Financial institutions planning changes to the structure of their term-deposit products to meet Basel III liquidity rules are now faced with further changes, to accommodate ASIC's requirements for relief from the provisions of the Corporations Act.In a consultation paper released on Friday, the Australian Securities and Investment Commission envisages that financial institutions will have to come up with a different name for certain types of term deposits, and issue warnings to consumers.Part of the stronger liquidity framework in Basel III is a 30-day liquidity coverage ratio. The 30-day LCR requirement is designed to ensure that deposit-taking institutions have sufficient high-quality liquid resources to survive an acute stress scenario lasting for one month.For retail term-deposits to achieve recognition of their term, a necessary condition is that the depositor has no legal right to withdraw within a 30-day period. According to ASIC's senior executive leader, deposit-taking, credit and insurance, Greg Kirk, the long-standing practice among deposit-takers is to allow term deposits to be breakable at the depositor's discretion and at short notice.The institution may charge a fee or impose an interest penalty as a break-cost, but Kirk said that was rarely the case these days.  Under current ASIC rules, term deposits are classified as "basic deposit products", with minimal training and disclosure requirements for the issuer.ASIC said there was some doubt as to whether a term deposit with a 31-day period of notice for redemption would qualify as a basic deposit product.Without that classification, term deposits may have to be sold with a product disclosure statement. Staff selling the product would have to meet a higher standard of training and, if advice was given with the sale, a statement of advice would have to be issued to the customer.The consultation paper said: "We are considering whether it would be appropriate to give class order relief so that term deposits of up to two years that can only be broken with 31 days' notice would be subject to the same regulatory requirements as a basic deposit products."However, that relief may come with strings attached. ASIC said issuers may have to give a different product name to term deposits that can only be broken with 31 days' notice. And issuers may have to provide "health warnings". Kirk said: "The change in the notice period is a significant change from current practice. We are concerned to make sure consumers understand those changes and make informed decisions."ASIC is looking for comments on the consultation paper by December 23 and is aiming to issue a class order in March.