namibia financial institutions supervisory authority bill · 5 act, and any other person or entity...

[B. 11 - 2018]

REPUBLIC OF NAMIBIA

NATIONAL ASSEMBLY

______________________

NAMIBIA FINANCIAL INSTITUTIONS SUPERvISORY

AUThORITY BILL

_________________________________

(As read a First Time)_________________________________

(Introduced by the Minister of Finance)

BILLTo provide for the continued existence of an Authority to exercise supervision

over compliance with financial services laws; to provide for the functions, powers and management of the Authority; to provide for the financing of the Authority; to provide for an Appeal Board to hear and determine certain matters; and to provide for incidental matters.

ARRANGEMENT OF SECTIONS

PART 1PRELIMINARY

1. Definitions

PART 2NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY

2. NamibiaFinancialInstitutionsSupervisoryAuthority3. ObjectsofAuthority4. FunctionsandpowersofAuthority5. MinistermayissuepolicydirectionstoAuthority6. GeneralconductofbusinessbyAuthority

PART 3MANAGEMENT AND CONTROL OF AUTHORITY

7. BoardofAuthority8. Appointmentofmembers9. Disqualificationforappointment10. FunctionsandpowersofBoard11. ConductofmembersofBoard12. GovernanceagreementwithBoard13. PerformanceagreementswithindividualBoardmembers14. Termofofficeofmembers15. Vacationofoffice16. ChairpersonofBoard17. MeetingsofBoard18. ConsultationwithMinister19. CommitteesofBoard20. Advisorycommittee21. Meetingsofadvisorycommittee22. Functionsofadvisorycommittee23. RulesofBoard24. Disclosureofinterest25. RemunerationofBoardandcommitteemembers26. Chiefexecutiveofficer27. Functionsandpowersofchiefexecutiveofficer28. StaffofAuthority29. Performanceagreementswithmembersofseniormanagement30. Co-operationwithotheragenciesandorganisations

PART 4FINANCIAL MATTERS

31. FundsofAuthority32. Levies33. Fees34. Financialyear35. Accountingandauditing36. Annualfinancialstatementsandreport37. Contentsofstatementsandreport38. Tablingofstatementsandreport

PART 5APPEAL BOARD

39. AppealBoard40. Disqualificationforappointmentasmember41. Termofoffice42. Vacationofoffice43. Remuneration44. Administration45. Rightofappeal46. Procedureonappeal47. DecisionofAppealBoard48. Decisionnotsuspended49. Rightsnotlimited

PART 6GENERAL PROVISIONS

50. Authoritytoreportfinancialinstitutionsindifficulties51. DecisionsandactionsbyAuthority52. ProhibitiononimplyingconnectionwithAuthority53. ExemptionsbyMinister54. Delegationofpowersandassignmentoffunctions55. Preservationofsecrecy56. Limitationofliability57. Prescription58. Liquidation59. Regulations60. Standardsandothermeasures61. Repealoflaw62. Transitionalprovisions63. Shorttitleandcommencement

BE IT ENACTED aspassedbytheParliament,andassentedtobythePresident,oftheRepublicofNamibiaasfollows:-

PART 1PRELIMINARY

Definitions

1. InthisAct,unlessthecontextindicatesotherwise-

“Adjudicator”meanstheFinancialServicesAdjudicatorasdefinedinsection1oftheFinancialServicesAdjudicatorActandincludesaDeputyAdjudicatorandanad-hoc Adjudicatorasdefinedinthatsection;

“advisorycommittee”meanstheadvisorycommitteeestablishedundersection20;

“affiliate”meansanaffiliateasdefined in section1of theFinancial InstitutionsandMarketsAct;

“AppealBoard”meanstheAppealBoardestablishedbysection39;

“appellant”meansapersonreferredtoinsection45(2)wholodgesanappealwiththeAppealBoard;

“auditor”meansapersonregisteredasanaccountantandauditorundersection23ofthePublicAccountantsandAuditorsAct,andwhohasbeenadmittedasamemberoftheInstituteofCharteredAccountantsofNamibiareferredtointhatAct;

“Authority”meanstheNamibiaFinancialInstitutionsSupervisoryAuthorityreferredtoinsection2;

“Board”meanstheBoardoftheAuthorityreferredtoinsection7;

“chiefexecutiveofficer”meansthepersonappointedaschiefexecutiveofficeroftheAuthorityundersection26;

“committee”meansanycommitteeoftheBoardcontemplatedinsection19(1);

“court”meansanycourtofNamibiahavingjurisdictionintheparticularmatterorintheparticularcircumstances;

“electronic” means signs, signals, writing, images, sounds, including voice, orintelligenceofanynatureemitted,transmittedorreceived,inwholeorinpart,byanywire,cable,radio,optical,photo-electronic,photo-opticalorotherelectromagneticortelecommunicationsystemormedium,orbyanysimilartechnicalsystemormedium,includingthestoragethereof,andforgreatercertaintyincludestheinternet;

“entity”meansacorporatebody,anyother juristicperson,a trust,partnership, fund,association,jointventureandanyotherunincorporatedorganisation,thegovernmentofanycountryoranysubdivisionthereof;

“financial crime” means a financial crime as defined in section 1 of the FinancialInstitutionsandMarketsActandsection1oftheMicrolendingAct,andinanyotherapplicablefinancialserviceslaw;

“financialinstitution”meansafinancialinstitutionasdefinedinsection1oftheFinancialInstitutionsandMarketsAct,amicrolenderasdefinedinsection1oftheMicrolending

Act,andanyotherpersonorentitydefinedassuch inanyotherapplicablefinancialserviceslaw;

“FinancialInstitutionsandMarketsAct”meanstheFinancialInstitutionsandMarketsAct,2018(ActNo.of2018)andincludestheregulationsmadeunderthatActandanystandards,rules,guidelinesorothersubordinatemeasuresissuedunderthatAct;

“financial institutions and markets sector” means the sector comprising financialinstitutions and financial intermediaries regulated and supervised by the AuthorityundertheFinancialInstitutionsandMarketsAct,theMicrolendingActandanyotherapplicablefinancialserviceslaw;

“financialintermediary”meansafinancialintermediaryasdefinedinsection1oftheFinancialInstitutionsandMarketsAct,andanyotherpersonorentitydefinedassuchinanyotherapplicablefinancialserviceslaw;

“financial service”meansafinancial serviceasdefined in section1of theFinancialInstitutionsandMarketsAct,amicrolendingtransactionasdefinedinsection1oftheMicrolendingActandafinancialserviceasdefined inanyotherapplicablefinancialserviceslaw;

“Financial ServicesAdjudicatorAct”means theFinancial ServicesAdjudicatorAct,2018(ActNo.of2018);

“financialserviceslaw”meansanyofthefinancialserviceslawsasdefinedinsection1oftheFinancialInstitutionsandMarketsAct,andanyotherlawwhichisdeclaredbyorunderanotherlawtobe,orwhichdeclaresitselftobe,afinancialserviceslaw;

“generallyacceptedaccountingpractice”meanstheframeworksadoptedbytheInstituteofCharteredAccountantsofNamibiareferredtoinsection1ofthePublicAccountants’andAuditors’Act;

“hearing”means thehearingof an appeal by theAppealBoardunderPart 5 in anyformatdescribedinsection46(2);

“MicrolendingAct”meanstheMicrolendingAct,2018(ActNo.7of2018);

“Minister”meanstheMinisterresponsibleforfinance;

“Office of theAdjudicator”means theOffice of the Financial ServicesAdjudicatorestablishedbysection4oftheFinancialServicesAdjudicatorAct;

“PublicAccountants’andAuditors’Act”meansthePublicAccountants’andAuditors’Act,1951(ActNo.51of1951);

“PublicEnterprisesGovernanceAct”means thePublicEnterprisesGovernanceAct,2006(ActNo.2of2006);

“prescribed”meansprescribedbytheMinisterbyregulationsmadeundersection59orrulesmadeundersection45(5);

“regulations”meansregulationsmadebytheMinisterundersection59;

“respondent”meansapersonagainstwhomanappealislodgedwiththeAppealBoardundersection45(2);

“self-regulatoryorganisation”meansaself-regulatoryorganisationreferredtoinsection1oftheFinancialInstitutionsandMarketsAct;

“thisAct” includes the regulations made under thisAct, and any standards, rules,guidelinesorothersubordinatemeasuresissuedunderthisAct.

PART 2NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY

Namibia Financial Institutions Supervisory Authority

2. (1) ThejuristicpersonknownastheNamibiaFinancialInstitutionsSupervisoryAuthorityestablishedby section2of theNamibiaFinancial InstitutionsSupervisoryAuthorityAct,2001(ActNo.3of2001),despitetherepealofthatActbythisAct,continuestoexistasifitwereajuristicpersonestablishedbythisAct.

(2) TheshortenedformofthenameoftheAuthorityis“NAMFISA”whichnamemaybeusedtogetherwithorindependentlyofitsnamereferredtoinsubsection(1).

Objects of Authority

3. (1) TheobjectsoftheAuthorityaretofoster-

(a) the financial soundness of financial institutions and financialintermediaries;

(b) thestabilityofthefinancialinstitutionsandfinancialmarketssector;

(c) thehighest standardsofconductofbusinessbyfinancial institutionsandfinancialintermediaries;

(d) thefairness,efficiencyandorderlinessofthefinancialinstitutionsandmarketssector;

(e) theprotectionofconsumersoffinancialservices;

(f) thepromotionofpublicawarenessandunderstandingoftheAuthority,financialinstitutionsandfinancialintermediaries;and

(g) thereductionanddeterrenceoffinancialcrime.

(2) Inpursuingtheseobjects,theAuthoritymust-

(a) monitor and assess risks in financial institutions and financialintermediaries and take steps to reduce risks as required in order toprotectthepublicinterest;

(b) takeintoaccounttheimpactofthecostsofregulationandsupervisiononpublicaccesstofinancialservices;and

(c) balancetheeffectivenessandcostsofregulationandsupervisionwiththeefficiencyofthefinancialsystem.

(3) DespitethattheregulationandsupervisionoffinancialinstitutionsandfinancialintermediariesbytheAuthoritymayreducetheriskthatfinancialinstitutionsandfinancial intermediarieswill fail, regulationand supervisionmustbecarriedouthavingregardtothefactthat-

(a) boardsofdirectorsoffinancialinstitutionsandfinancialintermediariesthatarecorporatebodiesandthosepersonshavingequivalentpowers,dutiesandresponsibilitiesinconnectionwithfinancialinstitutionsandfinancialintermediariesthatareunincorporatedentitiesareresponsiblefor the management of those financial institutions and financialintermediaries;

(b) financialinstitutionsandfinancialintermediariescarryonbusinessinacompetitiveenvironmentthatnecessitatesthemanagementofrisk;and

(c) financial institutions and financial intermediaries can experiencefinancialdifficultiesthatcanleadtotheirfailure.

Functions and powers of Authority

4. (1) ThefunctionsoftheAuthorityareto-

(a) regulateandsupervise-

(i) financial institutions and financial intermediaries and otherpersons who are subject to the Financial Institutions andMarketsAct;

(ii) moneylendersasdefinedinsection1oftheUsuryAct,1968(ActNo.73of1968);

(iii) microlendersasdefinedinsection1oftheMicrolendingAct;and

(iv) any other persons or entities that in terms of any applicablefinancial services law are required to be regulated andsupervisedbytheAuthority;

(b) advisetheMinisteronmattersrelatedtofinancialinstitutions,financialintermediariesandfinancialmarkets;

(c) monitor risks within the financial institutions and markets sectorand takesuchactionasmayberequired toreduceriskasnecessary,including supervising and enforcing compliance with the FinancialInstitutions and Markets Act, the Microlending Act and any otherapplicablefinancialserviceslaw;

(d) exercise an oversight role over the macro- and micro-prudentialpractices,activitiesandpoliciesoffinancialinstitutionsandfinancialintermediaries;

(e) provide, fund, promote or otherwise support consumer education,consumer awareness and consumer confidence regarding consumerrights, financial services, financial institutions and financialintermediaries,including,butnotlimitedto-

(i) research,marketmonitoring,surveillanceandreporting;

(ii) publishingconsumer-relatedmaterials;

(iii) establishing, participating in, or participating in theestablishmentof,local,regionalorinternationalforumsdealingwithconsumereducation,financialinclusion,financialliteracyandconsumerprotectionmatters;and

(iv) coordinatingorcollaboratingwithanylocal,regionalorforeignentityinrespectoftheactivitiesreferredtoinsubparagraphs(i)to(iii);and

(f) doanyotherthingthathasbeenassignedtotheAuthoritybythisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActandanyotherapplicablefinancialserviceslaw.

(2) Inordertoachieveitsobjectssetoutinsection3,andtoperformitsfunctionssetoutinsubsection(1),theAuthoritymay-

(a) employorotherwiseengagepersonstorenderservicestotheAuthorityortootherwiseassistit;

(b) hire,purchaseorotherwiseacquiremoveableorimmovablepropertyandlet,sellorotherwisedisposeofsuchproperty;

(c) establish or participate in the operations of a non-profit company, apartnership,trustorunincorporatedjointventureorsimilararrangement;

(d) take any steps conducive to consumer education, financial inclusionand thepromotionofawarenessof thenatureandavailabilityof theAuthority,theOfficeoftheAdjudicatorandotherenforcementmeasuresestablishedbyorunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActandanyotherapplicablefinancialserviceslaw,includingarrangementswiththeOfficeoftheAdjudicator,industryassociations or organisations, consumer organisations, financialinstitutions and financial intermediaries and their representatives toassistintransferringknowledgeandinformationtothegeneralpubliconmattersdealtwithinthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActandinanyotherapplicablefinancialserviceslaw;

(e) requestforanyinformationordocumentswhichtheAuthorityreasonablyrequiresfortheproperexerciseofitspowersortheperformanceofitsfunctionsunder thisAct, theFinancial Institutions andMarketsAct,theMicrolendingAct or any other applicable financial services law,fromanyfinancialinstitution,financialintermediaryorfromanyotherpersonwhois,hasbeenormightbesubjecttoregulationorsupervisionbytheAuthority;

(f) insure itself against any loss, damage, risk or liabilitywhich itmaysufferorincuringoodfaith;

(g) enterintoanagreementwithanypersonfortheperformanceofanyspecificactorfunctionortherenderingofspecificservices;

(h) acceptanymoneyorgoodsdonatedorbequeathedtoit;

(i) borrowmoneytothelimitapprovedbytheMinister;and

(j) do any other thing necessary to perform its duties and carry out itsresponsibilitiesunderthisAct,theFinancialInstitutionsandMarketsAct, theMicrolendingAct or anyother applicablefinancial serviceslaw.

