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. Evaluating Your Stock Broker
    Brokers

    Evaluating Your Stock Broker

  2. Three Documents You Shouldn't Do Without ...
    Options & Futures

    Three Documents You Shouldn't Do Without ...

  3. Your Will: Why You Need A Power Of Attorney ...
    Options & Futures

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

  4. The Top 3 Retiree Worries (And What ...
    Retirement

    The Top 3 Retiree Worries (And What ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center