APRA Finalizes Reporting Standard and Practice Guide on EFS Collection
APRA finalized the Reporting Standard ARS 701.0 on Australian Bureau of Statistics/Reserve Bank of Australia (ABS/RBA) Definitions for the Economic and Financial Statistics (EFS) Collection (ARS 701.0) and Reporting Practice Guide RPG 701.0 on ABS/RBA Reporting Concepts for the EFS Collection (RPG 701.0). Additionally, APRA released a letter on its response to submissions on the proposed changes to reporting consolidation for securitization special purpose vehicles (SPVs). In line with the original proposal, the first reporting period will be for the period ending July 2019. ARS 701.0 commences on July 01, 2019.
In May 2019, ABS, APRA, and RBA (collectively the agencies) had proposed changes to reporting requirements for registered financial corporations that are not a related party of an authorized deposit-taking institution. APRA had proposed changes to the EFS data collection related to the consolidation of securitization SPVs. APRA received one submission from an industry body. The submission agreed that proposed changes to the EFS collection were the best way to capture the bulk of the securitization industry, as intended. The submission noted issues to consider on the structure and control relationship of SPVs and suggested a change to the reporting dates for registered financial corporations. Based on the outcome of the consultation, APRA will proceed with the proposed changes to ARS 701.0 and the consequential changes to RPG 701.0.
The changes require a registered financial corporation that is not a related party of an authorized deposit-taking institution to consolidate the positions and transactions of all securitization SPVs in a single set of reporting for EFS. These changes do not apply to a registered financial corporation that is a related party to an authorized deposit-taking institution. The assets and liabilities of securitization SPVs would, therefore, be consolidated on to the domestic books of a registered financial corporation. Assets originated into, or transferred to, an SPV are included in the reporting of a registered financial corporation. The requirement for an external auditor’s report, as set out in Standard RRS 710 on Audit Requirements for Registered Financial Corporations—EFS collection, will apply to the reporting registered financial corporation, not the individual SPVs.
Related Links
Effective Date: July 01, 2019 (ARS 701.0)
Keywords: Asia Pacific, Australia, Banking, Insurance, Securities, EFS Collection, ARS 701.0, RPG 701.0, Response to Consultation, Securitization, Special Purpose Vehicle, Reporting, 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
Related Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.
