The Australian Prudential Regulation Authority (APRA) says it is working on an adjusted timeline and “alternative implementation approaches” for its new data collection platform, amid fears that banks and other regulated entities may struggle with the transition.
APRA announced in March that it was purchasing a data exchange platform from Vizor to replace the current Direct to APRA (D2A) system. Dimension Data has been selected to implement the new platform.
D2A, which was originally rolled out in 2001, is used by more than 4500 financial sector organisations in order to meet their regulatory reporting requirements. APRA has said that in addition to its replacement offering enhanced capabilities, security updates, bug fixes and feature updates will become increasingly unavailable for the aging D2A system.
APRA had intended the new system to be used from March 2020, but in August the regulator pushed back the target go-live date to later next year citing “complexities identified in the design phase, additional scope, external dependencies as well as industry feedback”.
In an update sent to stakeholders this week, ARPA said that a key challenge for the transition away from D2A was the migration of existing data collections, which it said could impose a significant burden on reporting entities.
As a result D2A will be kept available for longer than previously expected, although reporting entities will need to switch from AUSkey to myGovID for authentication.
APRA said it was conducting workshops with industry bodies to “seek feedback on the impact of continued reporting through Direct to APRA (D2A) beyond March 2020” and “the preparation required for entities to change current processes for existing collections versus new and amended collections”.
The revision of the implementation timeline has also seen APRA push back the timeline for a test environment being made available.
The regulator said that a test environment is expected to be available from the middle of next year, with APRA committing to ensuring there’s at least three months available for testing.