e-signature Guidelines Come into Effect on November 1st

E-Signature Guidelines with business man and thumbprint

Thanks again to everyone who provided their feedback during the comment period.

We have worked with industry participants to update and clarify the e-signature Guidelines and Contract Addendum to reflect this feedback. Fundserv is now pleased to announce the new implementation date of November 1, 2018.

What has changed?

The following is a high-level summary of the changes:

  1. Guidelines – we made two small changes: the audit trail is no longer required to be retained in transit to the Recipient, and branding is no longer limited to the Deliverer.
  2. Contract Addendum – we made several changes to clarify the language and align the terminology throughout the document. In addition, there were two principal changes to the Terms & Conditions, as follows:
    • Manufacturers will not be held to the Terms & Conditions until they “opt-in”. The Contract Addendum becomes applicable when a recipient accepts and acts on the initial e-signed instruction. Once they do, the Terms & Conditions will apply to any subsequent instructions.
    • The Contract Addendum will not expand the liability of manufacturers beyond their current obligations as they relate to wet signed instructions.
  3. Companion Paper – we made several changes to align the terminology with the language in the Contract Addendum. In addition, we added new items to the FAQ section to answer the questions received in our webinars and throughout the comment period.

What happens on November 1st?

As of November 1st, applicable e-signed documents exchanged between a deliver and recipient will be subject to the Terms & Conditions set forth in the Contract Addendum. When an organization sends electronically-signed documents to another firm to provide instructions, the documents will need to comply with the Guidelines. As a recipient, your organization will be bound to the Terms & Conditions in the Contract Addendum the first time you receive and act on instructions provided in an electronically-signed form.

Leading up to your organization’s implementation and/or acceptance of e-signed documents, we recommend that your compliance, operations, and legal teams review and become familiar with the Guidelines in order to align and institute, where necessary, changes within your organization. Even if you don’t currently have an e-sign service, you may receive an e-signed document. Understanding the terms and conditions of e-signature acceptance in the Contract Addendum will allow other industry members to do business with you more easily.

If you have any questions about the e-signature initiative, please contact your Relationship Manager or tech@fundserv.com.