ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172

This instrument prescribes disclosure and notice obligations that authorised deposit-taking institutions (ADIs) must follow when offering certain term deposit products and when rolling over (auto-renewing) those term deposits. The rules operate where an ADI offers a basic deposit product falling within the specification referenced in subparagraph (d)(ii) of the definition of basic deposit product in section 9 and does not supply a Product Disclosure Statement because of subsection (7A) (see (7AA)). The instrument sets out (a) the information that must be given at or before offer (term deposit offer information) (7AB); (b) how that information may be given (7AC) and when a written acknowledgement must be obtained (7AD); (c) the formal requirements that apply if the depositor has given consent to roll over funds on the maturity date (7AE-7AI); and (d) minimum standards for wording, presentation and permitted delivery channels, including electronic delivery and record retention "as far as practicable" (7AJ).

Mechanically, the instrument imposes these duties:

• At or before offer of the specified term deposit, give term deposit offer information consisting of four discrete statements about notice periods on early withdrawal, the duration and discretionary delay, suitability indicators for depositors who may need immediate access, and a warning that a further basic deposit product with substantially similar terms but a lower rate may be used on maturity (7AB(a)-(d)).

• Term deposit offer information may be conveyed orally, in the governing terms document, or in a one-page document that contains only the required information (7AC). If it is included in the governing terms document, the ADI must obtain a written acknowledgement from the depositor in immediate proximity to the information (7AD).

• If the ADI obtains consent on or before the maturity date to transfer funds to a new basic deposit product with substantially the same governing terms (other than interest rate), the ADI must provide the depositor with a grace period of at least seven days starting on the maturity date or the following day, during which funds may be withdrawn or transferred without fee or reduction of return (7AE(a)). Before each rollover using that consent the ADI must give either a pre-maturity notice or a combined notice and, where a pre-maturity notice is used, also a post-maturity notice (7AE(b)-(c)).

• The instrument prescribes the contents of pre-maturity notices (7AG), post-maturity notices (7AH) and combined notices (7AI), including statements about consent, whether rates will be lower, the applicable or ascertainable interest rate, the existence and dates of the grace period, the ADI’s discretion to delay withdrawals until the end of a notice period but not beyond maturity, and that a depositor may incur a fee or reduced return if they withdraw after the grace period and within the notice period (7AG-7AI).

• Timing rules constrain when notices must be given: pre-maturity notices at least five business days before maturity (or no later than consent if consent is obtained less than five business days before maturity); combined notices between five and ten business days before maturity; and post-maturity notices no later than one business day after maturity (two business days if maturity is not a business day) (7AF).

• Notices and information must be "worded and presented in a clear, concise and effective manner" and may be delivered personally, to a nominated address or electronic address, or by nominated electronic means, including in printed or electronic form (7AJ). Where delivered electronically they must, as far as practicable, be presented so the recipient can keep a copy (7AJ(d)).

The instrument includes notional cross-references to other ASIC instruments: the definition of basic deposit product is notionally modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 (note to (7AA)), and the term "nominated electronic means" is notionally inserted into section 9 by ASIC Corporations (Electronic Disclosure) Instrument 2025/447 (note to (7AJ)). The instrument has a statutory expiry: it is repealed at the start of 1 April 2030 (Part 3,Repeal, s 7). The text as compiled does not itself specify criminal or civil penalties for non‑compliance.

The core concepts the instrument introduces or operationalises are: term deposit offer information, pre-maturity/combined/post-maturity notices, grace period, notice period, consent for rollover, methods of delivery and presentation standards, and the interaction with related definitions elsewhere in legislation or ASIC instruments.

Term deposit offer information (7AB)

• Defined by its content rather than labelled duties: four elements to be provided at or before offer (7AB(a)-(d)). These elements are narrowly focused on access restrictions (notice periods and ADI discretion regarding timing of withdrawal/transfer), suitability information for customers likely to need immediate access, and the possibility that a transferee basic deposit product may pay a lower interest rate on maturity.

Modes of providing the information (7AC-7AD)

• The instrument allows three modes: orally; embedded in the product's governing terms; or given in a standalone one-page document that contains only the prescribed information (7AC). If embedded in the governing terms the depositor must give a written acknowledgement in immediate proximity to where the information is stated (7AD). The "immediate proximity" requirement imposes a formatting/location standard that will affect document layout and point-of-sale procedures.

