{"id":"F2025L00438","name":"ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172","slug":"asic-corporations-31-day-notice-term-deposits-instrument-2025-172","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106260,"registerId":"commonwealth-F2025L00438-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"“Depositor warning in relation to offer ","sectionType":"section","heading":"“Depositor warning in relation to offer of term deposit","content":"#### “Depositor warning in relation to offer of term deposit\n\n  (7AA) Subsections (7AB) to (7AJ) apply to an ADI that:\n    (a) offers to issue to the client (the depositor) a basic deposit product to which subparagraph (d)(ii) of the definition of basic deposit product in section 9 applies; and\n    (b) does not give the depositor a Product Disclosure Statement for the basic deposit product because of subsection (7A).\n    Note: The definition of basic deposit product is notionally modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172.\n    Term deposit offer information\n    (7AB) The ADI must, at or before the time the ADI makes the offer, give the depositor the following information (term deposit offer information) in accordance with subsections (7AC), (7AD) and (7AJ):\n    (a) that, if the depositor requests the funds standing to the credit of the product to be withdrawn or transferred before the last day (maturity date) of the period that the funds are agreed to be deposited, a notice period applies to such requests;\n    (b) the duration of the notice period and that the ADI has the discretion to delay the withdrawal or transfer until the end of the notice period (but not beyond the maturity date);\n    (c) that, if the depositor may have a need in the future to immediately withdraw or transfer funds standing to the credit of the product, other deposit products may be more suitable;\n    (d) that, if the depositor gives consent for the funds standing to the credit of the product to be transferred on the maturity date to another basic deposit product that has terms (other than the applicable interest rate) that are substantially the same as the governing terms of the product, the other basic deposit product may have a lower interest rate.\n    (7AC) Term deposit offer information must be given to the depositor:\n    (a) orally; or\n    (b) in a document containing the governing terms of the product; or\n    (c) in a one-page document which contains the information but nothing more.\n    (7AD) If the ADI gives the depositor term deposit offer information in a document containing the governing terms and conditions of the product (see paragraph (7AC)(b)), the ADI must obtain a written acknowledgement from the depositor, in immediate proximity to where the information is stated, that the depositor has read the information.","sortOrder":0},{"sectionNumber":"Depositor warning in relation to rollove","sectionType":"section","heading":"Depositor warning in relation to rollover of term deposit","content":"#### Depositor warning in relation to rollover of term deposit\n\n    (7AE) If the ADI obtains, on or before the maturity date, the consent of the depositor to transfer (roll over) the funds to another basic deposit product (new product) that has terms (other than the applicable interest rate) that are substantially the same as the governing terms of the product, the ADI must:\n    (a) each time funds are rolled over in accordance with the consent, give the depositor a period (grace period) of at least 7 days:\n    (i) which begins on the maturity date or on the following day; and\n    (ii) during which the depositor can withdraw or transfer the funds standing to the credit of the new product without incurring a fee or incurring a reduction in the return generated for the depositor; and\n    (b) before each time it rolls over funds into a new product in accordance with the consent, give to the depositor, in accordance with subsections (7AF) and (7AJ), either:\n      (i) a notice (pre-maturity notice) containing the information and statements specified in subsection (7AG); or\n      (ii) a notice (combined notice) containing the information and statements specified in subsection (7AI); and\n    (c) if the ADI gives the depositor a pre-maturity notice, then each time funds are rolled over in accordance with the depositor’s consent, the ADI must give to the depositor in accordance with subsections (7AF) and (7AJ), a notice (post-maturity notice) containing the information and statements specified in subsection (7AH).\n    Timing requirements for giving notices\n    (7AF) If the ADI gives the depositor:\n    (a) a pre-maturity notice—the ADI must take reasonable steps to ensure that the ADI gives the depositor the pre-maturity notice:\n      (i) at least 5 business days before the maturity date of the product; or\n      (ii) if the consent of the depositor to roll over the product into a new product is obtained less than 5 business days before the maturity date—no later than the ADI obtains the consent; and\n    (b) a combined notice—the ADI must take reasonable steps to ensure that the ADI gives the depositor the combined notice at least 5 business days, but no more than 10 business days, before the maturity date of the product; and\n    (c) \n        a post-\n    maturity notice—the ADI must take reasonable steps to ensure that the ADI gives the post-maturity notice to the depositor no later than one business day after the maturity date of the product (or two business days after the maturity date if the maturity date is not a business day).