I/MAF/04/2026 – Matters Related to the Implementation of FIMA, 2021 (Act No. 2 Of 2021)

CIRCULAR
NO. : I/MAF/04/2026
TO : THE PRINCIPAL OFFICERS AND TRUSTEES OF ALL MEDICAL AID FUNDS DATE : 13 JULY 2026 EFFECTIVE DATE : DATE ISSUED SUBJECT : MATTERS RELATED TO THE IMPLEMENTATION OF THE FINANCIAL INSTITUTIONS AND MARKETS ACT, 2021 (ACT NO. 2 OF 2021) ___________________________________________________________________

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INTRODUCTION
This Circular is issued by virtue of the functions and powers of the Namibia Financial Institutions Supervisory Authority (“NAMFISA”), as the authority responsible for the supervision of financial institutions in terms of section 2 of the Namibia Financial Institutions Supervisory Authority Act, 2021 (Act No. 3 of 2021) (“NAMFISA Act”) , read with the Financial Institutions and Markets Act, 2021 (Act No. 2 of 2021) (“FIMA”), and is applicable to all Medical Aid Funds. The purpose of this Circular is to notify all Medical Aid Funds, Fund Administrators and industry stakeholders of matters relating to the implementation of FIMA, which became effective 1 May 2026, and to provide guidance on the following:
Re-registration arrangements for Medical Aid Funds; Model Rules; Trustee Toolkit; Valuator Requirements; The administration of Medical Aid Funds Outsourcing Requirements; Amendments to Fund Rules approved and registered before 1 May 2026; and Publication Of Standards - Section 12(3) of the Interpretation of Laws Proclamation 37 of 1920. RE-REGISTRATION PLAN FIMA came into operation on 1 May 2026. In terms of section 329 (1) of the FIMA, a Medical Aid Fund that was registered in Namibia under the Medical Aid Funds Act, 1995 (Act No 23 of 1995) prior to the commencement of FIMA, is deemed to be a Medical Aid Fund registered under FIMA. Notwithstanding the above, section 329 (2) of FIMA requires such medical aid funds to apply to NAMFISA, pursuant to section 326, for registration as a Medical Aid Fund within 12 months from 1 May 2026. To ensure a smooth and efficient process, NAMFISA developed a phased re-registration plan, following a consultative process concluded on 3 November 2022. In terms of the re-registration plan, Medical Aid Funds have been allocated to specific quarters within the prescribed 12-month period. Medical Aid Funds are requested to refer to the re-registration schedule attached to this Circular and marked as Annexure “A” for their allocated submission dates. Medical Aid Funds must take note of their allocated quarter and ensure that their applications for registration are submitted within the specified timeframe. All applications must be completed and submitted in accordance with the requirements and procedures prescribed by FIMA. All Medical Aid Funds are required to lodge their applications for registration using the prescribed application form, which is available on the Electronic Regulatory System (ERS). Failure by a Medical Aid Fund to apply for registration within the prescribed period under FIMA may result in regulatory action and other consequences in terms of FIMA. In terms of section 329 (3), where a Medical Aid Fund fails to apply for registration within the 12-month period, NAMFISA may take action it considers appropriate against the Medical Aid Fund pursuant to sections 332, 412 or 439 of FIMA. Any queries and/or any clarification required relating to the re-registration plan schedule may kindly contact Rachel Nkole at rnkole@namfisa.com.na or 061 290 5246. MODEL RULES To facilitate efficient compliance with the provisions of FIMA, NAMFISA developed Model Rules (a rules template), attached hereto as Annexure “B”, which was presented and discussed during the industry meeting held on 3 November 2022. The Model Rules Template sets out the minimum provisions that must be incorporated into the rules of a Medical Aid Fund. The purpose of the Model Rules is to provide a standardized format for the rules that must accompany an application for registration in terms of Section 326(2)(a) and (d) of FIMA and in accordance with paragraph 4(a) of MAF.S.7.14. Medical Aid Funds are therefore required to use the Model Rules
