The Australian Prudential Regulation Authority (APRA) has finalised targeted amendments to prudential standard CPS 230 Operational Risk Management, prudential practice guide CPG 230, and the corresponding Material Service Provider Register template.
The amendments introduce limited exemptions from specific contractual requirements in CPS 230 for material arrangements with certain categories of non-traditional service providers (NTSPs), like central banks and clearing and settlement facilities, where contractual compliance is not practicable.
Developed in response to industry feedback, these changes aim to provide targeted, administratively efficient solutions for regulated entities that maintain material arrangements with NTSPs, while preserving the core objectives of operational risk management.
The amendments will come into effect on 1 July 2026. The full letter to industry and the detailed changes are available on the APRA website at: Operational risk management
