With IIROC Notice 19–0051 dated March 26, 2019, the Investment Industry Regulatory Organization of Canada (IIROC) has clarified that investment dealers can use and accept electronic signatures. Clients of investment dealers can now take full advantage of Capiche’s streamlined private placement subscription process. IIROC expects firms to have appropriate policies and procedures in place to meet signature requirements. We drafted the below that you are free to incorporate into your firm’s policies and procedures manual.

1. Electronic Signature Policy

1.1. General

Subject to applicable law and as otherwise specified in this [MANUAL], [FIRM] may use and accept an electronic signature where a signature is required to evidence the execution of an agreement, consent, notification, form or other document.

1.2. Approved Signature Software

Electronic signatures must be signed using software approved by [FIRM]. The following electronic signature platforms are specifically approved: [Adobe Echosign, DocuSign and Verisign]. [FIRM] utilizes [DocuSign] for its signature process. [FIRM] may approve other digital signature platforms, from time-to-time.

1.3. Exceptions to Use and Acceptance of Electronic Signatures

An electronic signature may not be used when not permitted by applicable laws. Examples of documents requiring a wet signature include certain powers of attorney, wills and trusts. When in doubt about whether an electronic signature may be used or is acceptable, the guidance of [CHIEF COMPLIANCE OFFICER] should be obtained.

1.4. Definitions

An “electronic signature” refers to electronic information that a person creates or adopts in order to sign a document and that is in, attached to or associated with the document. Some examples include: (i) a typed name on an electronic form or document; (ii) an image of a handwritten signature on a transmitted fax, (iii) clicking “agree” or “disagree” on an electronic “terms and agreements” contract, and (iv) a handwritten but digitally captured signature made on a touch device, such as a tablet or smartphone (sometimes referred to as a “dynamic signature”).

A “wet signature” is created when a person physically signs a document.

Reference: IIROC Notice 19–0051 dated March 26, 2019