[ARCHIVE] v2 Joint Account Rules

Note: This article is out of date and has been archived.

It refers to compliance dates for joint accounts rules that have passed. For the latest information on joint accounts, please see the joint accounts implementation guidance.

Archived Text

Joint account rules – key additions and differences in version 2 of the Competition and Consumer (Consumer Data Right) Rules 2020 (rules)

The amended joint account rules build on the old rules, and represent our target state for joint accounts in open banking. To assist stakeholders, we have created a the following short overview table. This sets out how the amended rules build on the old rules, while retaining much of the same functionality, and identifies key changes we introduced in December. We intend to update our scenario-based joint account guidance to reflect the additions made by the new rules, and to address frequently-asked questions we have received about joint accounts over the past 12 months, later this month.

Transitional arrangements apply under the new rules for those data holders who were required, or were scheduled to be required, to share data from joint accounts ahead of the November 2021 compliance date for the new joint account rules.

Finally, we have also received initial feedback from data holders that are planning to enable sharing from joint accounts before November 2021 on a voluntary basis and may be unable to build to the new rules in time for a voluntary early launch.  We welcome this intention to share data early, and would be happy to have discussions about facilitating this, for example via our individual exemptions process.

	Version 1 - relevant rules	Version 2 - relevant rules	Key differences/additions in version 2
Definition of joint account	Schedule 3 clause 1.2	Schedule 3 clause 1.2	The definition of a ‘joint account’ now: includes accounts where there are two or more account holders, rather than two account holders only; and excludes partnerships accounts (which are dealt with separately in the rules).
Application and simplified outlines	N/A	Schedule 3 clauses 4.2-4.4	These clauses set out the application of Part 4 and provide a simplified outline of the joint account rules in relation to the banking sector.
Joint account management service (JAMS), disclosure options and approvals	Schedule 3 clause 4.2	Schedule 3 clauses 4.5-4.6, 4.12-4.13	The concepts of ‘disclosure options’ and ‘approvals’ are introduced in version 2. These terms are materially equivalent to the ‘election’ and ‘authorisation’ terms in version 1 and were adopted to increase the alignment of the rules with the technical implementation requirements. The JAMS must now be provided online, whereas online functionality was optional in version 1. Any joint account holder may independently remove an approval on a joint account, regardless of the disclosure option in place. In version 1, both joint account holders had to agree to withdraw an authorisation where a co-approval disclosure option (previously referred to as a ‘two to authorise’ election) was in place. The addition of clauses 4.6(6)-(8) provides additional clarity on how the JAMS functionality must be provided, including around information that must be presented to consumers. Clauses 4.12 and 4.13 provide additional clarity on the operation of disclosure options and approvals.
Data holder notifications	N/A	Schedule 3 clauses 4.7, 4.11, and 4.16	Version 2 introduces notification requirements that were not present in version 1 to ensure consistent consumer experience.  The requirements provide clarity about notifications, invitations and information that must be presented to consumers (including in relation to requests made by secondary users).
Indicating a disclosure option as part of the authorisation flow	Schedule 3 clauses 4.3 and 4.5	Schedule 3 clauses 4.10	Where a disclosure option is not already in place, clause 4.10 requires data holders to ask consumers to indicate a disclosure option as part of the authorisation flow (commonly referred to as the ‘in flow election’). This clause replaces clause 4.3(3) of version 1 which prohibited data holders seeking authorisations where a disclosure option was not in place.
Consumer dashboards	Schedule 3 clause 4.4	Schedule 3 clauses 4.14 and 4.15	Substantially the same as version 1, language of ‘approval’ replaces ‘authorisation’ to align with technical implementation requirements.
Vulnerable consumers	Rule 4.7 and Schedule 3 clause 4.6	Schedule 3 clauses 4.13(3), 4.13(4), 4.14(4), 4.16(3)	Version 1 contained exceptions to the requirements for data holders to disclose required consumer data and update the consumer dashboard, where the data holder considered it necessary in order to prevent physical or financial harm or abuse. Version 2 retains these exceptions and introduces additional provisions that allow data holders to share CDR data as if the account were held in the name of one person alone, where the data holder considers it necessary in order to prevent physical or financial harm or abuse. These provisions are not mandatory obligations but exceptions that can be relied on by data holders in appropriate circumstances (for example, where they have identified a consumer as vulnerable in accordance with their existing procedures and processes).