The Namibia Financial Institutions Supervisory Authority has published a broad set of standards for friendly societies under the Financial Institutions and Markets Act, 2021, creating a detailed operating framework for registration, governance, financial reporting, actuarial oversight, member contributions, custody of assets and voluntary dissolution. The standards took effect on the date of publication in the Gazette and apply across registered friendly societies, with separate requirements for exempted societies. The package sets core prudential and reporting requirements. Friendly societies must prepare an annual statement of assets and deposit it with NAMFISA within three months of financial year-end, using Generally Accepted Accounting Practice and International Auditing Standards, valuing assets at fair value and excluding amounts representing future contributions by future members. Statements of liabilities must also be filed within three months, with liabilities requiring actuarial scrutiny included at least triennially and no later than six months after year-end where an actuarial valuation is needed. Annual reports must be filed within three months after year-end, accompanied by audited financial statements, with possible extensions of up to six months on written application. Financial soundness is tied to audited financial statements showing assets exceeding liabilities, unqualified auditor and valuator certifications, and for business subject to actuarial scrutiny, projected asset coverage of liabilities for each of the next three financial years assuming no new members. The governance standards require a board of three to seven members, a separate principal officer, fit and proper appointments, conflict management, internal controls, risk management, performance evaluations and rotation limits for trustees, auditors and valuators. Other operational rules include a minimum of seven active contributing members, a 75% cap on member mortgage loans relative to the fair value of the property, contribution payment deadlines no later than seven days after month-end, and notification to members and NAMFISA of contribution delinquencies or deficiencies within one month. The standards also set procedural rules for registration, cancellation or variation of registration conditions, and voluntary dissolution. A voluntary dissolution based on a member resolution requires a ballot process with at least 75% of members returning ballot papers and a majority supporting dissolution, followed by a NAMFISA-approved liquidator, preliminary and final accounts, and cancellation of registration once dissolution is completed. Friendly societies referred to in section 292 of the Act must amend their rules to comply with the rules standard within 12 months of the standard taking effect.

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