchanobjection;and

(c) indicate theplacewhere thedocuments referred to in subsection (5)maybeinspected.

(5) Thedocumentsunderwhichtheproposedamalgamationortransferistotakeeffectmustbeopentoinspectiontoclientsandotherinterestedpersonsforaperiodof30daysafterthepublicationofthenoticereferredtoinsubsection(3).

Approval of amalgamation or transfer

450. NAMFISA,afterconsideringthedocumentsreferredtoinsection449,receiving representations from the applicants and such other persons as it considersappropriate,andanyobjectionsreceivedasaresultofthenoticereferredtoinsection449(3),mayapprovetheproposedamalgamationortransferifNAMFISAissatisfiedthatnosufficientobjectiontheretohasbeenorcanbeestablished.

Statement to be deposited with NAMFISA

451. Whereanamalgamationortransferhasbeenapproved,theamalgamatingfinancialinstitutionsorfinancialintermediariesandanyotherpartytotheamalgamation,orthetransferorandtransfereefinancialinstitutionsorfinancialintermediaries,asthecasemaybe,mustwithin10daysfromthedateoftheamalgamationortransfer,depositwithNAMFISA-

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(a) certifiedcopiesofstatementsof their respectiveassetsand liabilitiestogetherwithastatementofthenatureandtermsoftheamalgamationortransfer;

(b) a certified copyof thedocuments underwhich the amalgamationortransferwaseffected;

(c) adeclarationsignedby thechairpersonandprincipalofficerofeachfinancial institutionorfinancial intermediary that to thebestof theirknowledge and belief every payment, whether in money or otherproperty,madeorduetoanypersononaccountoftheamalgamationortransferhasbeenrecordedinthedocumentsmentionedinthissection,and that no other such payments have beenmade or are due to theknowledge of any of the parties concerned in the amalgamation ortransfer;and

(d) anyotherdocumentsthatmayberequiredbythestandards.

PART 9FINANCIAL SERVICES COMPENSATION SCHEME

Financial Services Compensation Scheme

452. (1) NAMFISAmayestablishacompensationschemetobeknownas the Financial Services Compensation Scheme and referred to in this Part as the“compensationscheme”,forthepurposeofcompensatingpersonsincaseswherefinancialinstitutionsorfinancialintermediariesareunabletosatisfyclaimsagainstthem. (2) The compensation scheme is funded by financial institutions andfinancialintermediaries. (3) TheMinistermaymakeregulationsandNAMFISAmayissuestandardswithrespecttofundingofthecompensationschemeandtoothermattersrelatingtothescheme.

Scheme manager

453. (1) NAMFISA may establish a corporate body, referred to inthisPartas“theschememanager”,toperformthefunctionsconferredontheschememanagerbyorunderthisPart. (2) Toadministertheaffairsofthecompensationscheme,theconstitutionof the schememanagermust provide for it to have a board, a chairpersonwho is amemberoftheboardandanauditor. (3) TheMinistermust appoint the boardof the schememanager on theterms and conditions that theMinister considers appropriate in such amanner as toensureitsindependencefromNAMFISAintheoperationofthecompensationscheme. (4) Theschememanagermay,forthebenefitofthecompensationscheme,recoverfromthefinancialinstitutionorfinancialintermediaryconcerned,theamountofanyclaimpaidtoaclaimantbywayofcompensationundersection454.

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Functions and duties of scheme manager

454. The compensation scheme must provide for the scheme managertoassessand in itsdiscretionpaycompensation, inaccordancewith the rulesof thescheme, on claimsmade in connectionwithfinancial services providedbyfinancialinstitutionsorfinancialintermediaries.

CHAPTER 11MISCELLANEOUS PROVISIONS

Confidentiality and sharing of information

455. (1) Subjecttosubsections(2)and(3),apersonmaynotdisclosetoanyotherpersonconfidentialinformationorinformationwhichisnotpubliclyavailableaboutapersonwhichinformationwasacquiredintheperformanceoffunctionsunderthisAct. (2) Disclosure of the information referred to in subsection (1) does notconstituteacontraventionofthatsubsectionifmadeby-

(a) apersonforthepurposeofperformingfunctionsunderthisAct;

(b) apersonforthepurposeofanylegalproceedingsunderthisAct;

(c) apersonwhoisrequiredtodosobyacourtorunderthisActoranyotherlaw;

(d) NAMFISA,ifitisnecessarytoachieveoneormoreoftheobjectsofNAMFISAorofthisAct;

(e) NAMFISA,ifitisinthepublicinterest;or

(f) NAMFISAbypublishing the status andoutcomeof inspections andinvestigationsunderthisAct.

(3) NAMFISAmay share information concerning anymatter dealtwithunder this Act with the Bank of Namibia, the Public Accountants’ and Auditors’Board constituted under the PublicAccountants’ andAuditors’Act, self-regulatoryorganisations, the Ministry for responsible finance, the Minister and with all otherpersons,whetherinsideNamibiaorelsewhere,responsibleforregulating,investigatingorprosecutingfinancialinstitutionsorfinancialintermediaries. (4) Any personwho contravenes or fails to complywith subsection (1)commits an offence is liable on conviction to afine not exceedingN$2500000orto imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Inspection of documents

456. (1) If NAMFISA is satisfied that a person has an interest in amatterthatissubjecttothisAct,anduponpaymentofthefeesrequiredbyNAMFISA,the person may inspect, at the office of NAMFISA, any document deposited withNAMFISAandmaymake a copy thereof or take extracts therefromor obtain from

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NAMFISAacopythereoforextractstherefrom,unlessNAMFISAdetermines,onthebasisofconfidentialityorthepublicinterest,thatsuchdocumentmaynotbeinspected,copiedorhaveextractstakentherefrom. (2) NAMFISAmayexemptapersonfromtheobligationtopayfeesunderthissectionifNAMFISAissatisfiedthattheinspection,copyorextractinquestionistobemadeforpurposesofthepublicinterest.

Effect of certificate of NAMFISA on document

457. EverydocumentwhichpurportstohavebeencertifiedbyNAMFISAtobeadocumentdepositedwithNAMFISAunderthisActortobeacopyofsuchadocument,isprima facieconsideredtobesuchadocumentoracopythereof,andisadmissibleinevidenceasifitweretheoriginaldocument.

Records and documents as evidence

458. Arecordordocumentpurporting tohavebeenmade in theordinarycourseofthebusinessof-

(a) afinancialinstitution;or

(b) afinancialintermediarythatisacompany;

and a copy or printout of, or an extract from, any such record or document that iscertifiedbytheprincipalofficerofthefinancialinstitutionorfinancialintermediaryis,onproductionthereofinanycivil,criminal,administrativeordisciplinaryproceedingsunderthisAct,anyotherlaworthecommonlaw,admissibleinevidenceandisprima facieproofofthefactscontainedinsuchrecord,document,copy,printoutorextract.

Alienation of property

459. (1) Subjecttosubsection(2),ifafinancialinstitutionorfinancialintermediaryoradirector,trustee,officer,employee,agent,shareholderorotherownerofafinancialinstitutionorfinancialintermediarysells,transfersorotherwisealienatespropertyorassetsof thefinancial institutionorfinancial intermediary toaperson incontraventionof,orwithoutcomplyingwith,theprovisionsofthisAct,thesale,transferorotheralienationisvoid. (2) Subsection (1) does not apply if the person to whom the propertyor assetsof thefinancial institutionorfinancial intermediaryare sold, transferredoralienatedprovesthat-

(a) thepropertyorassetswereacquiredforvaluableconsideration;and

(b) thepersonhadnoknowledgeof,orreasontosuspect,acontraventionof,ornon-compliancewith,thisAct.

