Finland: legal requirements and validity of electronic signatures

The guide below sets out the standards, requirements and adoption of electronic signatures in Finland.

Main laws determining the legality and binding status of electronic signatures in Finland

Finland's approach to electronic signatures is primarily governed by the EU eIDAS Regulation (Electronic Identification, Authentication and trust Services) and national legislation. The main laws determining the legality and binding status of electronic signatures in Finland are:

1. eIDAS Regulation (Regulation (EU) No 910/2014): The primary legal framework governing electronic signatures in Finland is the eIDAS Regulation (Regulation (EU) No 910/2014) on electronic identification and trust services for electronic transactions. This regulation is directly applicable across all EU member states, including Finland. It provides a comprehensive legal framework for electronic identification and trust services, ensuring cross-border recognition of electronic signatures within the EU. eIDAS recognizes three types of electronic signatures:

• Simple electronic signatures (SES): Basic electronic data attached to or logically associated with other electronic data. SES is often used for non-critical agreements where high-level assurance is not required.
• Advanced electronic signatures (AES): Signatures that are uniquely linked to the signatory, capable of identifying the signatory, and are created using means that the signatory can maintain under their sole control. They are linked to the signed data in such a way that any subsequent change is detectable. AES is suitable for scenarios requiring more robust authentication and integrity, such as internal business agreements and contracts.
• Qualified electronic signatures (QES): Advanced electronic signatures created by a qualified electronic signature creation device, based on a qualified certificate for electronic signatures. These signatures have the same legal effect as handwritten signatures. QES is mandatory for documents requiring the highest level of legal assurance, such as real estate transactions and certain financial agreements.

You can find the full text of the regulation here. 

2. The Act on Strong Electronic Identification and Electronic Trust Services (617/2009): This act complements the eIDAS Regulation and establishes the national framework for electronic identification and trust services. Key provisions of this Finnish legislation include:

• Recognition of electronic signatures as legally binding and equivalent to handwritten signatures if they meet the eIDAS criteria for qualified electronic signatures.
• Requirements for electronic identification means and trust services providers to be registered and supervised by the Finnish Transport and Communications Agency (Traficom).
• Emphasis on data protection and security in electronic transactions.

You can find the full text of the Act here. 

3. The Electronic Communication Services Act (917/2014): This Act is relevant to electronic signatures in Finland as it governs electronic communications, focusing on data protection, privacy, and security. While not solely about electronic signatures, it ensures that services handling them comply with these standards. The act complements the eIDAS Regulation and the Act on Strong Electronic Identification and Electronic Trust Services by supporting secure communication channels and protecting consumer rights. This legal framework is especially important in industries like telecommunications, where electronic signatures are commonly used. Overall, the act contributes to a secure and trustworthy environment for electronic services in Finland. You can find the full text of the law here. 

These laws work in conjunction with the EU eIDAS Regulation to establish a comprehensive framework for electronic signatures in Finland.

Relevant standards and conditions for an electronic signature to be legally binding in Finland

To be legally binding in Finland, an electronic signature must meet specific standards and conditions. These include:

1. Compliance with eIDAS Regulation: The electronic signature must align with the standards outlined in the eIDAS Regulation. A qualified electronic signature provides the highest level of assurance and legal recognition.
2. Intention to sign: The signatory must have a clear intention to sign the document electronically, demonstrating consent and understanding of the transaction.
3. Integrity of the document: The electronic signature must ensure that the document's content has not been altered post-signing. It must be linked to the signed data in such a way that any subsequent change in the data is detectable
4. Identification and authentication of the signatory: The identity of the signatory must be verifiable, and the signature must be uniquely linked to the signatory. This ensures that the signature can be attributed to the correct individual.
5. Control: It must be created using electronic signature creation data that the signatory can use under their sole control
6. For qualified electronic signatures: Qualified electronic signatures must meet additional standards, which include that they must:

• Be created by a qualified electronic signature creation device, which guarantees a high level of security
• Be based on a qualified certificate for electronic signatures

Qualified electronic signatures which meet additional technical standards and are created by a qualified electronic signature creation device, are given the highest level of legal recognition. They are considered equivalent to traditional “wet ink” signatures in Finland and across the EU. In addition, QES enjoys the presumption of integrity and authenticity.

