If you are tasked with using a Property and Financial Affairs LPA on behalf of a donor you may find that if you wish to open a savings account on their behalf, you may not be able to access the best rewards from the provider’s portfolio. Here we look at the issue.
Property and Financial Affairs attorneys responsibilities
If you have been appointed a Property and Financial Affairs attorney, you will make, or help a donor make, decisions about issues such as investments, property, benefits, pensions or banking, including Building Society accounts.
If you need to find information about making a power of attorney online you can find advice at sites such as https://powerofattorneyonline.co.uk/blog/can-a-power-of-attorney-transfer-money-to-themselves-in-the-uk/.
How are attorneys being penalised?
Some savings platforms do not allow third parties to access them on another individual’s behalf. This is important because these platforms are a convenient way of spreading savings if the donor had a single account with a significant balance. This is important since the Financial Services Compensation Scheme is restricted in its protection, offering a capped £85,000 if a bank should collapse.
This state of affairs also means that attorneys operating under an LPA may miss out on better rates of interest if they are prevented from accessing them. The Financial Conduct Authority continues to investigate banks which have clients who are considered vulnerable and are focusing on attorneys operating under an LPA.
In the past, there have been occasions when customers have experienced difficulties when registering LPAs and this is another issue the FCA are aware of.
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