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 Consults on Implementation of Certain Provisions of CRD5
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA Report Identifies Key Financial Stability Risks for Insurers
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA Publishes Risk Dashboard for First Quarter of 2020
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA Issues Updates on Stress Test Exercise for Banks in EU
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA Proposes Guidance Related to Matching Adjustment under Solvency II
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS Issues Guidance on Dividend Distributions by Banks
MAS published a statement guidance on dividend distribution by banks.
APRA Updates Guidance on Capital Management for Banks
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB Report Reviews Macro-Prudential Framework and Tools in Germany
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA Urges Firms to Finalize Preparations for End of Brexit Transition
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB on Operational Continuity in Resolution and FMI Contingency Plans
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.
