PKI (Digital Signature) Policy | Terms & Conditions | Legislation
| PKI (Digital Signature) Policy |
PKIs in general
A
PKI is an arrangement that provides for vetting of, and vouching
for, the identities of users. It enables users to be authenticated
to each other and to use digital certificates to encrypt and
decrypt messages travelling to and fro. Typically, a PKI consists
of client software, server software such as a certificate authority,
hardware such as smartcards and operational procedures.
The ARTL PKI
ARTL is Internet-based. While the Internet is readily accessible
to solicitors who want to use ARTL, it is insecure. The ARTL
PKI overcomes the insecurity by employing advanced encryption
techniques and providing a robust, secure environment in which
solicitors can interact with each other and the Land Register
to submit electronic Dealings, free from interference by unauthorised
outsiders. The PKI also confers another, equally important benefit.
It allows solicitors to acquire digital certificates with which
they can apply digital signatures to ARTL digital deeds.
The ARTL PKI was created by Trustis Ltd, a respected supplier.
It is of a type known as a closed, tactical PKI. This means
that the digital certificates will be issued to licensed ARTL
users only and they cannot be used for any purpose other than
the purposes of ARTL.
PKI policy
There is a very strong policy element to the ARTL PKI.
Firstly, there are a few high-level policy documents that have
been agreed between Trustis Limited and Registers of Scotland.
Secondly, Registers of Scotland has devised lower-level policy/procedure
documents that contain a great deal of information and guidance
about the ARTL PKI. The documents intended for external release
have been compiled into a single, composite publication entitled
the ARTL
PKI Registration Policy and Procedures (updated 03/08) which ARTL
users, in particular Local Registration Authorities, should
find helpful in dealing with PKI-related matters.
Click here to
go to the PKI Policy page.
Identity validation and authentication
It is principally because of the requirements of the PKI that
Registers of Scotland staff must visit law firms, mortgage lending
institutions and local authorities that want to use ARTL and
validate the identities of those persons who will act as Local
Registration Authorities in face-to-face meetings. Trust is
a key element of every PKI and the personal identity check is
necessary for the creation of “bonds of trust” between
Registers of Scotland and LRAs.
Smartcards and Local Registration Authorities
Digital certificates are installed on ‘smartcards’
resembling the Chip and PIN credit and debit cards that most
people use. Registers of Scotland issue smartcards free of charge
to organisations that are licensed to use ARTL.
The Local Registration Authority (LRA for short) is the person
in a firm who has the responsibility of issuing smartcards to
other users in the firm, setting those users up with digital
certificates and generally managing smartcard usage.
The first time a smartcard is inserted into a smartcard reader,
the user has to re-set the Personal Identification Number (PIN)
on the card. This ensures that the card is within the sole control
of the user. Once the LRA has completed an authorisation procedure,
the user is directed to a separate website managed by Trustis
Ltd, where he or she collects a digital certificate.
Smartcards must always be kept securely.
PINs must always be kept secret.
See the PKI
policy page and in particular the ARTL
PKI Registration Policy and Procedures (updated 03/08) for more detailed
information about the use of the ARTL PKI.
Smartcard PINs
For reasons of strict security RoS asks that ARTL users
should create PINs for their smartcards that are at least 8
characters long (maximum 16 characters). Click
here for tips and hints on creating PINs that are easy to remember
please.
Digital Signatures
Signatures are required at three stages in a transaction ie:
- Signing deeds on behalf of clients (must be a solicitor)
- Approving transactions (may be non-solicitor) ie equivalent of signing Form 2
- Submitting draft applications (may be non-solicitor) ie equivalent of signing the cheque for registration dues and, when available, SDLT.
The three separate stages are allocated in ARTL as separate roles some or all of which can be assigned to users.
There are a number of possible scenarios for queues within firms:
- A practice queue to which everyone has access to all work, including transactions ready for signature. Only the roles assigned to users can be carried out by them.
- A shared queue to which the only signatories have access and all work to be signed is allocated to that queue when appropriate.
- A shared queue to which those creating and progressing draft applications have access and from which the transactions are allocated to the ‘signature’ queue.
