Townsends Business & Corporate Lawyers owner Peter Townsend says some businesses claim an SMSF deed can be executed using an e-signature, but this isn’t correct in some states.
Mr Townsend said the issue is that e-signature law is state based and, therefore, differs from state to state.
“In NSW, you can’t execute a deed using an e-signature and you can’t witness a document using an e-signature,” he said.
“So to the extent that there are some people who are setting up funds based on advice that they can just do so with an e-signature in NSW, their fund has actually never been set up and that could have drastic consequences in the future.”
Mr Townsend said it would help the industry if the states came together to “form a common protocol with e-signatures or some sort of standard legislation across the country that makes it the same for everybody”.
interesting commentary. We are looking at implementing esigs in our practice – the vendors are obviously saying its legal, but then its also a matter of what’s accepted, and those in the back office suggest otherwise, that insurance companies etc. won’t accept the ‘scrawl’ from a phone application, unless it looks a lot like what is originally on file. What’s the NSW Law Society’s view – anyone?
Sorry Ray but I don’t believe they have one.
A sound, valid statement by Peter Townsend. In today’s electronic age, we now must accept the days of state-based legislation has passed into history. We now need consistent. federal legislation if we are to move further forward. The days of continuous government by COAG must end.
Couldn’t agree more Eric but I fear too much opposition from those with State-based vested interests. And what would happen to the Sheffield Shield?