Protection of client assets

460. (1) Inthissection,“clientassets”meansmoney,assets,contractualrights,participatoryinterests,trustpropertyandotherpropertyheldforandonbehalfofclientsandcontrolledoradministeredormanagedbyafinancialinstitutionorfinancialintermediary,including,withoutlimitation-

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(a) forthepurposesofChapter2onInsurance-

(i) thetrustaccountinthenameofLloyd’sreferredtoinsection46;

(ii) thepremiumsdepositedintoatrustaccountpursuanttosection73;and

(iii) claimsthathavearisenunderpoliciesissuedbyaninsurer;

(b) forthepurposesofChapter3onFinancialMarkets-

(i) clientfundsreferredtoinsection119;

(ii) certificated and uncertificated securities held, controlled ormanagedforandonbehalfofclients;and

(iii) interestsinsecuritiesreferredtoinsection128;

(c) forthepurposesofChapter4onCollectiveInvestmentSchemes-

(i) themoneyandotherassetsreceivedfromaninvestor,andtheassetsofaportfolioreferredtoinsection193;

(ii) themoneyandotherassetsreferredtoinsection244;

(iii) thetrustaccountreferredtoinsection245;and

(iv) participatoryinterestsandparticipatoryinterestsofaspecificclassinaportfolioofacollectiveinvestmentscheme;

(d) for the purposes of Chapter 5 onRetirement Funds, the assets of aretirementfund;

(e) forthepurposesofChapter6onFriendlySocieties,claimsofmembersofafriendlysocietyagainstthesociety;

(f) forthepurposesofChapter7onMedicalAidFunds,benefitsorrightsinrespectofbenefitspayabletoamemberorbeneficiaryofamedicalaidfund;

(g) for the purposes of Chapter 8 on Fund and SocietyAdministrators,theassetsandotherpropertyofaretirementfundormedicalaidfundheldonbehalfof the retirement fundormedicalaid fundbya fundadministrator,and theassetsandotherpropertyofa friendlysocietyheldonbehalfofthefriendlysocietybyasocietyadministrator;

(h) forthepurposesofChapter9onPropertyHeldinTrust,trustpropertywithinthemeaningofsection377,

and includesaccrued interestand income,mark tomarketaccruals fromderivatives,proceedsonthesaleofassetsanddocumentsevidencingtheownership,title,rightsor

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obligations in respectofsuchmoney,assets,participatory interests, trustpropertyorotherproperty,andanyotherassetorpropertydeclaredbytheMinistertobeaclientassetbynoticemadeundersubsection(6). (2) In this section, client assets received, held, kept in safe custody,controlled, administered, invested or otherwise handled or dealtwith by a financialinstitutionorafinancialintermediaryarereferredtoasclientassets“underthecontrol,administrationormanagement”ofthefinancialinstitutionorfinancialintermediary. (3) Every financial institution or financial intermediary that has clientassetsunderthecontrol,administrationormanagementofthatfinancialinstitutionorfinancialintermediarymust-

(a) separatethoseclientassetsfromtheassetsofthefinancialinstitutionorfinancialintermediary;

(b) maintain separate, accurate, detailed andup todate recordsof thoseclientassets;and

(c) exercisetheutmostgoodfaith,careanddiligencewithrespecttothoseclientassets.

(4) DespiteanythingtothecontraryinanyprovisionoftheCompaniesAct,theInsolvencyActoranyotherlaw,ifafinancialinstitutionorfinancialintermediarybecomesinsolventoranyclaimismadeagainst,orastatutorymanagerisappointedfor,thefinancialinstitutionorfinancialintermediary-

(a) client assetsunder the control, administrationormanagementof thefinancial institutionorfinancial intermediarymustbeexcluded fromtheassetsorestateofthatfinancialinstitutionorfinancialintermediary;and

(b) inacasewhere theclientassetsunder thecontrol,administrationormanagementofthefinancialinstitutionorfinancialintermediary-

(i) are misappropriated through the theft, fraud, defalcation,diversion or misuse, conversion or trespass of the financialinstitutionorfinancialintermediary;or

(ii) aremismanagedorareunaccountedforthroughthenegligence,recklessness,co-mingling,shirkingofduty,conflictsofinterestorself-regardingacts,lackofeffortorunduerisk-takingofthefinancialinstitutionorfinancialintermediary,

anamountequaltothelossmustbesetasidefromtheassetsorestateofthatfinancialinstitutionorfinancialintermediaryandisrecoverablebywayoflegalactionorbywayofanyotherremediessetoutinthisAct.

(5) Anyamountreferredtoinsubsection(4)(b)isdeemedtobethepropertyof theclientorclientsconcernedandconstitutesafirstchargeagainst theassetsandestateofthefinancialinstitutionorfinancialintermediaryandtakesprecedenceover-

(a) anyclaimoforpaymenttoanycreditor,otherthanacreditorholding

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securityonspecificandidentifiedmoveableor immoveablepropertyto the extent of that property, including any specialmortgage, legalhypothec,pledgeorrightofretention;or

(b) anypaymenttoshareholdersorotherowners,

including,withoutlimitation,thoseclaimsandpaymentsreferredtoinsections95to102oftheInsolvencyAct. (6) TheMinistermay,bynoticeintheGazette,declareanyassetorpropertytobeaclientassetforthepurposesofsubsection(1). (7) TheMinistermaymakeregulationsandNAMFISAmayissuestandardswithrespecttothefurtherprotectionofclientassetsunderthissection.


461. TheMinister,amemberof theBoardofNAMFISA,amemberofacommitteeoftheBoardofNAMFISA,thechiefexecutiveofNAMFISAoranyotherofficeroremployeeofNAMFISA,amemberoftheadvisorycommitteeoramemberoftheAppealBoardisnotpersonallyliableinrespectofanythingdoneoromittedtobedoneingoodfaithandwithoutgrossnegligenceintheexerciseofanypowerortheperformanceofanydutyunderthisAct.

General offences and provisions relating to offences and sentences

462. (1) A personwho, in connectionwith amatter covered by this Act-

(a) makesanystatement,promiseorforecastknowingittobemisleading,falseordeceptive;

(b) intentionallyorknowinglyconcealsanymaterialfacts;or

(c) isrecklessornegligentinmakinganystatement,promiseorforecastwhich ismisleading, falseordeceptive inamaterial respect, for thepurposesofinducingorattemptingtoinduceanotherperson,whetherornotthatotherpersonisthepersontowhomthestatement,promiseorforecastwasmadeorfromwhomthematerialfactswereconcealed-

(i) toenterintooroffertoenterinto,ortorefrainfromenteringinto, or offering to enter into, any contract with a financialinstitutionorfinancialintermediary;or

(ii) to exercise or refrain from exercising any rights under suchcontract,

commitsanoffenceandis liableonconvictiontoafinenotexceedingN$2500000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment. (2) ApersonwhopreparesorissuesanydocumentrequiredforthepurposesofthisActorparticipatesinthepreparationorissueofanysuchdocument,knowing

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thedocumenttobefalseinanymaterialrespect,commitsanoffenceandisliableonconviction toafinenotexceedingN$2500000or to imprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment. (3) UnlesswhereitisotherwiseexpresslyprovidedforinthisAct,whereapersonischargedwithanoffenceunderthisActandthatpersonisliabletobesentencedto-

(a) afineexceedingN$1000000ortoimprisonmentforaperiodexceedingtwoyears,ortobothsuchfineandimprisonment,itissufficientfortheprosecutiontoestablishthattheperson-

(i) hadtheintentiontocommittheoffence;

(ii) hadknowledgeoftheexistenceofthefactsorcircumstancesconstitutingtheoffence;or

(iii) evenifthepersonlackedtherequisiteintentionorknowledgeasdescribedinsubparagraph(i)or(ii),thatpersonwasrecklesswith respect to the existence of the facts or circumstancesconstituting theoffenceor to theconsequencesofhisorheractions;or

(b) afineofN$1000000oralesseramountortoimprisonmentforaperiodoftwoyearsoralesserperiod,ortobothsuchfineandimprisonment,itissufficientfortheprosecutiontoestablishthattheperson-

(i) hadtheintentiontocommittheoffence;

(ii) hadknowledgeoftheexistenceofthefactsorcircumstancesconstitutingtheoffence;

(iii) evenifthepersonlackedtherequisiteintentionorknowledgeasdescribedinsubparagraph(i)or(ii),thatpersonwasrecklesswith respect to the existence of the facts or circumstancesconstituting theoffenceor to theconsequencesofhisorheractions;or

(iv) evenifthepersonlackedtherequisiteintentionorknowledgeas described in subparagraph (i) or (ii) or was not recklessasdescribed in subparagraph (iii), thatpersonwasnegligentwith respect to the existence of the facts or circumstancesconstituting theoffenceor to theconsequencesofhisorheractions.

