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Glossary

Mandate Power of Attorney

The mandate power of attorney authorises a wealth manager to act in the name of the client in dealings with the custodian bank, for example to buy and sell securities. How far this authority extends depends on what the power of attorney says. The custody account remains in the client's name.

At a glance

  • The power of attorney covers payments to third parties or to the wealth manager itself only if it provides for them.
  • The assets continue to belong to the client. The wealth manager acts in the name and on behalf of the client and, in dealings with the custodian bank, has authority over the assets within the limits of the power of attorney.
  • The power of attorney can be revoked at any time, without giving reasons and independently of the term of the mandate agreement.
  • The mandate agreement governs what the manager may do in relation to the client. In dealings with the custodian bank, the power of attorney the client grants to the manager applies.

Frequently asked questions

Only to the extent that the power of attorney provides for it. The power of attorney sets out whether the wealth manager can, besides buying and selling, also initiate payments, for example to third parties or to the wealth manager itself.
The power of attorney can be revoked at any time, without giving reasons. The revocation is sent to the custodian bank and to the wealth manager and takes effect towards each of them on receipt. This does not end the mandate agreement, which is terminated separately.

Part of the topic

Discretionary Mandates

Sources: FINMA · Classified Compilation (fedlex)

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.