APRA Updates Implementation Plan for New Data Collection System
APRA issued an update on the new data collection system that will replace Direct to APRA (D2A). APRA is exploring alternative implementation approaches and will confirm the implementation approach and timeline in early 2020, once the review on approaches is completed. APRA had earlier advised that the test environment for the new solution was expected to be available in the first quarter of 2020. Given the further revisions to the implementation timeline, the test environment for the new solution is now expected to be released in mid-2020. APRA will provide a minimum of three months for entities to test returns in the new solution prior to go-live.
Implementation Approaches and Timeline
APRA is now exploring alternative implementation approaches for the new Data Collection Solution. APRA is working with industry bodies to engage representatives in focused workshops to seek feedback on the impact of continued reporting through D2A beyond March 2020. It is also working to seek feedback on the preparation required for entities to change current processes for existing collections versus new and amended collections. The workshops will explore the benefits and impact for entities of each approach, in addition to a longer term perspective of regulatory needs in the coming years. APRA will confirm the implementation approach and timeline in early 2020 once this review is completed.
Given the extended implementation timeline, APRA will ensure that D2A remains available so entities can continue to meet their reporting obligations. AUSkey, the existing authentication method, will be decommissioned by March 31, 2020. For entities to continue to access D2A beyond this time, they will be required to obtain a myGovID and be authorized to act on behalf of their entity in Relationship Authorization Manager. They will also require a machine credential, which is similar to the current device, AUSkey. APRA is working with the Australian Tax Office and in the coming months will advise entities what they need to do to make the necessary changes to ensure continued reporting through D2A.
Test Environment for New Solution
APRA will release a test environment for entities, service providers, and regtech firms to become familiar with the solution. The availability of a secure test environment is an important component of the implementation approach to supporting entity readiness for go-live. The test environment will continue to be available after the new solution is live for testing and training purposes. The test environment will enable entities, service providers, and regtech firms to familiarize themselves with the features and functionalities of the new solution, to identify any changes required to existing systems and processes, and to build confidence that they can successfully submit data as a test prior to go-live. The test environment for the new solution is expected to be released in mid-2020. APRA will provide a minimum of three months for entities to test returns in the new solution prior to go-live.
Proposed functionality for the first test release includes user authentication, data submission (Manual, XML and XBRL), homepage and solution notifications (non-email notifications), re-submissions (without historical data), and adhoc returns. APRA has also released a list of forms to be available in the test environment. It has selected the following returns to ensure coverage across industries:
- Authorized Deposit-Taking Institutions and Registered Financial Corporations: Monthly Economic Financial Statistics Return
- General Insurance: General Insurance Quarterly Return (Licensed Insurer)
- General Insurance Intermediaries: GI Intermediary Semi-Annual Return
- Life Insurance and Friendly Societies: Prescribed Capital Amount Quarterly Return
- Private Health Insurance: Statistical Data by State Quarterly Return
- Superannuation: Superannuation Quarterly Return (Registered Superannuation Entity)
Related Links
Keywords: Australia, Banking, Insurance, Pensions, Superannuation, Reporting, D2A, Data Collection Solution, 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.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
