Australia’s regulatory reporting requirements, which were traditionally considered to be simple and straight forward, are in the process of a much-needed overhaul. The Australian Prudential Regulation Authority (APRA), in its efforts to keep pace with global regulatory reporting standards and to deal with data quality issues, tries to significantly facelift the EFS reporting requirements.
The proposed EFS modernisation is a first major amend to the regulatory reporting requirements since the year 2000. This significant step revolves around two core tenets ‘granular and relevant data requirements’ and ‘data quality and assurance requirements’.
Granularity and Relevance of data: ARS 701.0 reporting standard mandates granularity of data across different forms, the introduction of new forms, change in existing forms, the introduction of new industry, sectoral classifications and replacement of existing ad-hoc surveys.
Data quality and Assurance requirements: Reporting Practice Guide (RPG) 702.0, laying out data quality adherence requirements has been released for further consultation. Existing APS 310 (Audit and Related Matters) will cover the assurance requirements for ADIs, while for RFCs, a separate reporting standard covering assurance elements is being released for further consultation.
Given the significant change in the regulatory reporting requirements including but not limited to granular and relevant data, strong adherence to data quality standards, EFS modernization will prove to be a major disruption in reporting entities’ compliance with the new landscape. Best positioned and forward-looking financial institutes should opt for a pro-active rather than a reactive approach in adapting to the imminent change(s).
Proposed changes will cut across each aspect of the reporting value chain