- A shared queue which will be public facing and into which all incoming dispositions will arrive.
- Shared queues to reflect a departmental structure within an office or firm. This arrangement would probably remove the need for a practice queue as each department could have a queue to which all members could have access as well as the other queues as appropriate.
Digital
Signatures and Adobe Acrobat Reader Software (32.7kb)
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Definitions and interpretations of the ARTL System.
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The law on format, validity and evidential status of property
deeds and certificates of title was contained in primary legislation
that envisaged only physically signed or sealed paper documents.
Changes have therefore been necessary to ensure that electronically
certified digital deeds are legally equivalent to the paper
documents that they will replace. Changes were also required
for related matters and processes and to empower the Keeper
of the Registers of Scotland to collect Stamp Duty Land Tax
on behalf of Her Majesty's Revenue and Customs. The changes
were made as follows:
1. The ARTL (Electronic Communications) (Scotland) Order 2006
(S.S.I. 2006/491)
The ARTL (Electronic Communications) (Scotland) Order 2006 amends
the Requirements of Writing (Scotland) Act 1995 and the Land
Registration (Scotland) Act 1979. The amendments to the 1995
Act enable electronic documents, authenticated by digital signatures,
to be created and submitted within the ARTL system and allow
the Keeper to issue directions setting the requirements for
creation of such signatures. The amendments to the Land Registration
(Scotland) Act 1979 permit the Keeper to issue land and charge
certificates as electronic communications, where the applicant
for registration so wishes, and allows the Keeper to issue directions
relating to the phased roll-out of the ARTL system. This Order
came into force on 5 October 2006.
2. Land Registration (Scotland) Rules 2006 (S.S.I. 2006/485)
The 2006 Rules consolidate the existing Rules with various modifications
and include provision for electronic registration applications
to be made through the ARTL system by authorised users. The
Rules provide for a Form 2 equivalent for ARTL applications,
however, this will not be identical to the paper application
Form 2. The ARTL system will only ask users such questions as
are relevant to the particular transaction and the Rules contain
provision for authorised users to certify certain matters within
their knowledge. Also, as a result of the changes, applicants
for registration will no longer have to submit land and charge
certificates to the Keeper. As regards the issue of such certificates,
applicants will have the option to receive those in electronic
form or in paper format.
The digital application form for ARTL will involve an extension
of the "tell me, don't show me" principle which already
features in the Form 2 application for registration. The Keeper
asks the applicant to certify the position in relation to the
questions posed on the Form 2 application. The new questions
will cover:
• Matrimonial Homes Act occupancy rights documentation,
• Civil Partnership Act occupancy rights documentation,
• the position regarding the Register of Inhibitions and
Adjudications,
• confirmation that the granters of the digital deed have
authorised that the deed be authenticated on their behalf, and
• executry and trust midcouples.
Digital signatures will be required to authenticate the answers
to the series of questions in the application for registration
using the ARTL system.
Solicitors should retain documents which support the application
for registration using the ARTL system if copies of those documents
cannot be obtained from a public register, for example agents
should retain Matrimonial Homes Act and Civil Partnership Act
evidence in answering the relevant question in the application
for registration. The 2006 Rules came fully into force on 22
January 2007 (although certain ARTL provisions commenced earlier
to enable live tests to be completed).
3. Bankruptcy and Diligence etc. (Scotland) Act 2007
(2007 asp3)
The Bankruptcy and Diligence etc. (Scotland) Act 2007 inserts
a new Section 6A into the Requirements of Writing (Scotland)
Act 1995. Section 6A allows for paper office copies of electronic
standard securities created in the ARTL system to be registered
for execution in the Books of Council and Session or the sheriff
court books. At present, and for the foreseeable future, the
Books of Council and Session and sheriff court books are paper-only
records and it is not possible to register electronic documents
in them. The section 6A provision is therefore designed to ensure
that there is a simple and practical method of ensuring that
mortgage lending institutions whose standard securities are
created electronically within ARTL can continue to have recourse
to summary diligence procedures against defaulting debtors.
