The Australian Prudential Regulation Authority (APRA) has released a response paper and draft prudential standard on the implementation of the Financial Claims Scheme (FCS) for authorised deposit-taking institutions (ADI).
The paper, released for a third round of consultation, responded to issues raised in submissions from industry and set out proposed changes to the FCS data requirements, the prudential regulator said.
The paper's key changes include the proposed removal of the need for ADIs to submit FCS-related data to APRA on a regular basis for testing and other purposes.
It also proposes to allow ADIs to use data matching as the basis for their single customer view and increase the transition period on commencement of the standard to two years for all ADIs.
APRA said as it no longer intended to require ADIs to provide it with FCS-related data on a regular basis, the "legal instrument" had changed from a reporting standard to a prudential standard.
"APRA will work with ADIs during the transition period to address any implementation issues," it said in a statement.
"Once the transition period ends, ADIs will be subject to testing of their FCS preparedness."
Subject to industry feedback, APRA intends to release the final prudential standard in late 2011, to take effect from 1 January 2012.
ADIs will need to comply with the standard no later than 31 December 2013, unless an extended transition is granted.
The FCS was established in October 2008 and is designed to protect depositors by providing them with timely access to their deposits, up to a defined amount, in the event that their ADI becomes insolvent and is placed into liquidation.
Submissions on the response paper and draft prudential standard are due by 11 November.
