Closure of personal CDF accounts
The Government is changing its regulation of Church funds, including CDF, from January 1, 2017.
The sad consequence of this change in government regulation means that we as a Church will no longer be permitted to provide personal accounts to our clients through the CDF. This is a cause of great regret for us, for we have immensely valued the support of all our lay depositors since our CDF began in 1978. For us, and no doubt for you, our relationship with depositors has not simply been a financial one, but solidarity in shared commitment to the mission of our Church.
We are now required by these changes to close all personal accounts before December 31, 2016. I regret that this will apply to your account. You will no doubt have questions about this, and as a first step we are enclosing a sheet of “frequently asked questions” to assist you. This sheet will provide you with more detail on the changes.
In order to help you through the changes we will need your written instruction to close your account and transfer the balance to your bank account. Please either return the reply slip at the bottom of this letter in the envelope provided, or you may prefer to send us a fax, or a scan & email to firstname.lastname@example.org. We will then transfer your funds by electronic funds transfer to your bank account. Unfortunately we are not able to provide cash withdrawals to close your account.
If you have further questions, please call us on 8210 8215 or email us at email@example.com.
Once again I would like to thank you for the support you have given to the CDF and to the Church through your support over the years, and assure you of our ongoing gratitude and best wishes.
Fr Philip Marshall, Vicar General
N.B. Reply slip and letter has been forwarded to personal customers in the mail.
Frequently Asked Questions
Why do I have to close my personal account?
The Government is changing its regulation of Church funds in Australia, from January 1, 2017.
CDF can no longer hold personal accounts unless it becomes a Bank or has a Government financial services licence. These options are expensive and very complex, so it is not practical for the Archdiocese to become a licenced financial services provider or a Bank.
Why is the Government changing its regulation?
The Government is concerned that laity customers will consider a CDF account to be the same as a Bank account, and therefore wants to ensure the public can easily differentiate CDFs from a Bank.
Why is this happening so quickly – why can’t I have more time to close my account?
The Church has been discussing these changes with the Government for most of the year, hoping the Government would not to apply the changes.
Unfortunately, the Government has decided to proceed with the changes from January 1, 2017.
Therefore, we will begin to close remaining accounts between November 30 – December 31.
What happens if I don’t close my account before December 31, 2016?
Any personal CDF accounts that are not closed before November 30, 2016 will be frozen, not be accessible via CDF Online, not have any statements issued, and have a zero interest rate – until we receive your instruction to close the account and transfer the funds to your bank account.
How do I close my CDF account?
We need your instruction to close your account and transfer the balance to your bank account.
You can send us a signed letter, or a fax, or email a scanned letter, or send in the bottom reply slip to the letter we will be sending you over the coming weeks.
How will this affect CDF, and the Archdiocese, from January 1, 2017?
CDF products and services will be restricted to schools, parishes, and departments of the Archdiocese and to Religious Orders operating within the Archdiocese.
How does it just affect CDF – what about other Church development funds?
The changes will apply to all Church Funds in Australia.
How all Churches respond to the changes may be very different and some may in fact become a licenced financial services provider or a Bank.
Can I continue to support the Archdiocese financially?
The Archdiocese will continue to seek donations and bequests.