a briefing to the select committee on trade and international relations: ncr strategic plan 2015/16...

A BRIEFING TO THE SELECT COMMITTEE ON TRADE AND INTERNATIONAL RELATIONS:

NCR STRATEGIC PLAN 2015/16 – 2019/20 & 3 YEAR ANNUAL

PERFOMANCE PLAN 2015/16 – 2017/18

PRESENTED BY NCR CEO, MS NOMSA MOTSHEGARE

10 June 2015

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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; Regulation published on 13 March 2015

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OVERVIEW OF THE PRESENTAION

Vision and Mission NCR Programmes: Snapshot Government Priorities Dti Priorities: outcome 4 Programmes 1-5 3 Year annual performance plan 2015-2018 Budget: 2015/16 – 2019/20 Possible challenges for programmes 1-5 Remedies for challenges to programmes 1-5

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VISION & MISSION

VISIONTo promote a South African consumer credit market that is fair, transparent, accessible and dynamic.

MISSIONTo 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.

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To ensure effective implementation of the National Credit Amendment Act (NCAA).

GOVERNMENT PRIORITIES

MTSF = Medium Term Strategic Framework

h/holds = households

THE dti PRIORITY: OUTCOME 4

PROGRAMMES

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PROGRAMS DTI NCR

Program 1 Facilitate broad-based economic participation through targeted interventions to achieve more inclusive economic growth

To promote responsible credit granting

Program 2 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 practises in the consumer credit market and address over-indebtedness.

To ensure effective implementation of the NCAA.

PROGRAMMES CONTINUED

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PROGRAMS DTI NCR

Program 3 Facilitate broad-based economic participation through targeted intervention to achieve more inclusive economic growth

To enhance the quality and accuracy of credit bureau information

Program 4 Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures effective and efficient service delivery

To promote NCR’s operational effectiveness

Program 5 Promote a professional, ethical, dynamic, competitive and customer-focused work environment that ensures effective and efficient service delivery

To ensure effective implementation of the NCAA

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

9 provinces

visited to

monitor credit

provider

compliance

and appropriate

enforcement

action taken on

non-compliant

credit providers

where

necessary.

3 YEAR ANNUAL PERFOMANCE PLAN

10

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.

Budget R6.6m

•9 provinces

visited to

monitor credit

provider

compliance

and

appropriate

enforcement

action taken on

non-compliant

credit

providerswhere necessary

R7.0mR7.6m R8.4m


Programme 1: To promote responsible credit granting

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Goal/ Outcome Output Performance Indicator/ measure


Medium Term Targets

2014/15 2015/16 2016/17 2017/18

Affordable levels ofcredit promoted.

Increase compliancewith regulationspertaining to thetotal cost of credit

•Number of

investigations

conducted to

enforce regulations

and appropriate

enforcement action

taken where

necessary

Budget

Conduct a studyto review thecurrent levels ofthe total cost ofcredit.

R10.4m

Conduct 10investigationsand appropriateenforcementaction takenwhere necessary.

R11.1m

Conduct 15investigationsand appropriateenforcementaction takenwhere necessary.

R12m

Conduct 18investigationsand appropriateenforcementaction takenwhere necessary

R12.8m

Programme 1: To promote responsible credit granting


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Quarterly Milestones for Programme 1Goal/

OutcomeOutput Performance

Indicator/ measure

Baseline 2015/16Annual Target

Quarterly Milestones

1st Quarter 2nd Quarter 3rd Quarter 4th QuarterReduced levels ofover-indebtedness

Improve compliancewith affordabilityassessmentregulations.

Number ofworkshopsconducted onaffordabilityassessmentregulations andappropriateenforcementaction takenwherenecessary.

Number ofprovinces visited tomonitor complianceand appropriateenforcementaction takenwherenecessary.

- 9 workshopsconducted onaffordabilityassessmentregulations.

1 3 3 2

- 9 provincesvisited to monitorcredit providersand appropriateenforcementaction takenwherenecessary.

Budget

1 3 3 2

R0.7m R1.8m R2.7m R1.8m

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Quarterly Milestones for Programme 1

Goal/ Outcome




1st Quarter 2nd Quarter 3rd Quarter 4th QuarterAffordablelevelsofcredit promoted.

Increasecompliancewithregulationspertaining to thetotal cost of credit

Number ofinvestigationsconducted andappropriateenforcementaction takenwherenecessary.

Study conductedto review thecurrent levels of thecost of credit andrecommendationsto the dti.

