The FCA says that it is happy for firms to use electronic signatures in their dealings with the watchdog.

It adds, however, that the validity of electronic signatures is a matter of law and that, “firms should consider the legal position themselves because we cannot give legal advice.”

The FCA also notes that firms should consider the principles for businesses found in its handbook as well as the general rules regarding the risks and harms of using electronic signatures, and that firms need to take “appropriate steps” to minimise these.

“Firms should consider the client’s best interests rule and the fair, clear and not misleading rule to ensure that, when a client signs a document electronically, this does not make it more difficult for the client to understand what they are agreeing to,” in concludes.