Force majeure, sub-contractors, termination: the gaps APRA reaffirmed on 30 April

Issue 3 | 20 May 2026

On 30 April 2026, APRA finalised targeted amendments to CPS 230, CPG 230, and the MSP Register Template. The amendments commence 1 July 2026 and introduce a limited exemption from specified contract clauses for material arrangements with seven categories of non-traditional service providers: government agencies, regulators, central banks, financial market exchanges, clearing and settlement facility operators, payment system and scheme operators, and financial messaging infrastructures. The exemption applies only where the contract is standardised or non-negotiable. All other CPS 230 obligations continue to apply. Paragraph numbering shifts under the amendments: force majeure moves from 54(f) to 53(f), and the notifications requirement for material service agreements moves from 59(a) to 60(a). The MSP Register Template now accommodates exempt classifications.

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With 6 weeks to the 1 July 2026 deadline, the requirement to maintain CPS 230-compliant contracts is well documented. The clauses themselves are not the difficulty. The difficulty is the gap between what a clause technically includes and what APRA will accept as evidence the clause means something in practice.

Three patterns are consistent across publicly available legal commentary and APRA's 30 April 2026 letter.

First, force majeure clauses that list triggering events but stay silent on which obligations survive. Paragraph 54(f), renumbered to 53(f) under the 1 July 2026 amendments, requires the agreement to specify which parts of the contract continue during a force majeure event. APRA addressed industry pushback on this clause in its 30 April 2026 letter and declined to soften it. The standard asks for contractual clarity, not a guarantee of uninterrupted performance. A boilerplate force majeure clause that does not specify which obligations continue does not satisfy the standard.

Second, sub-contractor clauses with notification but no liability flow-through, or liability without notification. Paragraph 54(d) requires notification when the service provider uses other material service providers it materially relies on. Paragraph 54(e) requires liability for sub-contractor failure to remain with the service provider. The two requirements are separate. Contracts often address one and not the other. Regulated entities are increasingly treating partial coverage as non-compliance, because the prudential rationale only holds when both obligations sit together.