Name
Global FinTech Guide
Country _ Name
Finland
SectionTitle
Signature requirements
Body
The signature requirements pertain the legal or contractual requirements in order to make a legally effective declaration of intent or a legally binding contract.

Possibility to replace a specific formal requirement of making a binding declaration of intention

Freedom of contract and form prevails in Finland, allowing signatures to be created freely by expressing one’s intent in various ways. This can be done using online banking codes, mobile identifiers, or other methods. For instance, citizens’ initiatives can be signed not only with the signing certificate from the Digital and Population Data Agency's certificate card, but also with online banking codes or a mobile certificate. Both of these options are classified as advanced electronic signature devices. Other online services are often used as well, with the DocuSign online signing platform being one of the most common.

However, electronic signatures are still not accepted for certain legal acts. This includes specific documents related to the distribution of inheritance and those drawn up and signed during a property transfer, which must be certified by an attesting notary. These documents are required in paper format, and the notary must verify the identity of the parties involved.

Presence of any specific formal requirements to effectively conclude a loan agreement

In Finland, there are no specific formal requirements, such as notarisation or written form, to conclude a loan agreement. However, in practice, loan agreements are typically documented in writing to provide clear evidence of the terms agreed upon by the parties, and electronic signatures are also commonly accepted. Esignatures are usually executed by using E-signature platforms (such as DocuSign and VismaSign), but many institutional Nordic lenders still prefer wet ink signatures at least in large cap transactions. In practice, PDF copies of such wet ink signatures will suffice to sign and close a transaction.

Process of conclusion of a contract by using a qualified electronic signature in practice

An electronic signature, in its fundamental form, refers to the name of the originator or sender attached to the end of an electronic message to verify the identity of the individual involved in the transmission of the message or document. There are more sophisticated forms of electronic signatures that offer enhanced reliability in verifying the signatory and the authenticity of the signature.
As outlined in point 11 of Article 3 of the eIDAS Regulation, an advanced electronic signature is defined as an electronic signature that meets the following criteria set forth in Article 26 of the regulation:

  • It is uniquely linked to the signatory;
  • It identifies the signatory;
  • It is created using electronic signature creation data, which is under the sole control of the signatory and provides a high level of assurance; and
  • It is connected to the data being signed in such a manner that any subsequent modification of that data is detectable.
This framework provides the legal basis for electronic signatures within the European Union, ensuring their validity and reliability in electronic transactions.

Legal consequences to a contract in case of not fulfilling formal requirements

Since Finnish law does not impose specific formal requirements for signatures, it is highly unlikely that a contract would fail to meet legal standards based solely on signature formality. However, there are exceptions, such as contracts related to real estate transactions, which require stricter formalities. 

Usual practice of signing contractual agreements in the B2B sector

E-signatures are typically executed using a mutually agreed-upon platform, such as DocuSign, which ensures the signing process is secure and sufficient for both parties. A two-step verification process is often used, commonly involving identity verification through online banking credentials.

Usual practice of signing contractual agreements in the B2C sector

B2C sector follows the same signing arrangements as the B2B sector. E-signatures are typically executed using a mutually agreed-upon platform, such as DocuSign, which ensures the signing process is secure and sufficient for both parties. A two-step verification process is often used, commonly involving identity verification through online banking credentials.




Authors

Close

Choose country