(3) In order to ensure the proper performance of its functions or theeffectivesupervisionoffinancialinstitutionsandfinancialintermediariesunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw,theAuthoritymay,throughorbymeansof-

(a) theBoard;

(b) thechiefexecutiveofficeroranyemployeeoftheAuthorityauthorisedinwritingbytheBoard;or

(c) anyotherpersonorentityauthorisedinwritingbytheBoard,

conductanyinvestigationorenquiryintoanymatterregulatedbythisAct,theFinancialInstitutionsandMarketsAct, theMicrolendingActoranyotherapplicablefinancialserviceslaw.

(4) Forthepurposeofaninvestigationorenquiryundersubsection(3),theBoard,thechiefexecutiveofficeroranemployee,apersonoranentityauthorisedbytheBoardunderthatsubsection,may-

(a) summonanypersonwho-

(i) in the opinion of the Board, the chief executive officer oremployee, person or entity has in his or her possession orcustodyorunderhisorhercontrolanyinformationofmaterialimportance concerning the matter under investigation orenquiry;or

(ii) is suspected or believed to have in his or her possession orcustody or under his or her control any book, document orthingthatmayhaveabearingontheinvestigationorenquiry,

(aa) furnish that information,book,documentor thing totheBoard,chiefexecutiveofficeroremployee,personorentity;or

(bb) appearbeforetheBoard,thechiefexecutiveofficeroremployee,personorentityauthorisedbytheBoardtoinvestigatethematterorconducttheenquiryatthetimeandplacespecifiedinthesummons,tobeexaminedortoproducethatinformation,book,documentorthing;

(b) calluponandadministeranoathtooracceptanaffirmationfromanypersonpresentattheinquirywhowasormighthavebeensummonedintermsofparagraph(a);and

(c) examineanypersonreferredtoinparagraph(b)orrequirethatpersontoproduceat the inquiryanybook,documentor thingreferred to inparagraph(a).

(5) Asummonsreferredtoinsubsection(4)(a)mustbe-

(a) intheprescribedform;

(b) signedbythechairpersonoftheBoard,thechiefexecutiveofficerorapersonauthorisedinwritingbytheBoard,asthecasemaybe;and

(c) served on the person concerned by the chairperson of the Board orthechiefexecutiveofficer,asthecasemaybe,orbyanyotherpersonauthorisedinwritingbytheBoardorbyregisteredpostaddressedtotheperson’slastknownaddressorinanyotherprescribedmanner.

(6) Thelawrelatingtoprivilege,asapplicabletoawitnesssummonedtogiveevidenceortoproduceabook,documentorthingbeforeacourtoflaw,applies,subject tonecessarychangesrequiredbycontext, inrelation to theexaminationofapersonortheproductionofanybook,documentorthingundersubsection(4)(c).

(7) Apersonbeingexaminedunderthissectionmayberequiredtoanswerany question put to that person at the examination, despite that the answer mightincriminatethatperson.

(8) Anincriminatinganswerdirectlyobtained,orincriminatingevidencedirectlyderivedfromanexaminationunderthissectionisnotadmissibleasevidenceincriminalproceedingsinacourtagainstthattheperson,exceptincriminalproceedingswherethepersonischargedwithanoffencerelatingto-

(a) anoathoraffirmation;

(b) givingfalseevidence;

(c) makingafalsestatement;or

(d) deliberatefailuretoanswerquestionsfullyorsatisfactorily.

(9) Whereanypersonbeingexamined in termsof theprovisionsof thissectionis-

(a) obligedtoanswerquestionswhichmayincriminatehimorher;or

(b) tobetriedonacriminalchargeandtheevidencemayprejudicehimorheratthetrial,

thepersonpresidingattheexaminationmayorderthatsuchpartoftheexaminationbeheldin cameraandthatnoinformationregardingsuchquestionsandanswersmaybepublishedinanymannerwhatsoever.

(10) Anypersonwhocontravenesorfailstocomplywithanyprovisionofanordercontemplatedinsubsection(9)commitsanoffenceandisliableonconvictiontothepenaltymentionedinsubsection(5)ofsection154oftheCriminalProcedureAct,1977(ActNo.51of1977).

(11) Anypersonwhoattendsaninvestigationorenquiryafterhavingbeensummonedundersubsection(4)(a)isentitledtoreceivefromthefundsoftheAuthoritysuchcompensationinrespectofexpensesincurredbyhimorher inconnectionwithsuchattendanceasheorshewouldbeentitled toreceive ifheorshewasawitnessattendingcriminalproceedingsbeforeamagistrates’court.

(12) Anypersonwho-

(a) afterhavingbeendulysummonedintermsofsubsection(4)(a),withoutsufficientcausefailsto-

(i) attendatthedate,timeandplacespecifiedinthesummons;or

(ii) remain inattendanceuntilexcusedbythepersonconductingtheinvestigationorpresidingattheenquiry;or

(b) havingbeencalledupontotakeanoathormakeanaffirmationintermsofsubsection(4)(b)withoutsufficientcause-

(i) refusestobeswornortoaffirmasawitness;or

(ii) fails to answer fully and satisfactorily to the best of his orherknowledgeallquestions lawfullyput tohimorheror toproduceanybook,documentorthinginhisorherpossessionorcustodyorunderhisorhercontrolwhichheorshehasbeenrequiredtoproduce;or

(c) prevents another person from obeying a summons issued undersubsection (4)(a) or from giving evidence or producing a book,document or thing which he or she in terms of subsection 4(c) isrequiredtogiveorproduce,

commits an offence and is liable on conviction to a fine not exceeding N$80 000or to imprisonment for a period not exceeding two years, or to both such fine andimprisonment.

(13) Any person who, after having been sworn or after affirmation as awitnessintermsofthissection,givesfalseevidenceormakesafalsestatementonanymatter,knowing thatevidenceorstatement tobe falseornotbelieving theevidenceorstatementtobetrue,commitsanoffenceandonconvictionisliabletothepenaltiesprescribedbylawforthecrimeofperjury.

Minister may issue policy directions to Authority

5. (1) The Minister may issue general policy guidelines to theAuthority, not inconsistent with the provisions of this Act, about the policies or prioritiesadoptedortobeadoptedbytheAuthorityinexercisingpowersandperformingfunctionsunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw,andsubjecttowhichtheAuthoritymustexercisethepowersvestedinitbyvirtueof,andperformthefunctionsentrustedtoitby,thisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw.

(2) Thepolicyguidelinesreferredtoinsubsection(1)mayonlybeissuedif theMinister is satisfied that it isnecessary todoso topromote theobjectsof theAuthorityor toprotect the stabilityof thefinancial systemofNamibia andmustbepreparedafterconsultationwiththeAuthority.

(3) The Minister must follow such process as the Minister considersexpedienttoobtaintheviewsofstakeholdersinthefinancialservicesindustrybeforeissuingguidelinesintermsofsubsection(1).

(4) TheMinistermay,whereappropriate,publishanyguidelinesissuedintermsofsubsection(1)intheGazette.

General conduct of business by Authority

6. (1) The Board must ensure that any function or responsibilityunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancial services law that isentrusted toor tobeperformedby theAuthority,thechiefexecutiveofficeroranemployeeoftheAuthorityisdischargedorperformedwithhonesty,integrityandfairnessandwithinareasonableperiodoftime.

(2) TheBoardmustensurethateverymemberandalternatememberoftheBoard,includingthechiefexecutiveofficer,andeachemployeeoftheAuthoritysignsacodeofconductreferredtoinsection10(2)(j).

PART 3MANAGEMENT AND CONTROL OF AUTHORITY

Board of Authority

7. (1) TheAuthoritymusthaveaBoardwhich,subjecttothisAct,isresponsibleforthepolicy,managementandcontroloftheaffairsoftheAuthority.

(2) TheAuthorityisapublicenterpriseasdefinedinthePublicEnterprisesGovernanceActanditsgovernancemust,unlessotherwiseexemptedunderthatAct,bestructuredandconductedinaccordancewiththeprovisionsofthatAct.

(3) Thechiefexecutiveofficerisanex officiomemberoftheBoardand-

(a) inthatcapacity,heorsheisentitledtovoteonmattersrelatingtoorconcerningtheperformanceofregulatoryorsupervisoryfunctionsorexerciseof regulatoryor supervisorypowersby theAuthorityunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw;but

(b) the chief executive officer may not serve as the chairperson of theBoard.

(4) TheMinistermayappointanalternatememberforeachmemberoftheBoard.

Appointment of members

8. (1) TheBoardmustbeconstituted,anditsmembersandalternatemembers, including the chairperson and the vice-chairperson of theBoard,must beappointedinaccordancewith,andforaperiodasdeterminedundersections14and15ofthePublicEnterprisesGovernanceAct.

(2) Inadditiontoanyadvicegiventohimorherpursuanttosection14(1)(c)ofthePublicEnterprisesGovernanceAct,theMinisterwhenappointingmembersoralternatemembersoftheBoardmust-

(a) havedueregardtotheintegrityandstabilityofthefinancialinstitutionsandmarketssectorinNamibiaandthepublicinterest;and

(b) appoint persons with appropriate and relevant knowledge, skillsor experience in the business of financial institutions and financialintermediaries.

(3) TheMinistermust,assoonaspossibleafteranappointmenthasbeenmade,publishintheGazettethenamesoftheindividualsappointedasmembersandtheindividualsappointedasalternatemembersoftheBoard,andtheirdatesofappointment.

(4) Despitesubsection(3),afailuretopublishthenamesofmembersoralternatemembers of theBoard pursuant to that subsection does not invalidate anyaction or decision taken by the Board, if the members or alternate members wereproperlyappointed.

Disqualification for appointment

9. (1) Subjecttosubsection(2),apersonisnoteligibleforappointmentasamemberoranalternatememberoftheBoardoraschiefexecutiveofficer,ifthatperson-

(a) isnotaNamibiancitizenor isnot lawfullyadmitted toNamibia forpermanentresidence;

(b) isamemberofParliament,orofaregionalorlocalauthoritycouncil,unless he or she ceases to be such amember before the date of theproposedappointment;

(c) isanoffice-bearerofanypoliticalparty,unlessheorsheceasestobesuchanoffice-bearerbeforethedateoftheproposedappointment;

(d) manages or is employed by a financial institution or financialintermediary,orhasanyfinancial interest inanyfinancial institutionorfinancialintermediaryoranybusinesshavingafinancialinterestinanyproductorindustrythatisormayberegulatedbytheAuthority,thatislikelytoimpairorprejudiciallyaffectthemember’sobjectivity

or impartiality in the exercise or performance of his or her powersorfunctionsasamemberoftheBoard,unlessheorsheceasestosomanageortobesoemployedortohavethefinancialinterestbeforethedateoftheproposedappointment;

(e) hasanyotherfinancialorother interest that is likely toprejudiciallyaffecttheperformanceofhisorherdutiesasmemberoftheBoard;

(f) hasduring theperiodof10years immediatelypreceding thedateofcommencementofthisAct,oratanytimeafterthatdate,beenconvicted,whetherinNamibiaorelsewhere,ofanoffenceandhasbeensentencedtoimprisonmentwithouttheoptionofafine;

(g) isanunrehabilitatedinsolvent;

(h) hasunderanylawbeendeclaredtobeofunsoundmindorunderlegaldisability;

(i) hasbeenremovedfromanofficeoftrust;or

(j) hasbeensanctionedbyanynationalorinternationalstatutoryregulatorybody for the contravention of a law relating to the regulation andsupervisionoffinancialinstitutionsorfinancialintermediaries.

(2) Despitesubsection(1)(a),theMinistermay,whereheorsheconsidersitnecessaryandsubjecttotheImmigrationControlAct1993(ActNo.7of1993),appointapersonasamemberoranalternatememberoftheBoardwhoisnotaNamibiancitizenorlawfullyadmittedtopermanentresidencyinNamibia.

Functions and powers of Board

10. (1) The Board is responsible for the supervision and controlof themanagementof the affairs of theAuthority and itmust subject to theoverallpolicydirectionsissuedbytheMinisterinaccordancewithsection5,onbehalfoftheAuthority,performallthefunctionsassignedto,andexerciseallthepowersconferredon,theAuthorityortheBoardbythisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablelaw.

(2) Without derogating from the generality of subsection (1), theBoardmust-

(a) complywithanyrequestbytheMinisterforinformationrelatingtotheperformanceoftheAuthority’sfunctions;

(b) on recommendation of the chief executive officer, and subject toconsultationwiththeMinisterinparticularcasesandhavingdueregardtodomesticcircumstances,fostertheadoptionandmaintenancebytheAuthorityofsupervisorypoliciesandproceduresthataregenerallyinaccordancewith international standardsoffinancial supervision, andwhichare relevant to thecircumstancesofNamibia, andensure thatsuchpoliciesandproceduresaremadepublicifnecessary;

(c) on an annual basis, establish the objectives of theAuthority for thefollowingyear;

(d) after consultationwith theMinister, on an annual basis, review andapprove the overall remuneration structure and other conditions ofserviceofthechiefexecutiveofficerandseniormanagementstaffoftheAuthority;

(e) on an annual basis, review and approve the overall remunerationstructure and other conditions of service of the other managementstaffandotheremployeesof theAuthority,asproposedby thechiefexecutiveofficer;

(f) onanannualbasis,reviewandapprovethebusinessandfinancialplanoftheAuthorityforthefollowingyear,preparedandsubmittedtotheBoardbythechiefexecutiveofficerpursuanttosection27(3)(a);

(g) preparetheannualfinancialstatementsoftheAuthorityinaccordancewithgenerallyacceptedaccountingpracticeandsection37,andapprovethose statements, and cause those annual financial statements to beauditedinaccordancewithsection35,andsubmittedtotheMinisterinaccordancewithsection36(1)(a);

(h) prepareanannualreportinaccordancewithsection37,whichreportmustbesubmittedtotheMinisterinaccordancewithsection36(1)(b);

(i) withthepriorapprovaloftheMinister,establishtheinvestmentpolicy,standardsandproceduresreferredtoinsection31(7);and

(j) reviewandapprovethecodeofconductestablishedintermsofsection27(2) at least once every two years, andfile a copy of that code ofconductwiththeMinisterforthwithafteritsapproval.

