But this does not mean it will accept processes that conflict with its expectations.
Making the switch
FundsNetwork was one of the providers that began accepting e-signatures during the lockdown restrictions in an effort to help advisers.
Ms Boylan explains: “In the early stages of the crisis, we acted very quickly to address the challenges advisers were likely to face through remote working – all heightened by a combination of extreme market volatility, business disruption and the approach of tax year end.
“We made changes to ensure we were able to accept documents signed digitally by DocuSign or Adobe Sign in the approach to tax year end and have since expanded this to cover electronic signatures from any provider legally recognised in the UK.”
But not all providers have been as quick to adapt, posing a challenge for many advisers.
The switch to electronic signatures cannot come quick enough for some advisers and their clients.
Minesh Patel, chartered financial planner and director at EA Financial Solutions, confirms: “What we have found is that providers still sometimes, or quite often, insist on wet signatures, which I find remarkable during this period.
“The only way we’ve been able to deal with that is to send it through the post. It’s just a bit archaic, this need for wet signatures.”
He adds: “I don’t think the FCA’s stance...provides [enough] clarity to advisory firms.”
Mr Patel estimates that having to post a document to a client to get it signed in wet ink adds about a week to the process.
“Then you have to send it onto the provider if they want the actual wet signature documents. It’s time consuming, it’s not necessary when there is an electronic signature or your confirmation on the client’s behalf. That should be sufficient I think,” he says.
Left behind
While e-signatures are not yet universal, Mr Eatock believes that as more providers adapt to offer this solution, others will follow suit.
Conor Murphy, chief executive of Smartr365, believes there is still work to be done when it comes to electronic signatures.
“It would almost be helpful if the regulator were to define a standard that they felt was acceptable across the board.”
Any lender that insists on ‘wet ink’ signatures on documentation from now on, may find themselves at a disadvantage while face-to-face interaction remains impossible.
Mr Murphy says: “As more of the industry moves in that direction, and there’s far less physical interaction or posting of documents, what will happen I think is that any lender which insists on that will become more of an outlier.”
