APRA has released the final targeted amendments to cross-industry Prudential Standard CPS 230 Operational Risk Management (CPS 230) to introduce limited exemptions from specific contractual requirements for material arrangements with certain categories of service providers, where contractual compliance is not practicable.
The categories of exempt service providers are:
- Government agencies
- Regulators
- Central banks
- Financial market exchanges
- Operators of clearing and settlement facilities
- Operators of payment systems and schemes
- Financial messaging infrastructures .
The arrangement must use standardised terms or not be documented in a formal agreement.
The updated CPS 230 commences on 1 July 2026.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
