MFDA Staff updated MSN-0016 on Electronic Signatures on June 8, 2020. MSN-0016 was originally issued in 2003 to clarify that electronic signatures are permitted where a signature is required.
Since the MFDA first issued MSN-0016 there has been significant evolution in the law with regards to electronic signatures, as well as an increase in the availability of technological solutions that facilitate the electronic signing of documents while meeting legal and regulatory requirements. In addition, due to the COVID-19 pandemic, MFDA Members and Approved Persons are now primarily servicing their clients remotely.
In recent years, the MFDA has observed an increase in the adoption of electronic signature technology by Members which has improved efficiency and enhanced convenience to clients. The use of electronic signatures by Members also addresses concerns related to the use of pre-signed or altered forms by Approved Persons by no longer requiring clients to attend in-person to sign documents.
Given these developments, MFDA staff has updated MSN-0016 to provide further guidance on electronic signatures.