Template which provides the minimum provisions that must be included in the rules when preparing or amending their rules to ensure consistency, completeness, and compliance with the applicable requirements of FIMA in accordance with Section 326(2)(a), (d) and 326(3)(a) of FIMA as read with paragraph 4(a) of MAF.S.7.14 TRUSTEE TOOLKIT In terms of section 340(1) of FIMA, the boards of trustees of Medical Aid Funds under Chapter 7 are required to consist of persons who meet the prescribed fit and proper requirements in accordance with Standard No. GEN.S.10.2 (“Fit and Proper Standard”). The Trustee Toolkit is a mandatory requirement under the Fit and Proper Standard, aimed at ensuring that trustees are equipped with the necessary tools that will empower them in the exercise of their fiduciary duties. NAMFISA hereby informs the industry that two (2) Governance Awareness Sessions will be conducted for trustees of Medical Aid Funds. These sessions will provide trustees with the necessary Toolkit to enhance their understanding, strengthen governance practices, and enable them to effectively discharge their duties in accordance with the Fit and Proper Standard. Medical Aid Funds are further informed that the procurement process for the Governance Awareness Sessions was advertised on the E-Government Procurement Portal, the SA Tenders Portal, and the NAMFISA website. NAMFISA will communicate the schedule for the Governance Awareness Sessions in due course. VALUATOR REQUIREMENTS In terms of section 346(1) of FIMA, the board of a registered Medical Aid Fund must, in accordance with section 402 of FIMA, appoint and at all times have a valuator. A Medical Aid Fund may not appoint as its valuator an employee or officer of the fund or of a fund administrator of the fund or a member of the board of trustees of the fund or a member of the board of a fund administrator of the fund or an employee, or officer of the board, of a participating employer or an employee, or officer of the board, of the sponsor of the fund.
Section 346(2) of FIMA states that if a Medical Aid Fund does not have a valuator on the date of commencement of FIMA, it should appoint one within 90 days of 1 May 2026.
Section 402(10)(d) of FIMA prescribes that a Medical Aid Fund must, commencing 12 months after FIMA implementation date (i.e., all financial years ending on or after 1 May 2027), send a copy of its valuation report to NAMFISA within 180 days of the end of each financial year.
In terms of section 402(2) of FIMA, a valuator must be a fit and proper person within the meaning of the standards and be independent of the financial institution within the meaning of the standards.
In terms of clause 5 of Standard No. GEN.S.10.4 - Notification for Appointment and Termination of Valuators, a financial institution must, within 30 calendar days after the appointment of a valuator, notify NAMFISA of the appointment in the form and manner required under clause 6 of the Standard.
Standard No. GEN.S.10.8 -The Independence of Directors, Members of a Board, Trustees, Custodians, Auditors, Valuators and any Other Person required to be Independent under the Act (GEN.S. 10.8) defines conflict of interest as follows:
“conflict of interest” means a situation which a director, key person, auditor, valuator or any other service provider encounters, while rendering a financial service to a client, if that situation - impairs the objectivity of the director, key person, auditor, valuator or any other service provider in any aspect of rendering the financial service to the client; or prevents the director, key person, auditor, valuator or any other service provider from rendering the financial service to the client in an unbiased and fair manner or from acting in the best interest of the client;”

Clause 3(1) of Standard No. GEN.S.10.8 prescribes that, unless the person can show that there is no direct conflict of interest, the person will not be considered independent in respect of an election or appointment to a position with a financial institution or financial intermediary if the person – is an associate of – the financial institution or financial intermediary; or an entity that is an affiliate of the financial institution or financial intermediary; or derives any benefit in the provision of a financial service to a client, other than through the contractual relationship with the financial institution or financial intermediary in terms of which the election or appointment to the position was made. In addition to the general criteria, Clause 4(2) of Standard No. GEN.S.10.8 prescribes that unless the person can show that there is no direct conflict of interest, a valuator will not be considered independent if the valuator –
5.7.1 is a key person with respect to the financial institution or financial intermediary concerned, or is a key person of an associate or affiliate of that financial institution or financial intermediary; or
5.7.2 is associated with the auditor of that financial institution or financial intermediary or with the member of the firm of auditors designated pursuant to section 401(2) of FIMA.
