APRA’s recent discussion paper on changes to exemption orders under the Banking Act contained a proposal that from 1 July 2013 Registered Financial Corporations (RFC’s) will not be able to offer at-call investments to retail customers, and by that date any existing retail at-call funds will need to be redeemed by customers or converted to debentures with a minimum 31 day maturity.

Although consultation has just closed, APRA has announced that a longer transition period should be provided for existing at-call retail funds. Therefore, should APRA decide to implement the current proposals with regard to retail at-call investments, the revised timing will be: from 1 July 2013, no new at-call accounts are to be accepted by RFCs; and existing accounts at 30 June 2013 may continue to be operated at-call until 30 June 2014.

UPDATE 24 June 2013: APRA has decided to delay commencement of any changes to the Exemption Order until 1 October 2013.