Consent, rollover and the grace period (7AE)

• The instrument distinguishes between obtaining consent to rollover and the mechanics once consent exists. Where consent to rollover to a substantially similar basic deposit product is obtained on or before maturity, the ADI must provide a grace period of at least seven days beginning on maturity or the following day, during which the depositor may withdraw or transfer without fee or reduced return (7AE(a)). The ADI also must provide notices before and/or after maturity depending on the notice route chosen (7AE(b)-(c)).

Notice types and mandatory content (7AG-7AI)

• A pre-maturity notice must state that consent exists, that the funds will roll over absent contrary instructions, indicate the potential for a lower interest rate in the new product, provide the applicable or ascertainable rate or means to obtain it, say a higher rate may be available elsewhere in the ADI’s comparable products, describe the grace period and the ADI’s post-grace discretion to delay withdrawals up to the end of a notice period, and explain the depositor may incur a fee or reduced return if withdrawing after the grace period but within the notice period (7AG(a)-(h)).

Primary actors named in the instrument are authorised deposit-taking institutions, depositors (clients), and depositors’ agents (7AA, 7AJ). The instrument’s duties fall directly on ADIs that meet the two-fold trigger in (7AA): the ADI must offer a basic deposit product to a depositor of the type that falls within subparagraph (d)(ii) of the definition of basic deposit product in section 9, and the ADI must not give the depositor a Product Disclosure Statement for the product because of subsection (7A). The depositor is the recipient of the disclosures and the party whose rights to withdraw or transfer funds are described in the notices (7AB, 7AE). A depositor’s agent may receive notices on their behalf if the depositor has nominated the agent and the ADI uses the agent’s nominated address or electronic address (7AJ(b)(ii)).

Operational and compliance functions inside an ADI are affected: sales personnel, call-centre staff and branch staff who deliver oral or in-person notices; legal and product teams who draft governing terms and one-page disclosure documents; document-control teams who must ensure that, where term deposit offer information is embedded in governing terms, a written acknowledgement is obtained "in immediate proximity" to the statement (7AD); and IT and records teams responsible for electronic delivery options and retention "as far as practicable" (7AJ(d)). The notice timing rules (7AF) create an operational dependency on accurate maturity-date data and consent timestamps; teams that manage account-maturity processing and consent capture will be engaged.

Third parties who provide the infrastructure for electronic communications and archiving are indirectly affected because the instrument requires delivery by nominated electronic means and that electronic notices be presented in a way that allows recipients to keep a copy "as far as practicable" (7AJ(b)(iii), (c), (d)). Where an ADI uses agents or third-party channels to obtain consent or distribute notices, the ADI remains the obliged party under the instrument and must take the specified "reasonable steps" for timing (7AF).

Customers who hold term deposits subject to the instrument are the intended beneficiaries: they obtain a minimum seven-day grace period on rollover, specific information about access restrictions and rate differences, and a required set of statements to inform choices at rollover (7AE, 7AG-7AI). The instrument distinguishes depositors who may need immediate access to funds, by requiring ADIs to warn that other deposit products may be more suitable (7AB(c)).

Wider legal ecosystem actors are implicated indirectly. The instrument refers to other ASIC instruments and notional modifications to section 9 (notes to 7AA and 7AJ), so regulatory and legal teams that advise on the Corporations Act and ASIC instruments will be engaged. The instrument is set to be repealed on 1 April 2030 (s 7), so treasury, legal, and policy teams will need to plan for the sunset.

This section lists the instrument’s operative duties and the protections or entitlements it creates for depositors, with precise references.

Duties imposed on ADIs

1. Give term deposit offer information at or before offer (7AB)

   • Content required: (a) a statement that a notice period applies if the depositor requests withdrawal or transfer before maturity; (b) the duration of the notice period and that the ADI has discretion to delay withdrawal/transfer until the end of the notice period but not beyond maturity; (c) a suitability warning that other deposit products may be more suitable for depositors who may need immediate access; (d) a warning that transferring consent on maturity to another basic deposit product with substantially similar terms might yield a lower interest rate (7AB(a)-(d)).

