A breach of Australian Prudential Regulation Authority ("APRA") Prudential Standards constitutes a breach of the relevant underlying legislation for which the Prudential Standards apply, i.e., for banks, the Banking Act 1959 (Cth); for Australian financial services licensees, the Corporations Act 2001 (Cth); and for Australian credit licensees, the Credit Code.

Breach of this legislation can give rise to the following:

• Criminal and civil action — Although a breach of the outsourcing requirements for cloud services is unlikely to be considered a conduct that constitutes an offense or would give rise to a civil penalty or infringement notice.
• Administrative action — Both the APRA and the Australian Securities and Investments Commission ("ASIC") have a range of administrative remedies where they consider that a licensee is not meeting its obligations under the Prudential Standards, including removal of a license, additional conditions on the licensee, enforceable undertakings to remedy compliance breakdowns and banning orders for individuals.

For breaches of Australian Securities Exchange ("ASX") and ASX Clear Operating Rules, the consequences include warnings, additional conditions on the right to participate, additional capital requirements and independent expert reviews. For serious breaches, the remedies include fines, suspension or termination of participant rights and referral to the ASIC.