Conduct of members of Board

11. (1) AmemberoranalternatememberoftheBoardmust-

(a) exercisethedutyofutmostcaretoensurereasonableprotectionoftheassetsandrecordsoftheAuthority;

(b) act with fidelity, honesty, integrity and in the best interests of theAuthorityinmanagingitsfinancialaffairs;and

(c) complywithanyapplicablecodeofconductreferredtoinsection10(2)(j).

(2) AmemberoranalternatememberoftheBoardmaynot-

(a) actinawaythatisinconsistentwiththeresponsibilitiesoftheBoardintermsofthisAct;or

(b) usethepositionandprivilegesof,orconfidentialinformationobtainedas,amemberoftheBoard,forpersonalgainortoimproperlybenefitanotherperson.

(3) Apersonwhocontravenesor fails to complywith subsection (2)ora code of conduct referred to in section (1)(c) commits an offence and is liable on

conviction to a fine not exceedingN$200 000 or to imprisonment for a period notexceedingfiveyears,ortobothsuchfineandimprisonment.

(4) Amemberoranalternatememberof theBoardwhocontravenesorfails tocomplywithsubsection (1)or (2), inaddition to thepenaltyprovided for insubsection(3),commitsanactofmisconductforwhichheorsheisliabletodisciplinaryactionbeingtakenagainsthimorher,includingremovalfromofficeascontemplatedinsection15(2)(b).

Governance agreement with Board

12. (1) The Minister and the Board must, within one month ofthe appointment of the Boardmembers, enter into a written governance agreementcontemplatedinsection17ofthePublicEnterprisesGovernanceAct.

(2) Theagreementreferredtoinsubsection(1)mustcontainthematterscontainedinsection17ofthePublicEnterprisesGovernanceActandthebusinessandfinancialplancontemplatedinsection19ofthatAct.

Performance agreements with individual Board members

13. (1) TheMinistermust,withinonemonthoftheappointmentofamemberoftheBoard,enterintoaperformanceagreementcontemplatedinsection18ofthePublicEnterprisesGovernanceActwiththatmemberoftheBoard.

(2) Theagreementreferredtoinsubsection(1)mustcontainthematterscontainedinsection18ofthePublicEnterprisesGovernanceAct.

Term of office of members

14. (1) Unless a different determination has beenmade in terms ofsection14(1)(d)of thePublicEnterprisesGovernanceAct,andsubject tosubsection(2),thetermofofficeofamemberoranalternatememberoftheBoardisthreeyears.

(2) Amemberoranalternatememberwhosetermofofficehasexpired,maybere-appointedasamemberoranalternatemember.

(3) When a vacancy arises on the Board, the Minister must appoint amemberoranalternatememberfortheunexpiredportionofthetermofofficeofthememberwhohasvacatedhisorheroffice.

Vacation of office

15. (1) Amemberoranalternatemembervacatesofficeasmemberoranalternatemember,ifthatmemberoralternatemember-

(a) resignsasamemberoranalternatememberbygivingnotlessthanonemonth’swrittennoticetotheMinister;

(b) inthecaseofamember,haswithouttheleaveoftheBoard,beenabsentfromthreeconsecutivemeetingsoftheBoard;

(c) hasbecomesubjecttoanydisqualificationreferredtoinsection9;or

(d) isremovedfromofficeundersubsection(2).

(2) TheMinistermaybywrittennoticeremoveanymemberoralternatememberfromhisorheroffice,if-

(a) theMinister is satisfied that thatmember or alternatemember is byreasonofhisorherphysicalormentalconditionorforanyotherreasonincapableofactingassuchmember;

(b) that member or alternatemember is found guilty of conduct whichrendershimorherunableorunfittoefficientlydischargethefunctionsoftheofficeasamemberoranalternatememberorhastakenpartinthediscussionof,orhasvotedinconnectionwith,anymatterinwhichheorshehasaninterest;or

(c) thatmemberoralternatememberisguiltyofconductprejudicialtotheobjectivesoftheAuthority.

(3) TheMinistermayonlysoremoveamemberoranalternatememberfromofficeaftergivingwrittennotice to thatmemberoralternatememberandafteraffordinghimorherareasonableopportunitytobeheard.

(4) TheMinister may suspend a member or an alternate member fromofficewithoutcomplyingwithsubsection(3),iftheMinisterissatisfiedthatthememberoralternatememberisguiltyofdishonesty,grossmisconductorotherunbecomingorinappropriateconductsuchthatitisnecessarytoactexpeditiouslyinordertoprotecttheintegrityoftheAuthorityorthefinancialsysteminNamibia,buttheMinistermustgivenoticetothememberoralternatememberassoonaspracticablethereafterandconsideranyrepresentationsmadebythememberoralternatememberonthematter.

(5) IfamemberoranalternatememberoftheBoarddiesortheofficeofamemberoralternatememberbecomesvacantasaresultofthehappeningofaneventreferredtoinsubsection(1),theMinistermay,withinaperiodof90daysfromthedateofthedeathorthehappeningoftheeventandwithdueregardtosection9,appointapersontofillthevacancyfortheunexpiredportionofthetermofofficeofthememberoralternatememberconcerned.

(6) IfatanytimeduringthetermofofficeoftheBoard-

(a) theofficesofallthemembersoftheBoardbecomevacant;or

(b) thenumberofmembersoftheBoardisreducedtolessthanthenumberofmembersrequiredforaquorumoftheBoard,

theMinistermay,despiteanythingtothecontrarycontainedinthisActoranyotherlawandifcircumstancesofapressingorurgentnaturesorequire,appointsuitablyqualifiedpersonsonatemporarybasistoserveontheBoarduntilnewmembersareappointed.

(7) The appointment of a person as member of a Board pursuant tosubsection(6)ceasestobeofeffectupontheearlierof-

(a) theexpiryofaperiodofsixmonthsfromthedateoftheappointment,but that periodmay be extended, once only, by theMinister for anadditionalperiodofnotmorethantwomonths;or

(b) the appointment of a person as amember of theBoard pursuant tosubsection(5).

(8) AmemberoranalternatememberwhoparticipatedasamemberoftheBoardintheconsiderationofanymattermaynotrepresentnorappearbeforetheAuthorityonbehalfofapartyinrelationtothatmatter.

(9) A person who contravenes or fails to comply with subsection (8)commits an offence and is liable on conviction to a fine not exceedingN$200 000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Chairperson of Board

16. (1) TheMinistermust,subjecttosection8,appointachairpersonandavice-chairpersonfromamongthemembersoftheBoard.

(2) The chairperson or in his or her absence, the vice-chairpersonmustpresideatameetingoftheBoard.

(3) If both the chairperson and the vice-chairperson are for any reasonunabletopresideoverameetingoftheBoard,thememberspresentmustelectamemberfromamongthemselvestoactaschairpersonoftheBoard,forthatmeeting.

Meetings of Board

17. (1) MeetingsoftheBoardmaybeheldatsuchdate,timeandplaceastheBoardmaydetermine,butinanycasenotlessthanonceeverythreemonths.

(2) Thechairperson-

(a) mayatanytimeonhisorherowninitiative;or

(b) mustatthewrittenrequestoftheMinisteroratthewrittenrequestofamajorityofthemembersoftheBoard,

conveneanextraordinarymeetingoftheBoard.

(3) ThemajorityofthemembersconstituteaquorumatameetingoftheBoard.

(4) ThechairpersonmustcausereasonablenoticeofeverymeetingoftheBoardtobegiventothemembers.

(5) The decision of amajority of themembers present and voting at ameetingoftheBoardconstitutesadecisionoftheBoard,andintheeventofanequalityofvotesthepersonpresidingatsuchmeetinghasacastingvoteinadditiontohisorherdeliberativevote.

(6) Despite subsection (5), a decision of theBoard approving standardsmade pursuant to section 60 of thisAct and sections 409 and 410 of the FinancialInstitutionsandMarketsActmustbeagreedtobyatleastfourmemberspresentandentitledtovoteatameetingoftheBoard.

(7) AdecisionoftheBoardoranactperformedundertheauthorityoftheBoardisnotinvalidonlybyreasonof-

(a) avacancyontheBoard;or

(b) thefactthatapersonnotentitledtositasamemberoftheBoardwasinattendancewhenthedecisionwastakenoractauthorised,

if thedecisionwas takenor act authorisedbyamajorityof thememberswhowerepresentandentitledtovoteatameetingoftheBoard.

(8) The Boardmust causeminutes to be kept of the proceedings at itsmeetingsandthemeetingsofitscommittees.

(9) Subjecttosubsection(10),allmeetingsoftheBoardwhereanypersonmakesrepresentationstotheBoardorpresentsargumentsonaquestionoflaworfacttotheBoardaswellasanyhearingbeforeanyorganoftheAuthoritymustbeopentothepublic,exceptthatinthecaseofameetingorpartofameetingwherethemembersoftheBoardonlydeliberateamongthemselvesmaybeopenorclosedtothepublicastheBoardmaydecide.

(10) TheBoardmaydecide toclose thewholeorpartofanymeetingorhearingthatintermsofsubsection(9)mustbeopentothepublic,onthegroundsthatsuchmeetingorpartofameetingwillrelatetoordisclose-

(a) mattersthatmustbekeptsecretintheinterestofnationalsecurity;

(b) matters relating to the internal personnel rules and practices of theAuthority;

(c) tradesecretsorcommercialorfinancialinformationthatisprivilegedorconfidential;or

(d) information of a personal nature the disclosure of which wouldconstituteanunwarrantedinvasionofpersonalprivacy.

(11) IndeterminingwhethertocloseameetingtothepublictheBoardmayrequireapersonrequestingthatactiontogivereasonswhythatmeetingmustbeclosedtothepublicinameetingoftheBoardthatisclosedtothepublic.

(12) Thegroundsforclosingameetingtothepublicmustberecordedandthatrecordingmuststatetheprovisionofthissectionauthorisingthatclosing.

(13) Despite subsection (5), awritten resolution not passed at ameetingoftheBoardbutsignedbyallthemembersoftheBoardisasvalidandeffectualasifithadbeenpassedatameetingoftheBoarddulyconvenedandconstituted,andthatresolutionmustberecordedintheminutesofthenextmeetingoftheBoard.

(14) For the purposes of this section, “member” includes an alternatememberpresentataparticularmeetingoftheBoardduringtheabsenceorvacancyintheofficeofthememberforwhomheorsheisappointedasanalternatemember.

Consultation with Minister

18. TheBoardmayconsultwiththeMinister-

(a) on the exercise of the powers conferred upon, and the performanceof the duties assigned to, the Authority by this Act, the FinancialInstitutionsandMarketsActorbyanyotherlawastheMinistermaydetermine;and

(b) onanyothermatterthattheBoardwishestobringtotheattentionoftheMinister.

Committees of Board

19. (1) TheBoardmay,subjecttosuchtermsandconditionsasitmaydetermine,fromtimetotimeestablishoneormorecommitteesto-

(a) assistandadvisetheBoardintheexerciseofitspowersandperformanceofitsduties;and

(b) performanyfunctionorexerciseanypowerthattheBoardmayassignordelegatetothatcommittee.

(2) Acommitteeestablishedundersubsection(1)mustconsistofatleastonememberoftheBoardandsuchotherpersonorpersonsastheBoardmaydetermine,and that committeemay,with the approval of the Board, co-opt persons of specialexpertisetoadviseitintheperformanceofitsfunctions,buttheco-optedpersonisnotentitledtovoteatanysuchmeeting.

(3) TheBoardmaynotappointasamemberofacommitteeanypersonwhowouldbedisqualifiedundersection9frombecomingamemberoftheBoard.

(4) TheBoardmustappointacommitteetoconsiderandrecommendtotheBoardtheapprovalofstandardsmadepursuanttosection60ofthisActandsections409and410oftheFinancialInstitutionsandMarketsAct.

(5) TheBoardmustdesignateamemberoftheBoardaschairpersonofacommittee.

(6) TheBoardmay,bynoticeinwriting,removeamemberofacommitteefromthatcommitteeif-

(a) thememberhasfailedtoperformthefunctionsorexercisethepowersassignedordelegatedtothatcommitteeinasatisfactorymanner,orisunabletoperformthemeffectively;

(b) thememberhasfailedtocomplywithorbreachedanyapplicablecodeofconduct;or

(c) theconductofthememberimpactsnegativelyontheintegrityoftheAuthorityorthecommitteeinquestion.

(7) TheBoardmayonly so remove amemberof a committee from thecommitteeaftergivingwrittennoticetothatmemberandafteraffordingthememberareasonableopportunitytobeheard.

(8) TheBoardmaysuspendamemberofthecommitteefromthecommitteewithoutcomplyingwithsubsection(7),iftheBoardissatisfiedthatthememberisguiltyofdishonesty,grossmisconductorotherunbecomingorinappropriateconductsuchthatitisnecessarytoactexpeditiouslyinordertoprotecttheintegrityoftheAuthorityorthefinancialsysteminNamibia,buttheBoardmustgivenoticetothememberassoonaspracticablethereafterandconsideranyrepresentationsmadebythememberonthematter.

(9) TheBoardmayatanytimedissolveorreconstituteacommittee.

(10) TheBoardisnotdivestedorrelievedofapowerorfunctionwhichhasbeendelegatedorassignedtoacommittee.

(11) Adecisionbyacommitteeintheexerciseofapowerdelegatedtothecommittee,issubjecttoapprovalbytheBoard,andtheBoardmayatanytimevaryorsetasidethedecision.

(12) Sections11,16(2)and(3)and17(3)to(7)and(10)to(13),withthechangesrequiredbythecontext,applytomembersofacommitteewhoarenotmembersoftheBoard.

(13) ThepersonpresidingatameetingofacommitteemustcausearecordoftheminutesoftheproceedingsofthemeetingtobekeptandmustcausethatrecordtobesubmittedtotheBoardassoonaspossibleafterthemeeting.

(14) TheBoardmaymake rules, not inconsistentwith rulesmade undersection23,toregulatetheprocedurestobefollowedatmeetingsofacommittee.

Advisory committee

20. (1) TheBoardmustestablishanadvisorycommitteewhichmustperformfunctionsinaccordancewiththeprovisionsofthisAct.

(2) TheadvisorycommitteeconsistsofatleastonememberoftheBoardandnotlessthanfourothermembersappointedbytheBoardwhoare-

(a) nominatedbyindustryassociationsandself-regulatoryorganisations;and

(b) personsrepresentativeofconsumersoffinancialservices.

(3) The chief executive officer is amember of the advisory committee,butdoesnothavevotingpoweronmattersonwhichthechiefexecutiveofficeristobeadvisedbythecommittee.

