Regulatory reporting is getting a shakeup as the Australian Prudential Regulatory Authority (APRA) has unveiled a new data collection solution to replace the 20-year-old D2A (Direct to APRA) system. The new replacement will be comprised of a web-based portal, and all APRA regulated institutions will be required to meet their regulatory commitments largely by submitting data modeled and aligned with a broadened partitioned segment of the regulated entities core data. The advantage being that APRA will undertake the data shaping and crunching that satisfies an entire class of regulations, reducing the burden on the institution and helping to streamline the entire process.

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The cutover to the new system is to be phased, with the first data collections scheduled for September 2021. The commencement date of regulatory data reporting through APRA Connect will vary by industry. As APRA replaces existing collections with new collections, they will be introduced on APRA Connect. Initially data collections will be introduced for Private Health Insurance entities, followed by superannuation and Financial services.

APRA has undertaken several initiatives to drive a culture of accountability and transparency across the various industries under its supervision, including Banking, Insurance and Superannuation. However, along with these initiatives have come additional responsibility around data management and reporting. Regulated entities have voiced dismay at the additional burden that compliance often brings. APRA has responded with APRA Connect which will provide greater flexibility for collecting and submitting data, with new functionality and an easy-to-use interface. It will ensure both entities and APRA are well placed to continue to meet evolving regulatory needs.

The emphasis is now on senior management and executives to embed minimum levels of data management and governance in their organisation’s operations. APRA has already announced significant reporting changes in key sectors that will see entities submit much more granular information to the regulator.

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