Proposed changes to APRA Economic and Financial Statistics data collection

Proposed changes to APRA EFS data collection

In January 2017 APRA released a discussion paper outlining proposed changes to the Economic and Financial Statistics (EFS) collection administered by APRA on behalf of the ABS and the RBA. A new data quality standard ARS 702.0 is proposed which sets the required level of accuracy for data reported for the data collection.

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In this paper we summarise the main requirements and changes of proposed reporting standard ARS 702.0, and provide our observations on its key aspects.

The proposed standard will see a significant increase in the amount and granularity of data collected from large institutions, and a substantial decrease in the amount of data collection from small institutions. Organisations with over $10 billion in assets will see over 50 percent increase in reporting requirements.
 

Key changes

  • Reporting institutions are expected to provide at least 99 percent confidence that the data reported is within data accuracy requirements.
  • Reporting institutions are expected to develop a governance and reporting framework to ensure the accuracy of reported data. Internal audit should, as a minimum, play a role in ensuring appropriate testing/data controls are in place.
  • While the scope of the external audit and/or review over the forms and related internal controls is similar to APS 310 (Audit and Related Matters), the proposed reporting standard sees an increase in external audit and/or review efforts.
     

Implementation timeline

The implementation timetable is tight and is proposed in three phases with parallel run periods.

  • Phase 1 is proposed to take effect on 1 July 2018 and covers Balance sheet and Repurchase agreements, and Securities lending forms
  • Phase 2 is proposed to take effect on 1 January 2019 and covers Interest rates, Finance commitments and Profit forms
  • Phase 3 is proposed to take effect on 1 July 2019 and covers Margin lending, Derivatives and Fee income forms.
     

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