IPEC Amendment Bill awaits Presidential assent after Parly approval
PHILLIMON MHLANGA IN VICTORIA FALLS
The Insurance and Pensions Commission (IPEC) Amendment Bill [H.B. 7A, 2024] is now awaiting assent from President Emmerson Mnangagwa after sailing through both the National Assembly and Senate a few days ago, Business Times can report.
Once signed into law, the Bill will usher in sweeping reforms to Zimbabwe’s pensions and insurance sector, including placing the National Social Security Authority (NSSA) under the direct regulatory oversight of the Insurance and Pensions Commission (IPEC).
The legislative shift marks a significant overhaul of the sector’s regulatory architecture, bringing NSSA, historically outside IPEC’s supervisory ambit, under a unified framework designed to enhance accountability and align it with standards applicable to pension funds and insurers.
Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, and IPEC Commissioner Grace Muradzikwa, who spoke at the ongoing Insurance and Pensions Symposium in Victoria Falls, said the reforms form part of broader efforts to restore confidence in the sector following years of value erosion that severely undermined retirement savings.
Another central pillar of the Bill is the establishment of a Policyholder and Pensions and Provident Fund Member Protection Fund. The facility is designed to act as a safety net for policyholders and pension fund members in the event of institutional insolvency, ensuring beneficiaries retain a measure of financial protection.
Authorities say the introduction of the protection fund is critical in safeguarding retirement savings and rebuilding trust in long-term financial instruments, particularly in the wake of historical pension losses linked to macroeconomic instability.
The Bill also introduces far-reaching corporate governance reforms across the industry. These include expanding board sizes for regulated entities, tightening conflict-of-interest provisions, and mandating the establishment of key board committees such as Audit, Risk and Finance.
The measures are intended to strengthen institutional oversight and ensure boards are better equipped to manage risk, enforce compliance and protect stakeholder interests.
Further, the proposed law tightens accountability requirements by imposing stricter reporting timelines and mandating comprehensive asset registers. It also introduces criminal penalties for executives and institutions that fail to comply with regulatory information requests, signalling a more aggressive enforcement posture by the regulator.