\n    Pre-maturity notice\n    (7AG) A pre-maturity notice must contain the following information and statements:\n    (a) a statement that the depositor has given consent for the funds to roll over into the new product and that, if the depositor gives no further contrary instructions, the funds will roll over to the new product on the maturity date;\n    (b) if the new product will or may have a lower interest rate—a statement to that effect;\n    (c) if the interest rate that will apply to the new product is known at the time notice is given—that rate;\n    (d) if the interest rate is not known at the time notice is given— information on how and when the depositor can ascertain the interest rate for the new product;\n    (e) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;\n    (f) a statement that there will be a grace period, the dates on which the grace period will begin and end and a description of the depositor’s ability to withdraw or transfer their funds during the grace period;\n    (g) a statement that, if the depositor wishes to withdraw or transfer their funds after the grace period, the ADI has the discretion to delay withdrawal or transfer of the funds until the end of a notice period (but not beyond the maturity date for the new product);\n    (h) information about the duration of the notice period and a statement that the depositor may incur a fee or a reduction in the return generated for the depositor after the grace period if the depositor proceeds to withdraw or transfer their funds following the notice period if that withdrawal or transfer occurs before the maturity date.\n    Post-maturity notice\n    (7AH) A post-maturity notice must contain the following information and statements\n    (a) a statement that funds standing to the credit of the product have rolled over into a new product;\n    (b) the interest rate that applies to the new product;\n    (c) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;\n    (d) a statement that the depositor has a grace period, details of the dates on which the grace period begins and ends and a description of the depositor’s ability to withdraw or transfer their funds during the grace period;\n    (e) information that, if the depositor wishes to withdraw or transfer their funds after the grace period, the ADI has the discretion to delay withdrawal or transfer of the funds until the end of a notice period (but not beyond the maturity date for the new product);\n    (f) information about the duration of the notice period and a statement that the depositor may incur a fee or a reduction in the return generated for the depositor if the depositor proceeds to withdraw or transfer their funds after the grace period following the notice period if that withdrawal or transfer occurs before the maturity date.\n    Combined notice\n    (7AI) A combined notice must contain the following information and statements:\n    (a) a statement as to whether the depositor has given consent for the funds to roll over into the new product and that, if the depositor has given such consent and gives no further contrary instructions, the funds will roll over to the new product on the maturity date;\n    (b) the interest rate that will apply to the new product;\n    (c) if the new product will have a lower interest rate—a statement to that effect;\n    (d) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;\n    (e) a statement that there will be a grace period, the dates on which the grace period will begin and end and a description of the depositor’s ability to withdraw or transfer funds during the grace period;\n    (f) information that, if the depositor wishes to withdraw or transfer their funds after the grace period, the ADI has the discretion to delay withdrawal or transfer of the funds until the end of a notice period (but not beyond the maturity date for the new product);\n    (g) information about the duration of the notice period and a statement that the depositor may incur a fee or a reduction in the return generated for the depositor if the depositor proceeds to withdraw or transfer their funds after the grace period following the notice period if that withdrawal or transfer occurs before the maturity date.","sortOrder":1},{"sectionNumber":"Information and notices—requirements for","sectionType":"section","heading":"Information and notices—requirements for wording, presentation and giving","content":"#### Information and notices—requirements for wording, presentation and giving\n\n    (7AJ) Term deposit offer information, a pre-maturity notice, a post maturity notice and a combined notice:\n    (a) must be worded and presented in a clear, concise and effective manner; and\n    (b) must be given by:\n      (i) giving the information or notice to the depositor, or the depositor’s agent, personally; or\n      (ii) sending the information or notice to the depositor, or the depositor’s agent, at an address (including an electronic address) or fax number nominated by the depositor or the agent; or\n      (iii) making the information or notice available to the depositor, or the depositor’s agent, by a nominated electronic means; and\n\nNote: The definition of nominated electronic means is notionally inserted into section 9 by ASIC Corporations (Electronic Disclosure) Instrument 2025/447\"”.