“Depositor warning in relation to offer “Depositor warning in relation to offer of term deposit

“Depositor warning in relation to offer of term deposit

(7AA) Subsections (7AB) to (7AJ) apply to an ADI that: (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 (b) does not give the depositor a Product Disclosure Statement for the basic deposit product because of subsection (7A). Note: The definition of basic deposit product is notionally modified by ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172. Term deposit offer information (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(7AC), (7AD) and (7AJ): (a) that, if the depositor requests the funds standing to the credit of the product to be withdrawn or transferred before the last day (maturity date) of the period that the funds are agreed to be deposited, a notice period applies to such requests; (b) the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); (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; (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. (7AC) Term deposit offer information must be given to the depositor: (a) orally; or (b) in a document containing the governing terms of the product; or (c) in a one-page document which contains the information but nothing more. (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.