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Glossary

Mandate Power of Attorney

The mandate power of attorney is the authority by which a client grants an asset manager the right to act on a custody account. It authorises buying and selling within the agreed investment strategy, not the withdrawal of assets. The custody account remains held at the custodian bank in the client's own name.

At a glance

  • The power of attorney is limited to administrative actions. Withdrawals to third parties or to the asset manager itself are not covered by it.
  • Ownership and the custody relationship remain with the client. The asset manager receives access to manage the account, not to the assets themselves.
  • The power of attorney can be revoked at any time, without giving reasons and independently of the term of the mandate agreement.
  • The scope and limits of the power of attorney follow from the mandate agreement and the investment strategy set out in it; they must be recorded in writing before signing.

Frequently asked questions

No. A mandate power of attorney covers administrative actions, that is, buying, selling, and reallocating within the agreed strategy. Payments to the asset manager or to third parties are excluded from it. Payments are made to an account held in your own name.
The power of attorney can be revoked at any time, without giving reasons. The revocation is sent to the custodian bank and to the asset manager. It ends the authority to act immediately; the wind-down of the mandate agreement itself follows its own termination provisions.

Sources: FINMA · Systematische Rechtssammlung (fedlex)