Response to queries: Deferral of joint account and direct to consumer obligations

On 30 April 2021 the Treasury announced that the current requirements for banks to implement the joint account requirements that would have applied from November 2021 will be deferred, with new compliance dates to be set following consultation on the joint account data sharing model.

Separately, compliance with data holders’ ‘direct to consumer’ obligations that would have applied from November 2021 will also be deferred, pending a future consultation process.

In response to this announcement, Treasury has been asked for more details on the deferral announcement and its implications for data holders in the banking sector.

What are the joint account obligations that are being deferred?

Major ADIs

Major ADIs must continue to facilitate joint account data sharing in accordance with the obligations in version 1 of the CDR Rules.

Under the deferral major ADIs will not be required to comply with the additional obligations in version 2 of the CDR Rules that would have applied from November 2021. The key differences between version 1 and version 2 of the joint account data sharing obligations in the CDR Rules are described in a CDR Support Portal article. In particular, major ADIs must continue to support joint account data sharing for joint accounts with two account holders, maintain a joint account management service to allow consumers to manage their disclosure options, as well as meet the dashboard and notification requirements under version 1. However, the following obligations in version 2 will be deferred:

• requirements for sharing data on joint accounts where there are more than two account holders (rather than two account holders only)
• notification and invitation requirements
• the ‘in-flow election’ processes
• secondary user functionality for joint accounts.

Non-major ADIs

Obligations for non-major ADIs to share joint account data from November 2021 will be deferred. This will also apply to the major banks for their non-primary brands.

Reciprocal data holders

Similarly, current requirements for reciprocal data holders to share joint account data under version 1 of the CDR Rules from July 2021, and version 2 of the CDR Rules from November 2021, will be deferred.

The deferral does not affect other obligations for the non-major ADIs that are due to commence from November 2021, in relation to phase 2 products and additional APIs. For example, this means that non-major ADIs will be required to respond to consumer data requests for phase 2 products from November 2021 where these products are held by single account holders (including home loans, mortgage offset accounts and personal loans).

	Requirements under the current rules			Effect of deferral
	Present	Jul 2021	Nov 2021
Major ADIs	Share joint account data under version 1 of the rules until 31 October 2021		Share joint account data under version 2 of the rules	Must continue sharing joint account data under version 1 of the rules No requirement to implement additional joint account functionality that would have applied from November 2021
Non-major ADIs and non-primary brands of major ADIs			Share joint account data under version 2 of the rules	No requirement to share joint account data
Reciprocal data holders		Share joint account data under version 1 of the rules until 31 October 2021	Share joint account data under version 2 of the rules

What is the new compliance date for joint account obligations?

New compliance dates for joint account obligations will be determined by the Minister after considering feedback from stakeholders received during the current consultation on the joint account design paper, and from the formal consultation that will occur on draft amendments to the CDR Rules. New compliance dates will be determined, even if the Minister decides, following consultation, to maintain the current approach to joint account data sharing in the CDR Rules.

How can I provide feedback on the new compliance date for joint account obligations?

Feedback on the issues outlined in the joint account design paper can be provided up until 26 May 2021, including on the implementation considerations to inform a new compliance date for joint account data sharing. Draft rules will be developed for formal consultation as soon as possible following the close of consultation on the design paper.

As noted in the design paper, we are keen to ensure that joint account data sharing can commence as quickly as possible and for as many consumers as possible, and to support increased participation in the CDR by prospective ADRs. While the design paper notes the desire for any new compliance date to be in Q1 of 2022, this is a consultation issue and we encourage feedback on the implementation timeframes that would be achievable for the options explored in the paper. We encourage the provision of specific information about the implementation impacts of the opt-out proposal to support submissions on the new compliance date.

What are ‘direct to consumer’ obligations that are being deferred?

All data holder requirements to disclose required consumer data in response to a direct request made by a CDR consumer (the ‘direct to consumer’ obligations) will be deferred. The intention is for consultation to occur at a future time on an API-based model for direct to consumer obligations and part of that process would involve consideration of compliance dates for these obligations.

How will the deferrals be given effect?

Deferrals relating to joint account and ‘direct to consumer’ obligations will be given effect though amendments to commencement provisions in the CDR Rules. The process for consulting on and finalising these rules is intended to occur prior to November 2021.