FCA publishes new webpage setting out its expectations for wet-ink signatures in light of coronavirus (Covid-19) restrictions

On 20 April 2020, the UK Financial Conduct Authority published a new webpage setting out its expectations for wet-ink signatures in light of COVID-19 restrictions. The FCA makes it clear its rules do not require wet-ink signatures on agreements. However, firms need to make sure electronic signatures comply with the general law (see our earlier post on the Law Commission’s report on electronic signatures). The FCA reminds firms to consider the Principles for Businesses when using electronic signatures.

Court decides an email signature is sufficient to mean a document is ‘signed’ for the purposes of the Law of Property (Miscellaneous Provisions) Act 1989

On 20 September 2019, the High Court handed down judgment in Neocleous & Another v Rees [2019] EWHC 2462 (Ch) on whether a footer, containing a name, role and contact details, was sufficient to constitute a signature for the purposes of Section 2(3) of the Law of Property (Miscellaneous Provisions) Act 1989.

After hearing submissions, HHJ Pearce decided that it was sufficient:

– There were a series of emails between the parties solicitors which amounted to a single document that was signed for the Defendant by her solicitor.

– While the email footer was created ’automatically’ and sent without any action by the sender, the sender (in setting up the signature) took a conscious action.

– The recipient also had no way of knowing if the signature had been automatically or not.

– Taking an objective approach, the presence of the sender’s name indicated a clear intention to associate the sender with the email, to authenticate it or to sign it.

Law Commission publishes its report on the electronic execution of documents

On 4 September 2019, the Law Commission published a webpage summarising its findings following its report into the electronic execution of documents. The webpage includes a very useful summary of the law. This broadly says that electronic signatures are generally (except for some exceptions) lawful and do not need to be signed in a particular way. But there are more complications for deeds which must be signed in the presence of the witness.

The Law Commission has recommended setting up a working party to consider some practical solutions (for example, video witnessing of deeds) and a further review of the law on deeds.

You can download:

– the summary paper by clicking here; or

– the full report by clicking here.