What is NCR Compliance?
NCR compliance refers to the ongoing obligations of registered credit providers under the National Credit Act and the registration conditions.
Annual Returns
Registered credit providers needs to prepare and submit Form 39 and Form 40.
Compliance Evidence
Our service will include a review financial information, loan book, loan agreements, your affordability assessments, marketing material and other supporting evidence.
Professional Reporting
Where required, the assurance engagement includes assistance with the representation letter and Regulation 68 assurance reporting.
What is Form 40?
Form 40 is the annual financial and operational return submitted by registered credit providers to report key business, lending and financial information to the National Credit Regulator (NCR).
This is not merely an administrative form. The Registered Accounting Officer must ensure if the information agrees with the credit provider’s annual financial statements, loan book records, compliance report and supporting documentation.
What is a Regulation 68 Assurance Engagement?
A Regulation 68 assurance engagement is a professional engagement performed for credit providers to report on findings relating to compliance with the National Credit Act and related requirements.
We perform these engagements through appropriately qualified professionals and assists with the evidence, findings, representation letter and final reporting process.
NCR compliance reviews for registered credit providers.
This service is designed for credit providers that are already registered with the National Credit Regulator and need assistance with their annual compliance file, Form 40 support or Regulation 68 assurance report.
- Registered Credit Providers
- Micro Lenders
- Short-Term Credit Providers
- Mashonisa Businesses Operating Legally
- Developmental Credit Providers
- Credit Providers Required To Submit Form 40
- Credit Providers Requiring Annual NCR Compliance Reviews
- Credit Providers Requiring Regulation 68 Assurance Reports
- Credit Providers Requiring Form 40 Assistance
- Credit Providers Requiring Annual Financial Statement Assistance
NCR Compliance, Form 40 and Assurance Engagement Pricing.
Fees are based on the book value and expected scope of work. Annual Financial Statements are charged separately where BONMAS CONSULTING is required to prepare or compile them.
| Category | Book Value | Once-Off Fee | Monthly Compliance Support |
|---|---|---|---|
| Micro | R0 – R1 million | R5 500 | From R1 500 |
| SmallMost Popular | R1 million – R5 million | R10 500 | From R3 500 |
| Medium | R5 million – R15 million | R24 500 | From R8 500 |
| Large | R15 million and above | Quoted | Quoted |
What work is performed by BONMAS CONSULTING before issuing the Regulation 68 report.
This is more than just completing Form 40. The engagement considers the evidence behind the credit provider’s annual compliance position.
| Area Reviewed | ASSURANCE SCOPE covered |
|---|---|
| Financial Information | Annual Financial Statements, loan book records, lending data, Form 40 figures and consistency with available financial information. |
| Credit Agreements | Loan agreements, pre-agreement statements, quotations, consumer disclosures and agreement terms relevant to the National Credit Act. |
| Interest, Fees and Charges | Interest rates, service fees, initiation fees, collection costs and other cost-of-credit matters relevant to the engagement. |
| Marketing and Advertising | Flyers, adverts, website content, social media material and wording that may create consumer protection or compliance risk. |
| Affordability Assessment | Affordability forms, income and expense information, assessment procedures and supporting consumer documents where applicable. |
| Collections and Enforcement | Collection practices, enforcement notices, repayment practices and areas linked to prohibited collection conduct. |
| NCR Returns and Reporting | Form 39, Form 40, annual financial information, prior submissions and consistency between regulatory returns. |
| Conditions of Registration | The credit provider’s NCR conditions of registration and any matters arising from those conditions where applicable. |
| Management Representation | Assistance with compiling the representation letter and recording management responses to findings or improvement areas. |
Documents typically required.
The exact request may differ depending on your lending model, risk profile and available records.
- Latest Annual Financial Statements
- Loan Book Report
- Form 39 Compliance Report
- Sample Credit Agreements
- Pre-agreement statements and quotations
- Marketing material, flyers or website screenshots
- Affordability assessment forms
- NCR conditions of registration
- Supporting policies and procedures where applicable
What you receive from the engagement.
A simple process from payment to final report.
Start
Complete the intake form, confirm the correct pricing category and proceed to payment.
Submit documents
Upload or email the required financial, lending and compliance evidence.
Review
BONMAS coordinates the review through suitably qualified professionals.
Receive pack
You receive the final compliance pack and submission guidance.
Practical NCR compliance support for credit providers.
We assist credit providers with more than form completion. We help organise the evidence behind the annual compliance position and support the engagement from document collection to final reporting.
Performed through eligible professionals
Engagements are performed through BONMAS CONSULTING by appropriately qualified professionals, which may include Professional Accountants (SA), CA(SA), AGA(SA), or other eligible practitioners depending on the engagement scope and availability.
Common questions about NCR Compliance, Form 40 and assurance engagements.
What is NCR Compliance?
NCR compliance refers to the ongoing obligations of registered credit providers under the National Credit Act, NCR regulations and their conditions of registration. It may include annual returns, compliance reports, financial information, lending records, consumer agreements and supporting evidence.
Is this the same as NCR registration?
No. NCR registration is for becoming registered as a credit provider. This service is for registered credit providers that need annual NCR compliance support, Form 40 assistance and Regulation 68 assurance engagement reporting.
What is Form 40?
Form 40 is the annual financial and operational return required from credit providers. It is usually supported by financial information, operational information and related compliance evidence.
Who must submit Form 40?
Registered credit providers that are required to submit annual financial and operational information to the National Credit Regulator may need Form 40 support. BONMAS can help assess the annual compliance requirements applicable to your credit provider profile.
What is a Regulation 68 assurance engagement?
It is an engagement performed for non-audited credit providers to report on findings relating to compliance with the National Credit Act, the Regulations and related NCR requirements.
Do I need Annual Financial Statements for Form 40?
Annual Financial Statements are often important supporting evidence for the Form 40 and assurance engagement process. If you do not have current AFS, BONMAS can assist with AFS compilation as a separate add-on service.
Do you only check financial statements and loan books?
No. The engagement may also include credit agreements, pre-agreement statements, marketing material, affordability forms, collection practices, conditions of registration and management representations.
Can BONMAS prepare my Annual Financial Statements as well?
Yes. Where required, AFS preparation or compilation is treated as a separate add-on and added to the engagement fee.
What if I have not completed Form 39?
You should raise this early. BONMAS can guide you on the information required and how the missing or incomplete compliance report affects the annual compliance process.
How much does NCR Compliance, Form 40 and assurance engagement assistance cost?
Pricing starts from R5 500 for micro credit providers, with higher tiers based on book value. AFS compilation is charged separately where required.
What happens if compliance issues are identified?
The issues are recorded as findings or improvement areas, together with management responses and practical steps to address them where applicable.