\n\n    (c) may be in printed or electronic form or, in the case of information or a notice given under subparagraph (b)(i), may be given orally; and\n    (d) in the case of information or a notice given in electronic form—must, as far as practicable, be presented in a way that will allow the person to whom it is given to keep a copy of it so that the person can have ready access in the future.”.\n\nPart 3—Repeal\n\n7 Repeal\n\nThis instrument is repealed at the start of 1 April 2030.\n\nEndnotes\n\nEndnote 1—About the endnotes\n\n> Note: The endnotes provide information about this compilation and the compiled law.\n\n> Note: The following endnotes are included in every compilation:\n\n> Note: Endnote 1—About the endnotes\n\n> Note: Endnote 2—Abbreviation key\n\n> Note: Endnote 3—Legislation history\n\n> Note: Endnote 4—Amendment history\n\n> Note: Abbreviation key—Endnote 2\n\n> Note: The abbreviation key sets out abbreviations that may be used in the endnotes.\n\n> Note: Legislation history and amendment history—Endnotes 3 and 4\n\n> Note: Amending laws are annotated in the legislation history and amendment history.\n\n> Note: The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\n> Note: The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\n> Note: Misdescribed amendments\n\n> Note: A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\n> Note: If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\nEndnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                                              |\n| ---------------------------------------------- | ------------------------------------------------------------ |\n| am = amended                                   | p = page(s)                                                  |\n| amdt = amendment                               | para = paragraph(s)/subparagraph(s)                          |\n| C[x] = Compilation No. x                       | /sub‑subparagraph(s)                                         |\n| ch = Chapter(s)                                | pres = present                                               |\n| cl = clause(s)                                 | prev = previous                                              |\n| cont. = continued                              | (prev…) = previously                                         |\n| def = definition(s)                            | pt = Part(s)                                                 |\n| Dict = Dictionary                              | r = regulation(s)/Court rule(s)                              |\n| disallowed = disallowed by Parliament          | reloc = relocated                                            |\n| div = Division(s)                              | renum = renumbered                                           |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                                               |\n| effect                                         | rs = repealed and substituted                                |\n| gaz = gazette                                  | s = section(s)/subsection(s)                                 |\n| LA = Legislation Act 2003                      | /rule(s)/subrule(s)/order(s)/suborder(s)                     |\n| LIA = Legislative Instruments Act 2003         | sch = Schedule(s)                                            |\n| (md not incorp) = misdescribed amendment       | SLI = Select Legislative Instrument                          |\n| cannot be given effect                         | SR = Statutory Rules                                         |\n| mod = modified/modification                    | sub ch = Sub‑Chapter(s)                                      |\n| No. = Number(s)                                | sub div = Subdivision(s)                                     |\n| Ord = Ordinance                                | sub pt = Subpart(s)                                          |\n|                                                | underlining = whole or part not commenced or to be commenced |\n\nEndnote 3—Legislation history\n\n| Name                                                                | Registration                        | Commencement      | Application, saving and transitional provisions |\n| ------------------------------------------------------------------- | ----------------------------------- | ----------------- | ----------------------------------------------- |\n| ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 | 27 March 2025 (see F2025L00438)     | 28 March 2015     |                                                 |\n| ASIC Corporations (Amendment and Repeal) Instrument 2025/448        | 18 September 2025 (see F2025L01119) | 19 September 2025 |                                                 |\n\nEndnote 4—Amendment history\n\n| Provision affected                                  | How affected  |\n| --------------------------------------------------- | ------------- |\n| Section 2                                           | rep. LA s 48D |\n| Section 6 (note to notional paragraph 1012D(7AJ(b)) | am. 2025/448  |","sortOrder":2}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This appears to be a targeted regulatory instrument addressing a specific consumer protection issue regarding 31-day notice term deposits. The scope remains focused on disclosure requirements and rollover protections for this specific financial product, consistent with ASIC's consumer protection mandate. The sunset clause (repeal in 2030) suggests this is a time-limited measure rather than scope creep."