Windhoek: The Namibian Financial Institutions Supervisory Authority (Namfisa) has announced that the Financial Institutions and Markets Act (FIMA) is poised to enhance protection for consumers and investors within Namibia's non-banking financial sector.

According to Namibia Press Agency, Namfisa's Consumer Education Specialist, Junias Erasmus, emphasized in a media statement that FIMA introduces stronger regulation of financial markets and investment schemes to foster transparency, fairness, and investor protection. The Act seeks to replace outdated legislation and align Namibia's financial regulatory framework with international standards.

Erasmus highlighted that Chapters 3 and 4 of FIMA are dedicated to financial markets and collective investment schemes, formerly known as unit trust schemes. The Act aims to protect investors, promote fairness, and strengthen trust in Namibia's financial markets.

He elaborated that the introduction of collective investment schemes under FIMA facilitates better regulation of pooled investment products, ensuring they are properly governed, supervised, and transparent. This framework is intended to boost consumer confidence when investing through regulated institutions.

FIMA also enforces strict measures to prevent market abuse and insider trading, including trading based on non-public, price-sensitive information and market manipulation. Erasmus noted that these provisions are directed at ensuring fairness and integrity in Namibia's financial markets.

Erasmus urged consumers to invest only through institutions licensed by NAMFISA, to inquire before investing, and to fully comprehend the risks involved. He assured the public of Namfisa's commitment to protecting consumer interests and promoting a fair, transparent, and stable financial market.