1. NATIONAL CREDIT REGULATOR
Third Quarter Performance Report 2014/2015
Presentation to the Portfolio Committee on Trade & Industry
By Ms Nomsa Motshegare, NCR CEO
Date:

2. OVERVIEW Mandate of the National Credit Regulator
Third Quarterly Performance Report 2014/15
Financial Information
Key Successes & Challenges 2014/15

3. MANDATE OF THE NATIONAL CREDIT REGULATOR
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.

4. THIRD QUARTER PERFOMANCE REPORT Performance Measure or Indicator
2014/15 FINANCIAL YEAR
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
SO 1: To promote increased access to credit through responsible credit granting
Increase awareness of affordability assessment regulations.
Number of workshops conducted on affordability assessment regulations.
3 workshops conducted on affordability assessment regulations.
N/A
( Target is for the 4th quarter)
Reduce cost of credit for consumers
Study conducted on Levels of the cost of credit.
Conduct a study to review the current levels of the cost of credit.
Continue with the review.
Not achieved
The study is underway & a report to be submitted with recommendations once completed
Scope of work amended based on Competition Commission’s response and lack of funding, hence delay in appointing service provider to commence with review.
Service provider appointed in January 2015 to test different scenarios in respect of prescribed formulas
Reason for variance
Corrective Action

5. THIRD QUARTER PERFOMANCE REPORT Performance Measure or Indicator
2014/15 FINANCIAL YEAR
SO 2: To protect consumers from abuse and unfair practice in the consumer credit market and address
Over-indebtedness
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
Conduct reckless lending investigations and issue compliance notices/compliance certificates where applicable.
Number of compliance certificates issued/compliance notices.
15 Compliance notices.
4 Compliance notices
Achieved
  4 compliance notices were issued
( 32 Compliance notices issued to date)
Conduct special investigations and enforcement action taken where necessary
Number of raids conducted on credit providers and enforcement action taken where necessary
Conduct 2 raids in one province and take enforcement action where necessary
Take enforcement action and plan for the second raid
Exceeded
Enforcement action taken , planned and conducted 2nd and 3rd Raids in N/West and E/Cape Provinces respectively
Received complaints about credit providers retaining bank cards and ID books. Investigations in the form of a raids had to be conducted.
Reason for variance

6. THIRD QUARTER PERFOMANCE REPORT 2014/2015 FINANCIAL YEAR
SO3: To enhance a consumer credit market regulatory framework
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
Conduct investigations and take enforcement action on credit bureaus
Number of investigations and enforcement action taken.
2 Credit bureau investigated and enforcement action taken.
Continue with investigation and finalise.
Partially achieved
1 investigation into credit bureau commenced and is still on going -will be finalised in the 4th quarter.
Procurement process took longer than anticipated. The Request for Quotations (RFQs) had to be issued twice.
Second credit bureau investigation to commence and be finalised in the 4th quarter. 
Conduct compliance on site visits
Number of compliance on-site visits conducted.
*18 on site visits to be conducted.
3 on site visits to be conducted
Exceeded
6 onsite visits conducted (18 onsite visits to date)
All credit providers were able to confirm availability for the visits
Reason for variance
Corrective Action
Reason for variance

7. THIRD QUARTER PERFOMANCE REPORT 2014/15 FINANCIAL YEAR
SO 4: To improve NCR's operational effectiveness
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
Improve operational efficiency through automated processes.
ICT recommendations implemented.
Report produced on the implementation of recommendations of the ICT assessment
Implement recommendations of the assessment
Partially achieved
The planning session has been conducted with the service provider. The process to appoint a Project Manager is underway, where after the development of the sub systems will commence. 
Increase the number of leaners recruited and trained
Number of learners recruited and trained.
20 learners
On-going training
Achieved
 On-going training for the learners continues
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Create awareness of the NCAA.
Number of workshops conducted with relevant stakeholders
30 workshops with relevant stakeholders and monitor compliance with the NCAA.
6 workshops with relevant stakeholders
Exceeded: Workshops
As a result of NCR media campaigns, the NCR received a lot of invites to conduct workshops
( to date:75 workshops)
Reason for variance
Reason for variance

