Regulatory Alerts2021-07-05
FSCA Guidance on the Use of Electronic Signatures and Prepopulated Documents
The Financial Sector Conduct Authority (FSCA) has issued guidance clarifying the regulatory requirements for Financial Services Providers using electronic signatures and prepopulated forms. While client-originated electronic signatures are legally permissible, the FSCA strongly recommends that FSPs refrain from affixing a client’s electronic signature on their behalf, as this practice with prepopulated or blank documents exposes clients to fraud and contravenes conduct rules mandating that the client personally applies their mind to the transaction. To comply, FSPs must implement reliable authentication processes and ensure all mandatory details are inserted before requesting the client’s signature, thereby preserving legal validity and protecting client assets.