APRA simplifies prudential framework for cloud outsourcing and ad hoc credit reporting collection

The Australian Prudential Regulation Authority (APRA) has confirmed two steps towards simplifying the prudential framework. APRA has withdrawn the 2018 Information Paper ‘Outsourcing Involving Cloud Computing Services’ due to the upcoming Prudential Standard CPS 230 Operational Risk Management (CPS 230). CPS 230 will replace existing standards 231 and 232 and comes into effect on 1 July 2025. This new standard includes supervisory coverage for cloud service provider arrangements, aiming to reduce regulatory burden and clarify the expected approach for material service provider arrangements.  

Additionally, APRA has ceased the collection of ‘ARF 923.0 Covid-19 Capital and Credit’ data. This collection, initiated in 2020 to support banks and their customers impacted by COVID-19, will have its final submission for the period ending 31 January 2025.