The Australian Prudential Regulation Authority has revised its instructions under the Banking Act 1959 as to how foreign authorised deposit-taking institutions must explain their status to new and intending depositors. In essence, foreign banks need to inform customers they are not covered by the financial claims scheme, nor are their deposits guaranteed by the Australian Government.Other items that must be disclosed by foreign ADIs are: depositors in Australia do not receive priority for repayment of their deposits from the foreign ADI's assets in Australia ahead of amounts owed to other creditors, should their institution find itself unable to meet its obligations or suspends payment; and a foreign ADI is not required to hold assets in Australia to cover its deposit liabilities in Australia. "This means that if the foreign ADI was unable to meet its obligations or suspends payment it is uncertain whether depositors would be able to access the full amount of their deposit," the APRA document added.APRA said the changes were developed after consulting with industry, although this feedback took the form of just two submissions on APRA's draft proposal.Any changes not already implemented will come into operation from 1 October 2015.