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.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
FSC Launches Pilot-Run of Open Banking System in South KoreaNext Article
Dave Ramsden of BoE Explains Its Approach to FintechRelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
