Australian Securities & Investments Commission remakes relief for 31-day notice term deposits with an option for combined maturity notices

The Australian Securities & Investments Commission has remade its relief for 31-day notice term deposits, making minor amendments to pre and post-maturity notice settings following industry consultation. ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172 provides conditional relief so 31-day notice term deposits of up to five years can continue to be treated as ‘basic deposit products’ under the Corporations Act 2001. The instrument continues relief previously provided under ASIC Class Order CO 14/1262, which will sunset on 1 April 2025. Alongside the existing approach requiring a pre-maturity notice before rollover and a post-maturity notice within one business day (covering the interest rate and the seven-day grace period to exit), authorised deposit-taking institutions now have the alternative option to issue a single combined notice at least five business days and no longer than 10 business days before maturity, confirming the interest rate that applies to the new term deposit. ADIs may use either approach, and can satisfy the notice timeframes where they can demonstrate they have taken ‘reasonable steps’ to meet them, reflecting delivery challenges raised by industry. The remade relief also allows notices to be provided via electronic communication, aligning with ASIC’s class relief in ASIC Corporations (Facilitating Electronic Delivery of Financial Services Disclosure) Instrument 2015/647. ASIC consulted on the remake from 10 December 2024 to 7 February 2025 and received four submissions, all supportive of remaking the relief and generally supportive of the combined notice option.