What makes an Electronic Signature Qualified from VSiD
What makes an Electronic Signature Qualified?
Following its pilot scheme which began in 2020, HMLR has announced that it will now accept Qualified Electronic Signatures on documents and deeds and is encouraging lawyers and their clients to make use of this technology since it has been well tested and regulated.
We take a look at what this means for law firms and how easy it is to implement.
How many types of eSignature are there?
There are three types of eSignature – all admissible in law to some extent but with varying degrees of reliability and risk.
Standard e-Signatures (SES) although widely used for many online transactions, do not require any type of signer identification and are therefore unreliable in terms of knowing who is behind a signature.
Advanced e-Signatures (AES) uniquely link the e-signature to a document through a series of authentication processes, however, these can be open to fraud when used for higher risk transactions such as purchasing property.
Qualified e-Signatures (QES) record signatures electronically and remotely, whilst reliably linking a specific person to the act of signing or witnessing a document. They therefore significantly reduce the potential for fraud that exists with SES and AES.
To be considered a Qualified e-signature, an electronic signature must meet the following requirements:
- Be uniquely linked to the signatory and capable of identifying them
- Be linked to the signed data in such a way that any subsequent change in the data is detectable
- Be supported by a ‘qualified certificate’ issued by a ‘qualified trust service provider’
- Be created using a qualified signature creation device
So how can this be achieved in simple terms?
- The signatory can be identified during the course of the signing process. This is done as an additional step by downloading the QES-ID app, taking a video selfie, scanning the photo page of their passport and using a smart phone to read its chip.
- A smart phone enables the person to be individually linked to the signing process with the use of multi-factor authentication.
- The document that has been signed is encrypted and locked so it cannot be altered after signing.
- The process is cloud-based meaning that the signed digital document is held securely with no risk of copies being tampered with.
Why use QES?
The benefits of using QES include speeding up conveyancing transactions, since it is carried out remotely but the big game-changer is that there is no longer the need for a physical witness to attest, as the technology is able to take on that role. With geo-location and near field communication (NFC) capabilities now available, the old manual methods have become out of date, time consuming and inconvenient.
Having the process certified by an eSignature provider that meets the ICO-eIDAS rules means that you can demonstrate to regulators, third parties and relying parties that your methods and due diligence have been carried out to the highest standards.
In addition, HMLR will offer “Safe Harbour” to conveyancers where QES has been used, which means in the event of fraud being subsequently uncovered, there will be no recourse to your firm as you will have been deemed to have taken the appropriate precautions.
How can I begin using QES?
The process is very simple. You can purchase an annual licence and number of credits depending on your needs to gain access to the VSiD platform (via login or API), user training and support. VSiD also offers integration into most practice or case management systems which means you won’t have to bear the cost of expensive software development or re-training for your team.
Why VSiD?
VSiD has been working alongside first adopter law firms with its technology since the HMLR pilot began, so have extensive experience in this field, as well as being able to provide a range of solutions for related client due diligence checks, such as KYC, KYB, PEPs and Sanctions and Source of Funds. VSiD eSignatures are backed by a globally recognised QTSP for Qualified Electronic Signatures and comply with ICO-eIDAS regulations.
If you would like to know more, contact the VSiD team on 0207 965 7479 or visit the website and complete the contact form. You can also follow us on Linkedin for news and updates.
VSiD is listed on the Gov.UK register of Digital Verification Services (DVS).
