The Namibia Financial Institutions Supervisory Authority has published a draft standard that would formalize how proposed changes in control of financial institutions and certain financial intermediaries must be submitted for approval under the Financial Institutions and Markets Act, 2021. In substance, the proposal sets a single application framework and approval test for transactions that would result in a person acquiring or relinquishing control, with the aim of giving NAMFISA structured information on ownership, governance, funding and post-transaction effects before granting approval. The draft applies to all financial institutions except beneficiary funds, retirement funds, medical aid funds and friendly societies, and to specified intermediaries including insurance brokers, investment managers, linked investment service providers, securities firms, trustees and custodians, participants and securities rating agencies. Applicants would need to file a completed form together with supporting material on the transaction structure, its effects on governance, risk management and financial sustainability, group ownership and ultimate beneficial ownership, source of funds, relevant fit and proper information and, where applicable, related notifications to other authorities. NAMFISA could request additional information, incomplete applications could be rejected if deficiencies are not remedied within the stated period, and approval would depend on the transaction not undermining prudent management, financial soundness or compliance with the Act and on the incoming controller meeting fit and proper, governance and independence requirements. Representations on the draft are invited within 30 calendar days after publication, after which NAMFISA will decide whether to issue the standard as published or in modified form.

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