Series 6: 2.2.8.1. Power Of Attorney

2.2.8.1.  Power of Attorney

A power of attorney is a legal document that authorizes one party to act as agent for another (the grantor or principal) and make legally binding decisions on the grantor’s behalf. The agent, also called an attorney-in-fact, has a fiduciary duty to the grantor. When power of attorney is granted for a customer’s account, the agent has full trading authority in the grantor’s account.

Powers of attorney are written for a variety of purposes and can be either general or limited in scope. With a general power of attorney, the agent is given broad auth