Reforms in the sector will focus on the following:
- Reform the commercial justice system to enable it better support the effective working of market-based financial institutions;
- Improve the registration arrangements for pledges over movable assets to help banks establish sound collateral; improving the land registration system to facilitate land as a viable collateral;
- Review the Insurance Act to empower the newly created Insurance Regulatory Authority (IRA) to pre-empt financial distress or intervene to help resolve financial problems of an insurance company;
- Strengthen management and regulation of the NSSF including bringing it directly under the supervision of the RBA. This will focus more critical attention to the financial viability of the NSSF, the quality of the services it delivers to its members, and its costs and other aspects of its efficiency;
- Development of a National Pensions Policy, enact new legislation for the Public Service Superannuation Scheme (PSSS) and completion of phase I of the Pensions ICT project (the Pensions Management Information System – PMIS);
- Review the Capital Markets Act to provide the Capital Market Authority (CMA) with adequate legal protection, access to bank records in an investigation, ability to obtain freeze orders, and authority to visit at will the regulated companies and their auditors;
- Review the ownership structure of the NSE through demutualization as part of initiatives to strengthen its role;
- Introduce the risk-based capital adequacy framework for providers of financial services and products under CMA regulation and supervision; and
- Increase government participation in capital markets such as leveraging on public private partnerships (PPPs) and specialized bonds to facilitate investment in key areas.