},"complexity_factors":["Multiple nested subsections (7AA through 7AJ) with complex cross-referencing between them","Conditional logic requiring different notice types (pre-maturity, post-maturity, combined) depending on timing and circumstances","Specific timing requirements involving business days and date calculations (5 business days before, 7 days grace period, 1-2 business days after)","Multiple defined terms referenced but not defined in the excerpt (ADI, basic deposit product, maturity date, business day, nominated electronic means)","Dual pathways for compliance (pre-maturity + post-maturity notices OR combined notice) with slightly different content requirements","Notional modifications referencing external instruments (ASIC Corporations (Electronic Disclosure) Instrument 2025/447)","Specific formatting and presentation requirements (clear, concise, effective manner; one-page document option)","Written acknowledgement requirement triggered only when specific delivery method is used"],"plain_english_summary":"This law requires banks (ADIs) to give clear, prominent warnings when offering term deposits that impose a 31‑day notice for early withdrawal, including that access can be delayed and that rollovers may earn a lower rate. It also mandates timely, readable notices and a post‑rollover grace period so customers can withdraw without penalty.\n\nIt affects ADIs and customers using these 31‑day notice term deposits, strengthening consumer protection; rules expire 1 April 2030."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This instrument is a targeted addendum to existing disclosure rules for \"basic deposit products\" rather than a broad expansion of regulatory scope. It narrows the regulatory focus to term deposits that require a notice period by imposing specific disclosure, timing and rollover‑grace obligations. It does not materially broaden the types of products regulated beyond that defined subset; instead it prescribes how ADIs must communicate and manage rollovers for those products. The instrument does rely on notional edits to the definition of \"basic deposit product\" and on another ASIC instrument for electronic delivery, but those are technical linkages rather than a substantive widening of scope."},"complexity_factors":["Multiple new subsections (7AA through 7AJ) adding layered duties","Three distinct notice types (term deposit offer information, pre‑maturity + post‑maturity, or combined) with different mandatory contents ((7AB), (7AG)–(7AI))","Timing constraints that vary by notice type and by when consent is obtained (subsection (7AF))","Requirement for written acknowledgement if term deposit information is given within governing terms (7AD)","Interaction with the existing definition of \"basic deposit product\" in section 9 (notionally modified) and cross‑reference to another instrument for \"nominated electronic means\" (external cross‑instrument dependency)","Presentation and delivery rules including electronic retention obligations (7AJ)","Operationally significant obligation to provide a minimum 7‑day, penalty‑free grace period on each rollover (7AE)","Sunset clause (repeal on 1 April 2030) requiring transitional planning","Conditional logic and exceptions (e.g. alternative timing if consent is obtained less than 5 business days before maturity) creating nested branches"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- Requires authorised deposit-taking institutions (ADIs, i.e. banks and similar deposit-takers) to give clear, specific warnings and notices to customers who are offered or rolled over into certain term deposits that require a notice period before early withdrawal. (see new subsections (7AA)–(7AJ))\n\n- At the time of offer, the ADI must give the depositor short, targeted ‘‘term deposit offer information’’ telling them that a notice period applies to early withdrawals, the length of that notice period, that the ADI can delay withdrawal until the end of the notice period (but not past maturity), that other deposit products may suit people who need immediate access, and that rolling funds into a substantially-same product at maturity may reduce the interest rate. (subsection (7AB))\n  - That information can be given orally, inside the product’s governing terms, or in a one‑page document containing only that information. If it appears inside the governing terms, the ADI must obtain a written acknowledgement by the depositor adjacent to the information. (subsections (7AC)–(7AD))\n\n- Where the depositor consents to automatic rollovers into a ‘‘substantially the same’’ basic deposit product, the ADI must: give a grace period of at least 7 days on each rollover during which the depositor can withdraw or transfer without fee or loss of return; and give either (i) a pre‑maturity notice and a post‑maturity notice, or (ii) a combined notice containing specified statements about the rollover, interest rate, alternative products, the grace period and the notice period that may apply to later withdrawals. (subsection (7AE) and (7AG)–(7AI))\n  - Timing rules require pre‑maturity notices at least 5 business days before maturity (or at consent if consent is