(4) IfapersonisconvictedofanoffenceunderthisAct,thecourtconvictingthepersonmay,inadditiontoanypenaltyitmayotherwiseimpose,orderthepersontocomplywiththeprovisionsofthisActinrespectofwhichthepersonwasconvictedoftheoffence. (5) IfapersonisconvictedofanoffenceunderthisAct,andthecourtissatisfiedthatasaresultofthecommissionoftheoffencetheconvictedpersonacquiredanymonetarybenefitsorthatmonetarybenefitsaccruedtotheconvictedpersonortothespouseorotherdependantoftheconvictedperson,thecourtmayordertheconvicted

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person to pay an additionalfine in an amount equal to the court’s estimationof theamountofthosemonetarybenefits,despitethemaximumamountofanyfinethatmayotherwisebeimposedunderthisAct. (6) IfanentityhascommittedanoffenceunderthisAct,anydirector,officer,employee, agent, shareholder or other owner of the entitywho directed, authorised,assentedto,acquiescedinorparticipatedinthecommissionoftheoffenceisapartytotheoffenceandis,onconvictionliableforthepenaltyprovidedfortheoffenceand,inacasewhereasentenceofimprisonmentisprovidedfortheoffence,thatdirector,officer,employee,agent,shareholderorotherowneroftheentityisliabletobesentencedtothatsentenceofimprisonment,whetherornottheentityconcernedhasbeenprosecutedorconvicted. (7) UnlessotherwiseexpresslyprovidedinthisAct,acontraventionofanyprovisionofthisActdoesnotinvalidateanycontractenteredintoincontraventionofthatprovision.

Jurisdiction of magistrates’ court

463. DespiteanythingtothecontraryintheMagistratesCourt’sAct,1944(ActNo.32of1944)orinanyotherlaw-

(a) amagistrate’scourtofa regionaldivisionconvictingapersonunderthisActforanyoffencehasjurisdictiontoimposeafinewhichdoesnotexceedN$5000000;

(b) amagistrate’scourtofadistrictdivisionconvictingapersonunderthisActforanyoffencehas jurisdiction to imposeafinewhichdoesnotexceedN$2500000;

(c) amagistrate’scourtofaregionaldivisionhasjurisdictiontograntanawardforcompensationarisingfrom,ordamagessufferedasresultof,acontraventionof,orfailuretocomplywith,thisActuptoamaximumofN$1000000;and

(d) amagistrate’scourtofadistrictdivisionhas jurisdiction tograntanawardforcompensationarisingfrom,ordamagessufferedasresultof,acontraventionof,orfailuretocomplywith,thisActuptoamaximumofN$500000.

Application to State and public entities

464. (1) The provisions of thisAct relating to the manner in whichfinancialservicesare toberendered,applytoanynaturalpersonorgroupofnaturalpersonsactingwithinthescopeoftheirofficialdutiesasemployeesoftheState,anyorganof theStateasdefinedinsection427(2)oranypublicenterpriseasdefinedinsection1ofthePublicEnterprisesGovernanceAct,2006(ActNo.2of2006),unlesstheMinisterbynoticeundersubsection(2)determinesotherwiseinrespectoftheemployeeoremployeesoftheState,organoftheStateorpublicenterprise. (2) TheMinistermay,bynoticeintheGazette,declareanyemployeeoremployeesoftheState,organoftheStateorpublicenterprisetowhichsubsection(1)doesnotapply.

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Regulations

465. (1) TheMinistermaymakeregulationsthattheMinisterconsidersnecessary or advisable for the due carrying out of the provisions of thisAct and toachievetheobjectsofthisAct. (2) TheMinistermaymakearegulationifsatisfiedthattheregulationis-

(a) notinconsistentwiththisAct;

(b) necessary for the protection of present and future consumers of anyfinancialservicethatisthesubjectoftheregulation;

(c) necessaryfor theprotectionandfurtheranceof theintegrity,stabilityandgrowthofthefinancialservicessectorinNamibia;

(d) inconformitywithgenerallyacceptedprinciplesofsoundandethicalbusinesspracticeandpublicregulation;and

(e) inthepublicinterest.

(3) Withoutderogatingfromthegeneralityofsubsection(1),theMinistermaymakeregulationsrelatingtoanyofthemattersspecifiedinsubregulations(4)to(13). (4) TheMinistermaymakeregulationsrelatingto-

(a) the requirements relating to the ownership and to the citizenship,residencystatusandtheplaceofresidenceofthemembersofaboardofdirectorsorotherboardmembersorofficersofafinancialinstitutionorfinancialintermediaryorofanentitythatcontrolsafinancialinstitutionorfinancialintermediary;

(b) thecriteriaandguidelinesthatmustbeusedortakenintoconsiderationbyNAMFISAoranyotherpersonindeterminingwhatconstitutesoramountsto“publicinterest”or“inthepublicinterest”forpurposesofthisAct;and

(c) any other matters in respect of which theMinister is authorised toprescribebyorunderanyprovisionofthisActorconsidersitnecessaryorexpedient tomake regulations inorder toachieve theobjectsandpurposesofthisAct.

(5) For the purposes of Chapter 2, the Minister may make regulationsrelatingto-

(a) themeaningofmicro-insurance;

(b) adifferentmaximumamountpermemberofafriendlysocietythantheamountreferredtoinsection5(4)(b),whichmustnotbeexceededbythetotalvalueofthepolicybenefits,otherthananannuityorthetotalamountofthepremiuminreturnforwhichanannuityistobeprovided,under long-termpolicieswhich a friendly societymayenter into, in

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orderforthefriendlysocietynottobeprohibitedfromcarryingonthebusinessofinsuranceorreinsuranceinNamibiaassetoutinsection5(1);

(c) other persons, arrangements or businesses for the purposes of thedefinitionof“fund”insection8(1);

(d) themeaningof“gapinsurance”;

(e) themeaningof“healthpolicy”forthepurposesofsection8(1);

(f) themeaningof“sickness”for thepurposesof item6(b)ofPart2ofSchedule1;

(g) business thatwillbedeemednot tobe long-term insurancebusinessforthepurposesofthedefinitionof“long-terminsurancebusiness”insection8(1);

(h) agreateramountforthepurposesofpaidupcapitalandsurplusthanthatreferredtoinsection10(1)(e);

(i) theamountofprotectionthatwillbeaffordedinrespectofalifepolicyreferredtoinPart5ofChapter2;

(j) the aggregate amount that may be paid under, and the aggregaterealisablevalueof,lifepolicies,andothermattersreferredtoinPart5ofChapter2;

(k) themannerinwhichanyamount,securityorbankguaranteedepositedwithNAMFISAistobedealtwith,includingthepaymentofinterestaccruingtosuchdeposit;

(l) the minimum or maximum or both the minimum and maximumamountswhichaninsurerandreinsurermayinvest-

(i) inoroutsideNamibia;and

(ii) inaparticularassetorinparticularkindsorcategoriesofassetswhetherinNamibiaorelsewhere;

andthebasisonwhichtheamountswillbedeterminedanddefiningthekindsorcategoriesofassetstowhichtheamountswillapply;

(m) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter2.