2. Provide term deposit offer information by one of three modes (7AC)

   • Modes: orally; in a document containing governing terms; or in a one-page document that contains the information and nothing more (7AC).

3. Obtain written acknowledgement when the information appears within governing terms (7AD)

   • If term deposit offer information is included in the governing terms document, 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 (7AD).

4. If consent to rollover is obtained on or before maturity, provide a grace period (7AE(a))

   • At least seven days beginning on the maturity date or the following day, during which the depositor can withdraw or transfer funds without fee or reduction in return (7AE(a)(i)-(ii)).

5. Provide pre-maturity or combined notice before each rollover as specified (7AE(b))

   • ADI must give either a pre-maturity notice (7AE(b)(i)) or a combined notice (7AE(b)(ii)). If a pre-maturity notice is given, a post-maturity notice is also required each time funds are rolled over (7AE(c)).

6. Meet timing requirements (7AF)

   • Pre-maturity notices: reasonable steps to ensure notice is given at least 5 business days before maturity, or, if consent obtained less than 5 business days before maturity, no later than when consent is obtained (7AF(a)).

The instrument as supplied contains no express penalty clauses, fines, or criminal offences. The operative provisions set out disclosure, timing and presentation duties but do not identify statutory penalties, suspension mechanisms, or administrative infringement penalties within the instrument text. The instrument’s repeal date is specified (start of 1 April 2030, s 7) but no enforcement mechanism is set out in the provisions excerpted.

Consequently, the text does not itself indicate the enforcement routes available for non-compliance. The instrument is an ASIC Corporations Instrument (see endnote 3), and the endnotes refer to the Legislation Act 2003 and the Legislative Instruments Act 2003 in the standard compilation material, but the instrument text does not specify whether breaches will be treated as contraventions of the Corporations Act or whether ASIC will exercise supervisory, administrative or enforcement powers in relation to failure to comply. The instrument also makes notional modifications to section 9 by other ASIC instruments (note to 7AA and 7AJ), but those notes do not create penalties in this instrument.

For practical compliance advice and risk assessment, the absence of internal penalty provisions means an ADI should consider that non‑compliance may have regulatory consequences under broader statutory frameworks, or give rise to civil liability to depositors who claim detriment; however, the instrument itself does not specify those consequences. Any argument that non-compliance is a contravention of another statute would require reference to that statute or to administrative practice outside the instrument text. The compiled law endnotes show how the instrument was registered and amended (Endnote 3 and 4), but they do not add enforcement detail.

Because the instrument contains obligations expressed in mandatory terms (for example, "must" in 7AB, 7AE, 7AC, 7AD, 7AF, 7AG-7AI and 7AJ), failure to perform those duties would typically be a non-compliance matter for the ADI. The text supplied does not specify which administrative or judicial bodies would determine non-compliance or what remedies would follow. The instrument’s status as an ASIC Corporations Instrument is recorded in the endnotes (Endnote 3 lists the instrument names and registration dates), but the endnotes likewise do not add penalties.

In short, this instrument establishes binding procedural duties; it does not itself set out penalties or an enforcement regime in the provisions provided. Practitioners will need to look to other legislative texts, ASIC guidance, or enforcement practice outside this instrument to map the consequences of non-compliance.

The instrument explicitly cross‑references several other legislative instruments and provisions, and it operates within that framework rather than in isolation.

Cross-references within the instrument

• The instrument applies when an ADI "does not give the depositor a Product Disclosure Statement for the basic deposit product because of subsection (7A)" (7AA). Subsection (7A) is not reproduced in the text provided, but the instrument’s operation is contingent on that subsection’s existence and content. Practitioners must therefore read subsection (7A) within the broader statutory context to identify when the PDS exemption applies and thus when these disclosure and notice obligations take effect.

• The definition of "basic deposit product" in section 9 is notionally modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 (note to 7AA). The instrument therefore depends on that other instrument’s definition changes. Any change to the definition of basic deposit product in section 9 will alter the set of products subject to the disclosure and rollover notice rules.

