Document ID: chunk:federal_register_of_legislation:F2024C00640:body:0:p2
Version: federal_register_of_legislation:F2024C00640
Segment Type: other
Provision Reference: 
Character Range: 2818–5609

by regulations for the purposes of paragraph 961F(e).".

    4B.  Part 7.8A of the Act applies to all persons who issue, or offer to issue a financial product, as if paragraph 7.8A.07(a) of the Corporations Regulations 2001 were omitted and substituted with the following:

        "(a)  the product is a basic banking product within the meaning of section 961F of the Act; and".

    5. Part 7.9 of the Act applies in relation to an affected term deposit as if that Part were modified or varied by inserting after subsection 1012D(7A) (as notionally inserted by regulation 7.9.07FA of the Corporations Regulations 2001):

    "Depositor warning in relation to offer of term deposit

        (7AA) Subsections (7AB) to (7AF) apply to an ADI that:

             (a) offers to issue 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).

        (7AB) The ADI must, at or before the time the ADI makes the offer, give the depositor the following information in accordance with subsections (7AD) to (7AF):

             (a) that if the depositor requests the funds standing to the credit of the product to be withdrawn or transferred before the last day (maturity date) of the period that the funds are agreed to be deposited, a notice period applies to such requests;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 that are substantially the same as the governing terms of the product (other than the applicable interest rate), the other basic deposit product may have a lower interest rate.

    Depositor warning in relation to rollover of term deposit

        (7AC) 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 the benefit of a period (grace period) of at least 7 days, during which the