The Australian Prudential Regulation Authority (APRA) announced it will consult by the end of 2025 on targeted amendments to CPS 230 Operational Risk Management to address difficulties in applying the standard’s contractual obligations to arrangements with non-traditional service providers (NTSPs). The changes are intended to clarify expectations for contract uplift and service level monitoring for these arrangements, while leaving all other CPS 230 risk obligations unchanged. NTSPs are typically market-mandated providers such as stock exchanges, payment schemes, and clearing and settlement facilities, where arrangements may not involve formal contracts or may rely on standardised, non-negotiable terms. The proposed amendments are framed as a pragmatic adjustment to reduce implementation friction for regulated entities while maintaining a workable prudential approach. APRA will use an accelerated process, including a one-month consultation period, with the aim of finalising the targeted changes before 1 July 2026.
Australian Prudential Regulation Authority 2025-10-31
Australian Prudential Regulation Authority to consult on targeted CPS 230 amendments for non-traditional service provider arrangements
The Australian Prudential Regulation Authority (APRA) plans to consult on amendments to CPS 230 Operational Risk Management by the end of 2025. These changes aim to address challenges with non-traditional service providers (NTSPs) like stock exchanges and payment schemes. The amendments will clarify expectations for contract uplift and service level monitoring, while other CPS 230 risk obligations remain unchanged. APRA intends to finalize these changes by 1 July 2026, following an accelerated consultation process.