CS 12 Proposed Remake of ASIC Class Order (CO 14/1262) Relief for 31-day Notice Term Deposits
Submission Date: 7 February 2025
This submission is made by the Financial Services Committee of the Business Law Section of the Law Council of Australia (the Committee) and relates to CS 12, which the Australian Securities and Investments Commission (ASIC) released for consultation on 10 December 2024.
ASIC Class Order [CO 14/1262] Relief for 31-day notice term deposits (the Class Order) was made in December 2014 to provide certainty for authorised deposit-taking institutions (ADIs) that 31-day notice term deposits would be treated as “basic deposit products” under various provisions of Chapter 7 of the Corporations Act 2001 (Cth).
The Class Order is due to sunset on 1 April 2025.
ASIC is proposing to make a legislative instrument which will effectively remake the Class Order with one modification—as an alternative to providing a post-maturity notice by no later than one business day after the maturity date, ADIs may issue a single notice that will serve the purpose of the current separate pre-maturity and post-maturity notices. The notice must be given to the customer at least seven days, and no more than 14 days, before the maturity date.
Last Updated on 30/04/2025
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