welcome

MFSA Member & Service Provider meeting 22 September 2016 Protea Hotel Midrand

AGENDA Time Agenda Items 10:00 Welcome and Introductions MFSA Industry Update Legal Update Rates & Fees Declarator: Deferred amount   Strategic Fund Discussion and Closure 13:00 Lunch

Welcome MFSA Members & Service Providers

MICROFINANCE SOUTH AFRICA The recognised voice of Reputable Micro financiers

MISSION Promoting the interests of all members and their clients through: Advocacy Member interaction Development

Ensuring a sustainable Microfinance Industry VISION Ensuring a sustainable Microfinance Industry

Professionalism Ethical Conduct Client Care VALUES Professionalism Ethical Conduct Client Care

If you think big, then it’s going to be big. E. Lagasse

A goal without a plan is just a wish. A. de Saint-Exupéry

The path to success is to take massive, determined actions. T. Robbins

Politics

Everything affects everything

MFSA POSITION

Membership

MFSA Members: Aug 2016

Offices Since March 2013

We are turning 21

Attendance & support required MFSA Outreach 21 Sessions All 9 provinces Attendance & support required

Strategic Session November MFSA Board Members & Management Strategic Discussions and focus areas for 2017

Where do you want to see change?

On our Desk

Membership: Services we are busy with Compliance Manual Tribunal Case booklet Search & Seizure Process update Credit Policy Deferred Amount opinion Rates and Fees interpretation opinions Training for Credit Providers Consumer Education material LOCKED WEBSITE

MFSA Industry Update

Critical Matters Credit Life Data SASSA Legal Collections Payment Systems National Credit Regulator Deferred amount Rates and Fees

Credit Life

Data

South African Social Security Agency (SASSA)

Legal Debt Collection

Payment Systems

NCR Relationship

What are they up to?

Consumer is KING to them

We are here to serve BUT We are not slaves

If consumer is king… what about business Microfinance Industry

Deferred Amount

Deferred Amount NCR Circular NCR can give non-binding opinions Tribunal matter MFSA approached attorney

OUR Actions Legal Opinions NCR engagement Legal Strategy to follow

Legal opinions received Interest may be charged on amounts that become due and which amounts includes those mentioned in the sections Henk Cilliers

Legal opinions received The NCR’s reliance on section 102, as mentioned in the Notice 15 is not a basis to determine that in respect of unsecured and short term loans, the initiation fees cannot be deferred and interest cannot be charged on it. JA Augustyn

Court application Filed: Declarator Initiation Fee (deferred amount), pro-rata service fee

Progress NCR & DTI has apposed declarator Another party approached court for declarator Cases will not be joined MFSA to proceed with MFSA application

Rates and Fees

We will proceed with review!! The Judge stated that the review process was in the public interest. The Judge explicitly stated that the parties will be well advised to approach the DJP of this division to arrange for case management of the review part of the MFSA application and for the allocation of a preferential date for the hearing thereof.

Important dates Applicant: Supplementary affidavit: 1 July 2016 Respondent: Supplementary affidavit: 29 July 2016 Applicant: Replying affidavit: 15 August 2016 Applicant: Heads of Argument: 5 September 2016 Respondents: Heads of Argument: 19 September 2016 Hearing: 11,12,13 October 2016

Process and Road Ahead Heads of argument filed Dti & NCR Heads of argument received Prepare for court case Hearing: 11,12,13 October 2016

Judge has been assigned Hounourable Mr Justice AA Louw

Funding Required

Risk MFSA Financially responsible Association; Board members has fiduciary duty

Funding Funding Required: Est R3.5 million R2 million has been received Rates & Fees Deferred amount Free Riding will be unfair and possibly fatal If no contributions received – must abandon process

Financial Pledge and Commitment Pledge: R 1 905 745.65 Received: R1 803 096.65 Still need: R1 500 000 R3000 per branch

Members Contribution Number of offices Number of entities June % Value One office 356 92 26% R481 890 2 - 10 105 35 33% R464 610 11 - 23 9 5 56% R268 000 32 - 50 3 1 R12 000 51 - 99 2 50% R110 000 100+ 100% R150 000 CPO R10 000

MFSA Contribution Number of Offices % 719 60% 467 40% No pledges Commitments 467 40%

Service Provider Contribution 8 Service providers out of 28 contributed Amount: R420 746 Service Provider 1: R300 000 Service Provider 2: R50 000

MFSA Funds have been used for process, in excess of R600 000 This is an Extra-ordinary Expense

We still require at least R1.5 million

DTI & NCR OPPOSING BOTH MATTERS What will this pay for? Review: Rates and Fees Advocate & Attorney Preparation work Court appearance Declarator DTI & NCR OPPOSING BOTH MATTERS

We need

Members mandated MFSA

This is very serious

Justice need to be done Nobel Prize in Literature

War Room Discussion

Collaborative approach

Proposals & Suggestions Required

Pledge Forms

MFSA Contact Details 012 346 1081 Uncial Haupt: info@mfsa MFSA Contact Details 012 346 1081 Uncial Haupt: info@mfsa.net Dorien Roose: fin@mfsa.net Leonie van Pletzen: ops@mfsa.net Hennie Ferreira: ceo@mfsa.net www.mfsa.net