ASIC has published ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 to extend relief for 31-day notice term deposits, with amendments to pre and post-maturity notice requirements.

The Instrument provides conditional relief so that 31-day notice term deposits of up to five years can be treated as “basic deposit products” and “‘basic banking products” under the Corporations Act 2001.

Under Instrument 2025/172 ADIs may roll over deposited funds into a new term deposit provided they give a pre-maturity notice to customers before the 31-day term deposit rolls over into a new term. A post-maturity notice must also be provided to customers within one business day that notifies them of the interest rate and seven-day grace period they have to exit the new term deposit.

The new Instrument also gives ADIs the alternative option of combining the pre and post-maturity notices into a single combined notice that must be given to customers at least five business days and no longer than 10 business days before maturity, while confirming the interest rate that applies to the new term deposit.

ADIs may provide notices by electronic communication.

Without relief, 31-day notice term deposits of up to five years would not be “basic deposit products” and would be subject to more onerous regulatory requirements under the Corporations Act, including:
(a) a higher level of training standards at the Tier 1 level for persons advising on term deposits under ASIC Regulatory Guide 146 Licensing: Training of financial product advisers; and
(b) more prescriptive disclosure obligations, including obligations to provide a Product Disclosure Statement in a recommendation, issue or sale situation and a Statement of Advice when advisers provide personal advice to clients.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.