In accordance with section 402(4) of FIMA, NAMFISA may, on the grounds that the valuator is not a fit and proper person or is not independent within the meaning of the standards, and after giving the financial institution and the valuator a reasonable opportunity to be heard, direct the financial institution to appoint some other person to be the valuator of the medical aid fund. In terms of Section 347(1), the board of a registered Medical Aid Fund is required to ensure that the financial position of the fund is investigated by the fund’s valuator at least once every three years, in accordance with the prescribed standards (Standard No. MAF.S.7.10). The valuator must thereafter prepare a valuation report as at the end of the third financial year. It is important for the industry to maintain a clear distinction between the roles and responsibilities of an actuary (“Fund Actuary”) and those of a valuator within the governance and financial oversight framework of a Medical Aid Fund. A Fund Actuary is primarily responsible for the preparation and determination of the financial position of the fund. This role includes, among others, assessing the fund’s liabilities, calculating reserves, projecting claims experience, evaluating contribution adequacy, and developing the actuarial assumptions and actuarial valuations that underpin the overall financial health and sustainability of the fund. The Fund Actuary therefore plays an active and direct role in the preparation and formulation of the fund’s financial and actuarial position. A Valuator, on the other hand, performs an independent review, assessment, and verification of the financial position prepared by the Actuary. The role of the valuator is to provide an objective and unbiased evaluation of the actuarial work, ensuring that the methodologies, assumptions, calculations, and conclusions are reasonable, compliant with applicable standards, and reflective of the true financial position of the Medical Aid Fund.
6. ANNUAL FINANCIAL STATEMENTS REPORTING REQUIREMENTS
6.1 In accordance with section 401(11) and (12) of FIMA, commencing 12 months
after FIMA implementation date (i.e., all financial years ending on or after 1 May 2027), medical aid funds are required to submit a copy of their annual financial statements and the auditor’s report to NAMFISA within 90 days after the end of their financial year.
7. THE ADMINISTRATION OF MEDICAL AID FUNDS OUTSOURCING REQUIREMENTS
7.1. Standard No. GEN.S.10.10 - Outsourcing of Functions and Responsibilities by Financial Institutions and Financial Intermediaries (“the Outsourcing Standard”) prescribes the requirements pertaining to the outsourcing of functions and responsibilities by financial institutions and financial intermediaries. Clause 4(1) and 4(2) of the Outsourcing Standard prescribes that the board and senior management of a financial institution or financial intermediary is ultimately responsible for ensuring compliance with the standard and that the board and senior management must designate employees responsible for continuously identifying, reporting and mitigating risk strategies of outsourced arrangements.
7.2. In terms of clause 2, read together with clause 6(1) of the Outsourcing Standard, a financial institution or financial intermediary may not outsource its principal business, but may outsource their material business functions, provided that any outsourcing is done in compliance with the Outsourcing Standard. Schedule 2 to the Outsourcing Standard specifies that assessing, determining and deciding on claims, and assessing and deciding to accept or decline risk are principal business functions or activities, amongst others, that may not be outsourced by insurers or reinsurers.
7.3. The following seven principles on the outsourcing of a material business function are provided for in the Outsourcing Standard which must be applied according to the degree of materiality and that of the risks introduced by outsourcing to the financial institution or financial intermediary:
Principle 1: Due diligence on selection and performance monitoring; Principle 2: The contract with a service provider; Principle 3: Information technology security, business resilience, continuity, and disaster recovery; Principle 4: Confidentiality; Principle 5: Concentration of outsourcing arrangements; Principle 6: Access to data, premises and personnel; and Principle 7: Termination of outsourcing.
