Limited Power Of Attorney - LPOA

AAA

DEFINITION of 'Limited Power Of Attorney - LPOA'

An authorization form used in the professional money management field which gives a portfolio manager discretion to perform certain functions in a client's account, such as:

- trading authorization,
- disbursement authority,
- fee-payment authority and
- have forms sent straight to broker, such as proxy statements, tender offers, etc.

The "limited" in LPOA refers to the fact that certain critical account functions are still only available to the account holder, such as cash withdrawals, a change of beneficiary or other major account actions.

INVESTOPEDIA EXPLAINS 'Limited Power Of Attorney - LPOA'

LPOA authorizations have grown rapidly in the past decade as many investors move their accounts from standard brokerage firms to boutique money management firms (such as RIAs). LPOAs allow the manager to execute their investment strategy for the client without constantly having to contact the client to approve the order prior to execution.

RELATED TERMS
  1. Limited Discretionary Account

    A type of account in which a client allows a broker to act on ...
  2. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  3. Managed Account

    An investment account that is owned by an individual investor ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Discretionary Account

    An account that allows a broker to buy and sell securities without ...
  6. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
Related Articles
  1. a list of questions and actions that will help ensure that neither your broker, nor your brokerage firm, is ripping you off
    Brokers

    Evaluating Your Stock Broker

  2. Options & Futures

    Three Documents You Shouldn't Do Without ...

  3. Options & Futures

    Your Will: Why You Need A Power Of Attorney ...

  4. Retirement

    The Top 3 Retiree Worries (And What ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center