(4) TheBoardmustappointachairpersonoftheadvisorycommitteewhomustbeamemberoftheBoardandthemembersoftheadvisorycommitteemust,attheirfirstmeeting,electfromtheirnumberavice-chairpersonofthecommittee.

(5) Amemberof theadvisorycommittee,other than thechiefexecutiveofficer,holdsofficeforthreeyearsand,attheexpirationofthatperiod,iseligibleforre-appointment.

(6) If, on the expiry of the term of office of amember of the advisorycommittee,are-appointmentofthememberhasnotbeenmadeoranewmemberhasnotbeenappointed, the formermembermay, at the requestof theBoard, remain inofficeuntilthere-appointmentornewappointment.

(7) TheBoardmay, ongood cause shown, bynotice inwriting removea member of the advisory committee on the grounds of misconduct, incapacity orincompetenceafterhavinggiventhememberareasonableopportunitytobeheard.

(8) TheBoardmaysuspendamemberoftheadvisorycommitteefromtheadvisory committeewithout complyingwith subsection (7), if theBoard is satisfiedthat the member is guilty of dishonesty, gross misconduct or other unbecoming orinappropriateconductsuchthatitisnecessarytoactexpeditiouslyinordertoprotecttheintegrityoftheAuthorityorthefinancialsysteminNamibia,buttheBoardmustgivenoticetothememberassoonaspracticablethereafterandconsideranyrepresentationsmadebythememberonthematter.

Meetings of advisory committee

21. (1) Theadvisorycommitteemay,afterconsultationwiththeBoard,meetorotherwisearrangefortheperformanceofitsfunctionsandregulateitsmeetings.

(2) Thechairpersonoftheadvisorycommitteemayatanytimeconveneanextraordinarymeetingoftheadvisorycommitteetobeheldatadate,timeandplacedeterminedbythechairperson.

(3) Amajorityofthemembersoftheadvisorycommittee,oneofwhommustbeamemberof theBoard,constitutesaquorumforameetingof theadvisorycommittee.

(4) Thedecisionofamajorityofthemembersoftheadvisorycommitteepresentat anymeeting thereof is thedecisionof theadvisorycommittee,and in thecaseofanequalityofvotes,thechairpersonhasacastingvoteinadditiontohisorherdeliberativevote.

Functions of advisory committee

22. (1) The advisory committee must, at the request of the Board,investigateandreportoradviseonanypolicy,administrative,technicalorsupervisorymattersconcerningfinancialinstitutions,financialintermediariesandfinancialservices.

(2) The advisory committeemust advise theBoard on any othermatterreferredtoitbytheBoard.

(3) Theadvisorycommitteemayappointanexpertorsuchotherpersonasitmayconsidernecessarytoassistit,ortoinvestigatemattersrelatingtofinancialinstitutions,financialintermediariesorfinancialservices.

(4) The advisory committee may appoint one or more subcommittees,whichmayperformsuchfunctionsoftheadvisorycommitteeastheadvisorycommitteemaydetermine.

(5) Asubcommitteeconsistsofasmanymembersoftheadvisorycommitteeorasmanyotherpersonsastheadvisorycommitteeconsidersnecessary,butatleastonememberofasubcommitteemustbeamemberoftheadvisorycommittee.

(6) The advisory committeemay at any time dissolve or reconstitute asubcommittee.

(7) The advisory committeemust designate one of themembers of thesubcommitteeaschairperson,and if thechairperson isabsent fromameetingof thesubcommittee,thememberspresentmustfromtheirnumberelectapersontopresideatthemeeting.

(8) Officers or employees of the Authority designated by the chiefexecutiveofficermustperformtheadministrativeworkincidentaltotheperformanceofthefunctionsoftheadvisorycommitteeanditssubcommittees.

(9) Theadvisorycommitteemaymakerulesregardingthemannerinwhichmeetingsofasubcommitteearetobeconvened,theprocedureat,thefunctionsof,andthequorumsforthosemeetings,andthemannerinwhichminutesofthosemeetingsmustbekept.

Rules of Board

23. The Board may make rules, not inconsistent with thisAct and theFinancialInstitutionsandMarketsAct,theMicrolendingActandanyotherapplicablefinancialserviceslaw,relating-

(a) tothemannerinwhichitsmeetingsandmeetingsofanycommitteearetobeconvened,theprocedureatandthequorumforthemeetingsandthemannerinwhichminutesofthosemeetingsmustbekept;

(b) to themanagement of the affairs of theAuthority and the effectiveexecutionofitsfunctions;

(c) totheprovisionofsafetymeasuresforstaffmembersintheperformanceoftheirdutiesandfunctions;

(d) tostaffrulesofconductanddisciplinarymatters;

(e) tothesigningauthorityofseniormanagement;and

(f) generally, toanymatterwhich theBoardmayconsidernecessaryorexpedienttoregulateinordertoachievetheobjectsoftheAuthority.

Disclosure of interest

24. (1) A member or an alternate member of the Board or of acommitteeoftheBoardwhohasadirectorindirectfinancialorpersonalinterest,thatislikelytoimpairthemember’sobjectivityintheexerciseorperformanceofhisorherpowersorfunctionsasamemberoftheBoardorcommittee-

(a) inacontractorproposedcontractwiththeAuthority;or

(b) inamatterbeingconsideredorproposedtobeconsideredbytheBoardoracommitteeof theBoardofwhich theperson isamemberoranalternatemember;

must,assoonasispracticableaftertherelevantfactshavecometotheattentionofthememberoralternatememberoftheBoardormemberofthecommitteeoftheBoard,disclosethenatureoftheinterestatameetingoftheBoardorofthecommitteeoftheBoard,asthecasemaybe.

(2) WhereamemberoranalternatememberoftheBoardorofacommitteeof theBoardhas an interest referred to in subsection (1) solely in the capacityof ashareholderofacompanylistedonanexchangeasdefinedinsection78oftheFinancialInstitutionsandMarketsAct,anddoesnotcontrol,directlyorindirectlymorethanfivepercentofthesharesofthatcompany,subsection(1)doesnotapplytothatmemberoralternatemember.

(3) Adisclosuremadeundersubsection(1)mustberecordedintheminutesofthemeetingatwhichitismade.

(4) Whenamemberhasmadeadisclosureundersubsection(1),theothermembersoftheBoardoracommitteeoftheBoardmust-

(a) in the absence of thatmember, discuss the nature of the interest onwhichamemberhasmadethedisclosure;and

(b) determine whether the interest is likely to impair the member’sobjectivity in the exercise or performance of his or her powers orfunctionsasamemberoftheBoardorofacommitteeoftheBoard.

(5) IfthemembersoftheBoardoracommitteeoftheBoarddeterminethattheinterestofthememberislikelytoimpairthemember’sobjectivityintheexerciseorperformanceofhisorherpowersor functionsasamemberof theBoardorof acommitteeoftheBoard,thatmember-

(a) may not take any further part in any consideration or discussion ordecisionrelatingtoorinconnectionwithofthe-

(i) contract,proposedcontractorothermatter;

(ii) futureadministration,oroversightovertheadministration,ofthecontractorothermatter;

(b) maynottakepartinanyvoteonthecontract,proposedcontractorothermatter;

(c) maynotbecountedforthepurposesofaquorum;and

(d) must absent himself or herself from the proceedings concerning thecontractormatterinwhichheorshehasaninterest.

(6) Apersonwhomakesafullandaccuratedisclosureundersubsection(1)andwhocomplieswithsubsection(5)isnotinbreachofanydutyowedbythatperson

totheBoardoranycommitteeoftheBoardbyreasonoftheinterestofthepersoninthecontract,proposedcontractorothermatteraboutwhichthedisclosurewasmade.

(7) Apersonwhocontravenesor fails to complywith subsection (1)or(5)commitsanoffenceandisliableonconvictiontoafinenotexceedingN$200000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Remuneration of Board and committee members

25. (1) AmemberoranalternatememberoftheBoardandamemberofacommitteeoftheBoardoroftheadvisorycommittee,whoisnotinthefulltimeemploymentoftheStateisentitledtobepaidoutofthefundsoftheAuthority,suchremunerationorallowancesinrespectofhisorherserviceasamember,astheMinistermay,subjecttosection22(1)ofthePublicEnterprisesGovernanceAct,determineinrespectofthechairpersonandothermembers.

(2) Allowances or other remuneration determined under subsection (1)maydifferaccordingtothedifferentofficesheldorfunctionsperformedbymembersoranalternatememberoftheBoardorofamemberofacommitteeoroftheadvisorycommittee.

Chief executive officer

26. (1) The Board, with the approval of the Minister and on suchtermsandconditionsastheBoardmaydetermine,must,subjecttosection9,appointasuitablyqualifiedpersontobethechiefexecutiveofficeroftheAuthority,whomust,inaccordancewiththepoliciesanddirectionsoftheBoard,beresponsibleforthedailymanagementandadministrationoftheAuthority,andforensuringthattheobjectsandfunctionsoftheAuthorityarecarriedoutanditspowersexercisedappropriately.

(2) Apartfrommattersdealtwithinsections10and27,directionsofthetypereferredtoinsubsection(1)mayspecifythataparticularfunctionorcategoryoffunctions-

(a) maynotbeperformedbythechiefexecutiveofficerwithoutthepriorapprovaloftheBoard;

(b) maybeperformedby the chief executiveofficer in accordancewithguidelinesissuedbytheBoard;or

(c) maybeperformedbythechiefexecutiveofficerinhisorherdiscretion.

(3) Apersonappointedaschiefexecutiveofficerholdsofficeforaperiodoffiveyearsand,attheexpirationofthatperiod,iseligibleforre-appointment.

(4) ThechiefexecutiveofficeristheaccountingofficeroftheAuthority.

(5) The chief executive officer may at any time resign from office bysubmittingawrittenresignationtotheBoardandtheMinisterat leastthreecalendarmonthsbeforetheintendeddateofvacationofoffice,unlesstheBoardandtheMinisterallowashorterperiod.

(6) TheBoard,withtheapprovaltheMinisterandafterhavinggiventhechiefexecutiveofficerareasonableopportunitytobeheard,maybynoticeinwritingremovethechiefexecutiveofficerfromofficeonthegroundsofmisconduct,incapacity,incompetence or failure to comply with a provision of the performance agreementreferredtoinsection29.

(7) TheBoard,withtheapprovaloftheMinister,maysuspendthechiefexecutiveofficerwithoutcomplyingwithsubsection(6),iftheBoardissatisfiedthatthechiefexecutiveofficerisguiltyofdishonesty,grossmisconductorotherunbecomingorinappropriateconductsuchthatitisnecessarytoactexpeditiouslyinordertoprotecttheintegrityoftheAuthorityorthefinancialsysteminNamibia,buttheBoardmustgivenoticetothechiefexecutiveofficerassoonaspracticablethereafterandconsideranyrepresentationsmadebythechiefexecutiveofficeronthematter.

(8) Theofficeof thechiefexecutiveofficerbecomesvacant if thechiefexecutiveofficer-

(a) becomessubjecttoadisqualificationreferredtoinsection9;

(b) resignsfromofficepursuanttosubsection(5);

(c) isremovedfromofficepursuanttosubsection(6);or

(d) is foranyreasonunable toperformhisorher functionsforaperiodexceedingfourmonths.

(9) Iftheofficeofthechiefexecutiveofficerbecomesvacantasaresultofthehappeningofaneventreferredtoinsubsection(8)orasuspensionundersubsection(7), theBoard,withtheapprovaloftheMinister,mustdesignateanemployeeoftheAuthorityorothersuitableindividualtoactasinterimchiefexecutiveofficer,untilanewchiefexecutiveofficerisappointedpursuanttosubsection(10)or(11).

(10) Subjecttosubsection(11),ifthereisavacancy,anewchiefexecutiveofficermustbeappointedpursuanttosubsection(1)assoonaspossible,andnotlaterthansixmonthsorsuchextendedperiodthattheMinistermayallowwhichperiodintotalmustnotexceed12months,afterthevacancyarises.

(11) If, as requiredby subsection (10), a newchief executive officer hasnotbeenappointedpursuanttosubsection(1)withintheperiodofsixmonthsor theextended period referred to in subsection (10), theMinistermust appoint a suitablyqualifiedpersonaschiefexecutiveofficer.

Functions and powers of chief executive officer

27. (1) The chief executive officer is responsible for the day-to-dayoperations of theAuthority and, without limiting the generality of the forgoing, isresponsibleforensuringthat-

(a) theoperationsoffinancialinstitutionsandfinancialintermediariesareproperlymonitoredandthattheprovisionsoftheFinancialInstitutionsand Markets Act, the Microlending Act and any other applicablefinancialserviceslawsareconsistentlyapplied;

(b) subject to section 10(2)(b), the Authority, having due regard todomesticcircumstances,adoptsandmaintainssupervisorypoliciesandproceduresthataregenerallyinaccordancewithinternationalstandardsoffinancialsupervision,asmaybeestablishedfromtimetotimebytherelevant international standard setting bodies, and that such policiesandproceduresaremadepublic;

(c) theAuthorityemployssuchqualifiedpersonsasarerequiredtocarryout theprovisionsof thisAct, theFinancial InstitutionsandMarketsAct,theMicrolendingActandanyotherapplicablefinancialserviceslaw,andprovidesadequatetrainingforsuchemployees;

(d) subjecttosection10(2)(d)and(e),theremunerationstructureandotherconditionsofserviceofallstaffoftheAuthorityareappropriate;

(e) theemployeesoftheAuthorityadheretothecodeofconductreferredtoinsection10(2)(j);

(f) theemployeesoftheAuthorityfollowhighstandardsofprofessionalconduct;and

(g) the employees of the Authority apply policies and procedures thatsafeguard information the confidentiality of which is protected bysection55.

(2) Thechiefexecutiveofficermust,subjecttotheapprovaloftheBoard,establish a code of conduct containing acceptable ethical standards and conflict ofinterest guidelines applicable to theBoardmembers, the chief executive officer andtheemployeesoftheAuthority,reviewandifappropriaterevisethecodeofconductatleastonceeverytwoyears,andsubmitacopyofthatcodeofconductandanyrevisionstheretototheBoardforitsreviewandapproval.