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Find out more about eSignature laws in Europe:

• Legal requirements for eSignature in Denmark
• Legal requirements for eSignature in the Netherlands
• Legal requirements for eSignature in Norway
• Legal requirements for eSignature in Sweden

Circumstances where an electronic signature may not be valid in Finland

While electronic signatures are widely accepted in Finland, there are some circumstances where they may not be valid:

1. Lack of compliance with eIDAS: If the signature does not meet the criteria outlined in the eIDAS Regulation, it may not be recognized as legally binding.
2. Forgery or fraud: If there is evidence of forgery, fraud, or unauthorised signing, the electronic signature may be invalidated.
3. Lack of consent: If the signatory did not consent to the electronic transaction or was coerced into signing, the signature might be deemed invalid.
4. Non-compliance with specific industry regulations: Certain industries may have additional requirements for electronic signatures. Non-compliance with these standards can lead to invalidation.
5. Specific legal requirements: Certain documents must have handwritten signatures to comply with legal requirements. These include family law matters, wills, some real estate documents, specific government forms, and documents that require notarization.
6. Technical issues: Failures in the electronic signature process, such as errors in encryption or data integrity, can render a signature invalid.

Recent court decisions on electronic signatures in Finland

Presently, there have been no landmark court decisions specifically addressing electronic signatures in Finland, indicating that the existing legal framework is functioning effectively, with few disputes escalating to the higher courts.

Finnish courts have consistently endorsed the use of electronic signatures across various sectors, upholding their validity in accordance with the eIDAS Regulation and Finnish laws. The absence of significant legal challenges suggests that the current framework is both effective and widely accepted.

Judicial support enhances the reliability of electronic signatures in both commercial and personal contexts. However, practitioners and users should remain vigilant to ongoing legal developments, as court interpretations may evolve to address new technological advancements and emerging challenges in digital transactions.

Forthcoming legislation on electronic signatures in Finland

Currently, there is no specific forthcoming legislation in Finland expected to significantly alter the existing laws governing electronic signatures. However, as a member of the European Union, Finland's electronic signature laws may be influenced by any revisions to the eIDAS Regulation at the European level.

The European Commission has been actively reviewing the eIDAS framework to address emerging technologies and improve cross-border digital transactions, which could lead to updates that Finland will need to integrate into its national legislation.

Additionally, as technology continues to advance, the Finnish government is committed to adapting its legal framework to accommodate new developments in electronic signatures.

This includes considering the impact of innovations such as blockchain, artificial intelligence, and increased cybersecurity measures to ensure that electronic signature regulations remain robust, secure, and aligned with international standards.

The Finnish government's proactive approach aims to maintain the integrity and reliability of electronic signatures, supporting their widespread adoption across various industries while ensuring compliance with evolving technological trends and legal requirements.

Industry-specific standards for electronic signatures in Finland

While the general legal framework for electronic signatures applies across sectors, some industries in Finland have developed specific standards:

1. Financial services: Financial institutions often require advanced or qualified electronic signatures for high-value transactions, ensuring the highest level of security and compliance. The Bank of Finland has stated that the type of eSignature required for a transaction will be analysed on a case-by-case basis. 
2. Healthcare: The healthcare sector requires advanced electronic signatures for patient consent forms and medical records, emphasising data protection and integrity.
3. Government services: Public sector contracts and agreements often require electronic signatures that meet advanced or qualified standards for authenticity and integrity.
4. Real estate: While advanced or qualified electronic signatures are accepted for certain aspects of real estate transactions, handwritten signatures are generally required, especially for the final transfer of property ownership and when notarization is necessary.
5. Legal profession: Court submissions that utilise electronic signatures must employ qualified electronic signatures. Additionally, legal contracts may require qualified electronic signatures to ensure compliance with legal standards.

