Banking, Insurance and Life Insurance (prudential standard) determination No. 1 of 2012 - Prudential Standard CPS 231 - Outsourcing
Outsourcing policyOutsourcing policy
Start here
Get a plain-English read of Outsourcing policy
Turn the raw legal text into a practical explanation grounded in Banking, Insurance and Life Insurance (prudential standard) determination No. 1 of 2012 - Prudential Standard CPS 231 - Outsourcing.
Outsourcing policy
-
The Board must approve the regulated institution’s outsourcing policy, which must set out its approach to outsourcing of material business activities, including a detailed framework for managing all such outsourcing arrangements.
-
The Board of the Head of a Level 2 group must have an outsourcing policy that includes a strategy for the outsourcing of material business activities for both Australian and international businesses of the Level 2 group.
-
The Board must ensure that the regulated institution’s outsourcing risks and controls are taken into account as part of its overall risk management systems and when completing a risk management declaration required to be provided to APRA.[6]
-
A regulated institution’s outsourcing policy must set out specific requirements in relation to outsourcing to related bodies corporate and outsourcing to service providers conducting the material business activity outside Australia.