Policy Update - July #2

APRA finalises new prudential standard on operational risk

Last week APRA finalised a new prudential standard: CPS 230.

CPS 230 is designed to empower banks, insurers, and superannuation trustees to better manage operational risks and respond to disruptions. The core objectives of CPS 230 include strengthening risk management, improving business continuity planning, and, importantly for fintechs, enhancing third-party risk management. The standard will come into effect from July 1, 2025.

APRA urges proactive preparation for implementation and has released a draft Prudential Practice Guide to assist APRA regulated entities in complying with CPS 230. Consultation on the draft guidance is open until October 13, 2023.

FinTech Australia previously made a submission on the draft CPS 230 which was consulted on last year.

ACCC invites views on data brokers

As part of its Digital Platforms Inquiry, the ACCC is seeking views on data broker services in Australia.

The Issues Paper poses questions about the practices of data brokers and potential competition and consumer issues.

The focus of the Inquiry is on businesses that collect information from third-party sources and sell or share that data with other organisations, rather than businesses that collect data on their own customers and use that within their own business, or sell or share that data with others.

New National Anti-Scam Centre launches first 'fusion cell' to disrupt investment scams

The Government's new Anti-Scam Centre, launched at the start of this month, will coordinate a 'scam fusion cell' to combat scams.

The fusion cell will be a limited time taskforce led by the ACCC and ASIC which will include representatives from the banks, telecommunications industry and digital platforms. It will bring together expertise to take more timely action to address specific, urgent scam problems.