Limited Power Of Attorney - LPOA


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.

BREAKING DOWN '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.

  1. Limited Discretionary Account

    A type of account in which a client allows a broker to act on ...
  2. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  3. Managed Account

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

    A broker that provides a large variety of services to its clients, ...
  5. Discretionary Account

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

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