How long does it take a bank to add a signatory?
You’ve decided that it would make your life easier if your accounts assistant could also deal with the bank, i.e. sign cheques, make online payments etc. Exactly how easy is it to set all this up?
Getting approval
Having to deal with small payments can be both tedious and time consuming. So adding your assistant as an authorised cheque signatory might free you up to spend time on more important/interesting routines. However, whether you are adding your assistant as an account signatory or a new director, you will have a lot of form filling to do. And as this is not something that can be finalised at branch level, your duly completed lengthy form will have to be sent off to some central administrative department of the bank to be checked.
Tip 1. One of the things you will need to complete the bank’s application form is a board minute approving the additional signatory to the account. (See The next step for an additional bank signatory board minute.)
Tip 2. To help get board approval, restrict the new signatory’s signing limit to, say, £2,000, with an unlimited amount for two authorised signatories.
Potential problems at HQ
Centralisation. Although bank branches are (usually) quite quick when it comes to dealing with customers’ problems, the same can’t be said of the centralised administrative units. These tend to be something of a “black hole” when it comes to losing paperwork. Indeed, when pressed about delays, these departments are more likely to inform you that they never received your documentation in the first place and that you’ll need to submit the whole thing again. A big delay!
Tip. Don’t sit back and expect your application to be processed automatically. Get hold of the phone number of the processing centre and chase them to confirm that the form has been received and logged onto their system. Keep copies of your original application just in case you need to resubmit by fax.
Identity check delays. Once your documentation has been logged as received, one of the main hold ups will be the identity checks imposed by the money laundering regulations. However, if the party being added to the company’s account is already a customer of the bank, this will shortcut the identity check process. If not, they’ll need to take two forms of ID to their local branch.
More than one account? If you have more than one account with the bank, it has been known for the admin unit just to register the new signatory against only one account. Ensure that you make it clear on the application form which accounts you want the new signatory to be included on.
Don’t forget the online angle
Scenario. Even if you specifically stated in your application that you wanted the individual added to online banking as well, don’t be surprised if you are told you have to submit a separate application for this. Aaaah!
Tip. Once the signatory has been added to the bank account(s), you should then be able to get them signed up for their own online banking sign in. Depending on the bank, the Business Manager at your branch may be able to shortcut this process for you (i.e. no more forms!), so that you’ve only a week to wait for an access code.
For a free sample board minute, visit http://financialcontroller.indicator.co.uk(FC 02.09.04).