Banking, Insurance and Life Insurance (prudential standard) determination No. 1 of 2012 - Prudential Standard CPS 231 - Outsourcing
APRA access to service providersAPRA access to service providers
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APRA access to service providers
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An outsourcing agreement must include a clause that allows APRA access to documentation and information related to the outsourcing arrangement. In the normal course, APRA will seek to obtain whatever information it requires from the regulated institution; however, the outsourcing agreement must include the right for APRA to conduct on-site visits to the service provider if APRA considers this necessary in its role as prudential supervisor. APRA expects service providers to cooperate with APRA’s requests for information and assistance. If APRA intends to undertake an on-site visit to a service provider, it will normally inform the regulated institution of its intention to do so.
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Where a regulated institution enters into an outsourcing arrangement with a related body corporate, the Board of the regulated institution must ensure that access by APRA to the related body corporate is not impeded.
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The regulated institution must take all reasonable steps to ensure that a service provider will not disclose or advertise that APRA has conducted an on-site visit, except as necessary to coordinate with other institutions regulated by APRA that are existing clients of the service provider.