Client Authorisation Form

[JErnst]

Does the Client Authorisation Form need to signed by the client in the presence of the conveyancer/lawyer?  Many of my clients never have a face to face meeting with me.

Would appreicate feed back, thank you.

[Naomi · Accepted solution]

Hi Jeannette @JErnst,

Ideally, verification of identity would be undertaken at the same time as the Client Authorisation is signed. However, if this is not possible, you would need to undertake reasonable steps to ensure the Client Authorisation was signed by your client or their agent. Please see ARNECC Guidance Note #1 here for further information. 

Please feel free to comment below to let me know if this response hasn't answered your question.

If I've answered your question, please 'Accept as solution'. 

Regards

Naomi

[Emilytrotman]

hi, the link above has been removed. If the CAF is not signed at the same time the ID verification has been done, what would reasonable steps look like to confirm the client signed the form?

[TJ]

Hey @Emilytrotman,

You're right, looks like ARNECC has updated that pdf - I've found the new version and relinked it in Naomi's post.

Here it is for you  MPR Guidance Note Client Authorisation

ARNECC's other guidance notes can be found here (in case you want to check out the other notes... or they update the links again )

In terms of what reasonable steps look like to confirm the client signed the form? @Chris_ZipID might be able to shed some light on that, he's a bit of an expert on the topic.

[Chris_ZipID]

Hi Everyone - Great questions!

The recommendation from ARNECC is that the VOI and Client Authorisation should be done at the same time to ensure that client who signed the CA Form is in fact the same person identified in the VOI.  

When using ZipID - either our famous Agency Service or our Mobile App - the robust process we have combines each element (including the Client Authorisation) in a way that produces a safe harbour VOI Report (PDF) that is deemed reasonable steps. In our Agency service we'll also co-sign the CA Form for you, so you don't have to.

You can hear more about Client Authorisation in our Webinar.

Reasonable steps is an untested area really, so consider the safe harbour approach where possible. If you've decided to use tool like a photocopier or scanner to conduct VOI and CA - I would start by documenting a firm-wide policy that shows your process, combined with file notes and quality images of what happened on each matter.

I hope you find that info helpful.

Cheers,

Chris from ZipID

[Emilytrotman]

Hi 

I have read the ARNECC notes several times and I am aware that it is best practice to have the CAF signed when the VOI is completed, understood. I am also aware that ZIPID will ensure this is conducted correctly. However, in circumstances where the CAF was not signed at the time of VOI, what are reasonable steps. I have seen in another thread someone asking if this can be done with a JP? This was again answered by pointing out the ARNECC practice notes.

I currently have a situation where my client has done a VOI (in 2016 but still within the accepted 2 year time frame) for another transaction. I did not require a CAF for the first transaction, it was a paper settlement. This time we intend on settling electronically via PEXA. How would I reasonably confirm that my client signed the CAF (not possible for her to come in to my office due to interstate location) as she does not need to re-do her VOI?

[Chris_ZipID]

Hi @Emilytrotman

Sorry if it feels you've been sent around in circles on this one, but unfortunately there is no definition that describes exactly what reasonable steps are (or even example of what they may be). I don't believe there have been any cases to test legally what reasonable steps mean in this instance - so it's your decision based on what you're comfortable with, the client circumstances and your firm's risk policy.

The only way I can see  "safe harbour" here would be to repeat the VOI again with the CA in person or through an agent.

Sorry I don't have a clear answer for you on this one. 

Thanks,

Chris from ZipID