given less than 5 business days before maturity). Combined notices must be sent between 5 and 10 business days before maturity. Post‑maturity notices must be sent within one business day after maturity (two days if maturity is not a business day). (subsection (7AF))\n\n- All required information and notices must be ‘‘worded and presented in a clear, concise and effective manner’’ and may be delivered in person, by post, at an electronic address the depositor nominated, or by a nominated electronic means. Electronic notices should, as far as practicable, allow the depositor to keep a copy. (subsection (7AJ))\n\n- The instrument notionally modifies the statutory definition of ‘‘basic deposit product’’ so that these rules capture term deposits to which the relevant limb of that definition applies. It also cross‑references an ASIC instrument dealing with electronic disclosure. The instrument will automatically repeal on 1 April 2030.\n\nWho this affects\n\n- Who decides and acts: ADIs must change offer and rollover practices, produce new notice templates, track timing and obtain acknowledgements where required, and give a 7‑day no-cost grace period on rollovers. (subsections (7AB)–(7AJ), (7AE))\n- Who bears the cost: ADIs bear the direct compliance and operational costs (staff time, systems, notice distribution). Those costs may be reflected indirectly in deposit pricing or product design.\n- Who benefits: Depositors who would otherwise be unaware that their term deposit carries a notice period (and that rolled‑over products can have lower rates) receive clearer information and a seven‑day window to change their mind without penalty.\n\nWhy it matters (stated purpose, and how the mechanics test that purpose)\n\n- Stated purpose: The instrument’s structure indicates the regulator intends to ensure depositors are adequately informed about limited‑access term deposits (those requiring a notice period) and to give depositors a short, penalty‑free chance to withdraw after rollovers. The textual mechanics implement that by imposing specified content, timing and delivery rules. (see subsections (7AB), (7AE), (7AG)–(7AJ))\n\n- Costs and incentives created by the mechanics:\n  - Compliance burden: ADIs must prepare and maintain notice templates, systems to locate and send notices at strict times, collect acknowledgements where notices are embedded in governing terms, and log delivery. This is an administrative and technology cost.\n  - Product design and pricing: Because ADIs must offer a 7‑day penalty‑free grace period on rollovers and must disclose possible lower rates on rolled products, ADIs may adjust interest rates or fees on these products to account for liquidity risk and compliance costs. That changes the economics of offering notice‑period term deposits.\n  - Behavioural effects and substitution: Clearer warnings and a guaranteed grace period may lead some depositors to choose instant‑access accounts or shorter‑term deposits instead. ADIs might respond by altering pricing, minimums, or marketing to retain funds.\n  - Operational risk and implementation: The multiple notice types (pre‑maturity, combined, post‑maturity), strict timing windows, and the need to allow depositors to keep electronic copies increase systems complexity and potential for human error. Mistimed or improperly worded notices could create regulatory risk for ADIs.\n\n- Trade‑offs and opportunity costs:\n  - The depositor protection (information + 7‑day grace) reduces surprise and may reduce disputes, but requires ADIs to absorb operational costs and may constrain liquidity management during rollovers.\n  - The instrument limits the ADI’s discretion to impose immediate penalties on rolled funds within the 7‑day window, which narrows product flexibility.\n\n- Concentrated benefits vs diffuse costs:\n  - Benefits (clearer disclosure, a no‑penalty window) accrue directly to depositors who roll over or who would have been unaware of notice restrictions.\n  - Costs (compliance, possible lower returns offered to depositors generally) are borne by ADIs and may be spread across customers via pricing.\n\nOther concrete implementation notes\n\n- The instrument relies on other provisions and instruments: it ‘‘notionally’’ modifies the basic deposit product definition in section 9 and depends on a separate ASIC instrument for the definition of ‘‘nominated electronic means’’ for electronic delivery. (notes accompanying subsections and subsection (7AJ))\n- It includes a sunset (repeal) date of 1 April 2030. (Part 3—Repeal)\n\nOverall mechanical effect in one sentence: ADIs offering term deposits that require a notice period must provide standardised, timed disclosures at offer and at rollover, give a 7‑day penalty‑free grace period on rollovers, and follow precise delivery and presentation rules, with compliance and operational costs falling on the ADIs and clearer short‑term protections for depositors.\n"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172","history":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172/history","analysis":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172/analysis","conflicts":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172/conflicts","importantCases":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172/important-cases","documents":"/api/acts/asic-corporations-31-day-notice-term-deposits-instrument-2025-172/documents"}}