APRA Releases Response to Industry Feedback on Replacing D2A Solution
APRA released its formal response to the feedback received on replacing Direct to APRA (D2A) with a new data collection solution. The Response to Industry provides an overview of the insights gained from the engagement process. It also provides more information about the direction APRA will take in finalizing the selection of the new system and the most appropriate means of rolling it out.
The Response to Industry informs stakeholders about the results of engagement and research of APRA and provides direction while APRA tenders for, and selects, a solution. This document focuses on the eight key themes that emerged as most important to entities, rather than addressing all feedback from engagement activities. These eight key themes are multiple submission channels and formats, a secure web-based portal, an improved data validation and query experience, test environments for transition and ongoing support, an early and comprehensive implementation plan, a clear implementation timeline, appropriate engagement and support through transition, and support for the regtech community.
Next month, APRA will issue a Request for Tender, seeking a software provider to deliver a data collection tool that meets the requirements outlined in the Response to Industry. Analysis of the market indicates that there are commercial off-the-shelf products available that meet many of these requirements. Although the first phase of engagement on the Data Collection Solution has finished, a second phase of industry engagement is now underway. To help finalize the choice of the system and the transition and roll-out plan, APRA has created three new cross-industry forums: Strategic Industry Reference Group, Technical Working Group, and Software Vendors Working Group.
The Key Items document indicated that the new solution would be implemented from late 2018 to August 2019, with roll-out and transition beginning in September 2019. Based on feedback across the engagement activities, APRA has extended the draft timeline to reflect stakeholders’ need for adequate time to transition. The key change from the draft timeline is that the industry implementation has moved from September 2019 to early 2020. APRA expects to commence transition to the new Data Collection Solution in the first quarter of 2020, with the majority of entities transitioning by mid-2020. Successfully replacing D2A is critical to the data transformation agenda of APRA. This will impact over 4,500 entities that submit data to APRA; thus, it is essential that the new system meets its objectives.
Related Links
Keywords: Asia Pacific, Australia, Banking, Insurance, Reporting, D2A, Data Collection, APRA
Featured Experts
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
FASB Improves Implementation of the Leases Standard in USRelated Articles
PRA Publishes Q&A on Property Valuation Requirements Under CRR
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO Consults on Outsourcing Principles for Operational Resilience
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS Consortium to Develop AI Fairness Metrics for Credit Scoring
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE Updates Definitions for BTL Data Collection
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI Examines Financial Stability Implications of Payment Deferrals
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA Finalizes Policy on Prudent Person Principle Under Solvency II
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA on Extending Large Exposure Limits for French Systemic Banks
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
ECB Highlights NPL Resolution as Key Policy Issue in Post-COVID Europe
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ Publishes Financial Stability Report for May 2020
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB Updates Guidance on Reporting of Securities Holdings Statistics
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).