8. THIRD QUARTER PERFOMANCE REPORT
2014/15 FINANCIAL YEAR
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Create awareness of the NCAA.
Number of multimedia awareness campaigns (radio/TV/news print) conducted
 18 Radio / TV interviews/ News print and monitor compliance with the NCAA.
 3 Radio / TV interviews/ News print.
( To date 69 radio/TV interviews)
Exceeded: 6 radio interviews
As a result of NCR media campaigns, the NCR received a lot of invites to participate in interviews
Number of outreach programmes and exhibitions (mall activations/outside broadcast/road shows/Imbizos) conducted.
5 of any of the following activities: exhibitions mall activations Outside Broadcast (OB) Road shows and monitor compliance with the NCAA.
1 of the following activities: exhibitions -mall activations Outside Broadcast (OB) -Road shows.
(To date:14 exhibitions, activations, road shows)
Exceeded: 2 exhibitions
As a result of NCR media campaigns, the NCR received a lot of invites to participate in outreach programmes
Reason for variance
Reason for variance

9. THIRD QUARTER PERFOMANCE REPORT Performance Measure or Indicator
2014/2015 FINANCIAL YEAR
Output
Performance Measure or Indicator
Annual Target
3rd Quarter milestones
Actual Achievement
SO 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)
Conduct special investigations and take enforcement action where applicable
Number of investigations conducted on removal of adverse consumer credit information regulations
3 investigations on large credit providers NA
(Target was achieved in the first quarter)
 ( Target was achieved in the first quarter)
Number of investigations conducted on unsolicited credit provision and enforcement action taken.
15 investigations
5 investigations
Achieved
 5 investigations were conducted ( to date, 36 investigations have been concluded)

10. FINANCIAL PERFOMANCE BUDGET OVERVIEW
2014/2015
2014/15 Total expenditure budget revised from R129m- R117m
Re-prioritization and cost containment measures
Additional funding of R5m received in January 2015

11. FINANCIAL PERFOMANCE OPERATIONAL SPENDING APRIL 2014 – DECEMBER 2014
Actual
Budget
Variance
Remaining Budget
Annual Revised Budget
( Apr’14- Dec’14)
(Jan'15 -Mar’15)
(Apr’14- Mar’15)
 Income R  %
Fees from registrants
20,456,931
26,220,441
-5,763,510
-22%
23,584,313
44,041,000
DTI Transfers
63,845,000 - 0%
5,000,000
68,845,000
Other Income
2,612,720
2,400,000
212,720 9%
1,800,392
4,146,690
TOTAL INCOME
86,914,651
92,465,551
-5,550,790
-6%
30,784,705
117,632,690
Expenditure
Personnel costs
52,784,768
52,513,772
-270,996
-1%
18,825,525
71,610,294
Professional fees
7,264,930
10,810,423
3,545,493
6,538,493
13,803,423
Consumer education
3,241,009
4,538,510
1,297,501
2,391,718
5,632,727
Stakeholder communication
1,044,943
1,145,091
100,148
529,368
1,574,311
Debt relief
1,225,504
1,552,622
327,118
1,893,691
3,119,195
Administrative costs
13,668,231
12,722,926
-945,306
-7%
4,253,245
17,921,476
TOTAL OPERATING EXPENDITURE
79,229,385
83,283,344
4,053,958 5%
34,432,040
113,661,426
Challenges
* Income below budget-> implementation of NCAA
* Funding->Premises
Highlights (cost containment measures)
* Surplus for the year to date
* Expenditure below budget at 5%

12. FINANCIAL PERFOMANCE OPERATIONAL SPENDING APRIL 2014 – DECEMBER 2014
Expenditure to date
Annual budget
Variance
Variance (%)
Remaining for the year
Capital expenditure
4,010,306
3,971,263
-39,043
-1%
Notes
*ICT system currently on review.

13. KEY SUCCESSES & CHALLENGES 2014/15
ENFORCEMENT ACTIONS
28 referrals to the National Consumer Tribunal; Raids conducted in 3 provinces
32 compliance Notices issued
CONSUMER EDUCATION & STAKEHOLDER ENGAGEMENT
Advertising Value Equivalent of > R148m: Across all media channels
14 exhibitions, activations, road shows
75 Education workshops conducted with stakeholders: Provincial Consumer Protection Desk; Trade Unions, Universities, Church Groups, Tribal Authorities
Interviews: radio & TV -69
Established Credit Industry Forum
CHALLENGES:
Funding
Office Space

14. Thank You!