7.4. In terms of clause 15(1) of the Outsourcing Standard, a financial institution or financial intermediary must demonstrate to NAMFISA, as required, that in assessing the options for outsourcing, they have:
Complied with the Outsourcing Standard and considered all seven outsourcing principles specified under the Outsourcing Standard, and ensured that – risks associated with outsourcing are appropriately assessed, monitored, managed and regularly reviewed; and an internal audit function, or in situations where internal audit capabilities do not exist, an alternative arrangement is in place to review any proposed outsourcing, and to regularly review and report to the board, audit committee or senior management on the financial institutions or financial intermediary’s compliance to their outsourcing policy.
7.5. A financial institution or financial intermediary must notify NAMFISA, in writing not later than 30 business days after entering into an outsourcing agreement, of such agreement in accordance with clause 18(1), and must further notify NAMFISA, in writing not later than 30 business days after an extension, renewal or amendment of an outsourcing agreement, of such extension, renewal or amendment in accordance with clause 18(2). Any notification made to NAMFISA in terms of sub-clauses (1) or (2) must also be accompanied by a summary of the key risks involved with the outsourcing, and the mitigation strategies put in place to address those risks.
7.6 Clause 19(1) of the Outsourcing Standard provides a transitional period of 12 months from 1 May 2026 in respect of existing outsourcing arrangements.
8. AMENDMENTS TO FUND RULES APPROVED AND REGISTERED BEFORE 1 MAY 2026
8.1 In terms of FIMA, rule amendments are not subject to an approval and registration process. It therefore follows that no approval can take place after 1 May 2026.
8.2 In terms of section 352 of FIMA, the rules must comply with the requirements of FIMA and contain matters that are set out in the regulations and in the standards. FIMA further stipulates that where the rules are inconsistent with any of its provisions, such rules are invalid to the extent of the inconsistency. This provision applies from 1 May 2026.
8.3 The process of amending, rescinding and or adding to the rules of Medical Aid Fund are set out in Section 353 of FIMA. Section 353 requires the board of a Medical Aid Fund to send a copy of any amendment, rescission or addition to the rules together with the particulars listed in the standards to NAMFISA not less than thirty (30) days before its implementation.
8.4 Medical Aid Funds are required to complete the prescribed application forms on ERS with regard to rule amendment applications.
9. Rules relating to the Board of a Medical Aid Fund
9.1 The amendments to the composition of the board should be effected before 01 August 2026, in accordance with section 340(4). In addition, please note the following:
The amended rules relating to composition should be amended and submitted to NAMFISA before 01 November 2026, in accordance with section 340(7).
The complete revised rule set should be submitted before 30 April 2027, in accordance with section 352(4).
Furthermore, in terms of section 353(2), any rule amendments must be submitted to NAMFISA not less than 30 days prior to implementation.
10. PUBLICATION OF STANDARDS - SECTION 12(3) OF THE INTERPRETATION OF LAWS PROCLAMATION 37 OF 1920
10.1 NAMFISA hereby reiterates the procedure for the publication of Standards in terms of section 409 of FIMA, as follows:
10.2 The Standards issued under section 409 of FIMA underwent a pre-consultation phase;
10.3 The consultation phase was followed by publication in the
Government Gazette for stakeholder inputs. Standards in terms of which comments were received and considered were subsequently re-published in the Gazette after the incorporation of the necessary amendments. This publication was done in terms of section 12(3) of the Interpretation of Laws Proclamation 37 of 1920.
10.4 The publication of Standards in Government Gazettes No. 8902 to 8909 of 30 April 2026 constitutes the final publication of the Standards for purposes of section 409(1) of FIMA.
11. EFFECTIVE DATE
11.1 This Circular take effect on the date of its issue.
For any further information or clarification regarding this Circular, stakeholders may contact the Legal Officer: Insurance and Medical Aid Funds Division, Ms. Nasilele Siyambango, at nsiyambango@namfisa.com.na and/or telephone number 061 290 5116.

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KENNETH S. MATOMOLA
CHIEF EXECUTIVE OFFICER