Signature guidelines: Pen strokes for smart people

Literally, everything you do in financial services hinges on the validity of the signatures you ask your clients to make–and the ones you make yourself. Sounds straightforward, right? Yes, but despite the fact that most agents get lots of training in this area, I still hear stories of advisors signing forms for clients and committing other serious mistakes. Agents who do this run the risk of having their applications kicked back, of clients filing complaints or suing them, or having their licenses pulled.

Don’t let it happen to you. Here are a few key signature guidelines to keep you safe:

1. Never sign an application as a witness unless you actually saw the client sign the document.
2. Never sign a form on behalf of another person, even if the person asks you to.
3. Never ask or require a client to sign a blank or incomplete application or other form for you to fill in later.
4. Never omit dates from forms then later insert a pre- or post-date.

Remember, the road to business peril is paved with bad signatures. Whatever you do, don’t go there!