SEC Approves Use of Electronic Signatures under FINRA Customer Account Information Rule

The SEC approved amendments to FINRA Rule 4512 to allow the use of electronic signatures for discretionary accounts. The amendments also serve to clarify the scope of the rule. The amendments will become effective on May 6, 2019.

As previously covered, FINRA stated that manual signatures, formerly required for identity verification, have become obsolete in light of technological advances in the authentication of electronic signatures.