The provision came into effect on 16 January 2007.
4. Fees in the Registers of Scotland Amendment Order
2006 (S.S.I. 2006/600)
The 2006 Order introduces new fees for registration and recording
in the Land Register, General Register of Sasines and the Chancery
and Judicial Registers. Within the new fee order there are further
reductions for ARTL transactions. For transfer of title applications,
the registration fees will be generally 25% lower than the equivalent
fees for paper applications. The savings range from £10
to £500, depending on the value of the property passing,
on each application made using the ARTL system. For standard
securities and discharges, a flat rate fee of £30 has
been introduced for paper applications. The fee for ARTL registrations
for these transaction types is £20. The 2006 Order came
into force on 22 January 2007.
5. Stamp Duty Land Tax (SDLT)
Part 3 of the Finance (No.2) Act 2005, the Stamp Duty Land Tax
(Electronic Communications) Regulations 2005 (S.I. 2005/844)
and the Stamp Duty Land Tax (Electronic Communications) (Amendment)
Regulations 2006 (S.I. 3427/2006) (commencement 31 January 2007)
give legislative authority for SDLT functions in ARTL by:
• Conferring functions on the Keeper to act as intermediary
for Her Majesty's Revenue and Customs in receiving and transmitting
land transaction returns and payments of SDLT,
• Providing for appropriate statutory declarations to
be included in land transaction returns submitted through ARTL
and for such returns to be authenticated by the "digital
signature" issued to ARTL users in place of a written signature,
• Providing that the submission of a land transaction
return through ARTL incorporating the declaration and digital
signature will allow registration to take place without the
need for a land transaction certificate, and
• Providing that a land transaction return submitted through
ARTL will be treated as received by HMRC on the date of receipt
within the ARTL system.
6. Solicitors (Scotland) (ARTL Mandates) Rules 2006
In ARTL solicitors sign the electronic deeds in place of their
client using a digital signature. For this to be valid the solicitor
must have the client's authority to sign the deed on the client's
behalf and this is done by way of written mandate. To facilitate
retention of the mandates the Keeper will maintain an archive
to which solicitors will send the original mandate for copying.
The original mandate will be returned to the solicitor.
The Law Society of Scotland has made a Practice Rule to regulate
solicitors' conduct in relation to mandates used for ARTL transactions. Please
click here to see the Practice Rule on the Law Society of Scotland
website.
7. Keeper's Direction No.1 of 2007
The
Automated Registration of Title to Land (Electronic Communications)
(Scotland) Order 2006 gives power to the Keeper to make Directions
by amending the Requirements of Writing (Scotland) Act 1995
to allow for Directions as to the standard of electronic signature
to be used within ARTL. The Keeper has now made the first Direction
under this power with a commencement date of 2 April 2007.
Direction No.1 sets the standard of electronic signature within
the ARTL system which will be accorded the same legal presumptions
of authenticity as are accorded a hand-written signature on
a paper deed. The Direction will exclude from ARTL technologically
insecure digital certificates and legally insufficient checks
on identity.
Click here to see the text of Direction
No.1
8. Keeper's Direction No.2 of 2007 and No.1 of
2008
The
Automated Registration of Title to Land (Electronic Communications)
(Scotland) Order 2006 also gives power to the Keeper to make
Directions by amending the Land Registration (Scotland) Act
1979 to allow for Directions as to the roll out of ARTL across
Scotland.
Direction
No.2 provides that standard securities and discharges of standard
securities may be registered through the ARTL system on registered
titles across Scotland. The commencement date of 2 April 2007
is set to validate transactions carried out through ARTL as
part of a rigorous "fit for purpose" testing before
the first stage of the ARTL rollout to solicitors and lenders.
Click
here to see the text of Direction No.2
Direction
No.1 of 2008 completes the list of transactions that may be
registered through the ARTL system on registered titles across
Scotland. Among other things, it provides that dispositions,
or transfers of title, may be registered through the ARTL system
on registered titles across Scotland. The Direction has effect
from 1 March 2008.
Click
here to see the text of Direction No.1 of 2008
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