(3) Thechiefexecutiveofficermust,within90daysbeforetheendofthefinancialyearoftheAuthorityreferredtoinsection34,prepareandsubmittotheBoardforapproval-

(a) thebusinessandfinancialplancontemplatedinsection19ofthePublicEnterprises Governance Act for the following year, including theoperationalobjectivesandadetailedlistingofestimatedincomeandexpenditures,togetherwithanexplanationofmajorvariancesthatmayhaveoccurredwith respect to thebusinessandfinancialplanfor thepreviousyearwhencomparedtoactualincomeandexpenses;and

(b) a review of and report on the operations of the Authority for thepreviousyear,includingtheaccomplishmentsoftheAuthorityinlightoftheobjectivesthatwereestablishedbytheBoardforthatyear.

(4) Ateachquarterlymeeting,thechiefexecutiveofficermustupdatetheBoardonthecurrentandemergingissuesbeingconsideredbytheAuthorityandmustreceivetheBoard’scommentsandsuggestionsthereon.

(5) In addition to any powers granted elsewhere in thisAct, the chiefexecutiveofficerhasthepowerto-

(a) outsource supervisory functions to outside parties, subject to theBoard’sagreement,andtheapprovaltheMinister,aslongasthereareadequate arrangements in place to assess their competence,monitortheirperformanceandensurecompliancewithappropriatestandardsofconfidentialityandindependence;

(b) requestsuchinformationfromanypersonwhoorentitythatissubjecttothisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingAct or any other applicable financial services lawor any employee,officer,director,partner,auditororvaluator,shareholderorotherownerof thatpersonorentityasmay, in theopinionof thechiefexecutiveofficer,berequiredtoadministerthisAct,theFinancialInstitutionsandMarketsAct, theMicrolendingAct or anyother applicablefinancialserviceslaw;

(c) retainsuchoutsideadvisors,auditorsandvaluatorsasmayberequiredtoproperlyadministertheprovisionsofthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw,subjecttothesameconfidentialityrequirementsastheyapplytotheemployeesoftheAuthority;

(d) make recommendations to the Board, after any appropriateconsultations,withregardtoanylegislation,includingregulationsorstandards necessary or desirable to properly supervise the financialinstitutionsandmarketssector,inkeepingwithstandardsandprinciplesestablishedbytherelevantinternationalstandardsettingbodies;

(e) makesuchadministrativearrangementsasthechiefexecutiveofficerconsidersnecessaryfortheoperationaleffectivenessoftheAuthority,including,withoutlimitingthegeneralityoftheforegoing,establishingbankaccounts,arrangingforpremises,purchasingmaterials,obtaininginformationtechnologyandotherservices;and

(f) subject to any conditions that the chief executive officer considersappropriate, delegate or assign in writing to any employee of theAuthoritytheexerciseofanypowerortheperformanceofanydutythatthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslawconfersonorassignstothechiefexecutiveofficer,andallactsdoneordecisionsmadeunderthedelegationareasvalidasifdoneormadebythechiefexecutiveofficer.

(6) In connectionwith the annual report referred to in section 10(2)(h),thechiefexecutiveofficermustattendameetingormeetingswithrepresentativesoffinancialinstitutionsandfinancialintermediariesinordertoexplainthecontentsofthereport.

Staff of Authority

28. (1) Subjecttosection22(3)ofthePublicEnterprisesGovernanceAct,theBoardmayontherecommendationofthechiefexecutiveofficerandonsuchremunerationandconditionsofserviceapprovedbytheBoardintermsofsection10(2)(d)and(e),appointasemployeesoftheAuthority,suchpersonsasitconsidersnecessary

inordertoassisttheAuthoritywithallsuchworkasmayarisethroughtheexerciseandperformanceofitspowers,dutiesandfunctionsintermsofthisAct.

(2) AnofficeroremployeewholeavestheemploymentoftheAuthoritymaynotrepresentanypersoninanymatterpendingbeforetheAuthorityifthatofficeroremployeehasperformedanysignificantfunctioninrelationtothatmatter.

(3) TheBoardandtheMinistermayconcludeanagreementwherebystaffmembersinthepublicservicewhosedutiesrelatetothefunctionsoftheAuthoritymaybetransferredtotheAuthorityundersuchconditionsasarecontainedintheagreementinquestion.

(4) A person who contravenes or fails to comply with subsection (2)commits an offence and is liable on conviction to a fine not exceedingN$200 000or to imprisonment for a period not exceeding five years, or to both such fine andimprisonment.

Performance agreements with members of senior management

29. The Board must, within such time as may be determined by theBoard,enterintotheperformanceagreementcontemplatedinsection21ofthePublicEnterprisesGovernanceActwith-

(a) thechiefexecutiveofficer;and

(b) theothermembersofseniormanagementoftheAuthority.

Co-operation with other agencies and organisations

30. (1) TheAuthoritymay-

(a) enter into an arrangement or agreement with any other agency ororganisationwithinNamibia;or

(b) with the approval of the Minister, enter into an arrangement oragreementwithanyotherinstitutionororganisation,outsideNamibia,

that has any function related to the regulation or supervision of financial services,taxation,socialsecurityorfinancialsystemsoranyothermatterrelevanttotheobjectsoftheAuthority.

(2) Arrangementsandagreementsreferredtoinsubsection(1)mayincludeprovisionfortheexchangeofinformationbetweentheAuthorityandsuchotheragencyororganisationandtherenderingofassistancetothatagencyororganisation,subjectalways to the agency or organisation having in place provisions satisfactory to theAuthoritywithregardtothesafeguardingofconfidentialinformation.

PART 4FINANCIAL MATTERS

Funds of Authority

31. (1) ThefundsoftheAuthorityconsistof-

(a) money standing to the credit of theAuthority having accrued to theAuthorityunderthelawrepealedbysection61;

(b) moneyraisedasfees,andinterestonunpaidfees,inrespectofservicesrenderedbytheAuthorityintheperformanceofitsfunctions;

(c) leviesimposedonfinancialinstitutionsundersection32,andinterestonunpaidlevies;

(d) fees,chargesandanymoneypayabletotheAuthorityintermsoftheFinancial Institutions andMarketsAct, theMicrolendingActor anyotherapplicablefinancialserviceslaw;

(e) surplusmoneyreferredtoinsection437(12)oftheFinancialInstitutionsandMarketsAct;

(f) any financial penalty payable to the Authority pursuant to section439(4)(g)oftheFinancialInstitutionsandMarketsAct;

(g) moneyaccruing to theAuthoritybywayofanydonationorbequestreferredtoinsection4(2)(h);

(h) moneyborrowedbytheAuthorityundersection4(2)(i);and

(i) moneyreceivedbytheAuthorityfromanyothersource.

(2) TheAuthoritymustutilise its fundsfor thedefrayalof thecostsandexpendituresof theAuthority, thecommitteesof theAuthorityand theOfficeof theAdjudicatorintheperformanceoftheirfunctions,andinfurtheranceoftheobjectsoftheAuthority.

(3) TheAuthoritymustopenanaccountwithaninstitutionregisteredasabankinginstitutionasdefinedinsection1oftheBankingInstitutionsAct,1998(ActNo.2of1998)orabuildingsocietyasdefinedinsection1oftheBuildingSocietiesAct,1986(ActNo.2of1986),andmustdepositinthataccountallmoneysreferredtoinsubsection(1),exceptthattheAuthoritymaycontinuetouseanyaccountopenedbyitintermsofsection9(4)ofthelawrepealedbysection61.

(4) TheAuthoritymayinvestmoneydepositedundersubsection(3)whichisnotrequiredforimmediateuseinaccordancewiththeinvestmentpolicy,standardsandproceduresoftheAuthorityreferredtoinsubsection(7),exceptthattheAuthoritymustestablishareserveaccountanddepositintothatreserveaccountfromtimetotimeanamountofsuchmoneyssufficienttomeettheobjectsofsubsection(5).

(5) Theobjectsofthereserveaccountestablishedpursuanttosubsection(4)aretoprovideforthedefrayalof-

(a) unforeseencostsandexpendituresinconnectionwiththeitemsreferredtoinsubsection(2);and

(b) otherunforeseencostsandexpendituresnotreferredtoinsubsection(2),butwhichmayarisefromtimetotime.

(6) TheBoardmustdeterminetheamountstobeheldinthereserveaccountandmayauthorisethedefrayalofcostsandexpendituresfromthataccount.

(7) The Board, with the prior approval of the Minister, must establishaninvestmentpolicy,standardsandproceduresforthepurposesoftheinvestmentofmoneysreferredtoinsubsection(4).

(8) TheBoardmustsubmittotheMinisterforpriorapprovalanyproposedchangestotheinvestmentpolicy,standardsandproceduresreferredtoinsubsection(7).

(9) TheBoardmusttakeallreasonablestepstoensurethattheprovisionsoftheinvestmentpolicy,standardsandproceduresareobserved.

Levies

32. (1) TheAuthoritymay,afterconsultationwithfinancialinstitutionsorfinancial intermediariesconcernedandsubject to theapprovalof theMinister,bynoticeintheGazetteimposeleviesonfinancialinstitutionsandfinancialintermediaries.

(2) Inthenoticereferredtoinsubsection(1),theAuthority-

(a) mustdetermine-

(i) theamountsof the leviesreferred to insubsection(1)or thebasisormannerofdeterminingtheamounts;

(ii) the periods in respect of which the levies referred to insubsection(1)areimposed,thedatesonwhichortheperiodswithin which those levies are payable, and the manner ofpayment;

(iii) theratesofinterestandthemannerofcalculatingtheinterestcontemplatedinsubsection(4);

(iv) themannerinwhichapplicationsforexemptionsreferredtoinsubsection(10)mustbemade;and

(v) themanner inwhich a notice in termsof subsection (11)(b)mustbeserved;

(b) mayimpose,inrespectofdifferentfinancialinstitutionsandfinancialintermediaries,differentcategoriesoffinancialinstitutionsandfinancialintermediaries and different subcategories of a specific category offinancialinstitutionsandfinancialintermediaries-

(i) differenttypesoflevies;and

(ii) differentamountsoflevies;

(c) must determine, in respect of different financial institutions andfinancial intermediaries, different categories of financial institutionsandfinancial intermediaries anddifferent subcategories of a specificcategoryoffinancialinstitutionsandfinancialintermediaries-

(i) thebasisormannerofdeterminingtheamountsoftheleviesreferredtoinparagraph(b);

(ii) theperiodinrespectofwhichtheleviesreferredtoinparagraph(b)areimposed,thedatesonwhichortheperiodswithinwhichthoseleviesarepayable,andthemannerofpayment;

(iii) theratesofinterestandthemannerofcalculatingtheinterestcontemplatedinsubsection(4);

(iv) themannerinwhichapplicationsforexemptionsreferredtoinsubsection(10)mustbemade;and

(v) themanner inwhich a notice in termsof subsection (11)(b)mustbeserved.

(3) Beforeimposingtheleviesreferredtoinsubsection(1),theAuthoritymustpublishtheproposedleviesandtheperiodwithinwhichordateonwhichtheymustbepaid,intheGazette andinsuchmannerasmaybeappropriateinordertobringtheproposedleviestotheattentionofthefinancialinstitutionsorfinancialintermediariesinquestion,togetherwithastatementthatrepresentationsontheproposedleviesmaybemadetotheAuthoritywithinthetimeperiodspecifiedinthenoticewhichperiodmaynotbelessthan30daysfromthedateofthenotice.

(4) Afinancialinstitutionorfinancialintermediarywhichissubjecttotheimpositionofalevypursuanttosubsection(1),isliableforthepaymentofthatlevy,andifitfailstopaythelevyinfullwithintheperiodoronthedateforpaymentstatedinthenoticeit-

(a) must pay interest on the balance of the levy outstanding at the ratedeterminedinaccordancewithsubsection(2)(a)(iii)or(c)(iii);or

(b) may be liable to have its registration cancelled or, subject to suchconditionsastheAuthoritymayimpose,suspended.

(5) Afinancialinstitutionorfinancialintermediarywhichisliabletopayalevypursuanttothissectionmust,withintheperiodspecifiedinthenoticereferredtoinsubsection(1),calculatetheamountoflevywhichthatfinancialinstitutionorfinancialintermediary is liable to pay, andpayover the amount of levydue to theAuthoritywithinthetimeperiodspecifiedinthenotice.

(6) If theAuthority does not agree with the calculation of the amountof the levy due and payable by a financial institution or financial intermediary, theAuthoritymustnotify thefinancial institutionorfinancial intermediary inwritingofthedifference in thecalculationand the reasons for thedifference,and thefinancialinstitutionorfinancialintermediarymayobjecttotheAuthority’scalculationofthelevydueandpayablebythatfinancialinstitutionorfinancialintermediary,andmaymakerepresentationsinwritingtotheAuthoritywithinaperiodof21daysafterreceiptofthenotificationfromtheAuthority.

(7) The Authority must consider any representations made pursuantto subsection (6), if any, and, inwriting, notify the financial institution or financialintermediary-

(a) oftheAuthority’sfinaldecisionwithrespecttothecalculationofthelevyandtheperiodwithinwhichthelevyandanyinterestchargedascontemplatedinsubsection(4)(a)afterthecalculationbytheAuthoritymustbepaid;and

(b) thatifthefinancialinstitutionorfinancialintermediarydoesnotagreewiththeAuthority’scalculation,itmayappealagainsttheAuthority’sdecisiontotheAppealBoardwithintheprescribedperiod.

(8) If a financial institution or financial intermediary fails to calculatethelevyasrequiredbysubsection(5),theAuthoritymaycalculatethelevywhichthefinancial institution or financial intermediary is liable to pay, and bywritten noticeaddressedtothefinancialinstitutionorfinancialintermediary-

(a) informthefinancialinstitutionorfinancialintermediaryconcernedofthelevydueandpayablebyit;

(b) direct thefinancial institutionorfinancial intermediary concerned topaytotheAuthoritythelevyandanyinterestchargedascontemplatedinsubsection(4)(a)withintheperiodspecifiedinthenotice;and

(c) informthefinancialinstitutionorfinancialintermediaryconcernedthatifitdoesnotagreewiththecalculationoftheamountoflevybytheAuthority,itmayappealagainsttheAuthority’sdecisiontotheAppealBoardwithintheprescribedperiod.

