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Treasury Takes Shots at NCR in Parliament

Treasury Deputy Director-General Ismail Momoniat has public condemned the National Credit Regulator (NCR) and the Financial Services Board (FSB) for their “light touch” approach in the financial services industry.

DDG Momoniat said that the NCR and FSB were not taking a sufficiently rigorous look into abusive market conduct by credit providers. He was speaking in Parliament and told the standing commitee on finance that bthe Treasury has told the NCR and FSB that they need to get tough and more intrusive about whether products offered by creditors are meeting with the necessary standards.

In particular the Treasury want the NCR to take action against balloon repayments (a big bundle of cash that needs to be paid at the end of a loan). It was pointed out that some countries have banned this practice.

NCR LogoThe NCR in turn has said they are very disappointed by DDG Momoniat’s comments in Parliament. The NCR say that their investigations are rigorous and intrusive and they are taking action to prosecute those creditors who are preying on consumers.

 

DDG Momoniat referred to the Financial Sector Regulation Bill (which has been approved by Cabinet and will be placed before Parliament in 2016) and said that the bill will provide for stronger co-operation between the Twin Peaks regulatory authorities. He said that there are too many regulators involved in the financial sector. This may be perceived by some to be a threat toward the NCR and FSB if they do not get more proactive.