Regulatory Alerts2021-11-11
Added · Updated
MAF.S.7.11 – Minimum Number of Members of a Medical Aid Fund
The Namibia Financial Institutions Supervisory Authority requires all registered medical aid funds to maintain a sufficient membership base that ensures financially sound operations. Funds must hold adequate assets to cover current and ongoing liabilities while meeting prescribed statutory reserve and solvency thresholds. The regulator may periodically demand valuator’s reports and financial statements to verify membership sufficiency and monitor each fund’s growth and stability.
1 GOVERNMENT NOTICE MEDICAL AID FUNDS NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY No. X 2021 STANDARDS MADE UNDER THE FINANCIAL INSTITUTIONS AND MARKETS ACT, 2021 The Namibia Financial Institutions Supervisory Authority has under section 410(8) of the Financial Institutions and Markets Act, 2021 (Act No. 2 of 2021), made the Standards set out in the Schedule. Gersom Katjimune Chairperson Windhoek, 2021
2 FINANCIAL INSTITUTIONS AND MARKETS ACT, 2021 [Act No. 2 of 2021] DRAFT STANDARD
MINIMUM NUMBER OF MEMBERS OF A MEDICAL AID FUND
NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY Standard No: MAF.S.7.11
3 FINANCIAL INSTITUTIONS AND MARKETS ACT, 2021 [Act No. 2 of 2021] Minimum number of members of a medical aid fund Standard No. MAF.S.7.11 issued by NAMFISA under section 410(8)(i) of the Financial Institutions and Markets Act, 2021 Definitions
- (1) In this Standard, “Act” means the Financial Institutions and Markets Act, 2021 [Act No. 2 of 2021], and includes the regulations prescribed under the Act and the standards and other subordinate measures issued by NAMFISA under the Act. (1) Words and phrases defined in the Act have the same meaning in this Standard, unless the context indicates otherwise, including without limitation, the following as defined in section 321 of the Act― (i) beneficiary; (ii) dependant; (iii) fund; (iv) medical aid fund; and (v) member. Applicability
- This Standard applies to all medical aid funds registered under the Act. Minimum number of members
- A medical aid fund must maintain a sufficient number of members to ensure that it can maintain its business in a financially sound manner by- (a) having assets which are sufficient to meet current liabilities; (b) providing for the fund’s present and ongoing liabilities; and (c) continuing to maintain the required statutory reserve and solvency requirements, as may be prescribed by NAMFISA from time to time.
4 4. NAMFISA may require the following additional information in the form of a valuator’s report, at intervals determined by NAMFISA― (a) certification by the valuator that the number of members is sufficient to meet the requirements of clause 3; (b) a statistical analyses showing the membership at present level, an income statement, cash flow statement and balance sheet reflecting the financial position of the fund, to enable NAMFISA to monitor the growth and the financial stability of the fund.