Removing a joint account holder
Where a person ceases to be a joint account holder on a joint account and that account remains open:
(1) Authorisations of the remaining joint account holders remain current.
(2) The data holder can no longer make disclosures from the joint account in response to a request made on behalf of the former joint account holder and the joint account will be dissociated from the former joint account holder’s authorisations as per the technical standards.
(3) If the former joint account holder remains eligible in relation to the data holder:
(a) their existing authorisations will remain current - this allows disclosures from any other accounts held by the former joint account holder to continue
(b) data holders must continue to display historical information on the former joint account holder’s dashboard about their authorisations relating to the joint account at the time they were a joint account holder (as required by rule 1.15(1)(b))
(c) data holders may also continue to provide the former joint account holder(s), with historical information about authorisations associated with the former joint account that were given by other account holders before the former joint account holder(s) was removed (and which would have been required by r 4A.13(1)(c) at the time the person was a joint account holder).
Paragraphs (1), (2) and (3)(a-b) are also true for secondary users (i.e. in circumstances where a person ceases to be a secondary user on an account).
In circumstances where a joint account holder(s) is removed from an account and only one account holder remains, the account would become an individually held account and would not be subject to the joint account rules under Part 4A of the CDR rules. This may occur when a joint account holder dies or where joint account holders have decided to remove a joint account holder(s).
In circumstances where a joint account is closed after a joint account holder has been removed, the former joint account holder will not be able to access historical data from that closed joint account (other than as noted above at 3(b) and (c) in relation to dashboard requirements). However, in circumstances where a joint account is closed while two or more persons are joint account holders, and all account holders remain eligible consumers under rule 1.10B and clause 2.1 of schedule 3, data holders must continue to support data sharing for that closed account in accordance with Part 4A. For more information, please see our guidance on Continuing obligations in relation to closed joint accounts.
Adding a joint account holder
Where an individually held account becomes a joint account (i.e. because another account holder is added to the account), the pre-approval disclosure option will apply by default.
Where the pre-approval disclosure option applies to a joint account and a person is added as a joint account holder, the person is taken to have approved existing authorisations to disclose CDR data (rule 4A.5(4)(a)).
Where the co-approval disclosure option applies to a joint account and a person is added as a joint account holder, sharing from the joint account under an existing authorisation must pause until the new joint account holder has given their approval. Data holders must ask for the new joint account holder’s approval in accordance with rule 4A.11. To minimise unintentional disruption to existing data sharing, we encourage data holders to:
- provide the information referred to in r 4A.11 (or similar information) to the new joint account holder, and
- ask the new joint account holder to approve or not approve of existing authorisations to disclose joint account data,
at the time they are being added to the account. In this way, the person can approve or not approve existing authorisations to disclose joint account data at the same time they become a joint account holder and no unintentional disruption to data sharing should occur.