Depositor warning in relation to rolloveDepositor warning in relation to rollover of term deposit

Depositor warning in relation to rollover of term deposit

(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:
(a) each time funds are rolled over in accordance with the consent, give the depositor a period (grace period) of at least 7 days:
(i) which begins on the maturity date or on the following day; and
(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
(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:
  (i) a notice (pre-maturity notice) containing the information and statements specified in subsection (7AG); or
  (ii) a notice (combined notice) containing the information and statements specified in subsection (7AI); and
(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).
Timing requirements for giving notices
(7AF) If the ADI gives the depositor:
(a) a pre-maturity notice—the ADI must take reasonable steps to ensure that the ADI gives the depositor the pre-maturity notice:
  (i) at least 5 business days before the maturity date of the product; or
  (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
(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
(c) 
    a post-
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).
Pre-maturity notice
(7AG) A pre-maturity notice must contain the following information and statements:
(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;
(b) if the new product will or may have a lower interest rate—a statement to that effect;
(c) if the interest rate that will apply to the new product is known at the time notice is given—that rate;
(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;
(e) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;
(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;
(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);
(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.
Post-maturity notice
(7AH) A post-maturity notice must contain the following information and statements
(a) a statement that funds standing to the credit of the product have rolled over into a new product;
(b) the interest rate that applies to the new product;
(c) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;
(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;
(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);
(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.
Combined notice
(7AI) A combined notice must contain the following information and statements:
(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;
(b) the interest rate that will apply to the new product;
(c) if the new product will have a lower interest rate—a statement to that effect;
(d) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;
(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;
(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);
(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.