• The term "nominated electronic means" is notionally inserted into section 9 by ASIC Corporations (Electronic Disclosure) Instrument 2025/447 (note to 7AJ). The permitted electronic delivery channels and the meaning of "nominated electronic means" in 7AJ thus depend on that electronic disclosure instrument. Questions about whether a particular electronic channel qualifies as "nominated electronic means" must be answered by reference to that instrument.

Relationship to the Product Disclosure Statement regime

• The instrument targets offerings where a PDS is not given because of subsection (7A) (7AA). It therefore sits within the PDS architecture and serves as a supplementary or alternative disclosure regime for specified basic deposit products when a PDS is not provided. The instrument does not replace or alter the PDS regime in general; rather, it creates specific disclosure duties for the subset of products and circumstances identified.

Statutory form and compilation context

• The endnotes record that this instrument is an ASIC Corporations Instrument and give registration and commencement details (Endnote 3). The compilation endnotes also reference the Legislation Act 2003 and the Legislative Instruments Act 2003 in relation to how amendments and endnotes are managed. Those statutes govern the form, publication and amendment procedures for legislative instruments but the present instrument does not reproduce enforcement or sanctions provisions from those acts.

The compilation includes standard endnotes used in legislative publications. Endnote 3 (Legislation history) and Endnote 4 (Amendment history) show the immediate instrument provenance and any amendments recorded in the compilation.

From Endnote 3,Legislation history (as provided)

• ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172
  • Registration: 27 March 2025 (F2025L00438)
  • Commencement: 28 March 2015
  • The endnote does not list specific saving, application or transitional provisions in the excerpt.
• ASIC Corporations (Amendment and Repeal) Instrument 2025/448
  • Registration: 18 September 2025 (F2025L01119)
  • Commencement: 19 September 2025
  • The endnote entry does not detail application, saving or transitional provisions in this compilation extract.

From Endnote 4,Amendment history (as provided)

• Provision affected: Section 2 , How affected: rep. LA s 48D (the table entry states Section 2 was repealed, with a reference to LA s 48D; LA presumably refers to the Legislation Act, but the sourced table entry is the text supplied).
• Provision affected: Section 6 (note to notional paragraph 1012D(7AJ(b)) , How affected: am. 2025/448

Notes concerning the compilation

• The compilation endnotes include standard explanatory material about the endnotes themselves and the abbreviation key. Endnote 1 explains the endnotes and that they contain the legislation history and amendment history used in the compilation. Endnote 2 provides the abbreviation key used across endnotes. These endnotes are part of the compiled text and are not substantive changes to the instrument’s operative clauses.

Other editorial matters apparent in the compilation

• The endnotes list instruments that are said to "notionally" modify section 9 and to "notionally" insert definitions. For example, the note to (7AA) states: "The definition of basic deposit product is notionally modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172." The note to (7AJ) states: "The definition of nominated electronic means is notionally inserted into section 9 by ASIC Corporations (Electronic Disclosure) Instrument 2025/447." Those "notional" modifications indicate that the compilation links definitions across instruments for reader convenience.

The instrument as compiled contains no litigation history, and the endnotes do not list cases or judicial decisions interpreting the instrument. The compilation’s endnotes (Endnotes 1-4) are focused on legislative and amendment history and do not report judicial consideration.

In the absence of recorded decisions in the text provided, there are no reported cases that interpret the instrument’s substantive provisions, such as the meaning of "reasonable steps" in timing obligations (7AF), "immediate proximity" for written acknowledgement (7AD), or the "clear, concise and effective" presentation standard (7AJ). The compilation therefore does not supply judicial glosses or precedent on how courts or regulators might treat particular compliance failures or interpretive ambiguities.

Practical implications of the absence of litigation history in the compilation

• The lack of reported litigation in the source does not mean disputes will not arise. The instrument contains several open-textured standards (for example "reasonable steps", "as far as practicable", "clear, concise and effective manner", "immediate proximity") that are commonly the subject of factual and legal contestation. Without reported judicial interpretation in the compilation, parties and advisers will need to assess compliance risk on the basis of statutory text and contemporaneous regulatory guidance or administrative practice, rather than relying on settled case law.

• Because the instrument cross-references other instruments that modify key definitions (section 9), litigation could arise over the scope of products captured by the term "basic deposit product" once those notional modifications are considered. The compilation does not include such litigation.

