Pension expert pokes holes into FIMA

Pension expert Tilman Friedrich has questioned the planned implementation of the Financial Institutions and Markets Act (FIMA) in its current form, asking whether it is an appropriate model for Namibia.

In a recent newsletter, Friedrich commented that while the thinking behind FIMA is sound, it raises the question of whether it is suitable for Namibia.

“Namfisa prides itself with this omnibus legislation, as representing global best practices. It has put a lot of energy into this legislation, and understandably, it refuses to move off its fixed standpoint, believing that global best practices are all that is required,” Friedrich wrote.

“Are global best practices necessarily appropriate for Namibia? Has Namfisa ever tried to question its position and establish if the new legislation's cost is economically justifiable? For all bigger infrastructure projects, an environmental impact assessment has to be carried out before the government can proceed. This new legislation is a massive project that has never been subject to an environmental assessment study, and we have no clue about its impact on the economy,” he added.

According to Friedrich, "simply resting on the global best practice laurels is not sufficient. The parliament needs a different model for evaluating such complex and technical laws. In a previous newsletter, I proposed a model for the parliament to apply to such technical laws."

Friedrich also questioned the lack of local input into FIMA, asking why a sufficient number of local experts were not consulted.

“We have appropriate experts in Namibia who can advise, and it is crucial to rely on local industry experts instead of foreigners because they must implement the new laws. If the new law is beyond their capabilities, the government must expect to face endless problems in the future. Although local experts were allowed to provide their input, most critical issues dealing with the principles were ignored for not being global best practice,” he pointed out.