Budget

Conduct 10investigationsAndappro-priateenforcementaction taken wherenecessary.

2 3 3 2

R11.1m R2.3m R3.25m R3.25m R2.3m

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2014/15 2015/16 2016/17 2017/18

Decreased levelsof reckless lendingpractices.

Conductreckless lendinginvestigationsand appropriateenforcementaction wherenecessary.

Number of creditproviders investigatedand appropriateenforcement actiontaken where necessary.

Budget

15 Compliancenotices/compliancecertificates wherenecessary.

R29m

20 creditprovidersinvestigatedandappropriateenforcementactiontaken wherenecessary.

R30.4m

25

R32.9m

30

R35.6m

Programme 2: To protect consumers from abuse and unfair practices in the consumer credit market and address over-indebtedness.

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Quarterly Milestones1st

Quarter2nd Quarter 3rd Quarter 4th Quarter

Decreased levels ofreckless lendingpractices.

Conduct recklesslending investigationsand appropriateenforcement actionwhere necessary.

Number of creditproviders investigatedand appropriateenforcement actiontaken where necessary.

15 Compliance noticesissued and compliancecertificate wherenecessary.

Budget

20 creditprovidersinvestigatedand appropriateenforcementactiontaken wherenecessary.

4 6 5 5

R30.4m R5.9m R9.7m R7.4m R7.4m

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Indicator/ measure


2014/15 2015/16 2016/17 2017/18

Improvedconsumer creditinformation.

Increasecompliance bycredit bureausin respect ofconsumer creditinformation.

Number ofcredit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.

Budget

2 credit bureauinvestigatedand appropriateenforcementaction takenwhere necessary.




R14m R16m R17m R18.5m

Programme 3: To enhance the quality and accuracy of credit bureau information

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Indicator/ measure


2014/15 2015/16 2016/17 2017/18

Number of creditbureau auditedReports reviewedand appropriateenforcementaction takenwhere necessary.

Budget

14 credit bureauaudited reportsreviewed.

14 credit bureauaudited reportsreviewed andappropriateenforcementaction takenwhere necessary.



R10.3m R11.5m R12.3mR9.6m

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Goal/ Outcome

Output Performance Indicator / measure



1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Improvedconsumer creditinformation.

Increasecompliance bycredit bureausin respect ofconsumer creditinformation.

Number ofcredit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.

2 credit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.Budget

2 credit bureausinvestigatedand appropriateenforcementaction taken wherenecessary.

Draft Terms ofReference.

Appoint Serviceprovider andcommenceinvestigation.

Continue withinvestigation andfinalise.

Take appropriateenforcementaction wherenecessary.

R16m R0.500m R2m R9m R4.5m

Number of creditbureau auditedreports reviewedand appropriateenforcementaction taken wherenecessary.

14 credit bureauaudited reportsreviewed.

Budget

14 credit bureauaudited reportsreviewed andappropriateenforcementaction taken wherenecessary

Review auditorsreports from creditbureaus.

Take appropriateenforcement actionwhere necessary interms of the auditreports.

Continue totake appropriateenforcementaction wherenecessary.

Continue totake appropriateenforcementaction wherenecessary.

R10.3m R1.5m R3.15m R3.15m R2.5m19



Indicator/ measure


2014/15 2015/16 2016/17 2017/18

Efficient servicedelivery.

Improveoperationalefficiencythroughautomatedprocesses.

% of uptimeavailability of theIT system.

Budget

Implementation ofrecommendationsof the ICTassessment.

95% uptime ofthe IT system.



R44.1m R42.8m R46.3m R50.1m

Programme 4: To improve NCR’s operational effectiveness

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Goal/ Outcome Output Performanc

e Indicator / measure



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.





Budget R42.8m R9.8m R10m R10.9m R12.1m

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3 YEAR ANNUAL PERFOMANCE PLANProgramme 5: To ensure effective implementation of the National

Credit Amendment Act (NCAA)Goal/ Outcome Output Performance

Indicator/ measure


Medium Term Targets

2014/15 2015/16 2016/17 2017/18

Improvedcompliancewith regulationsand consumerprotection

Improveawareness andcompliance

Number ofworkshopsconductedwith relevantstakeholders.

Budget

30 workshopswith relevantstakeholdersand monitorcompliance with the NCAA.R9.3m

40 workshopswith relevantstakeholders

R10m

45 workshopswith relevantstakeholders

R10.8m

50 workshopswith relevantstakeholders.

R11.2m

Number ofmultimediaawarenesscampaigns (radio/TV/interviews/news print)conducted.

