APRA has released a revised implementation approach and timeline for its new data collection solution, known as APRA Connect, which will replace Direct to APRA (D2A). The revised implementation approach for APRA Connect has been developed taking into account the recent industry feedback, the upcoming changes to data collections, and the longer term regulatory needs. APRA Connect is scheduled to go live at the end of September 2020, with a progressive cut-over of financial data reporting to the new solution. Entities will be required to use both D2A and APRA Connect in the medium term.
APRA is confident that its revised implementation approach will reduce the effort and impact on reporting entities and facilitate a lower risk transition to the new solution. The revised implementation approach for APRA Connect includes the following key points:
- A test environment is planned to be available from the end of June 2020 for entities to familiarize themselves with APRA Connect. Returns will be available in the test environment before entities are required to submit them prior in APRA Connect.
- All entities will commence reporting entity information on APRA Connect from September 2020 while the timing of financial data reporting will vary for each industry. All financial data reporting for insurance and superannuation will continue to be reported through D2A. APRA will progressively start new collections for these industries on APRA Connect in line with industry consultations.
- APRA intends to move all reporting for authorized deposit-taking institutions and registered financial corporations from D2A to APRA Connect in the current format in March 2021. This means that the first monthly and quarterly returns (for the March period end) will be submitted in APRA Connect. No historical financial data will be migrated to APRA Connect and any re-submissions for D2A-submitted returns will need to be made through D2A.
- All entities who submit Form 701 for intermediated insurance business will be required to use APRA Connect. The first submission will be due on APRA Connect from January 2021.
- The first new collection to be introduced to APRA Connect after the September 2020 go live date will be the Private Health Insurance (PHI) Reform (HRS 605.0).
APRA notes that the outbreak of COVID-19 is creating considerable uncertainty and disruption across the Australian financial markets and economy. Therefore, APRA may need to revise these timelines in response to further developments to recognize the competing priorities of industry.
Keywords: Asia Pacific, Australia, Banking, Insurance, Superannuation, Pensions, Reporting, D2A, APRA Connect, Data Collection Solution, APRA
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