on 22-06-2017 02:40 PM
Just a general post on client authorisation forms to get a 'feel' for the position being taken generally in respect of VOIs. When receiving a standing authority CAF, VOI should be carried out, as I understand it, on the signatories of the CAF. This then gives standing authority until the CAF is revoked for the recipient of the CAF to carry out that client's work in PEXA. Is it necessary (to comply with VOI rules) for the VOIs on the CAF signatories to be redone every two years even though the CAF remains in place. If the original signatory is no longer at the organisation, would this then result in the CAF needing to be redone - which almost negates the 'standing' nature of the CAF? Any thoughts welcome.
03-07-2017 05:28 PM - edited 03-07-2017 07:02 PM
As you have alluded to, ARNECC has provided advice in Guidance Note 1 outlining that ideally a Client's identity should be verified at the time that the Client Authorisation Form is signed.
If a client provides their Representative with Standing Authority under the CAF, then that CAF remains a valid agreement until it expires or is revoked by either party in writing. This is in accordance with clause 3 of the CAF Terms (Model Participation Rules, Schedule 4). Depending on whether the Client is an individual, a body corporate or an attorney, the Representative may need to take further steps to confirm whether the individual is authorised to sign the Client Authorisation Form. If an individual is authorised to sign the CAF on behalf of an organisation at the time of execution, then the CAF does not expire as a result of that person leaving an organisation or ceasing to be an authorised signatory.
Separately, Subscribers should also be conscious of their obligation to verify the identity of their Clients. As per the Verification of Identity Standard (MPR, Schedule 8, clause 5), Identity Verifiers must –
‘verify the identity of the Individual or Individuals signing or witnessing the affixing of the seal on behalf of the body corporate…’
In summary, a Representative should take reasonable steps to establish that the CAF signatory is authorised to enter their organisation into a Standing Authority CAF at the moment it is executed. To receive the protection provided under Participation Rule 6.5.6, Representatives should ensure there is a valid VOI in place when entering into a new CAF.
on 25-05-2018 06:02 PM
If you are acting under a Standing Authority CAF from your client with no expiry which was signed more than 2 years ago, do you still need to do a new VOI of that client every 2 years? The Rules seem unclear on this point and it would seem to defeat the purpose of having a non-expiring Standing Authority CAF if you do have to do another VOI while that CAF remains on foot (ie even though the CAF doesn't expire, the VOI exemption does).