APRA CPS 234

Prudential Standard CPS 234 requires APRA-regulated entities (ADIs, insurers, RSE licensees) to maintain an information security capability commensurate with the size and extent of threats to their information assets. The standard requires defined roles and responsibilities for information security, clear capability maintenance requirements, implementation of controls, and notification to APRA of material information security incidents within 72 hours.

CPS 234's requirements extend to third parties — any service provider that manages information assets on behalf of an APRA-regulated entity must meet security standards at least as strong as those the regulated entity would apply itself. This means vendors selling software or services to Australian financial institutions must demonstrate security posture that meets CPS 234 requirements — making it a de facto vendor security standard for the Australian financial services market.

The APRA's increased focus on cloud security — evidenced by their Prudential Practice Guide CPG 234 — places specific requirements on how APRA-regulated entities govern cloud service provider relationships. Technical controls for data residency, access management, and incident response in cloud environments must be specifically addressed in the regulated entity's information security policy.

We build systems for Australian financial services clients with CPS 234 controls implemented at the architecture level — enforcing access controls through IAM policies, maintaining audit logs that satisfy APRA notification requirements, and generating the security control documentation that APRA-regulated clients need for their own compliance obligations.

Compliance-Native Architecture Guide

Design principles and a structured checklist for building software that is compliant by default — not compliant by retrofit. Covers data architecture, access controls, audit trails, and vendor due diligence.