A Protocol is a legally binding document committing Member States to the objectives and specific procedures stated within it. In order for a Protocol to enter in to force, two thirds of the Member States need to ratify or sign the agreement, giving formal consent and making the document officially valid. Any Member State that had not initially become party to a Protocol can accede to it at a later stage.
Through this Protocol Member States acknowledge their collective duty to achieve economic growth and balanced intra-regional development, compatibility among national and regional strategies and programmes, to develop policies aimed at the progressive elimination of obstacles to the to free movement of capital labour, goods and services, and of the residents of the Member States, improve economic management and performance through regional cooperation, and to create appropriate institutions and mechanisms for the implementation of programmes and operations in the Region. The FIP was signed in August 2006 by all SADC member states and was ratified by the required two-thirds majority of member states during 2010, thus FIP came into force on 16 April 2010.
Annex 10 of FIP sets out the scope of CISNA. Annex 10: Co-operation on Non-Banking Financial Institutions (NBFI) and Services brings together the regulatory authorities in SADC Member States responsible for the financial sector activities outside the banking sector such as the insurance, securities markets (stock exchanges), pension funds, asset managers and other non-banking financial institutions. It aims at contributing to the sound regulation, effective supervision and rapid development of financial services industries.
The Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) was established in 1998, pursuant to Annexure 10 of the SADC Protocol on Finance and Investment as a committee of authorities responsible for the supervision of insurance, securities, and non-banking financial institutions (NBFI) in SADC Member States. CISNA is part of the Directorate of Finance, Investment and Customs of the SADC Secretariat and reports to the SADC Committee of Ministers of Finance and Investment through the Committee of Senior Treasury Officials.