CS 12 Proposed remake of ASIC Class Order [CO 14/1262] Relief for 31-day notice term deposits
Released 10 December 2024. Comments close 7 February 2025.
We propose to remake Class Order [CO 14/1262] Relief for 31-day notice term deposits, which gives 31-day notice term deposits of up to five years concessional regulatory treatment as ‘basic deposit products’ under the Corporations Act 2001, with one minor amendment.
ASIC has assessed that the legislative instrument, which is due to expire on 1 April 2025, is operating effectively and efficiently, subject to a minor amendment to the current settings for pre- and post-maturity notices.
A consultation paper was not issued for this consultation.
Providing feedback
We invite feedback on our proposal. You should send your submission to rri.consultation@asic.gov.au by 5 pm AEDT on 7 February 2025.
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Background
[CO 14/1262] was issued in December 2014: see Media Release (14-347MR) ASIC provides relief for 31-day notice term deposits.
Many authorised deposit-taking institutions require customers to provide 31 days’ notice before breaking a term deposit to help with liquidity management or to assist in meeting the Australian Prudential Regulation Authority’s prudential liquidity standards for the liquidity coverage ratio (LCR) under Prudential Standard APS 210 Liquidity (APS 210).
[CO 14/1262] provides certainty for industry that 31-day notice term deposits will be treated as ‘basic deposit products’ and not be subject to more onerous regulatory requirements, including a higher level of training standards and more prescriptive disclosure obligations.