1. NATIONAL CREDIT REGULATOR
A BRIEFING TO THE PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY:
NCR STRATEGIC PLAN 2015/16 – 2019/20 & 3 YEAR ANNUAL PERFOMANCE PLAN 2015/16 – 2017/18
PRESENTED BY
MS NOMSA MOTSHEGARE (NCR CEO)
14 April 2015

2. MANDATE OF THE NCR
It is established in terms of the section 12 of the National Credit Act (NCA).
Its main purpose is to regulate consumer credit, monitor compliance and enforce the NCA.
The National Credit Amendment Act (NCAA): assented to and signed by the President on 19 May 2014; proclamation signed and regulation published on 13 March 2015

3. OVERVIEW OF THE PRESENTAION
Vision and Mission
NCR Programmes: Snapshot
Government Priorities
Dti Priorities: outcome 4
Programmes 1-5
3 Year annual performance plan
Budget: 2015/16 – 2019/20
Possible challenges for programmes 1-5
Remedies for challenges to programmes 1-5

4. VISION & MISSION VISION MISSION
To promote a South African consumer credit market that is fair, transparent, accessible and dynamic.
MISSION
To support the social and economic advancement of South Africa, by:
regulating for a fair and non-discriminatory market for access to consumer credit; and
promoting responsible credit granting, use and effective redress.

5. NCR PROGRAMMES: A SNAPSHOT
To promote responsible credit granting.
To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.
To enhance the quality and accuracy of credit bureau information
To improve NCR’s operational effectiveness
To ensure effective implementation of the National Credit Amendment Act (NCAA).

6. GOVERNMENT PRIORITIES
MTSF
Targets: Increasing employment & reducing unemployment
Increase share in h/hold income of the poorest of h/holds
NDP aim: Eliminate poverty, reduce inequalities & unemployment
MTSF = Medium Term Strategic Framework
h/holds = households

7. THE dti PRIORITY: OUTCOME 4
To achieve this national goal, the dti, plays a pivotal role in ensuring the achievement of Outcome 4.
OUTCOME 4
Decent Employment through Inclusive Economic Growth.

8. Strategic Outcome – oriented goals
PROGRAMME (1)
dti
Strategic Outcome – oriented goals
Facilitate broad-based economic participation through targeted interventions to achieve more inclusive economic growth.
To promote responsible credit granting
NCR

9. Strategic Outcome – oriented goals
PROGRAMME (2)
dti
Strategic Outcome – oriented goals
Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner
To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.
To ensure effective implementation of the NCAA.
NCR

10. Strategic Outcome – oriented goals
PROGRAMME (3)
dti
Strategic Outcome – oriented goals
Facilitate broad-based economic participation through targeted interventions to achieve more inclusive economic growth
To enhance the quality & accuracy of credit bureau information
NCR

11. Strategic Outcome – oriented goals
PROGRAMMES (4&5)
dti
Strategic Outcome – oriented goals
Promote a professional, ethical, dynamic, competitive and and customer-focused work environment that ensures effective and efficient service delivery
To promote NCR’s operational effectiveness
To ensure effective implementation of the NCAA
NCR

12. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 1: To promote responsible credit granting.
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Reduced levels of over-indebtedness.
Improve compliance with affordability assessment regulations.
Number of workshops conducted on affordability assessment regulations and appropriate enforcement action taken where necessary.
1 workshop
9 workshops conducted on affordability assessment regulations.
9 provinces visited to monitor credit provider compliance
and appropriate enforcement action taken on non-compliant credit providers where necessary
and appropriate enforcement action taken on non-compliant credit providers where necessary.

13. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 1: To promote responsible credit granting
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Reduced levels of over-indebtedness.
Improve compliance with affordability assessment regulations.
Number of provinces visited to monitor compliance and appropriate enforcement
action takenwhere necessary.
R6.6m
9 provinces visited to monitor credit provider compliance and appropriate enforcement action taken on non-compliant credit providers
where necessary
R7.6m
R8.4m

14. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 1: To promote responsible credit granting
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Affordable levels of
credit promoted.
Increase compliance
with regulations
pertaining to the
total cost of credit
Number of investigations conducted to enforce regulations and appropriate enforcement action taken where necessary.
Conduct a study
to review the
current levels of
the total cost of
credit.
R10.4m
Conduct 10
investigations
and appropriate
enforcement
action taken
where necessary.
R11.1m
Conduct 15
R12m
Conduct 18
where necessary
R12.8m

