The Namibia Financial Institutions Supervisory Authority (NAMFISA) published a draft proposed standard that would set the approval framework for transfers, mergers and reorganisations involving collective investment schemes (CIS) and their portfolios, including investor-consent rules and conditions for regulatory approval. Under the draft Standard No. CIS.S.4.2, a transaction would generally require prior written consent from investors holding 51% in value of participatory interests in both the original and targeted CIS or portfolios, as well as NAMFISA’s prior written approval. The draft would allow exemptions from obtaining investor consent for mergers or reorganisations where the boards of the relevant managers approve the proposal and the trustee or custodian confirms the process complies with the trust deed, and for certain transfers subject to detailed safeguards including prompt written notice to targeted-portfolio investors, asset comparability or mandate compliance, illiquid-asset management planning, and written confirmation by the custodian or trustee. Targeted-portfolio investors would be able to block a proposed transfer through a written objection by investors holding 51% in value, in which case the manager would be required to notify NAMFISA within 14 business days. Managers would also have to submit valuation reports, investor communication plans and other particulars to NAMFISA, and provide investors with written notice at least 30 business days before the transaction’s effective date. NAMFISA invited written representations from financial institutions, intermediaries, industry associations and self-regulatory organisations within 30 calendar days after publication, using the template set out in Schedule 2, and indicated it will consider submissions in deciding whether to issue the standard as published or in modified form.

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