The superannuation reporting shake-up gathers pace! Are you ready?
In the biggest shake up to Super since the 1990s, there have been a slew of regulatory reporting changes for the superannuation sector in the last 12 months. While all ramifications for organisations is still unknown, what is clear is that reporting requirements will increase in terms of volume, access, and detail.
What does this mean for your business? In short, you need to find a new way to treat, store, and manage your data.
“Globally, the number of regulatory changes in financial services has more than tripled since 2011, averaging 200 changes per day, which has the effect of increasing the complexity and the cost of compliance. That trend is set to continue and escalate with the introduction of APRA Connect,” says Fifth Logic Chief Executive Officer, James Wartho.
APRA Connect in a nutshell
APRA released its new web-based data collection solution, APRA Connect, in September last year. In April 2022 APRA launched Phase 2 of this multi-year project to enhance the breadth, depth and quality of data collected from the superannuation industry. While Phase 1 addressed some urgent data gaps, Phase 2 will focus on lifting the granularity of the data APRA collects across all of the superannuation industry’s business operations. The aim is to achieve greater transparency and deeper insights into every aspect of the superannuation industry’s operations, and APRA will use the additional data to strengthen prudential oversight of the superannuation industry.
With the wave of change caused by the introduction of Economic and Financial Statistics (EFS) reporting still echoing in the banking sector’s ears, many in superannuation circles are bracing for a similar impact.
“With Super being the first cab off the rank for APRA Connect, many in the industry are making a correlation with EFS. EFS turned into a wholesale rewrite of reporting systems in banking, which caught many people unawares and ill-prepared. It’s a big risk for superannuation businesses. It’s a tsunami coming to Super. Regulators are getting smarter. They want to see all your data,” says James.
You need to get your business and data ready, and fast
Many funds now must make a huge leap from legacy reporting systems and processes to deliver the requirements under APRA’s increasing expectations.
Historically there have been three options to manage regulatory reporting. You could build an inhouse platform, buy a vendor product, or invest in an inhouse regulation team, building their knowledgebase to manage reporting.
“This approach, which has to this day, relied heavily on Excel spreadsheets and manual process, is just not going to cut it. Anyone thinking that they can ‘make do’ is in for a nasty surprise,” warns James.
Instead, organisations need to be looking to modern, intelligent, and (ideally) automated solutions to meet the requirements of APRA Connect.
“Superannuation companies have got a huge decision to make in terms of what they do to future-proof their businesses and meet the changing reporting requirements. You need a solution that reduces compliance risk and room for human error whilst simultaneously handling data in a fast and flexible way,” says James.
According to James, there is only a small window of time to invest in new and progressive reporting technology - rather than battle on with existing and fragile systems.
“Without meaning to sound alarmist, you need to move on this now,” adds James.
Reduce the burden of data collection with Fifth Logic IQ™
So, you know you need to overhaul your reporting systems, but you don’t know where to start? Enter Fifth Logic’s Software-as-a-Service (SaaS) solution, Fifth Logic IQ™ (FLiQ™). Launched ahead of the transition to APRA Connect, FLiQ™ reimagines the regulatory data space and changes the way critical financial calculations are made.
“Fifth Logic played a leading role in the design and implementation of APRA Connect focusing on program managing, technology architecture, business architecture skills – so we know our way around the new system,” says James.
With more than 100 years of Director-level experience including time with multiple big banks, Fifth Logic’s knowledge and experience is second to none.
“Talk to us about FLiQ™ and how it could help your organisation. We like to be challenged. Give us your most complex and time-consuming issue and we will fix it. Simple,” concludes James.
To book a consultation or find out more about how FLiQ™ can prepare your organisation for the change ahead, contact Fifth Logic today.