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)
Keywords: Australia, Banking, Insurance, Pensions, Superannuation, Reporting, D2A, Data Collection Solution, APRA
Previous ArticleFSC Launches Pilot-Run of Open Banking System in South Korea
Next ArticleDave Ramsden of BoE Explains Its Approach to Fintech
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.