• Practitioners should monitor court decisions, regulatory determinations and ASIC guidance for future interpretation of the instrument’s standards. For present purposes, the compilation provides the operative text but no litigation history to explain or refine the statutory language.

Where to look for future litigation or determinations

• If disputes arise concerning the instrument’s application, relevant forums could include administrative reviews or civil proceedings where parties seek declarations of obligation, damages, or other remedies related to alleged misleading or incomplete notices. The compilation does not identify such proceedings; practitioners should therefore track case law and ASIC enforcement action post‑commencement to capture any emerging interpretive lines.

This instrument is prescriptive in content and timing but uses normative standards in several places that create practical compliance traps. The following points identify concrete pitfalls and procedural tight spots that the ADI must manage.

1. PDS-exemption trigger

   • The instrument only applies where the ADI "does not give the depositor a Product Disclosure Statement for the basic deposit product because of subsection (7A)" (7AA). ADIs must be clear about the applicability of subsection (7A) to each product. Misclassifying a product as PDS-exempt where subsection (7A) does not apply may mean obligations under the PDS regime are triggered and the instrument’s alternative disclosure regime is inapplicable. The instrument itself does not define the limits of subsection (7A).

2. "Basic deposit product" scope depends on other instruments

   • The definition of basic deposit product is "notionally modified" by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 (note to 7AA). If an ADI uses an outdated or incorrect interpretation of that notional modification, it may fail to treat a product as caught or not caught by these rules. Practitioners must check the modifying instrument (2025/172) to determine the product set.

3. One-page document must contain nothing more

   • The one-page alternative for term deposit offer information must "contain the information but nothing more" (7AC(c)). Including additional terms or sales material on that one page is non‑compliant. Format and template control is essential.

4. Written acknowledgement "in immediate proximity"

   • If the term deposit offer information is included in governing terms, the ADI must obtain a written acknowledgement "in immediate proximity to where the information is stated" that the depositor has read the information (7AD). This phrase is open-textured: ADIs must design document layouts and point-of-sale capture (paper or electronic) so the acknowledgement is clearly adjacent. Capturing acknowledgements at a later stage or in a separate screen may not meet "immediate proximity".

5. Choice between pre-maturity/combined/post-maturity notices

   • The instrument permits either a combined notice or the sequence pre-maturity + post-maturity (7AE(b)-(c)). Operationally, an ADI must decide which route to use and then adhere strictly to timing windows (7AF). Switching routes mid-cycle without justification may create compliance gaps.

This compliance guidance translates the instrument’s requirements into a practical, section-referenced checklist and operational actions an ADI should take. It assumes the ADI has determined that the instrument applies (see 7AA).

Governance and initial mapping

1. Legal mapping

   • Confirm that subsection (7A) applies to the product offering and therefore that the instrument’s disclosure duties attach (7AA). Confirm also whether the product falls within the definition of "basic deposit product" as modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 (note to 7AA). Document the basis for the PDS exemption and the product classification.

2. Cross-reference definitions

   • Obtain the full text of ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 and ASIC Corporations (Electronic Disclosure) Instrument 2025/447 to understand the notional modifications to section 9 that the instrument relies upon (notes to 7AA and 7AJ). Record the definitions of "basic deposit product" and "nominated electronic means" that will apply operationally.

Design and documentation of disclosure materials 3. Term deposit offer information template(s)

• Prepare a standard template for term deposit offer information that includes the mandatory four components in 7AB(a)-(d): notice period statement; duration and ADI discretion to delay withdrawal up to the notice period end but not beyond maturity; suitability warning for depositors needing immediate access; and a warning that a transferred basic deposit product may have a lower interest rate.

4. One-page document option

   • If providing term deposit offer information via a one-page document (7AC(c)), ensure the document contains only the required information and nothing more. Lock templates to prevent additional content.

5. Governing terms integration and immediate proximity acknowledgement

   • If incorporating the information into the governing terms (7AC(b)), update document templates to include the information in a clearly demarcated section and insert a written acknowledgement field immediately adjacent to the information, such as a signature block, checkbox with timestamp and IP capture on an e-signature screen, or physical signature line, ensuring "immediate proximity" (7AD).