(a) themeaningof “moneymarket instruments” for thepurposesof thedefinitioninsection78;

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(b) themaximumamountofafinethataregisteredexchangeorapersonto whom the exchange has delegated its disciplinary functionsmayimpose for a contravention of the listing requirements, pursuant tosection106(1)(g);

(c) themaximumamountofanypenaltythatNAMFISAmayimposeonaself-regulatoryorganisationpursuanttosection142(3)or(9);

(d) interest,forthepurposesofsection160(2)(d),(4)(d),(6)(d)and(7)(d);

(e) anyadditionalamounttowhichNAMFISAmaybeentitledpursuanttosection161(2)(a)(ii);and

(f) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter3.


(a) assets which qualify as unlisted investments in Namibia for thepurposesoftheportfolioofacollectiveinvestmentschemeinunlistedsecurities,asreferredtoinparagraph(a)ofthedefinitionof“collectiveinvestmentschemeinunlistedsecurities”insection210;

(b) the application of different rules to managers which are membersof a self-regulatory organisation and managers which are not, andto managers of different types of collective investment schemes ordifferenttypesofportfolios;and

(c) anyothermatterinrespectofwhichtheMinisterconsidersitnecessaryor expedient tomake regulations in order to achieve the objects ofChapter4.


(a) fundsandclassesoffundsforinclusioninthedefinitionof“fund”insection249;

(b) fundsforinclusioninthedefinitionof“prescribedfund”insection249;

(c) fundsforinclusioninthedefinitionof“retirementfund”insection249;

(d) theprescribedfundsorbeneficiaryfundsthatmaybeexemptedpursuanttosection262(1)(b);

(e) provisionsforaboardforaretirementfundtowhichtheStatecontributesfinancially,therequirementstowhichsuchaboardmustadhereandthequalificationsofitsmembers;

(f) thetermsandconditionsonwhichtheboardofafundmaydistributesomeorallofanactuarialsurplus,pursuanttosection268(8);

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(g) therateofinterestpayableoncontributionsnottransmittedorreceived,andonthevalueofabenefitorrighttoabenefitnottransferred,beforetheexpirationoftheapplicableperiod,pursuanttosection270(9);

(h) theprotectionofunpaidcontributionsofanemployer;

(i) therulesofafund;

(j) loanswhichmaybegrantedtoamemberandguaranteeswhichmaybefurnishedtoapersoninrespectofaloangrantedortobegrantedbysuchpersontoamember,pursuanttosection277(1)(b);

(k) theinvestmentsofafund;

(l) the minimum or maximum or both the minimum and maximumamountswhichafundmayinvest-




(m) thepreservationofretirementbenefits;

(n) mattersregardingthevoluntarydissolutionofafundpursuanttosection278andwinding-upbythecourtpursuanttosection279;and

(o) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter5.


(a) theamountwhichtheaggregatevalueoftheincomeofasocietymustnotexceedinorderforChapter6nottoapplytosuchsociety,pursuanttosection286(1);

(b) thevaluationof the assets and liabilityof a friendly society and thebasis uponwhich benefits derived from investments of funds of thesocietymaybepaidouttobeneficiaries;

(c) theinvestmentsofafriendlysocietypursuanttosection306;

(d) the minimum or maximum or both the minimum and maximumamountswhichafriendlysocietymayinvest-


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(e) theauthorisationofNAMFISAtograntunconditionalorconditionalexemptions,whetherunlimitedorlimitedinduration,fromprovisionsoftheregulationsreferredtoinparagraph(d);

(f) therulesofasociety;

(g) matters regarding the voluntary dissolution of a friendly societypursuanttosection316andwinding-upbythecourtpursuanttosection317;

(h) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter6.


(a) theinsurancepoliciestobeexcludedfromthedefinitionof“businessofamedicalaidfund”insection321;

(b) therulesofamedicalaidfund;

(c) theinvestmentsofamedicalaidfundpursuanttosection350;

(d) the minimum or maximum or both the minimum and maximumamountswhichamedicalaidfundmayinvest-




(e) matters regarding the voluntary dissolution of a medical aid fundpursuanttosection358andwinding-upbythecourtpursuanttosection359;

(f) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter7.

(11) For the purposes of Chapter 8, the Minister may make regulations

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relatingtoanymatter,whichtheMinisterisempowered,permittedorrequiredtomakeregulationsonorforwhichtheMinisterconsidersitnecessaryorexpedient tomakeregulationsinordertoachievetheobjectsofChapter8. (12) For the purposes of Chapter 9, the Minister may make regulationsrelatingtoanymatter,whichtheMinisterisempowered,permittedorrequiredtomakeregulationsonorforwhichtheMinisterconsidersitnecessaryorexpedient tomakeregulationsinordertoachievetheobjectsofChapter9. (13) For the purposes ofChapter 10, theMinistermaymake regulationsrelatingto-

(a) therateofinterestapplicabletothelatepaymentofannualfees;

(b) themaximum amount of any penalties for the contravention of anystandardissuedbyNAMFISA;and

(c) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedienttomakeregulationsinordertoachievetheobjectsofChapter10.

(14) For thepurposesof thisChapter, theMinistermaymakeregulationsrelatingto-

(a) theprotectionofclientassets;and

(b) any other matter in respect of which the Minister is empowered,permittedorrequiredtomakeregulationsorconsidersitnecessaryorexpedient tomake regulations inorder toachieve theobjectsof thisChapter.

(15) Regulationsmadeunderthissectionmayprescribepenaltiesinrespectofacontraventionof,orafailuretocomplywith,anyprovisionofsuchregulations,andthemaximumamountofsuchpenaltieswhichmaynotexceedafineofN$1000000orbothsuchfineandimprisonmentforaperiodwhichmaynotexceedtwoyears,orbothsuchfineandimprisonment. (16) Before making any regulation pursuant to subsection (8)(e), theMinistermustfirstconsultwithNAMFISAandthePrimeMinister.

Conflict or inconsistency

466. (1) If there isaconflictor inconsistencybetweenaprovisionofthisActandaprovisionofanyotherlawofNamibiainrelationtoamattergovernedbythisAct,theprovisionofthisActprevailstotheextentoftheconflictorinconsistency. (2) IfthereisaconflictorinconsistencybetweenaprovisionofthisAct,aprovisionoftheregulationsoraprovisionofthestandards,theprovisionofthisActprevailstotheextentoftheconflictorinconsistency. (3) If there is a conflict or inconsistency between a provision of theregulationsandaprovisionofthestandards,theprovisionoftheregulationsprevailstotheextentoftheconflictorinconsistency.

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(4) If there is a conflict or inconsistency between a provision of theregulationsorthestandardsandaprovisionoftheguidelines,directives,rulesorothersubordinatemeasures,theprovisionoftheregulationsorthestandardsprevailstotheextentoftheconflictorinconsistency.

Repeal and amendment of laws and transitional arrangements

467. (1) ThelawssetoutinSchedule2arerepealedoramendedtotheextendsetoutinthatSchedule. (2) TherepealoramendmentofthelawsreferredtoinSchedule2doesnotaffectanytransitionalarrangementssetoutinSchedule3. (3) ThetransitionalarrangementsinSchedule3mustbereadandappliedassubstantiveprovisionsofthisAct.

Short title and commencement

468. (1) ThisActiscalledtheFinancialInstitutionsandMarketsAct,2019,andcomesintooperationonadatedeterminedbytheMinisterbynoticeintheGazette. (2) Differentdatesmaybedeterminedundersubsection(1)inrespectofdifferentprovisionsorChaptersofthisAct. (3) Any reference in thisAct to thecommencementof thisActmustbeconstruedasareferencetothedatedeterminedundersubsection(1)or(2).

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SCHEdULE 1

CLASSES OF INSURANCE(Section8(1)and(2))

PART 1CLASSES OF LONG-TERM INSURANCE BUSINESS

(a) disabilityinsurancebusiness.

(b) fundinsurancebusiness.