15. Quarterly Milestones for Programme 1
Goal/ Outcome
Output
Performance Indicator/ measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Reduced levels of
over-indebtedness
Improve compliance
with affordability
assessment
regulations.
Number of
workshops
conducted on
affordability
regulations and
appropriate
enforcement
action taken
where
necessary.
provinces visited to
monitor compliance
and appropriate
action takenwhere -
9 workshops 1 3 2
9 provinces
visited to monitor
credit providers
R0.7m
R1.8m
R2.7m

16. Quarterly Milestones for Programme 1
Goal/ Outcome
Output
Performance Indicator/ measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Affordablelevelsof
credit promoted.
Increasecompliance
withregulations
pertaining to the
total cost of credit
Number of
investigations
conducted and
appropriate
enforcement
action takenwhere
necessary.
Study conducted
to review the
current levels of the
cost of creditand
recommendations
to the dti.
Conduct 10
andappropriate 2 3
R11.1m
R2.3m
R3.25m

17. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 2: To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Decreased levels
of reckless lending
practices.
Conduct
reckless lending
investigations
and appropriate
enforcement
action where
necessary.
Number of credit
providers investigated
enforcement action
taken where necessary.
15 Compliance
notices/
compliance
certificates where
R29m
20 credit
providers
investigated
and
appropriate
action
taken where
R30.4m 25
R32.9m 30
R35.6m

18. Quarterly Milestones for Programme 2
Goal/ Outcome
Output
Performance Indicator/ measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Decreased levels of
reckless lending
practices.
Conduct reckless
lending investigations
and appropriate
enforcement action
where necessary.
Number of credit
providers investigated
taken where necessary.
15 Compliance notices
issued and compliance
certificate where
necessary.
20 credit
providers
investigated
enforcement
action
taken where 4 6 5
R30.4m
R5.9m
R9.7m
R7.4m

19. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 3: To enhance the quality and accuracy of credit bureau information
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Improved
consumer credit
information.
Increase
compliance by
credit bureaus
in respect of
Number of
credit bureau
investigated
and appropriate
enforcement
action taken
where necessary.
2 credit bureau
R14m
R16m
R17m
R18.5m

20. 3 YEAR ANNUL PERFOMANCE PLAN
Programme 3: To enhance the quality and accuracy of credit bureau information.
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Number of credit
bureau audited
Reports reviewed
and appropriate
enforcement
action taken
where necessary.
14 credit bureau
audited reports
reviewed.
reviewed and
appropriate
R10.3m
R11.5m
R12.3m
R9.6m

21. 3 YEAR ANNUAL PERFOMANCE PLAN
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Number of credit
bureau audited
Reports reviewed
and appropriate
enforcement
action taken
where necessary.
14 credit bureau
audited reports
reviewed.
reviewed and
appropriate
R10.3m
R11.5m
R12.3m
R9.6m

22. Quarterly Milestones for Programme 3
Goal/ Outcome
Output
Performance Indicator / measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Improved
consumer credit
information.
Increase
compliance by
credit bureaus
in respect of
Number of
investigated
and appropriate
enforcement
action taken where
necessary.
2 credit bureaus
Draft Terms of
Reference.
Appoint Service
provider and
commence
investigation.
Continue with
investigation and
finalise.
Take appropriate
action where
R16m
R0.500m
R2m
R9m
R4.5m
Number of credit
bureau audited
reports reviewed
14 credit bureau
audited reports
reviewed.
reviewed and
appropriate
necessary
Review auditors
reports from credit
bureaus.
enforcement action
where necessary in
terms of the audit
reports.
Continue to
take appropriate
R10.3m
R1.5m
R3.15m
R2.5m

23. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 4: To improve NCR’s operational effectiveness
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Efficient service
delivery.
Improve
operational
efficiency
through
automated
processes.
% of uptime
availability of the
IT system.
Implementation of
recommendations
of the ICT
assessment.
95% uptime of
the IT system.
96% uptime of
97% uptime of
R44.1m
R42.8m
R46.3m
R50.1m

24. Quarterly Milestones for Programme 4
Goal/ Outcome
Output
Performance Indicator / measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Efficient service delivery.
Improve operational efficiency through automated systems
% of uptime availability of the IT system
Implementation of recommendations of the ICT assessment
95% uptime of the IT system.
R42.8m
R9.8m
R10m
R10.9m
R12.1m

25. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Improved
compliance
with regulations
and consumer
protection
Improve
awareness and
Number of
workshops
conducted
with relevant
stakeholders.
30 workshops
stakeholders
and monitor
compliance with the NCAA.
R9.3m
40 workshops
R10m
45 workshops
R10.8m
50 workshops
R11.2m
multimedia
awareness
campaigns (radio/
TV/interviews/
news print)
conducted.
18 of any of the following:
Radio TV
Interviews
News print and monitor
R2.3m
30 of any of the
following:
- Radio
- TV
- Interviews
- News print
R2m
R2.1m
R2.5m

26. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Improved
compliance
with regulations
and consumer
protection
Improve
awareness and
Number of outreach programmes and exhibitions (mall activations/ Outside Broadcast/ Roadshows/ Imbizos) conducted.
5 of any of the following activities:
Exhibitions
Mall activations
Outside Broadcast (OB)
Road shows and monitor
compliance with the NCAA.
R1.6m
8 of any of the following:
- Mall activations/ exhibitions/ OB/ Road shows/ Imbizos in peri urban and rural areas.
R1.55m
11 of any of the following:
-Mall activations/ exhibitions/ OB/ Road shows/ Imbizos in peri urban and rural areas.
R1.75m
15 of any of the following:
- Mall
activations/ exhibitions/ OB/ Road shows/ Imbizos in peri urban and rural areas.
R2m

27. 3 YEAR ANNUAL PERFOMANCE PLAN
Programme 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Goal/ Outcome
Output
Performance Indicator/ measure
Estimate Performance
Medium Term Targets
2014/15
2015/16
2016/17
2017/18
Improved
compliance
with regulations
and consumer
protection
Conduct special
investigations
and appropriate
enforcement
action taken
where necessary
Number of raids
conducted and
appropriate
Conduct 2 raids in
one province and
take appropriate
action where
necessary.
Conduct raids
in three (3)
provinces and
necessary
in four (4)
Conduct raids
where necessary.
R1.6m
R1.55m
R1.75m
R2m

28. Quarterly Milestones for Programme 5
Goal/ Outcome
Output
Performance Indicator / measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Improved
compliance
with regulations
and consumer
protection
Improve awareness
and compliance
Number of outreach programmes
and exhibitions (mall activations/ Outside Broadcast/ Road shows/ Imbizos) conducted.
5 of any of the following activities with special focus on peri urban and rural areas:
Exhibitions
Mall activations
Outside Broadcast (OB)
Road shows Imbizos and monitor compliance with the NCAA.
8 of any of the following:
Exhibitions/
OB/ Road shows/ Imbizos in peri
urban and rural areas.
R1.55m 2
R0.225m
R0.550m

29. Quarterly Milestones for Programme 5
Goal/ Outcome
Output
Performance Indicator / measure
Baseline
2015/16
Annual Target
Quarterly Milestones
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Improved
compliance
with regulations
and consumer
protection
Conduct special
investigations and
take appropriate
enforcement action
where necessary.
Number of raids
conducted and
appropriate
enforcement
actions taken where
necessary.
Conduct 2 raids in
one province and
Conduct raids
in three (3)
provinces and
where necessary
Planning and
information
gathering.
Conduct 1 raid
in one province
and appropriate
action taken where
necessary
1.55m
R0.550m
R0.225m

30. BUDGET FOR THE 2015/ /20

31. POSSIBLE CHALLENGES FOR PROGRAMMES 1-5
Possible reckless lending leading to over-indebtedness
Low of non-response from registrants
Inadequate reporting on the level of compliance from data sources i.e. accuracy, validity, meeting submission deadlines
NCR presence in the rural & underserved communities
Lack of understanding of the NCAA
Inefficient service delivery
Funding

32. REMEDIES FOR CHALLENGES TO PROGRAMMES 1-5
Compliance monitoring: Affordability assessment
Targeted consumer awareness & education initiatives
Coordination with other regulators
Regular compliance monitoring of registrants and enforcement of the Act
Funding Challenge: to find creative ways to perform some functions: Consumer education & research; continue to engage dti; fees for new registrants
Engagement with registrants & key stakeholders
Improve operational efficiency through improved automated processes

33. Thank You!