Regulatory Alerts2023-07-10
Added
Directive MCD/1/2023: Conflict of Interest
The Namibia Financial Institutions Supervisory Authority revokes the 2014 Conflict of Interest Directive and replaces it with Directive MCD/1/2023, effective 10 July 2023. The directive applies to registered financial institutions and their representatives, prohibiting financial interests that influence recommendations or are tied to business volume without regard for fair client outcomes. It permits only commissions, agreed written fees, and reasonably commensurate third-party fees, while capping aggregate immaterial financial interests at N$1000.00 per calendar year from the same third party. Providers must maintain a log of such interests, disclose conflicts to clients, and implement a management policy covering identification, controls, reporting, and staff training.