Budget

18 of any of the

following:-Radio-TV-Interviews-News print and

monitor

compliance with

the NCAA.

R2.3m

30 of any of thefollowing:- Radio- TV- Interviews- News print

R2m


R2.1m


R2.5m

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Goal/ Outcome



Medium Term Targets

2014/15 2015/16 2016/17 2017/18


Improveawareness andcompliance

Number of

outreach

programmes and

exhibitions (mall

activations/

Outside

Broadcast/

Roadshows/

Imbizos)

conducted.

Budget

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

3 YEAR ANNUAL PERFOMANCE PLANProgramme 5: To ensure effective implementation of the National

Credit Amendment Act (NCAA)

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Goal/ Outcome



Medium Term Targets

2014/15 2015/16 2016/17 2017/18


Conduct specialinvestigationsand appropriateenforcementaction takenwhere necessary

Number of raidsconducted andappropriateenforcementaction takenwhere necessary

Budget

Conduct 2 raids inone province andtake appropriateenforcementaction wherenecessary.

Conduct raidsin three (3)provinces andtake appropriateenforcementaction wherenecessary

Conduct raidsin four (4)provinces andtake appropriateenforcementaction takenwhere necessary

Conduct raidsin four (4)provinces andtake appropriateenforcementaction takenwhere necessary.

R1.6m R1.55m R1.75m R2m


Programme 5: To ensure effective implementation of the National Credit Amendment Act (NCAA)

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Quarterly Milestones for Programme 5Goal/

OutcomeOutput Performance

Indicator / measure


Quarterly Milestones1st Quarter 2nd Quarter 3rd Quarter 4th Quarter


Improve awarenessand 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.

Budget

8 of any of the

following:-Mall activations-Exhibitions/-OB/ Road shows/ Imbizos in periurban and rural areas.

R1.55m

2

R0.225m

2

R0.550m

2

R0.225m

2

R0.550m

25

Goal/ Outcome

Output Performance Indicator / measure



1st Quarter 2nd Quarter

3rd Quarter 4th Quarter


Conduct specialinvestigations andtake appropriateenforcement actionwhere necessary.

Number of raidsconducted andappropriateenforcementactions taken wherenecessary.

Conduct 2 raids inone province andtake appropriateenforcement actionwhere necessary.

Budget

Conduct raidsin three (3)provinces andtake appropriateenforcement actionwhere necessary

Planning andinformationgathering.

Conduct 1 raidin one provinceand appropriateenforcementaction taken wherenecessary



1.55m R0.550m R0.225m R0.550m R0.225m


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POSSIBLE CHALLENGES FOR PROGRAMMES 1-5

Lack of understanding of the NCAA

Inefficient service delivery

Funding

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; fees from new registrants; penalties for late renewals; introduce new fee regulations.

Engagement with registrants & key stakeholders Improve operational efficiency through improved automated

processes

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THANK YOU

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BUDGET FOR THE 2015/16- 2019/20

YEAR 2015-2016 YEAR 2016-2017 YEAR 2017-2018 YEAR 2018-2019 YEAR 2019-2020

Operational expenditurePersonnel costs 82,231,124 88,809,614 95,914,383 103,587,534 111,874,537 Administration Costs 20,282,813 22,311,093 24,542,202 26,996,422 29,696,063 Professional/Programme costs 22,904,094 25,194,503 27,713,953 30,485,349 33,533,884

Total operational expenditure 125,418,031 136,315,211 148,170,539 161,069,305 175,104,484

Capital Expenditure

Fixed assets 4,239,539 4,239,539 4,239,539 4,239,539 4,239,539 ICT operational system 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Total capital expenditure 7,239,539 7,239,539 7,239,539 7,239,539 7,239,539

TOTAL EXPENDITURE 132,657,570 143,554,750 155,410,078 168,308,844 182,344,023 INCOME

Fees from registrants 55,051,555 56,251,555 57,451,555 58,651,555 59,851,555 Transfers from the DTI 65,727,000 69,577,000 73,056,000 78,900,480 85,212,518 Interest 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Other income 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Additional Funding from DTI 8,879,015 14,726,195 21,902,523 27,756,809 34,279,950 TOTAL INCOME 132,657,570 143,554,750 155,410,078 168,308,844 182,344,023

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a briefing to the select committee on trade and international relations: ncr strategic plan 2015/16...

Documents

compliant credit providers

national credit act

effective implementation

missionncr programmes

economic participation

effective redress

year annual perfomance

year annual performance