(9) Ifafinancialinstitutionorfinancialintermediary-

(a) fails to pay the levy and any interest charged as contemplated insubsection(4)(a)withintheperiodspecifiedinthenoticereferredtoinsubsection(1),andtheAuthorityhasnotdisagreedwiththecalculationofthelevypursuanttosubsection(6);

(b) fails to pay the levy and any interest charged as contemplated insubsection(4)(a)withintheperiodspecifiedinthenoticereferredtoinsubsection(7)(a),andthefinancialinstitutionorfinancialintermediaryhasnotappealedagainst thedecisionof theAuthority to theAppealBoardwithintheperiodreferredtoinsubsection(7)(b);

(c) fails to pay the levy and any interest charged as contemplated insubsection(4)(a)within theperiodspecified in thenoticereferred toinsubsection(8),andthefinancialinstitutionorfinancialintermediaryhasnotappealedagainst thedecisionof theAuthority to theAppealBoardwithintheperiodreferredtoinsubsection(8)(c);or

(d) appeals to theAppealBoardascontemplated in subsection (7)(b)or(8)(c),buttheappealhasbeendismissedinwholeorinpart,andthefinancialinstitutionorfinancialintermediaryfailstopaythelevyandany interest charged as contemplated in subsection (4)(a)within theperiodspecifiedbytheAppealBoard,

theAuthoritymay,intheprescribedmanner,filewiththeclerkorregistrarofacompetentcourtastatementoftheamountoutstandingandthestatementthereuponhastheeffectofaciviljudgmentlawfullygiveninthatcourtinfavouroftheAuthority.

(10) TheAuthority may, on the application of a financial institution orfinancial intermediary in the prescribed manner and if theAuthority considers thattherearesound reasons fordoingso,bynoticeservedon thefinancial institutionorfinancialintermediaryconcernedandpublishedintheGazette,grantanexemptiontothatfinancialinstitutionorfinancialintermediaryfromthelevyreferredtoinsubsection(1)orfromaprovisionrelatingtothelevyreferredtoinsubsection(2),totheextentofandsubjecttotheconditionsdeterminedbytheAuthority,exceptthatsuchexemptioncannotbegrantedretrospectively.

(11) TheAuthoritymaywithdrawor amend an exemption granted undersubsection(10)if-

(a) theAuthorityfindsthatthefinancialinstitutionorfinancialintermediaryconcernedhascontravenedaprovisionof,orhasfailedtocomplywith,aconditiondeterminedbytheAuthorityundersubsection(10),orhasotherwiseactedcontrarytotheexemption;and

(b) theAuthorityhasservedawrittennoticetothateffectonthefinancialinstitution or financial intermediary concerned and published suchnoticeintheGazette.

(12) TheAuthoritymust, beforewithdrawing or amending an exemptionpursuant to subsection (11), give the financial institution or financial intermediaryconcerned,areasonableopportunitytobeheard.

(13) Apersonwho-

(a) continuestooperate,orengagein,thebusinessofafinancialinstitutionor financial intermediary after the cancellation or suspension ofregistrationunder,subsection(4)(b);or

(b) fails to comply with a condition imposed by the Authority undersubsection(4)(b),

commitsanoffenceandisliableonconvictiontoafinenotexceedingN$5000000ortoimprisonmentforaperiodnotexceeding10years,ortobothsuchfineandimprisonment.

33. (1) TheAuthoritymay,afterconsideringanyrepresentationmadeundersubsection(2),determine-

(a) thosemattersinrespectofwhichfeesarepayableunderthisAct,theFinancialMarkets and InstitutionsAct, theMicrolendingActor anyotherapplicablefinancialserviceslaw;

(b) theamountofthefeepayableinrespectofeachsuchmatter;

(c) the persons by whom the fees must be payable and the manner ofpayment;and

(d) wherenecessary,thepaymentofinterestonoverduefees.

(2) Beforemakingadeterminationwithrespecttofeesundersubsection(1),theAuthoritymustpublishinformationabouttheproposedfeesthroughanoticeintheGazetteandinsuchmannerasmaybeappropriateinordertobringtheproposedfeestotheattentionofpersonswhomaybeaffectedthereby,togetherwithastatementthatrepresentationsontheproposedfeesmaybemadetotheAuthoritywithinthetimeperiodspecifiedinthenoticewhichperiodmaynotbelessthan30daysfromthedateofthenotice.

(3) AfeedeterminedbytheAuthorityundersubsection(1),oranychangetosuchfee,comesintoeffect30daysafterthedateofthenoticeannouncingthefinalfeeorwithinsuchextendedperiodasmaybedeterminedbytheAuthority,whichperiodmaynotexceed90daysfromdatethatthenoticewaspublishedintheGazette.

Financial year

34. ThefinancialyearoftheAuthorityendsonMarch31ofeachyear.

Accounting and auditing

35. (1) Thechiefexecutiveofficermustkeepfullandproperaccountsand records of allmoneys received or expended by theAuthority and of all assets,liabilitiesandfinancialtransactionsoftheAuthorityduringeachfinancialyearoftheAuthority.

(2) TheBoardmust-

(a) fromtheaccountsandrecordsreferredtoinsubsection(1),prepareorcausetobepreparedtheannualfinancialstatementsoftheAuthority;and

(b) cause the annual financial statements to be audited by an auditorappointedbytheAuthority,

ascontemplatedinsection10(2)(g).

(3) Theauditorreferredtoinsubsection(2)must,inaccordancewiththePublicAccountants’andAuditors’Act,andassoonasisreasonablypossible,preparetheauditedannualfinancialstatementoftheAuthority.

Annual financial statements and report

36. (1) TheBoardmust,inaccordancewithsection26ofthePublicEnterprisesGovernanceAct,submittotheMinisterinrespectofeachfinancialyearoftheAuthority,butnotmorethan-

(a) 90daysafter theendof thefinancialyear, in thecaseof theauditedannualfinancialstatementoftheAuthorityreferredtoinsection35(3);and

(b) 180daysaftertheendofthefinancialyear,inthecaseoftheannualreportreferredtoinsection10(2)(h),

thoseauditedfinancialstatementstogetherwithareportoftheauditorthereon,andthatannualreport.

(2) TheauditedfinancialstatementsoftheAuthoritymust-

(a) contain detailed particulars of moneys received by the Authorityandexpenditure incurredby theAuthorityduring, and its assets andliabilitiesattheendof,thefinancialyearinquestion;

(b) fairlypresenttheresultsofoperationsandthefinancialpositionoftheAuthority;and

(c) containsuchotheradditionalmattersastheMinistermaydirect.

(3) Withoutprejudicetosubsection(1),if,intheopinionoftheMinister,therearereasonablegroundsfordoingso,theMinistermaydirecttheAuditor-GeneraltoinvestigateintoandreportontheaccountsoftheAuthorityoranyothermatterrelatingtotheaffairsoftheAuthority,andtheAuthoritymustprovidetheAuditor-Generalwithalltheinformationandfacilitiesnecessaryforsuchinvestigation.

Contents of statements and report

37. Thefinancial statements and the annual report referred to in section36must,withoutprejudicetotherequirementsofsection26ofthePublicEnterprisesGovernanceAct-

(a) fairlypresentthestateofaffairsoftheAuthority,itsbusiness,financialresults and performance against predetermined objectives and itsfinancialpositionattheendofthefinancialyearconcerned;

(b) includeparticularsof-

(i) anymateriallossesthroughcriminalconductandanyirregularand wasteful expenditure that occurred during the financialyear;

(ii) anycriminalordisciplinary steps takenasaconsequenceofsuchlossesorirregularandwastefulexpenditure;

(iii) anylossesrecoveredorwrittenoff;and

(iv) anyothermatterthatmaybeprescribed;

(c) describe themajoroperationsandaccomplishmentsof theAuthorityduringthepreviousyear;

(d) subject to confidentiality considerations, provide information aboutanyproblemorfailedfinancialinstitutionsorfinancialintermediaries,aswell asother issues relevant to thefinancial institutions,financialintermediaries and the financial markets sector, together with theactionstakenbytheAuthorityinrespectthereof;

(e) describe theactivityandfinancialhealthof thefinancial institutions,financial intermediaries and the financialmarkets sector, using suchstandardsanddataastheBoardandthechiefexecutiveofficerconsiderappropriate;

(f) indicatecomplaintsaboutthebusinessconductoffinancialinstitutionsandfinancialintermediaries;and

(g) indicate exemptions granted under the Financial Institutions andMarketsAct,theMicrolendingActandanyotherapplicablefinancialservices law during the previous year and the reasons why suchexemptionsweregranted.

Tabling of statements and report

38. (1) The Minister must table with the National Assembly theauditedannualfinancialstatementsandtheannualreportreceivedpursuanttosection36(1)within30daysfromthedateofreceiptthereof,iftheNationalAssemblyistheninordinarysessionor,iftheNationalAssemblyisnottheninordinarysession,within30daysaftercommencementofitsnextordinarysession.

(2) The annual financial statements and the annual report referred to insubsection(1)formpartofthepublicrecord.

PART 5APPEAL BOARD

Appeal Board

39. (1) There is established anAppealBoard tohear anddetermineappealsmadetoitintermsofthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw.

(2) TheAppealBoardconsistsoffivemembers,appointedbytheMinister,whomustinclude-

(a) one ormore individualswith suitable knowledge and experience inlaw;and

(b) one or more individuals who, in the opinion of the Minister, havesufficient knowledge of, and experience in, the financial servicesindustry.

(3) TheMinistermustappointthechairpersonoftheAppealBoardfromthemembersoftheAppealBoardreferredtoinsubsection(2)(a).

(4) ThechairpersonoftheAppealBoard-

(a) isresponsibleformanagingthecaseloadoftheAppealBoard;

(b) may establish a panel, consisting of at least three suitably qualifiedmembersoftheAppealBoard,tohearaparticularappealandtomakearecommendationtotheAppealBoardwithrespecttoitsdecision;and

(c) must,where apanelhasbeen established in termsofparagraph (b),appoint a chairperson for that panel with suitable knowledge andexperienceinlawtopresideovertheproceedingsofthatpanel,andintheeventofanequalityofvotesontherecommendationtobemadeto

theAppealBoard,thatchairpersonhasacastingvoteinadditiontohisorherdeliberativevote.

(5) WhentheAppealBoardconsidersitnecessarythattheAppealBoardbeassistedbyapersonorpersonswhohaveexpertknowledgeofaparticularmatter,theAppealBoardmayappointapersonorpersonstoprovidetheAppealBoardwithexpertknowledge,butsuchpersonorpersonsdoesordonothavetherighttoparticipateinanydecisionoftheAppealBoard.

(6) AnyreferenceinthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherlawtotheAppealBoardortotheboardofappealmustbeconstruedasincludingareference,whereappropriate,toapanelreferredtoinsubsection(4)towhichanappealisorwasassigned.

(7) AllexpenditureincurredbytheAppealBoard,includingremunerationpayabletoAppealBoardmembers,mustbedefrayedoutof,orpaidoutfrom,publicfundsasdeterminedbytheMinister,andwithin90daysbeforetheendofthefinancialyear of theAuthority referred to in section 34, theAppealBoardmust prepare andsubmittotheMinisteraproposedbudgetforthefollowingyear.

Disqualification for appointment as member

40. ApersondoesnotqualifyforappointmentasamemberoftheAppealBoard,ifthatperson-

(a) isanunrehabilitatedinsolvent;

(b) isnotaNamibiancitizenor isnot lawfullyadmitted toNamibia forpermanentresidence;

(c) isactivelyengagedinthebusinessofafinancialinstitutionorfinancialintermediary,unlessthatpersonceasestoengageinthatbusinessbeforethedateoftheproposedappointment;

(d) isanoffice-bearerofanypoliticalparty,unlessthatpersonceasestobesuchanofficer-bearerbeforethedateoftheproposedappointment;

(e) isamemberofParliament,orofaregionalorlocalauthoritycouncil,unlessthatpersonceasestobesuchamemberbeforethedateoftheproposedappointment;

(f) has, during the period of 10 years immediately preceding the dateof commencement of thisAct, or at any time after that date, beenconvicted,whetherinNamibiaorelsewhere,oftheft,fraud,forgeryorperjury,anoffenceunderanylawoncorruptionoranyotheroffenceinvolvingdishonesty;

(g) hasunderanylawbeendeclaredtobeofunsoundmindorunderlegaldisability;

(h) hasbeenremovedfromanofficeoftrust;

(i) hasbeensanctionedbyanynationalorinternationalstatutoryregulatorybody for the contravention of a law relating to the regulation andsupervisionoffinancialinstitutionsorfinancialintermediaries;or

(j) isamemberoftheBoardoftheAuthorityorisanofficeroremployeeoftheAuthority,unlessthatpersonceasestobesuchamember,employeeorofficerbeforethedateoftheproposedappointment.

Term of office

41. Subjecttosection40,amemberoftheAppealBoardholdsofficeforaperiodofthreeyearsand,attheexpirationofthatperiod,iseligibleforre-appointment.

Vacation of office

42. (1) AmemberoftheAppealBoardvacatesoffice,ifthemember-

(a) becomessubjecttoadisqualificationreferredtoinsection40;

(b) resignsfromofficebywrittennoticetotheMinister;or

(c) isremovedfromofficebytheMinisterundersubsection(2).

(2) TheMinistermay,ongoodcauseshown,bynoticeinwritingremoveamemberoftheAppealBoardfromofficeonthegroundsofmisconduct,incapacity,incompetence or loss of confidence after having given the member concerned areasonableopportunitytobeheard.

(3) TheMinistermaysuspendamemberoftheAppealBoardfromofficewithoutcomplyingwithsubsection(2),iftheMinisterissatisfiedthatthememberisguiltyofdishonesty,grossmisconductorother seriousunbecomingor inappropriateconductsuchthatitisnecessarytoactexpeditiouslyinordertoprotecttheintegrityoftheAppealBoardorthefinancialsysteminNamibia,buttheMinistermustgivenoticetothememberassoonaspracticablethereafterandconsideranyrepresentationsmadebythememberonthematter.

(4) IfamemberoftheAppealBoarddiesortheofficeofamemberbecomesvacantasaresultofthehappeningofaneventreferredtoinsubsection(1),theMinistermay,withdueregardtosection40,appointapersontofillthevacancyfortheunexpiredportionofthetermofofficeofthememberconcerned.

(5) If, because of death, illness, resignation or of any other reason, amemberof theAppealBoardisunabletocompleteahearing, thechairpersonof theAppealBoard-

(a) maydirectthatthehearingofthatmatterproceedbeforetheremainingmembersoftheAppealBoard;or

(b) must, if the number of themembers hearing the appeal is less thanthree,terminatetheproceedingsbeforetheAppealBoard,whereupontheMinistermustforthwithappointapersontofillthevacancyontheAppealBoardpursuanttosubsection(4).