(c) funeralinsurancebusiness.

(d) healthinsurancebusiness.

(e) lifeinsurancebusiness.

(f) sinkingfundinsurancebusiness.

PART 2CLASSES OF SHORT-TERM INSURANCE BUSINESS

1. Fire

(a) Fire and natural forces

Effectingandcarryingoutshort-terminsurancecontractsagainstlossof,ordamageto,propertyotherthanpropertyreferredtoinitems2(a),3(a),4(a),6(d),7(a),(b),(c)and(d)asaresultoffireandnaturalforces.

(b) Miscellaneous financial loss

Effectingandcarryingoutshort-terminsurancecontractsagainstanyofthefollowingrisks,namely-

(i) risksoflosstothepersoninsuredattributabletointerruptionsofthecarryingonofbusinessbysuchpersonortoreductionofthescopeofbusinesssocarriedon;

(ii) risksoflosstothepersoninsuredattributabletotheincurringofunforeseenexpenses;

(iii) risksneither fallingwithin theambitofparagraph (i)or (ii),norbeingofsuchakindthatthecarryingonofthebusinessof effecting and carrying out short-term insurance contractsagainst the risks constitutes the carrying on of short-terminsurancebusinessofsomeotherclass.

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2. Marine

(a) Ships

Effectingandcarryingoutshort-terminsurancecontractsuponvesselsat sea or on inlandwaters or upon themachinery, tackle, furniture,equipmentorcargoofsuchvessels.

(b) Liability for ships

Effecting and carrying out short-term insurance contracts againstdamagearisingfromorinconnectionwiththeuseofvesselsatseaoroninlandwaters,includingthirdpartyrisksandcarrier’sliability,andagainsttheriskofpecuniarylosstothepersoninsuredattributabletotheincurringoflegalcosts(includingcostsoflitigation).

3. Aviation

(a) Aircraft

Effectingandcarryingoutshort-terminsurancecontractsuponaircraftoruponthemachinery,tackle,furnitureorequipmentoftheaircraft.

(b) Liability for aircraft

Effecting and carrying out short-term insurance contracts againstdamagearisingfromorinconnectionwiththeuseofaircraft,includingthirdpartyrisks,carrier’sliabilityandaerodromeliability,andagainstthe risk of pecuniary loss to the person insured attributable to theincurringoflegalcosts(includingcostsoflitigation).

4. Vehicles

(a) Land vehicles

Effectingandcarryingoutshort-terminsurancecontractsagainstlossofordamagetovehiclesusedonland,includingmotorvehicles,butexcludingrailwayrollingstock.

(b) Liability for motor vehicles

Effecting and carrying out short-term insurance contracts againstdamagearisingfromorinconnectionwiththeuseofmotorvehiclesother than railway rolling stock on land, including third party risks,carrier’sliabilityandtheriskofpecuniarylosstothepersoninsuredattributabletotheincurringoflegalcosts(includingcostoflitigation).

5. Guarantee

Effectingandcarryingoutguaranteeinsurancebusiness,including-

(a) contracts of short-term insurance against risks of loss to the personinsured attributable to such person having to perform contracts ofguaranteeenteredintobyhimorher;and

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(b) contractsoffidelitybonds,performancebonds,administrationbonds,bailbondsorcustombondsorsimilarcontractsofguarantee.

6. Miscellaneous

(a) Personal accident

Effecting and carrying out short-term insurance contracts providingfixed pecuniary benefits or benefits in the nature of indemnity (or acombinationofboth)againstrisksofthepersoninsured-

(i) sustaininginjuryasaresultofanyaccidentoranaccidentofaspecificclass;

(ii) dyingasaresultofanyaccidentoranaccidentofaspecificclass;

(iii) becomingincapacitatedasaresultofanydiseaseoradiseaseofaspecificclass,includingcontractsrelatingtoindustrialinjuryandoccupationaldisease,butexcludingcontractsreferredtoinsub-item(b).

(b) Sickness as defined in the regulations

Effecting and carrying out short-term insurance contracts providingfixed pecuniary benefits or benefits in the nature of indemnity ora combination of both against risks of loss to the person insuredattributabletosicknessorinfirmity.

(c) General liability

Effectingandcarryingoutshort-terminsurancecontractsagainstrisksotherthanrisksreferredtoinitems2(b),3(b)and4(b)ofthepersoninsuredincurringliabilitytothirdparties.

(d) Damage to property

Effectingandcarryingoutshort-terminsurancecontractsagainstlossof damage to property other than property referred to in items 1(a),2(a),3(a),4(a),sub-item(e)anditem7(a),(b),(c)and(d)asaresultofanyevent.

(e) Goods in transit

Effectingandcarryingoutshort-terminsurancecontractsagainstlossofdamagetomerchandise,baggageoranyothergoodsintransitbyanymeansofconveyance,excludingconveyancereferredtoinitem2(a)

(f) Credit

Effectingandcarryingoutshort-terminsurancecontractsagainstrisksoflosstothepersoninsuredattributabletotheinsolvencyofanydebtorofsuchpersonorfromthefailure(otherwisethanthroughinsolvency)ofanysuchdebtortopayhisorherdebtwhendueandpayable.

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(g) Railway rolling stock

Effectingandcarryingoutshort-terminsurancecontractsagainstlossofordamagetorailwayrollingstock.

(h) Legal expenses

Effectingandcarryingoutshort-terminsurancecontractsagainstrisksoflosstothepersoninsuredattributabletotheincurringoflegalcosts(includingcostsoflitigation).

(i) Expropriation and confiscation of property

Effecting and carrying out short-term insurance contracts against lossof damage to property or risks of loss as a result of expropriation orconfiscation.

7. Personal

Effecting and carrying out short-term insurance contracts primarilydesignedtocovertheinterestsofanynaturalpersonagainst-

(a) lossofdamagetopropertyotherthanpropertyreferredtoinsub-items(b)and(d)asaresultoffire,explosion,storm,waterandcertainnaturalforces,excludingtherisksofriot,strike,warandnuclearenergy;

(b) lossofordamagetoanymotorvehicleusedonland,includingliabilityrisksarisingfromtheuseofsuchvehicle,thirdpartyrisks,passenger’sliabilityandtheriskofpecuniarylosstothepersoninsuredattributabletotheincurringoflegalcosts(includingcostsoflitigation);

(c) lossofordamagetopropertyother thanpropertyreferred to insub-items(b)and(d)asaresultofanyeventotherthanthosementionedinsub-item(a);

(d) lossofordamagetospecifiedpropertyotherthanpropertyreferredtoinsub-items(a)and(c)asaresultofanyaccidentalincident;

(e) risksotherthanrisksreferredtoinsub-item(b)ofthepersoninsuredincurringliabilitytothirdparties;

(f) risksofthepersoninsured-

(i) sustaininginjuryasaresultofanyaccidentoranaccidentofaspecificclass;

(ii) dyingasaresultofanyaccidentoranaccidentofaspecificclass;

(iii) becomingincapacitatedasaresultofanyaccidentordiseaseandprovidingfixedpecuniarybenefitsorbenefitsinthenatureofindemnity(oracombinationofboth).

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Effecting and carrying out short-term insurance contracts in respectofoneormoreof theotherclassesof short-term insurancebusinessspecifiedinthisSchedule.

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SCHEdULE 2

LAWS REPEALEd OR AMENdEd(Section467)

1. Act No. 24 of 1936 Insolvency Act, 1936

TheInsolvencyAct,1936isamendedbytheinsertionaftersection102ofthefollowingsection:

“Preference with regard to claims under Financial Institutions and Markets Act

104A. Notwithstanding anything contained in sections 95 to 104,wheretheprovisionsofsection270orsection460oftheFinancialInstitutionsandMarketsAct,2019(ActNo.of2019)apply,anycontributionreferredtoinsubsection(11)ofsection270oranyamountreferredtoinsubsections(4)and (5)ofsection460ofthatActshallbedeemedtobeasecuredandpreferentclaimagainsttheestateinprioritytoallotherclaims,exceptthoseclaimssecuredbyspecificandidentifiedmoveableorimmoveableproperty,totheextentofthatproperty.”.

