Please accept CISA's apologies for not presenting this submission in person but we are committed to a long-standing arrangement with foreign visitors which we can unfortunately not reschedule.

CISA participated fully in the consultative drafting process that resulted in the version of the Bill now under consideration. We addressed the committee on our conditional support for the Bill at a briefing in 1998.

CISA and other consumer bodies represented on the drafting team supported the Bill because the standardisation of clarification of markings and reduction in the incidence cheque fraud will benefit consumers.

This support was conditional upon the banking industry agreeing to fund, implement, monitor and evaluate a comprehensive consumer education campaign to coincide with promulgation of the new law.

The essential elements of this consumer education campaign are:

1. The Banking Council will compile and print a comprehensive industry brochure explaining the provisions of the Bills of Exchange Amendment Act. This brochure will be issued to all existing and new cheque account holders and will

- explain the change in the law

- explain the consequences of non compliance

- illustrate the "not transferable" marking

- require the recipient to acknowledge by signing that s/he understands the

information.

2. All banks accept a three-month phasing-in period (from the date of promulgation of the legislation during which

- the use of other markings indicating an intention to prevent transferability will still

be effective

- cheques will be monitored in order that cheque account holders using the old form

of marking may be identified and advised by their bank to comply with the change

in the law.

3. All banks will monitor and report on the effectiveness of the education campaign by specifying the number of wrongly marked cheques detected monthly over the three month monitoring period.

4. The Banking Council, in conjunction with consumer bodies, will design and run a multimedia campaign to advertise and publicise the change in the law and its implications. This will take the form of advertisements paid for by the banks and editorial coverage.

5. The Banking Council will tender for the production of rubber stamps with the "not transferable" marking and ensure that customers have access to these at a reasonable cost.

CISA has requested a detailed cost analysis on the education campaign from the Banking Council to ensure that it is not only efficient and effective but also cost effective. In addition, CISA is awaiting confirmation from the Council that all its members have agreed to the provisions of the campaign as outlined above.

The Banking Council advised us today that its member banks would require about a week to furnish these costs and confirm their commitment to the campaign. On condition that this commitment is forthcoming from the Council on behalf of all its members, CISA supports the Amendment Bill.

The Council also advised that its members would need a period of about three months to plan and implement such a consumer education initiative. CISA therefore supports the Council's request for promulgation of the legislation, should it be passed, to take place in January 2001.

Ms Diane Terblanche

CEO - CISA