The private sector welcomed the entry into force of new legislation defining the organization and functions of the individual units of the Non-Bank Financial Services Authority (NBFSA), a widely recognized initiative to spur further progress and strengthen the non-bank financial services sector. .

The sub-decree on the organization and functions of units under the auspices of the NBFSA consists of 65 articles and 13 chapters, and was signed by Prime Minister Hun Sen on July 14, with immediate effect.

The units covered by the legislation include the Insurance Regulator of Cambodia, the Securities and Exchange Regulator of Cambodia, the Social Security Regulator, the Trusts Regulator, the Accounting and Auditing Regulator, the Regulator real estate and pawn shops and the Internal Audit Unit.

Forte Insurance (Cambodia) Plc Group CEO Youk Chamroeunrith told The Post on July 18 that the NBFSA will bring significant benefits to the insurance industry.

He said that describing the structure and functions of the ASNB units “would improve the efficiency of the work, as the authorities would be directly responsible”.

“The NBFSA will help protect the interests of the public, customers and insurance companies,” he said, adding that the authority would support the industry and increase its share of gross domestic product (GDP) over time. desired.

“We have seen that in the past, the interests of the public did not seem to be taken seriously. With this authority, the interests of consumers will be taken into account more,” the legal infrastructure will be reformed, opening up more channels of support for the insurance sector, said Chamroeunrith.

Kim Heang, regional operations manager of Keller Williams (KW) Cambodia and owner of the Borey KS residence, praised and expressed support for the sub-decree, which he said would strengthen the real estate industry, but warned that the unity must be conceded. the power and people needed to effectively serve the sector.

“If we look at the legal aspect, the more the state intervenes, the stronger it is [the law] is. When the law is in force, businessmen will respect it and competition will be transparent, so I support it, ”he said.

But in light of the stronger legal framework and enforcement mechanisms in place, the additional units would come at high costs for businesses, he warned.

“[Still,] if these units wield iron fists, all businessmen must be detained under the law, then those who obey will receive benefits. But if the units lack authority or manpower, then gaps in management will remain, ”Heang said.

The sub-decree mandates the NBFSA Secretariat to coordinate the formulation and implementation of policies and strategies for the development of the non-bank sector, including fintech.

The secretariat will develop strategies and action plans to implement non-bank financial sector development policies, and facilitate requests for additional regulations, rules or procedures for the management of the sector, as well as to monitor and evaluate the effectiveness of the implementation, the edict mentioned.

He added that the secretariat will provide coordination and administrative support to regulators, expert committees, technical working groups or inter-institutional working groups in the implementation of sectoral strategies and action plans, and will facilitate cooperation with regional and international organizations and development partners.