2. Act No. 24 of 1956 Pension Funds Act, 1956 Repealsthewhole3. Act No. 25 of 1956 Friendly Societies Act, 1956 Repealsthewhole4. Act No. 81 of 1957 Finance Act, 1957 Repealssections14to 17,inclusive5. Act No. 80 of 1959 Finance Act, 1959 Repealssections13to 16,inclusive6. Act No. 68 of 1962 Inspection of Financial Repealssection11 Institutions Act, 19627. Act No. 60 of 1963 Friendly Societies Repealsthewhole Amendment Act, 19638. Act No. 67 of 1965 Friendly Societies Repealsthewhole Amendment Act, 19659. Act No. 58 of 1966 Second Finance Act, 1966 Repealssection910. Act No. 65 of 1968 Financial Institutions Repealssections11to Amendment Act, 1968 15,inclusive11. Act No. 80 of 1969 Financial Institutions Repealssection1 Amendment Act, 196912. Act No. 23 of 1970 Financial Institutions Repealssection2 Amendment Act, 197013. Act No. 91 of 1972 Financial Institutions Repealssections7 Amendment Act, 1972 and 814. Act No. 101 of 1976 Financial Institutions Repealssections21to Amendment Act, 1976 31,inclusive15. Act No. 94 of 1977 Financial Institutions Repealssections9to Amendment Act, 1977 14,inclusive16. Act No. 80 of 1978 Financial Institutions Repealssections10to Amendment Act, 1978 14,inclusive17. Act No. 103 of 1979 Financial Institutions Repealssections14to Amendment Act, 1979 26,inclusive18. Act No. 99 of 1980 Financial Institutions Repealssections38to Amendment Act, 1980 43,inclusive19. Act No. 54 of 1981 Unit Trusts Control Act, 1981 Repealsthewhole

394

20. Act No. 55 of 1981 Participation Bonds Act, 1981 Repealsthewhole21. Act No. 82 of 1982 Financial Institutions Repealssection14 Amendment Act, 198222. Act No. 38 of 1984 Inspection of Financial Institutions Act, 198423. Act No. 39 of 1984 Financial Institutions (Investment of Funds) Act, 1984

TheFinancialInstitutions(InvestmentofFunds)Act,1984isamended-

(a) in section 1, by the substitution for the definitions of “financialinstitution”and“registrar”ofthefollowingdefinitions:

ʻ“financialinstitution”means -

[(a) an insurer registered in terms of the Insurance Act 9, 1943 (Act No. 27 of 1943);

(b) a pension fund organisation registered in terms of the Pension Funds Act, 1956 (Act No. 24 of 1956);

(c) a friendly society registered in terms of the Friendly Societies Act, 1956 (Act No. 25 of 1956);

(d) a banking institution registered in terms of the Banks Act, 1965 (Act No. 23 of 1965);

(e) a mutual building society registered in terms of the Mutual Building Societies Act, 1965 (Act No. 24 of 1965), or a building society registered in terms of the Building Societies Act, 1986 (Act No. 82 of 1986);

(f) a unit trust scheme as defined in the Unit Trusts Control Act, 1981(Act No. 54 of 1981);

(g) a board of executors or a trust company or any other company which invests, keeps in safe custody, controls or administers any trust property;

(h) a manager who in terms of the provisions of the Participation Bonds Act, 1981 (Act No. 55 of 1981), controls or administers a scheme;

(a) a banking institution registered in terms of the BankingInstitutionsAct1998(ActNo.2of1998);

(b) abuildingsocietyregisteredintermsoftheBuildingSocietiesAct,1986(ActNo.2of1986);

(c) aboardofexecutorsoratrustcompanyoranyothercompanywhich invests,keeps in safecustody,controlsoradministersanytrustproperty;”;

395

“registrar”meanstheregistrarappointedundertheActsreferredtoinparagraph(a)or(b), [paragraph (a), (b), (c), (d) (e),(f) or (i),] asthecasemaybe,ofthedefinitionof“financialinstitution;”;

(b) insection5-

(i) bythesubstitutionforsubsections(1)and(3)ofthefollowingsubsections:

“(1) Theregistrar [An inspector appointed under section 2 of the Inspection of Financial Institutions Act, 1984, may at any time at the direction of the registrar of a financial institution referred to in the said Act] mayatanytime,cause [inspect] theaffairsofaboardofexecutors,trustcompanyorothercompanymentionedinparagraph(c) [g] ofthedefinitionof “financial institution” [in section 1 of this Act] and of anominee company controlled by the financial institution inrespectofwhichtheregistrarconcernedwasappointed,tobeinspectedinorder toascertainwhether theprovisionsof thisActarebeingcompliedwith.;

“(3) Aregistrarreferredtoinsubsections(1)and(2)and an inspectorappointedbysuchregistrarundersubsection(4) shall, in addition to the powers, duties and functions heorshehasintermsofthisAct,havethe powersanddutiesinallrespectscorrespondingtothepowersandduties conferredupontheNamibiaFinancialInstitutionsSupervisoryAuthority referred to insection2of theNamibiaFinancial InstitutionsSupervisory AuthorityAct,2019(ActNo.of2019)anduponaninspectorundersections418to429oftheFinancialInstitutionsandMarketsAct,2019(ActNo.of2019). [The provisions of the Inspection of Financial Institutions Act, 1984, apply in respect of an inspection carried out in terms of subsection (1) or (2).]”;

(ii) bytheinsertionaftersubsection(3)ofthefollowingsubsection:

“(4) The registrar may appoint an inspector toperformthefunctions orexercisethepowersconferredontheinspectorbyorunderthisActor assignedtotheinspectorbysuchregistrarundertheprovisionsofthisAct.”;

(c) bythesubstitutionforsection7ofthefollowingsection:

“7 Therecordsofafinancialinstitutionandofanomineecompany or trust controlled or administered by that institution andthebooksofaccountof the institution, companyor trust are, inanyproceedingsunderthisAct,admissibleasprima facie evidenceofthematters,transactionsandaccountsthereinrecorded,ontheproductionof a document purporting to be an affidavit by one of the directors,officials,employeesoragentsoftheinstitutionorcompanyorbyaninspectorappointedundersubsection(4)ofsection5,[the Inspection of Financial Institutions Act, 1984, or section 8A of the South African Reserve Bank Act, 1944 (Act No. 29 of 1944),] orofother

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sufficientevidence,totheeffectthatthoserecordsorbooksofaccountare or have been the ordinary records and books of account of theinstitution,companyortrustandthatthoserecordshavebeenkeptorthoseentrieshavebeenmadeinthebooksofaccountintheordinarycourseofbusiness.”.

