Regulatory Alerts2021-11-11
Added · Updated
Determination of Financial Soundness of a Friendly Society
The Namibia Financial Institutions Supervisory Authority issued Standard FS.S.6.8 to establish the criteria for determining whether a friendly society maintains a financially sound position under the Financial Institutions and Markets Act, 2021. The standard mandates that audited financial statements demonstrate assets exceeding liabilities without qualifications, while requiring a valuator’s report to confirm compliance with actuarial standards, project future asset-liability adequacy over three years, and analyze gains, losses, rule amendments, and investment portfolio appropriateness. Valuator certifications must detail qualifications, methods, assumptions, data accuracy, and contribution rate review dates, with provisions allowing reliance on prior reports provided any concerns are disclosed and resolved.