Authority and Identity Requirements for E-Dealing Guideline 2018 – LINZG20775

Before making Authority and Identity Certifications for Electronic Instruments, practitioners must satisfy standard requirements for (a) client authority and legal capacity, (b) verifying client identity, (c) mitigating the risk for high risk transactions, and (d) retaining documentary evidence.

This guideline is to assist practitioners understand their obligations when making e-dealing certifications regarding authority and identity. It focuses on practitioners’ obligations to:

• ensure they have proper authority from their client; 
• take reasonable steps to ensure their client has legal capacity;
• verify the identity of their client; and
• retain the evidence they have relied on to support those certifications.

The guideline provides information on two options for satisfying some of the standard requirements – the “Safe Harbour” and “Equally Effective Means”.

Note: This 12 November version revises certain Terms or Definitions and the 'Identity verification decision tree' (Schedule 3). It also references the New Zealand Law Society's Property Law Section Property Transactions and E-Dealing Practice Guidelines and substitutes other wording.