(6) IftheproceedingsbeforetheAppealBoardareterminatedintermsofsubsection(5)(b),thechairpersonmust,assoonastheMinisterhasappointedapersontofillthevacancypursuanttosubsection(4),ensurethattheAppealBoardconductsanewhearingoftheappeal.

Remuneration

43. Amemberof theAppealBoardwho isnot in full-timeemploymentof theState is entitled tobepaidoutof the funds referred to in section39(7), suchremuneration and allowances in respect of services rendered in that capacity, as theMinistermaydetermineinrespectofthechairpersonandothermembers.

Administration

44. The Minister must make arrangements for the performance of theadministrative and clerical work of theAppeal Board, including the designation orappointmentofasecretaryandothersupportstaff,thecostofwhichformspartofthebudgetreferredtoinsection39(7).

Right of appeal

45. (1) TheAppealBoardhasprimaryjurisdictionto-

(a) hear and determine any appeal brought to it under this Act, theFinancial Institutions andMarketsAct, theMicrolendingActor anyotherapplicablefinancialserviceslaw;

(b) makeadeclaratoryorderonapplicationmadetoitundersection51(3).

(2) Apersonaggrievedby-

(a) adecisionoftheAuthority,otherthanadecisiontakenwiththeapprovalof theMinister, in the performance of its regulatory or supervisoryfunctionsorexerciseofitsregulatoryorsupervisorypowersunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw;

(b) adecisionoftheclaimsofficerappointedintermsofsection161oftheFinancialInstitutionsandMarketsAct;or

(c) adecisionofanyotherpersonagainstwhichanappealliestotheAppealBoardunder thisAct, theFinancialInstitutionsandMarketsAct, theMicrolendingActoranyotherapplicablefinancialserviceslaw,

mayappealagainstthatdecisiontotheAppealBoard.

(3) AnappealmustbelodgedwiththeAppealBoardwithintheperiod,inthemannerandonpaymentofsuchfeesasmaybeprescribedbytheMinisterinrulespursuanttosubsection(5).

(4) The Appeal Board must hear an appeal on a date, at a time andplacedeterminedby the chairpersonof theAppealBoard, and the chairpersonmustaccordinglynotifytheappellantandtherespondentinwriting.

(5) TheMinister, with the concurence of theAppeal Board,maymakerulesrelatingto-

(a) the period within which an appeal to the Appeal Board against adecisionofarespondentmustbetaken;

(b) themannerinwhichsuchappealmustbemade;

(c) theconductofproceedingsbeforetheAppealBoardandtheproceduresto be followed by the Appeal Board, including matters relating tocondonationfornon-complianceandtheadmissibilityofevidence;

(d) witnesses, including payment of expenses and costs incurred bywitnesses,offencesbyorrelatingtowitnessesandothermattersrelatingtowitnesses;

(e) sittingsoftheAppealBoard;

(f) theintegrityoftheAppealBoardandmeasuresthatarenecessaryorexpedient to prevent theAppeal Board or a member of theAppealBoard from being insulted, disparaged or belittled or to prevent theproceedings orfindings of theAppealBoard frombeingprejudiced,influencedoranticipated;

(g) thefeespayablebytheappellant;and

(h) any other matter which the Minister considers necessary to ensureeffectiveandexpeditiousresolutionofmattersbeforetheAppealBoard.

(6) Rulesmadeundersubsection(5)maycreateoffencesforcontraventionsthereofandpenaltiesforsuchcontraventionswhichmaynotexceedafineofN$20000orimprisonmentforperiodsnotexceedingtwoyearsorbothsuchfineandimprisonment.

Procedure on appeal

46. (1) Subjecttoanyrulesmadeundersection45(5),thechairpersonoftheAppealBoardmustdeterminetheproceduretobefollowedatthehearingofanappeal.

(2) Withrespecttothehearingofanappeal,theAppealBoardmay-

(a) holdanoralhearing;

(b) determine thematter on thebasis of documentaryor other evidencepresentedtoitbytheparties;

(c) conductahearingusingelectronicorotherinformationcommunicationbasedtechnologyasmaybeprescribed;or

(d) invokeaprocedurethatcombinestwoormoreoftheformatsreferredtoinparagraphs(a)to(c).

(3) TheAppealBoardmustconductitshearingsinpublicexcept-

(a) wherethechairpersonexcludesaspecificpersonorgroupofpersonsfromthehearing;

(b) inthecircumstancescontemplatedinArticle12(1)(a)oftheNamibianConstitution;or

(c) wheretheexclusionisauthorisedintermsofanylaw.

(4) IfbeforeorduringthehearingofanappealitbecomesapparentthatamemberoftheAppealBoardhearingtheappealhasadirectorindirectinterestintheoutcomeofthatappeal,thatmembermust-

(a) immediatelyandfullydisclosetheinteresttotheothermembersoftheAppealBoarddesignatedtohearthematter;and

(b) withdrawfromthathearing.

(5) IfamemberoftheAppealBoardwithdrawspursuanttosubsection(4),thechairpersonoftheAppealBoardmay-

(a) direct that thematterproceedsbefore the remainingmembersof theAppealBoardhearingtheappeal;

(b) appointanothermemberoftheAppealBoardtothehearing.

(6) Theappellantandtherespondentareentitled,subjecttosection15(8)andsection28(2),toberepresentedatthehearingofanappealbyalegalpractitioneroranyotherperson.

(7) Anappealisdecidedontherecordofproceedingsthattookplacebeforetherespondentwhichrecordconsistsof-

(a) any oral, written or electronic evidence and factual information orthewrittenandelectronicdocumentationsubmittedtotherespondentpriortotherespondentmakingthedecisionwhichisthesubjectoftheappeal;and

(b) the decision of the respondent together with reasons given for thedecisionaswellasanyrepresentationswhichanypartymadeduringproceedingsbeforetherespondent.

(8) Subjecttosubsection(9),nootherevidenceorotherinformation,otherthan-

(a) theevidenceand informationcontained in the recordofproceedingsreferredtoinsubsection(7);and

(b) oralorwrittensubmissionsorrepresentationsasprescribedintherulesmadeundersection45(5),whichthepartieswishtheAppealBoardtotakeintoaccountindeterminingtheappeal,

maybesubmittedtotheAppealBoardbyapartytotheappeal.

(9) Despite subsection (8), thechairpersonof theAppealBoardmayonapplicationby-

(a) theappellant,ongoodcauseshown,allowotherevidenceorinformationinadditiontothatreferredtoinsubsection(7);and

(b) the respondent, on good cause shown, allow other evidence orinformationinadditiontothatreferredtoinsubsection(7),

tobesubmittedandintroducedintotherecordoftheappeal.

(10) Iffurtherevidenceorinformationisallowedintotherecordpursuanttosubsection(9),thechairpersonoftheAppealBoardmustreferthematterbacktotherespondentforreconsiderationandtheappealisdeferredpendingthefinaldecisionoftherespondent.

(11) If,aftertherespondenthasmadeafinaldecisionpursuanttosubsection(10),theappellantcontinueswiththeappealbygivingwrittennoticetothesecretaryoftheAppealBoard,therecordoftheappealmustincludeanyfurtheroralevidenceorfactualinformationproperlytranscribed,anyfurtherwrittenorelectronicevidenceorfactualinformationandanyfurtherevidenceorinformationallowedundersubsection(9),andthefurtherevidenceorinformationsubmittedtotherespondent.

(12) Forpurposesofallowingfurtheroralevidencepursuanttosubsection(9),theAppealBoardmay-

(a) summonanypersontoappearbeforeitatadate,timeandplacespecifiedinthesummons,tobequestionedortoproduceanydocument;

(b) retainforexaminationanydocumentsoproduced;and

(c) administeranoathtooracceptanaffirmationfromanypersoncalledasawitnessatanappeal.

(13) Apersonsummoned toprovideoralevidencepursuant tosubsection(12)isentitledtolegalrepresentationattheexpenseofthatperson.

(14) Thelawrelatingtoprivilege,asapplicabletoawitnesssummonedtogiveevidenceortoproduceabook,documentorthingbeforeacourtoflaw,applies,subjecttonecessarychangesrequiredbycontext,inrelationtoapersonsummonedtogiveevidencepursuanttosubsection(12).

(15) Apersongivingoralevidenceunder this sectionmaybe required toansweranyquestionput to thatpersonat thehearing,despite that theanswermightincriminatethatperson.

(16) Anincriminatinganswerdirectlyobtained,orincriminatingevidencedirectly derived from a hearing under this section is not admissible as evidence incriminalproceedingsinacourtagainstthepersongivingtheevidence,exceptincriminalproceedingswherethepersonischargedwithanoffencerelatingto-

(a) anoathoraffirmation;

(b) givingfalseevidence;

(c) makingafalsestatement;or

(d) deliberatefailuretoanswerquestionsfullyorsatisfactorily.

(17) Whereanypersongivingevidence in termsof theprovisionsof thissectionisobligedtoanswerquestionswhichmayincriminatehimorheror,whereheorsheistobetriedonacriminalcharge,theevidencemayprejudicehimorheratthetrial,theAppealBoardmayorderthatsuchpartofthehearingbeheldin cameraandthatnoinformationregardingsuchquestionsandanswersmaybepublishedinanymannerwhatsoever.

(18) Anypersonwhocontravenesorfailstocomplywithanyprovisionofanordercontemplatedinsubsection(17)commitsanoffenceandisliableonconvictiontothepenaltymentionedinsubsection(5)ofsection154oftheCriminalProcedureAct,1977(ActNo.51of1977).

(19) Anypersonwhohasbeendulysummonedundersubsection(12)(a)andwho,withoutsufficientcause-

(a) failstoappearatthedate,timeandplacespecifiedinthesummons;

(b) failstoremaininattendanceuntilexcusedbytheAppealBoardfromfurtherattendance;

(c) refuses to take the oath or tomake an affirmation as referred to insubsection(12)(c);

(d) failstoanswerfullyandsatisfactorilyanyquestionlawfullyputtotheperson;or

(e) failstofurnishinformationortoproduceadocumentspecifiedinthesummons,

commitsanoffenceandisliableonconvictiontoafineofN$80000ortoimprisonmentforaperiodnotexceedingtwoyears,ortobothsuchfineandimprisonment.

Decision of Appeal Board

47. (1) The decision of themajority of themembers of theAppealBoardis thedecisionof theAppealBoard,andwhereapanelhasbeenappointedtohear anappeal as contemplated in section39(4)(b), theAppealBoardmust take therecommendationofthatpanelintoaccountinmakingitsdecision.

(2) AdecisionoftheAppealBoardmustbeinwritingandacopymustbefurnishedtoeverypartytotheappealwithin30daysofthedecisionbeingfinalised.

(3) TheAppealBoardmay-

(a) confirm,setasideorvarythedecisionunderappeal,andorderthatthedecisionoftheAppealBoardbegiveneffectto;

(b) remit thematter for reconsiderationby therespondent inaccordancewithsuchdirections,ifany,astheAppealBoardmaydetermine.

(4) TheAppealBoardmaymakesuchorderastocostsoftheappeal,inanamountnottoexceedthatprescribedbyregulation,asitmayconsidersuitableandfair,includinganorderregardingthefeesreferredtoinsection45(3)thathavebeenpaidbytheappellant.

(5) Anorderof theAppealBoardhas legalforceandeffectandmaybeenforcedasifitwereissuedincivilproceedingsinacourt.

(6) Thechairpersonof theAppealBoardmustmake thedecisionof theAppealBoardpublic,bypublicationintheGazette.

Decision not suspended

48. AnappeallodgedwiththeAppealBoardpursuanttothisPartdoesnotsuspendadecisionofanypersonorentityreferredtoinsection45(2),unlesstheAppealBoarduponapplicationdirectsotherwise.

Rights not limited

49. ThisActmustnotbeconstruedsoastolimittherightofanyinterestedpersontoappealagainstorhaveadecisionoftheAppealBoardreviewedbyacourt,subject to theobligationof thatpersonfirst tohaveexhaustedallavailableremediesunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw.

PART 6GENERAL PROVISIONS

Authority to report financial institutions in difficulties

50. (1) IftheAuthorityisoftheopinionthat-

(a) afinancialinstitutionorfinancialintermediaryisfinanciallyunsound;and

(b) thesituationmayimpairthestabilityoftheNamibianfinancialsystemor the safety and soundnessof thefinancial institutions andmarketssectorgenerally,

theAuthoritymustforthwithreportthemattertotheMinister.

(2) TheMinistermayrequiretheAuthoritytoprovidefurtherinformationonthematter inquestionandto takeanyfurthercorrectiveactionthat theAuthorityisempowered to takeunder thisAct, theFinancial InstitutionsandMarketsAct, theMicrolendingActoranyotherapplicablefinancialserviceslaw.

Decisions and actions by Authority

51. (1) WheneveritisstatedinthisAct,intheFinancialInstitutionsandMarketsAct,theMicrolendingActorinanyotherapplicablefinancialserviceslawthatadecisionoractionisrequiredorpermittedtobemadeortakenbytheAuthority,unlessitisspecifiedthatsuchdecisionoractionmustbemadeortakenbytheBoard,itmustbemadeortakenbythechiefexecutiveofficerorbyanotherofficeroremployee

oftheAuthoritytowhomthepowertomakesuchdecisionortakesuchactionhasbeendulydelegatedinwritingbythechiefexecutiveofficer.

(2) TheAuthority may of its own accord reverse or correct a decisiontakenbytheAuthorityintheperformanceofitsregulatoryorsupervisoryfunctionsorexerciseofitsregulatoryorsupervisorypowersunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActorunderanyotherapplicablefinancialserviceslawif-

(a) theAuthorityissatisfiedthatthedecisioniswronginfactorinlaworwasbasedonanincorrectapplicationorinterpretationofthelaw;and

(b) thereversalorcorrectionofthedecisiondoesnotadverselyaffectanypersonorentityinrelationtowhomthedecisionwasmade.

(3) WheretheAuthorityissatisfiedthata-

(a) decisionmade by it is wrong in fact or in law orwas based on anincorrectapplicationorinterpretationofthelaw;and

(b) reversal or correction of the decision as contemplated in subsection(2)couldadverselyaffectanypersonorentityinrelationtowhomthedecisionwasmade,

theAuthoritymay,inthemannerprescribed,applytotheAppealBoardforadeclaratoryorderinrespectofthatdecision.

(4) A person aggrieved by the decision of the Authority made undersubsection(2)mayintheprescribedmannerappealagainstthedecisiontotheAppealBoard.