24. Act No. 46 of 1984 Corporation for Public Repealssomuchofthe Deposits Act, 1984 Scheduleasamends ActNo.24of195625. Act No. 86 of 1984 Financial Institutions Repealssections14to Amendment Act, 1984 21,inclusive26. Act No. 1 of 1985 Stock Exchanges Control Repealsthewhole Act, 198527. Act No. 50 of 1986 Financial Institutions Repealssections9to Amendment Act, 1986 13,inclusive28. Act No. 51 of 1988 Financial Institutions Repealssections3to Amendment Act, 1988 32,inclusive29. Act No. 53 of 1989 Financial Institutions Repealssections8to Amendment Act, 1989 11,inclusive30. Act No. 54 of 1989 Financial Institutions Repealssections20, Second Amendment Act, 21 and 22 198931. Act No. 26 of 1992 Stock Exchanges Control Repealsthewhole Amendment Act, 199232. Act No.4 of 1994 Pension Funds Amendment Repealsthewhole Act, 199433. Act No. 23 of 1995 Medical Aid Funds Act, 1995

TheMedicalAidFundsAct,1995isamended-

(a) insection1-

(i) bythedeletionofthedefinitionsof“financialyear”,“medicalservice”, “officer”, “principal officer”, “registrar”, “staffmember”,“therepealedAct”and“trustee”;

(ii) bythesubstitutionforthedefinitionsof“dependant”,“fund”,“member”, “registered fund”, “rules”, and “thisAct” of thefollowingdefinitions:

[ ,in relation to a member of a registered fund, means -

(a) the spouse of such member;

(b) any minor child (including any stepchild or adopted child) of such member who is not self-supporting; and

(c) any other person, who, under the rules of the fund, is recognised as a dependant of such member and is entitled to receive benefits under the fund by virtue of such member's membership,

397

and who is not a member of that fund or any other registered fund;] hasthemeaninggiventoitinsection321oftheFinancialInstitutionsandMarketsAct,2018;

“fund” [means any business carried on under a scheme established with the object of providing financial or other assistance to a member of the fund and their dependants in defraying expenditure incurred by them in connection with the rendering of any medical service, but does not include any such scheme which has been established in terms of an insurance policy;] hasthemeaninggiventoitinsection321oftheFinancialInstitutionsandMarketsAct;

“member” [, in relation to a registered fund, means any person who is, under its rules, a member of the fund;] has themeaning given to it in section 321 of the FinancialInstitutionsandMarketsAct;

“registered fund” [means a fund registered or reregistered under the provisions of this Act;] means a fund registeredunderChapter7ofthe FinancialInstitutionsandMarketsAct;

“rules”[,in relation to a registered fund, means the rules of the fund referred to in section 30;) meanstherulesmadebytheAssociationundersection18;and

“thisAct”includes[,except for the purposes of section 45,] anyregulationsmadeorinforcethereunder;”;

(iii) by the insertion after the definition of “dependant” of thefollowingdefinition:

ʻ“FinancialInstitutionsandMarketsAct”meanstheFinancialInstitutionsandMarketsAct,2019(ActNo.•of2019);”:

(iv) bytheinsertionafterthedefinitionof“fund’’ofthefollowingdefinition:

ʻ“insurer”meansaninsurerregisteredunderChapter2oftheFinancialInstitutionsandMarketsAct;’’;

(v) by the insertion after the definition of “Minister” of thefollowingdefinition:

ʻ“NAMFISA” means the Namibia Financial InstitutionsSupervisory Authorityreferredtoinsection2oftheNamibiaFinancialInstitutions AuthorityAct,2019(ActNo.•of2019);”;

(b) bytherepealofsections2to8,inclusive;

(c) in section15,by the substitution for subsection (2)of the followingsubsection:

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“(2) [The Registrar] NAMFISA may attend anymeeting of themanagementoranycommitteecontemplatedundersubsection(1).”;

(d) insection18,bythesubstitutionforparagraph(b)ofsubsection(4)ofthefollowingparagraph:

“(b) afinenotexceeding[N$2 000.] N$30000.”;

(e) bytherepealofsections22to43,inclusive;

(f) in section44,by the substitution for subsection (1)of the followingsubsection:

“(1) The Minister may, after consultation with theAssociation,makeregulationsrelatingto[-]

[(a) the administration of the affairs of registered funds;

(b) the fees to be paid to the Registrar in respect of -

(i) an application for the registration of a fund;

(ii) the registration of a fund;

(iii) an application for permission to change the name of a registered fund;

(iv) the change of the name of a registered fund;

(v) the registration, in terms of section 31, of an amendment of a rule of a registered fund;

(c) the maximum amount which and the extent to which a registered fund may invest -

(i) outside Namibia;

(ii) in particular assets or in particular kinds or categories of assets, prescribing the basis on which such prescribed maximum amount shall be determined and defining the kinds or categories of assets to which it applies;

(d) all other matters] allmatterswhich areby thisActrequiredorpermittedtobeprescribed,andgenerally relating to all matters which he or she considers itnecessary or expedient to prescribe in order that theobjects andpurposes of thisActmaybe achieved.”;and

(g) bytherepealofsection45.

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34. Act No. 2 of 1998 Banking Institutions Act, 1998

TheBankingInstitutionsAct,1998isamended-

(a) insection2,bythesubstitutionforparagraph(q)ofsubsection(2)ofthefollowingparagraph:

‘“(q) anynon-bankingfinancialinstitutiongovernedbystatuteand regulated by the Namibia Financial Institutions SupervisoryAuthority [established by] referred to in section 2 of theNamibia Financial Institutions Supervisory Authority Act,[2001 (Act No. 3 of 2001)] 2019(ActNo.of2019).”;

(b) in section52,by the substitution for subsection (3)of the followingsubsection:

“(3) In the conducting of an examination in terms ofsubsection(1), theBank,or thepersonappointedbytheBankunderthatsubsection,inadditiontothepowers,dutiesandfunctionsheorsheorithasintermsofthisAct,hasthepowersanddutiesinallrespectscorrespondingtothepowersanddutiesconferredorimposedby-

(a) the [law regulating financial institutions and markets]NamibiaFinancialInstitutionsSupervisoryAuthority Act, 2019 (Act No. of 2019) upon the[Authority or inspector contemplated in that law] NamibiaFinancialInstitutionsSupervisoryAuthorityreferredtoinsection2ofthatAct;and

(b) sections418 to429of theFinancial Institutions andMarkets Act,2019(ActNo.of2019)uponaninspectorappointedunder thatAct.”.

35. Act No. 4 of 1998 Short-term Insurance Repealsthewhole Act, 199836. Act No. 5 of 1998 Long-term Insurance Repealsthewhole Act, 1998

37. Act No. 22 of 1998 Namibia National Reinsurance Corporation Act, 1998

TheNamibiaNationalReinsuranceCorporationAct,1998isamended-

(a) insection1-

(i) thedeletionofthedefinitionsof“depositpremium”,“guaranteepolicy”,Long-termInsuranceAct”and“Short-termInsuranceAct”;

(ii) bythesubstitutionforthedefinitionof“class”,ofthefollowingdefinition:

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“class”[,in relation to insurance business, means any class of insurance business specified in -

(a) Schedule 1 to the Short-term Insurance Act; or

(b) section 13(1) of the Long-term Insurance Act;] hasthe meaninggiven to it in section4of theFinancialInstitutionsandMarketsAct;”;

(iii) by the insertionafter thedefinitionof “equalpercentage”offollowingdefinition:

““FinancialInstitutionsandMarketsAct”meanstheFinancialInstitutionsandMarketsAct,2019(ActNo.of2019);”;

(iv) bythesubstitutionforthedefinitionsof“longterminsurancebusiness”, “policy”, “premium”, “registered insurer”,“registeredreinsurer”,“reinsurancebusiness”and“short-terminsurancebusiness”,ofthefollowingdefinitions:

ʻ“long-term insurance” [business” means long-term insurance business as defined in section 1(1) of the Long-term Insurance Act;] means carrying on the business ofinsuranceonalong-termbasis ascontemplatedinChapter2oftheFinancialInstitutionsandMarketsAct;

“policy” [means any insurance contract, irrespective of the form in which the rights and obligations of the parties thereto are expressed or created, and includes a guarantee policy;] hasthemeaninggiventoitinsection4oftheFinancialInstitutionsandMarketsAct;

“premium”[means the consideration given or to be given in return for an undertaking to provide policy benefits, and includes a deposit premium;] hasthemeaninggiventoitinsection4oftheFinancialInstitutionsandMarketsAct;

“registered reinsurer” [means a person registered as a reinsurer in terms of-

(a) section 16(3) of the Short-term Insurance Act to carry on short-term insurance business; or

(b) section 16(3) of the Long-term Insurance Act to carry on long-term insurance business, as the case may be;]hasthemeaninggiventoitinsection4oftheFinancialInstitutionsandMarketsAct;

