A cross-industry body has published power of attorney (PoA) guidelines for the financial services industry.
The Tax Incentivised Savings Association (Tisa) developed the document offering guidance to administrators processing a PoA request with the help of The Alzheimer’s Society and a former chairman of the British Bankers’ Association (BBA).
Tisa found a "clear need" for the guidelines and included a checklist of actions to be considered in the PoA process, including relevant restrictions, the roles of donor and attorney and the six different types of PoA.
The guide also demonstrates the limitations once a PoA has been opened such as viable changes, what gifts can be given on behalf of a donor and whether an attorney can open an Isa.
Carol Knight, chief operations officer at TISA, said having to establish a PoA can be an emotional and stressful time and all financial services organisations have a responsibility to make the process as pain free as possible.
She said: "We want to make it easier for administrators to deal with instructions given under a PoA, and subsequently help ease any stress for customers.
"We are pleased to be able to share this guide with The Alzheimer’s Society and with the financial services industry more widely, and hope it is utilised as much as possible."
A lasting power of attorney (LPA) is a legal document which allows a donor to appoint one or more attorneys to aid or make decisions on their behalf.
The process can be used in the event of an accident or illness by which the donor lacks mental capacity to make certain decisions themselves.
Andrew Baddeley-Chappell, former head of savings policy at Nationwide Building Society and former chairman of the BBA Savings Panel, said despite his 25 years of experience in financial services it was only when he became an attorney he was able to put himself in the position of a customer.
He said: "Sadly, my experience has been more bad than good. At times I have been made to feel unwelcome, abnormal and as if I am the problem.
"I know this is a complex area, but I hope the work by Tisa, together with this leaflet, will trigger a focus on PoA processes in financial services to help me and the many others in my situation."
Tisa’s guide has been developed for England and Wales, with a separate document for Scotland, and the wording approved by the Office of the Public Guardian.
In recent years the Financial Conduct Authority has demonstrated an increased interest in how firms treat vulnerable clients, releasing an occasional paper on consumer vulnerability in 2015 outlining its guidance and definition of vulnerability.
The regulator moved to maintain this definition earlier this year when it said "vulnerability can come in a range of guises, and can be temporary, sporadic or permanent in nature", and after further consultation early next year is expected to review how vulnerable client policies are implemented within the financial services industry.
Becky Campion, operations manager at Face to Face Finance, said anything that promotes a better and more consistent understanding of PoA within the industry is a good thing.
She said: "When appointing an attorney bare in mind the geographical location of the attorneys to the donor.
"For example, with a health and welfare LPA, if you needed to chose a care home for the donor, is it feasible to travel to choose a suitable home, and then also feasible to visit if there are any issues?"
Ms Campion added: "Also make sure the attorneys can work together, if choosing more than one, without disagreement.
"The attorneys need to be confident in their decisions and able to justify them to concerned friends and family – especially when you are external to the family and friend situation."
rachel.addison@ft.com
