Use of electronic signatures and prepopulated documents

30 August 2021
South African Accounting Academy

It has come to the attention of the Financial Sector Conduct Authority (“FSCA”) that, as a result of the lockdown regulations imposed due to the COVID-19 pandemic, there are Financial Services Providers (“FSPs”) who use electronic signatures of clients when rendering financial services (with or without consent).

The FSCA is not opposed to the use of electronic signatures by clients to conclude an agreement with a product supplier.

The FSCA is concerned that the use of electronic signatures of clients by the FSPs has the potential to expose clients to the risk of fraud, forgery and theft of client assets that would arise from possible unauthorised transactions entered into ostensibly on their behalf.

In light of the above, the FSCA strongly recommends that FSPs refrain from the practice of using an electronic signature of a client, even with the consent of that client.

Click here to download the Communication 12 of 2021:

https://www.fsca.co.za//Regulatory%20Frameworks/Temp/FSCA%20Communication%2012%20of%202021%20(FAIS).pdf

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