TITLE: Australian Prudential Regulatory Authority Finalises Amendments to Operational Risk Management Standard
BODY:
On Thursday, April 30, 2026, the Australian Prudential Regulatory Authority (APRA) 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), including central banks and clearing and settlement facilities. These exemptions apply where contractual compliance is not practicable. Developed in response to industry feedback, the 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 apply to all institutions supervised by APRA, including banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and superannuation industry members.
The amendments will come into effect on July 1, 2026. Regulated entities should review the full letter to industry and detailed changes available on the APRA website to understand the scope of the exemptions and ensure compliance with the updated requirements by the effective date. For further information, regulated entities can contact APRA on 1300 558 849.
REFERENCES:
Australian Prudential Regulatory Authority. (2026, April 30). APRA finalises targeted amendments to CPS 230 Operational Risk Management. https://www.apra.gov.au/