APRA Issues Updates on New Data Collection System and LIBOR Cessation
In a recent statement, APRA reiterated that Australian regulators expect institutions to cease the use of LIBOR in new contracts before the end of 2021. APRA also published user guidance to assist reporting entities in getting ready for its new data collection solution APRA Connect. The APRA Connect test environment will be available from June 17, 2021 for users. The first data collections to be introduced in APRA Connect at the September 2021 go-live will be the Superannuation Data Transformation collections, due in September 2021, and Private Health Insurance (PHI) Reform (HRS 605.0), due in October 2021.
The APRA Connect test environment will be a permanent feature. Returns will be available in the test environment before entities are required to submit them in APRA Connect. The test environment will also be used to support the design of new collections and the APRA consultations with industry. The data uploaded in the test environment will be secure and will not be accessible by other entities using the test environment. The APRA Connect test environment will help entities, service providers, and regtech firms to:
- familiarize themselves with the features and functionalities of APRA Connect
- trial data submission to identify any changes required to data preparation
- engage with APRA on new collection design
APRA announcement on LIBOR cessation highlights that APRA, the Australian Securities and Investments Commission (ASIC), and the Reserve Bank of Australia (RBA) support the guidance and expectations set by FSB and the US Banking Supervisors. Regulators in Australia are reiterating the importance of ensuring a timely transition away from the London Interbank Offered Rate (LIBOR). This requires ceasing the use of LIBOR in new contracts before the end of 2021. Continued reliance on LIBOR poses significant risks and disruptions to the stability and integrity of the financial system. Firms may face financial, conduct, litigation, and operational risks associated with inadequate preparation. ASIC, APRA, and RBA expect all market participants to adhere to the deadline at the end of 2021 for the issuance of new LIBOR contracts. Market participants should also accelerate the active conversion of legacy LIBOR contracts.
Related Links
- News Release on LIBOR Cessation
- News Release on APRA Connect
- Update on Test Environment
- Access to Test Environment
Keywords: Asia Pacific, Australia, Banking, LIBOR, Legacy Contracts, Benchmark Reforms, Reporting, APRA Connect, Test Environment, APRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
G7 Discusses Actions to Tackle Climate ChangeRelated Articles
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
CBE Issues Additional Measures to Ease Disruptions from Pandemic
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
APRA Licenses Two More Banks, Reduces Committed Liquidity Facility
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.