Adoption of electronic signatures in Finland

The adoption of electronic signatures in Finland is steadily increasing due to technological advancements, regulatory support, and the growing need for efficient digital solutions. Key sectors contributing to this adoption include:

1. Business sector: Many Finnish businesses have adopted electronic signatures for internal processes, contracts, and customer agreements, enhancing efficiency and reducing paper usage.
2. Government services: The Finnish government has implemented electronic signatures for various services, such as tax filings, applications, and public procurement, to streamline operations and improve accessibility.
3. Healthcare: Electronic signatures are widely used in healthcare for patient consent forms, medical records, and telemedicine services, ensuring secure and efficient data handling.
4. Education: Finnish educational institutions use electronic signatures for enrollment, administrative processes, and online learning agreements, promoting digital transformation.
5. Consumer transactions: Online shopping, banking, and subscription services in Finland often utilise electronic signatures for authentication and transaction validation.

Leading electronic signature providers in Finland

Finland hosts several leading providers of electronic signature solutions, offering a range of services to meet different needs. Some of the top providers include:

1. DocuSign: A global leader in electronic signature solutions.
2. Juro: A popular contract automation platform known for its user-friendly interface and robust security features, Juro is a popular choice for businesses of all sizes.
3. Adobe Sign: Part of the Adobe Document Cloud suite.
4. Scrive: Specialises in electronic signature and identification solutions for various industries.
5. SignNow: Offers a user-friendly platform for electronic signatures. 
6. GetAccept: Offers digital sales room solution, including electronic signatures.
7. Yousign: A European electronic signature solution.
8. HelloSign: A Dropbox company providing electronic signature solutions.
9. Eversign: Offers a platform with advanced features catering to various industries.

These providers offer a range of solutions, from simple electronic signatures to advanced and qualified electronic signatures that meet the highest legal standards in Finland and the EU.

FAQ: common questions about electronic signatures in Finland

Are electronic signatures legally binding in Finland?

Yes, electronic signatures are legally binding in Finland, provided they comply with the eIDAS Regulation and Finnish national legislation.

What is the difference between an advanced and a qualified electronic signature?

An advanced electronic signature provides a higher level of assurance than a simple signature, ensuring authenticity and integrity. A qualified electronic signature offers the highest level of legal recognition, equivalent to a handwritten signature, and is created using a qualified device.

Is there a difference between digital signatures and electronic signatures?

Yes, electronic signatures encompass all forms of electronic data used to sign a document, while digital signatures specifically refer to a type of electronic signature that uses cryptographic technology for enhanced security and authentication.

Can I use an electronic signature for all types of documents in Finland?

While electronic signatures are widely accepted, some legal documents like wills, documents relating to family law and documents requiring notarization may require traditional handwritten signatures.

Do I need a special device to create a legally valid electronic signature in Finland?

Not necessarily. Simple electronic signatures can be created without special devices. However, for qualified electronic signatures, you need a qualified electronic signature creation device.

Are electronic signatures from other EU countries valid in Finland?

Yes, under the eIDAS Regulation, electronic signatures that are valid in one EU country are recognized across all EU member states, including Finland.

How can I verify an electronic signature in Finland?

Many electronic signature providers offer verification services. For qualified electronic signatures, you can check the EU Trusted List to verify the signature's validity.

How can I ensure the security of my electronic signature?

Use a reputable electronic signature provider that complies with EU and Finnish regulations, employs encryption technology, and offers secure authentication methods to ensure the security of your electronic signature.

Who are the leading providers of electronic signature services in Finland? 

Leading providers include Juro, DocuSign, Adobe Sign, and others,

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Finland has embraced electronic signatures as a legally valid and efficient way to conduct business and personal transactions. With a clear legal framework and widespread adoption, electronic signatures have become an integral part of Finland's digital landscape.

As technology continues to evolve, it's likely that the use and sophistication of electronic signatures in Finland will only increase, further cementing the country's position as a digital leader in Europe.

Juro is not a law firm and this article should not be relied on as legal advice.