Q & A

Is the electronic signature legal in Canada?

Yes, electronic signatures have been recognized by law in Canada since 1999, when the Uniform Electronic Commerce Act was passed. Canada therefore provides an open, user-friendly and neutral environment for the use of electronic signature technologies. In most countries of the world, an electronic signature cannot be rejected simply because it is electronic, which means that it must be admissible, subject to proof. The only transactions that were not allowed with an electronic signature were those under the control of a notary, but that is no longer the case as of March 27, 2020.

What does the Autorité des marchés financiers (AMF) say?

Nothing, because it does not fall under its jurisdiction. The Civil Code of Quebec and the common law regulate electronic signatures. However, the advisor is required to take all necessary measures to preserve the confidentiality and ensure the security of his clients’ information. See the link to the Personal Information Protection and Electronic Documents Act, S.C. 2000, c. 5.

The explanations of the Chambre de la sécurité financière

Where is my information kept?

All our servers are Canadian. The information always stays in Canada. This is a very important parameter for many fields, such as the financial field.

How can I increase my compliance in my electronic transactions and communications with my customers?

Check what your broker accepts as an electronic transaction to avoid unpleasant surprises. In investment, it is the broker who authorizes the eSignature. For documents sent to insurers and banks, all those who accept electronic sending or faxing also accept handwritten electronic signatures. Don’t forget to have a procedure that guides the integration of eSignature in your firm, as it explains the appropriate method to use and certifies that it is now a standard practice for your firm. Such a procedure has the added benefit of increasing your compliance with the AMF.

Check with your broker to see if liability insurance with the cyber risk endorsement is a good option for you if you start using electronic signatures

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*** The information presented here is general in nature. The laws are complex and you should consult a legal expert for more details.

Is communicating with my customers by SMS and Messenger effective?

While email and SMS are both effective ways to communicate with your customers, there are certain messages that are better suited for each channel. Email is a great way to send longer, richer messages that include images and attachments. It has the added benefit of being able to be saved for a later date. Email and SMS are complementary channels that, if used correctly, can result in a seamless communication experience with the customer.

SMS or email?

SMS stands for “Short Messaging Service”. Today, businesses use SMS to communicate directly with their customers on their mobile devices about new promotions, exclusive discounts, appointment reminders and urgent updates. But our financial SMEs often don’t have the resources and budget of larger companies to achieve the same result. A result, which, let’s be honest, the customer expects.

According to our SMS provider, 9 out of 10 SMS messages are opened within the first three minutes of receipt, making it a highly effective way to communicate.

While email and SMS are both effective ways to connect and communicate, they each have their role. Email is a great way to send longer, richer messages that include images and attachments. It has the added benefit of being able to be pre-saved for sending at a later date.

Email and SMS are complementary channels that, if used correctly, can result in a seamless communication experience with the customer.