Australia
APRA to consult on targeted changes to CPS 230 for
non-traditional service providers
The APRA has announced that it will consult on targeted
amendments to CPS 230 Operational Risk management by the end of
2025. This follows industry feedback highlighting challenges when
applying new standard's contractual obligations to arrangements
with non-traditional service providers (NTSPs).
NTSPs are providers that are typically market-mandated, such as
stock exchanges, payment schemes or clearing and settlement
facilities. Arrangements with these providers often lack formal
contracts or rely on standardised, non-negotiable terms.
The proposed amendments will clarify APRA's expectations for
arrangements with NTSPs, particularly around contract uplift and
service level monitoring. The changes aim to streamline processes
for regulated entities and alleviate regulatory burden, while
ensuring a practical prudential framework that enhances resilience
across the
