We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
Representatives Richard Baker (R-LA) and David Dreier (R-CA) recently introduced H.R. 2937, the Electronic Financial Services Efficiency Act of 1997.
A principal focus of the bill is to establish that electronic authentication or digital signatures will have the same legal effect as paper-based written signatures. In setting out what types of electronic authentication are recognized as valid, the bill is largely technologically neutral. Any method will qualify if it (1) reliably (and in a way that is verifiable) identifies the person making, sending or originating a document or communication, and (2) reliably establishes that the document or communication has not been altered.
The bill also establishes the "National Association of Certification Authorities" under the oversight of the Secretary of the Treasury -- essentially a mandatory registration/licensing of any person or entity the provides "electronic authentication services" in the United States. Given the bill's relatively broad definition of "authentication," the scope of this registration requirement is somewhat uncertain. Additionally, the Association is to establish the "Electronic Authentication Standards Review Committee" which is to "establish, develop, and refine criteria to be applied to the emerging electronic authentication industry."
Many in industry may find these licensing requirements needlessly burdensome. There does not appear to be an exception for authentication used in closed systems or for circumstances where high-trust or regulated certificates may be unnecessary. Also, there does not appear to be any explicit preemption of state registration requirements. Thus, CAs could find themselves subject to 51 different registration requirements in the U.S. alone.
This bill obviously is not going to make significant progress this year. But we can expect to see this and other similar proposals early next year. If you would like a copy of the legislation, please contact us.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information please contact L. Benjamin Ederington on Tel: +202-429-6411, fax: 202-429-3902 or E-mail: bedering@steptoe.com.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
As part of our ongoing efforts to keep wealth management professionals informed of recent developments related to our practice area, we have summarized below some items we think would be of interest.
The Obama Administration has recently proposed ambitious spending and revenue changes, as it released its proposed budget for fiscal year 2014, and a number of proposed tax changes affecting estate planning have emerged.
More than at any time in our legal history, attorneys are scrambling to find ways to protect and preserve the wealth of their clients. High net worth individuals perceive new and potentially devastating threats to their wealth, and creative lawyers must conceive and render more protective solutions.
The ruling of the second US Circuit Court of Appeals in a recent case has resolved one particular uncertainty while retaining a versatile and open-ended approach to assessment of the criteria which govern Chapter 15 relief.
The March § 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 1.4%, which is a slight increase from February's rate of 1.2%.
The Act contains a number of notable changes to the federal estate, gift, generation-skipping transfer and income tax laws, which are summarized in this Legal Update.
