As the coronavirus crisis keeps on growing, many businesses have expressed concerns regarding their ability to complete contracts if people cannot meet in person to sign so-called wet signatures – signatures written with a pen.
To clarify its position on the matter, the Financial Conduct Authority (FCA) has issued a clarification where it stated that its rules “do not explicitly require wet-ink signatures in agreements, nor do they prevent firms from using electronic signatures in agreements.”
The FCA added, “The validity of electronic signatures is a matter of law. Firms should consider the legal position themselves because we cannot give legal advice.”
That being said, the regulator stated that firms should considers the risks of using electronic signatures and try to minimise those as well as considering what would be best for their clients.
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