“reinsurance”[business” means the business of insuring any registered insurer or registered reinsurer or any foreign insurer or foreign reinsurer in respect of any such insurer’s or reinsurer’s contractual obligations under any policy or reinsurance contract;] means carrying on the business of

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re-insurance as contemplated in Chapter 2 of the FinancialInstitutionsandMarketsAct;

“short-term insurance” [business” means short-term insurance business as defined in section 1(1) of the Short-term Insurance Act;] means carrying on the business ofinsuranceonashort-term basisascontemplatedinChapter3oftheFinancialInstitutionsandMarketsAct;”;

(b) in section 2, by the substitution for subsections (4) and (5) of thefollowingsubsections:

“(4) The Corporation shall, [apply to the Registrar of Short-term Insurance and to the Registrar of Long-term Insurance in terms of the Short-term Insurance Act and the Long-term Insurance Act, respectively, for registration as a reinsurer, and the provisions of both said Acts shall, subject to the provisions of subsection (5), apply in respect of the Corporation.] onthedateofthecommencementof theFinancial InstitutionsandMarketsAct,bedeemedtoberegisteredasareinsurerascontemplatedinsection11of thatActand,subjecttotheprovisionsofsubsection(5),theprovisionsofthatActshallapplyinrespectoftheCorporation.

(5) The provisions of the [Short-term Insurance Act and of the Long term Insurance Act] Financial Institutions andMarketsActshallapplyinrespectoftheCorporationonlyinsofarasthoseprovisionsarenotclearlyinappropriateorinconsistentwiththeprovisionsofthisAct.”;

(c) by the substitution for the opening sentence of section 22 of thefollowingsentence:

“22. Notwithstanding anything to the contrary containedinthe[Short-term Insurance Act or the Long-term Insurance Act] FinancialInstitutionsandMarketsAct,thefunctionsoftheCorporationare-”.

38. Act No. 29 of 2000 Stock Exchanges Control Repeals thewhole Amendment Act, 200039. Act No. 5 of 2011 Pension Funds Amendment Repeals thewhole Act, 201140. Act No. 10 of 2011 Unit Trusts Control Repeals thewhole Amendment Act, 2011

41. Act No. 13 of 2012 Financial Intelligence Act, 2012

TheFinancialIntelligenceAct,2012isamended-

(a) bythesubstitutionforSchedule2ofthefollowingSchedule:

“TheNamibiaFinancialInstitutionsSupervisoryAuthority[established in terms of the Namibia Financial Institutions Supervisory Authority Act, 2001 (Act 3 of 2001) by] referredtoinsection2ofthe

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NamibiaFinancial InstitutionsSupervisoryAuthorityAct,2019 (ActNo.of2019).”;

(b) bythesubstitutionforitem5ofSchedule4ofthefollowingitem:

“5. [The Namibia Stock Exchange established in terms of the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985)] An exchangeregisteredordeemedtoberegisteredunderChapter3 oftheFinancialMarketsandInstitutionsAct,2019(ActNo.of2019).”.

42. Act No. 6 of 2014 Pension Funds Amendment Repealsthewhole Act, 201443. Act No. 12 of 2016 Long-term Insurance Repealsthewhole Amendment Act, 201644. Act No. 13 of 2016 Short-term Insurance Repealsthewhole Amendment Act, 201645. Act No. 14 of 2016 Unit Trusts Control Repealsthewhole Amendment Act, 2016

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SCHEdULE 3

TRANSITIONAL PROVISIONS(Section467)

Definitions

1. Inthisschedule-

“effectivedate”meansthedateonwhichthisAct,oranyChapterorrelevantprovisionofthisAct,cameintooperationpursuanttosection468;

“repealedlaw” meansalawrepealedundersection467;

General preservation of subordinate measures and other actions

2. (1) AnysubordinatelegislationormeasuremadeunderarepealedlawremainsinforceunlessinconflictwiththisActandbedeemedtobemadethereunderuntilsupersededbyasubordinatemeasuremadeunderthisAct. (2) Therulesofafinancialinstitutionmadeunderarepealedlawandinforce immediatelybefore the effectivedate, continue in force so far as they arenotinconsistentwiththisAct,exceptthatthefinancialinstitutionmustwithinsixmonthsfromtheeffectivedate,amendorreplaceitsrulessoastocomplywiththerequirementsofthisAct. (3) Anyappointmentmade,agreementconductedoranyotherstepstakenor thingsdonebyorunderanyprovisionofa repealed law, isdeemed tohavebeenmade,concluded,held,takenordone,byorunderacorrespondingprovisionofthisAct. (4) Inthecaseofanappointmentwhichexpiresafteraspecifiedperiod,theappointmentremainsinforceforsomuchofthatperiodasfallsaftertheeffectivedate. (5) Any right or entitlement enjoyed by, or obligation imposed on, anypersonintermsofanyprovisionofarepealedlaw,thathadnotbeenspentorfulfilledimmediatelybefore theeffectivedate isavalid rightorentitlementof,orobligationimposedon,thatpersonintermsofanycomparableprovisionofthisAct,asfromthedatethattheright,entitlementorobligationfirstarose,subjecttotheprovisionsofthisAct. (6) Anoticegivenbyanypersontoanotherpersonintermsofanyprovisionof a repealed law must be considered as notice given in terms of any comparableprovisionofthisAct,asfromthedatethatthenoticewasgivenundertherepealedlaw. (7) A document that, before the effective date, had been served inaccordancewitharepealedlawmustberegardedashavingbeensatisfactorilyservedforanycomparablepurposeofthisAct. (8) Anordergivenbyaninspector,intermsofarepealedlawandineffectimmediatelybeforetheeffectivedate,continuesineffect,subjecttotheprovisionsofthisAct.

Continuation of authorisation

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3. The registration, licence or authorisation of a financial institutionorfinancial intermediarywhich before the effective datewas registered, licensed orauthorisedunderarepealedlaw-

(a) haseffectasfromtheeffectivedateasifaregistrationhadbeengrantedunderacorrespondingprovisionofthisAct;

(b) inthecaseofaregistration,licenceorauthorisationwhichexpiresafteraspecifiedperiod,remainsinforce,subjecttothisAct,asaregistrationforsomuchofthatperiodasfallsaftertheeffectivedate.

Delayed application of required registration

4. UnlessotherwiseprovidedinthisAct,arequirementofthisActforafinancialinstitutionorfinancialintermediarytoberegisteredbyNAMFISA-

(a) takeseffect30daysaftertheeffectivedate;and

(b) duringthefirstsixmonthsaftertheeffectivedate,suchrequirementistemporarilysatisfiedfromthetimethatapersonappliesforregistrationasafinancialinstitutionorfinancialintermediaryuntilNAMFISAhasmadeafinaldecisionwithrespecttothatapplication.

Delayed application of required filing dates

5. Theprovisionsofsection402(10)takeeffectonthedatethatisthelaterof-

(a) 12monthsaftertheeffectivedate;and

(b) thedatepublishedbyNAMFISAintheGazette.

Continued enforcement of repealed laws

6. DespitetherepealofthelawsreferredtoinSchedule2,foraperiodofthreeyearsaftertheeffectivedateandinrespectofamatterthatoccurredduringtheperiodofthreeyearsimmediatelybeforetheeffectivedate,NAMFISAmayexerciseanypowerundersuchrepealedlawtoinvestigateandprosecuteanybreachofthatlaw,asifitwereproceedingwithacomplaintintermsofthisAct.

Subordinate measures

7. Ontheeffectivedate,andforaperiodof60daysaftertheeffectivedate,theMinisterandNAMFISAmaymakeanysubordinatemeasureofalegislativenaturecontemplated in theActwithoutmeeting theprocedural requirements setout in thisAct,providedtheMinisterandNAMFISAhavepublishedsuchproposedsubordinatemeasureintheGazette,allowingaperiodofatleast30daysforcomment.

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