Prohibition on implying connection with Authority

52. (1) A person may not, in connection with a corporate body,unincorporatedentity,businessorundertaking,useanameordescriptionthatsignifiesaconnectionbetweenthatcorporatebody,unincorporatedentity,businessorundertakingand theAuthority, other than a statement that such corporate body, unincorporatedentity,businessorundertakingisregistered,authorisedorapprovedbytheAuthority.

(2) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandisliableonconvictiontoafineofN$50000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Exemptions by Minister

53. (1) TheMinistermay,onreasonablegrounds,and-

(a) on the Minister’s own initiative, but after consultation with theAuthority;or

(b) ontherecommendationoftheAuthority,afteranapplicationhasbeenmadeintheprescribedmannertotheAuthority,

bynoticeintheGazette,exemptanypersonorcategoryofpersons,fromanyprovisionof thisAct, theFinancial InstitutionsandMarketsAct, theMicrolendingActor anyother applicable financial services law, if theMinister is satisfied that granting theexemptionwillnot-

(i) conflictwiththepublicinterest;

(ii) prejudicetheinterestsofconsumers;and

(iii) frustrate the achievement of the objects of this Act, theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw.

(2) A recommendationof theAuthoritygivenunder subsection (1)(b) isnotbindingontheMinister.

(3) With respect to any exemption granted under subsection (1), theMinistermayimposeanyrequirementsorconditionsthattheMinisterconsiderstobenecessaryordesirableinthecircumstances.

(4) Whereapersonwhohasbeengrantedanexemptiontowhichisattachedrequirementsorconditions,contravenesorfailstocomplywiththoserequirementsandconditions,theMinistermaywithdrawtheexemption.

Delegation of powers and assignment of functions

54. (1) TheMinistermay,subject tosuchconditionsas theMinistermaydetermine,delegateanypowerconferreduponorassignafunctionordutyentrustedtotheMinisterby-

(a) thisAct, excluding the powers conferred upon or function or dutyentrustedtotheMinisterbyorundersections5,8,14(3),26,38,39,43and45(5);or

(b) the Financial Institutions andMarketsAct, theMicrolendingAct orin any other applicable financial services law, excluding the powerto issue regulations or other subordinate legislativemeasures and topublishnoticesintheGazette,

tothePermanentSecretaryintheministryresponsibleforfinanceortotheBoard.

(2) The Board may, subject to such conditions as the Board may determine-

(a) delegate to the chief executive officer any power conferred on theAuthoritybyorunderthisAct,FinancialInstitutionsandMarketsAct,theMicrolendingActorinanyotherapplicablefinancialserviceslaw;and

(b) authorise thechiefexecutiveofficer toperformanyfunctionordutyassigned to theAuthoritybyorunder thisAct,Financial Institutionsand Markets Act, the MicrolendingAct or in any other applicablefinancialserviceslaw,

excludingthepowerordutytoappointordismissthechiefexecutiveofficer,todeterminetheconditionsofserviceofthechiefexecutiveofficerandseniormanagementstaffoftheAuthority, toapprove theconditionsof serviceofother staffof theAuthority, toissuestandardsorothersubordinatelegislativemeasuresandtopublishnoticesintheGazette.

(3) Thechiefexecutiveofficermay,subjecttosuchconditionsasthechiefexecutiveofficermaydetermine-

(a) delegatetoanyotherseniorofficeroremployeeoftheAuthorityanypowerconferredonthechiefexecutiveofficerunderthisAct,FinancialInstitutions andMarketsAct, theMicrolendingAct or in any otherapplicablefinancial services law, includingapowerdelegated to thechiefexecutiveofficerundersubsection(2)(a);and

(b) authorise any other senior officer or employee of theAuthority toperformany functionor duty assigned to the chief executiveofficerby or under this Act, Financial Institutions and Markets Act, theMicrolendingActorinanyotherapplicablefinancialserviceslaw.

(4) Adelegationorassignmentmadeundersubsection(1),(2)or(3)doesnotprevent theMinister,Boardor chief executiveofficer, as thecasemaybe, fromexercisingthepowersodelegatedorperformingthefunctionordutysoassigned.

(5) AnythingdoneoromittedtobedonebyanofficeroremployeeoftheAuthorityintheexerciseofanypowerdelegatedortheperformanceofanyfunctionordutyassignedtohimorherundersubsection(3)mustbeconsideredtohavebeendoneoromittedtohavebeendonebytheBoardorchiefexecutiveofficer,asapplicable.

Preservation of secrecy

55. (1) Apersonreferredtoinsubsection(2)maynotdisclosetoanypersoninformationrelatingtotheaffairsoftheBoardorofanyotherperson,acquiredin theperformanceofdutiesor the exerciseofpowersunder thisAct, theFinancialInstitutionsandMarketsAct,theMicrolendingActorinanyotherapplicablefinancialserviceslaw,except-

(a) forthepurposeoftheexerciseofpowersortheperformanceofdutiesunderthisAct,theFinancialInstitutionsandMarketsAct,theFinancialServicesAdjudicatorAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw;or

(b) whenrequiredtodisclosethatinformationbeforeacourtorunderanylaw.

(2) Thepersonstowhomsubsection(1)applyare-

(a) amemberoranalternatememberoftheBoard;

(b) amemberofacommitteeoftheBoardoroftheadvisorycommittee;

(c) the chief executive officer or any other officer or employee of theAuthority;

(d) amemberoftheAppealBoard;and

(e) aformermemberoralternatememberoftheBoard,aformermemberofacommitteeof theBoardorof theadvisorycommittee,a formerchiefexecutiveofficerorofficeroremployeeof theAuthorityandaformermemberoftheAppealBoard;and

(f) anyotherpersonperformingafunctionorexercisingapowerthatheorsheislawfullyrequiredorrequestedtoperformorexerciseintermsofthisAct.

(3) Despitesubsection(1),butpursuanttosection30,theAuthoritymayshare informationconcerninganymatterdealtwithunder thisActwith theBankofNamibiareferredtoinsection2oftheBankofNamibiaAct,1997(ActNo.15of1997),thePublicAccountants’andAuditors’BoardconstitutedunderthePublicAccountants’andAuditors’Act,self-regulatoryorganisations,theMinistryresponsibleforfinance,theMinisterandwithallotherpersons,whetherinsideNamibiaorelsewhere,responsibleforregulating,supervising,investigatingorprosecutingfinancialinstitutionsorfinancialintermediaries.

(4) Any personwho contravenes or fails to complywith subsection (1)commitsanoffenceandisliableonconvictiontoafineofN$200000ortoimprisonmentforaperiodnotexceedingfiveyears,ortobothsuchfineandimprisonment.

Limitation of liability

56. (1) TheMinisteroranypersonreferredtoinsubsection(2)isnotpersonallyliableinrespectofanythingdoneoromittedtobedoneingoodfaithandwithoutgrossnegligenceintheexerciseofanypowerortheperformanceofanydutyunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslaw.

(2) Thepersonstowhomsubsection(1)applyare-

(a) amemberoftheBoard;

(b) amemberofacommitteeoftheBoardoroftheadvisorycommittee;

(c) the chief executive officer or any other officer or employee of theAuthority;

(d) amemberoftheAppealBoard;and

(e) anyotherpersonperformingafunctionorexercisingapowerthatheorsheislawfullyrequiredorrequestedtoperformorexerciseintermsofthisAct.

Prescription

57. (1) Despiteanythingtothecontraryinanylaw,adebtarisingfromanymatterregulatedbyorunderthisAct,theFinancialInstitutionsandMarketsAct,theMicrolendingActoranyotherapplicablefinancialserviceslawthatisowedtotheAuthorityprescribesafteraperiodofsixyears.

(2) All matters relating to prescription, including the determination ofthedates fromwhichprescriptionbegins to run,completionofdelayedprescription,interruption of prescription, in relation to a debt referred to in subsection (1), aregovernedbythePrescriptionAct,1969(ActNo.68of1969).

Liquidation

58. TheAuthoritymaynotbeplacedintoliquidation,exceptbyorundertheauthorityofanActofParliament.

Regulations

59. (1) TheMinistermay,afterconsultationwiththeAuthority,makeregulationsrelatingto-

(a) the period within which a person who wishes to appeal against adecisionreferredtoinsection45(2)mustappealagainstsuchdecision;

(b) themannerinwhichapersonreferredtoinparagraph(a)mustappealagainstadecisionreferredtoinsection45(2);

(c) thefeeswhichapersonreferredtoinparagraph(a)mustpayinrespectofanappeal;

(d) thecriteriaandguidelinesthatmustbeusedortakenintoconsiderationbytheAuthorityoranyotherpersonindeterminingwhatconstitutesoramountsto“publicinterest”or“inthepublicinterest”forpurposesofthisAct;

(e) anymatterwhichisbythisActrequiredorpermittedtobeprescribed;and

(f) generally,allothermatterswhichtheMinisterconsidersnecessaryorexpedienttoprescribeinordertoachievetheobjectsofthisAct.

(2) Regulations made under subsection (1) may prescribe penalties inrespect of a contravention of or a failure to complywith any provision thereof notexceedingafineofN$20000orimprisonmentforaperiodnotexceedingtwoyearsortobothsuchfineandimprisonment.

Standards and other measures

60. (1) The Authority may, after obtaining the approval of theBoardpursuant to section17(6), bynotice in theGazette, andafter complyingwiththeprovisionsofsubsection(2), issuesuchstandardsfor theduecarryingoutof theprovisions of thisAct and to achieve the objects of thisAct that theAuthoritymayconsidernecessaryoradvisable,andmaysetfeesinaccordancewithsection33.

(2) Beforeissuingastandard,theAuthoritymust-

(a) publishadraftoftheproposedstandardintheGazetteandbringittotheattentionofthefinancialinstitutionsorfinancialintermediariestowhomthestandardwillapply,andtotheirindustryassociationsorself-regulatoryorganisations;

(b) give those financial institutions, financial intermediaries, industryassociationsorself-regulatoryorganisationsatleast30daysafterthedateofpublicationoftheproposedstandardtomakerepresentationsinwritingtotheAuthoritywithrespecttotheproposedstandard;and

(c) takeanysuchrepresentationsintoaccountindeterminingwhethertoissuethestandardasoriginallypublishedorinamodifiedform.

(3) Despitesubsection(2), if theAuthorityconsiders that it isnecessaryto issuea standardonanurgentbasis, theAuthoritymay issue thestandardwithoutcomplyingwithsubsection(1),butanysuchstandardceasestohaveeffectattheendof90daysafterithasbeenissued,unlesstheprocedurereferredtoinsubsection(2)isfollowed.

(4) The Authority may, by notice in the Gazette, revoke or modify astandard,subjecttotheprocedurereferredtoinsubsection(2).

(5) TheAuthority may issue such guidelines, bulletins, rules and othermeasuresforthepurposesreferredtoinsubsection(1)thattheAuthoritymayconsidernecessaryoradvisable.

(6) TheAuthoritymay publish the guidelines, bulletins, rules and othermeasures referred to in subsection (5) in theGazette, and theAuthority must takemeasures that are necessary to ensure that the guidelines, bulletins, rules and othermeasuresreferred to in thatsubsectionarebrought to theattentionof thepersonsorentitiestowhomtheyapply.

Repeal of law

61. TheNamibia Financial Institutions SupervisoryAuthorityAct, 2001(ActNo.3of2001)is,subjecttosection62,repealed.

Transitional provisions

62. (1) Inthissection-

“effectivedate”meansthedateonwhichthisAct,oranyrelevantprovisionofthisAct,comesintooperationpursuanttosection63;

“repealed law”means theNamibiaFinancial InstitutionsSupervisoryAuthorityAct,2001(ActNo.3of2001)repealedbysection61.

(2) Any subordinate measure made under the repealed law remains inforceunlessifitisinconflictwiththisActandisdeemedtobemadethereunderuntilsupersededbyasubordinatemeasuremadeunderthisAct.

(3) Anyappointmentmade,agreementconductedoranyotherstepstakenorthingsdonebyorunderanyprovisionoftherepealedlaw,isdeemed,subjecttosuchchangesormodificationsasmaybenecessarytoaligntheappointment,agreement,steporthingwiththisAct,tohavebeenmade,concluded,held,takenordone,byorunderacorrespondingprovisionofthisAct.

(4) Inthecaseofanappointmentwhichexpiresafteraspecifiedperiod,theappointmentremainsinforceforsomuchofthatperiodasfallsaftertheeffectivedate.

(5) Any right or entitlement enjoyed by, or obligation imposed on, anypersonintermsofanyprovisionoftherepealedlaw,thathadnotbeenspentorfulfilledimmediatelybefore theeffectivedate isavalid rightorentitlementof,orobligationimposedon,thatpersonintermsofanycomparableprovisionofthisAct,asfromthedatethattheright,entitlementorobligationfirstarose,subjecttotheprovisionsofthisAct.

(6) Anoticegivenbyanypersontoanotherpersonintermsofanyprovisionof the repealed lawmust be considered as noticegiven in termsof any comparableprovisionofthisAct,asfromthedatethatthenoticewasgivenundertherepealedlaw.

(7) A document that, before the effective date, had been served inaccordancewiththerepealedlawmustberegardedashavingbeensatisfactorilyservedforanycomparablepurposeofthisAct.

(8) Anyproceedingsofacourtintermsoftherepealedlawmustcontinueintermsofthatlaw,asifithadnotbeenrepealed.

(9) AnyorderoftheBoardofAppealoracourtmadeundertherepealedlaw,andinforceimmediatelybeforetheeffectivedate,continuestohavethesameforceandeffectasifthatlawhadnotbeenrepealed,subjecttoanyfurtherorderoftheBoardofAppealorcourt.

(10) Ontheeffectivedate,andwithinaperiodof60daysaftertheeffectivedate,theMinisterandtheAuthoritymaymakeanysubordinatemeasureofalegislativenaturecontemplated in thisActwithoutmeeting theprocedural requirementssetoutin thisAct, provided theMinister and theAuthority have published such proposedsubordinatemeasureintheGazette,allowingaperiodofatleast30daysforcomment.

Short title and commencement

63. (1) ThisActiscalledtheNamibiaFinancialInstitutionsSupervisoryAuthorityAct,2018,andcomesintooperationonadatedeterminedbytheMinisterbynoticeintheGazette.

(2) Differentdatesmaybedeterminedundersubsection(1)inrespectofdifferentprovisionsofthisAct.

(3) Any reference in thisAct to thecommencementof thisActmustbeconstruedasareferencetothedatedeterminedundersubsection(1)or(2).

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