TISA - Tax Incentivised Savings Association - Releases

TISA develops new Power of Attorney guidelines

TISA has developed a new guide for administrators to follow when processing requests for a Power of Attorney.

Conversations amongst TISAs cash & investment savings policy council, technical committee and financial crime working group identified a clear need for an information document of this sort to be produced. The guide is the first of its kind to specifically address issues around Power of Attorney and to be made available for financial service administration more broadly.

It sets out a clear checklist of actions that need to be taken when administrators receive a Power of Attorney and explains what else they need to be aware of:

  •  What restrictions there are, e.g. can it only be used once the donor has lost mental capacity
  •  When someone might be eligible for a Power of Attorney and who is involved, e.g. the Donor and the Attorney
  •  What the six different types of Power of Attorney are, e.g. Ordinary Power of Attorney, when someone loses mental capacity, and Enduring Power of Attorney, specifically for property and financial affairs, etc.
  •  What the limitations are for Attorneys once a Power of Attorney has been opened, e.g. whether or not an Attorney can open an ISA, what gifts can be given on behalf of a donor and what changes can be made.

The wording of the guide has been approved by the Office of the Public Guardian and can be downloaded from TISAs website.The guide is also available on The Alzheimers Societys latest financial guide.

Carol Knight, Chief Operations Officer at TISA said:

Having to establish a Power of Attorney can be a very emotional and stressful time for anyone. When the time comes for the appointed person to make some financial decisions on behalf the donor, all financial services organisations have a responsibility to make this process as pain free as possible, which is why we developed this guide.

 We want to make it easier for administrators to deal with instructions given under a Power of Attorney, and subsequently help ease any stress for customers. Were pleased to be able to share this guide with The Alzheimers Society and with the financial services industry more widely, and hope it is utilised as much as possible.

Sara Miles, Programme Partnerships Manager at Alzheimers Society said:

A Lasting Power of Attorney (LPA) can be a very important part of advance planning for a time when a person with dementia is unable to make certain decisions for themselves.

It is vital that the person is at the heart of any decision to get an LPA, giving them a say in the decisions which will come later such as about how their money is spent or how they are cared for.

Dementia is now the UKs biggest killer, with someone developing it every three minutes. With more and more LPAs being made its essential banks and other financial service providers make their staff aware of what they are and have systems and processes in place to deal with them in a sensible and consistent way.

Andrew Baddeley-Chappell, Former Head of Savings Policy, Nationwide Building Society and Ex Chair of the BBA Savings Panel said:

Despite having spent over 25 years in Financial Services, it was only when I became an Attorney that I was able to fully put myself in the position of a customer. Sadly, my experience has been more bad than good.  At times I have been made to feel unwelcome, abnormal and as if I am the problem.

I know this is a complex area, but I hope the work by TISA, together with this leaflet, will trigger a focus on Power of Attorney processes in Financial Services to help me and the many others in my situation.

TISA has developed a guide for England and Wales, which is available online here, and also one for Scotland, which can be accessed here.

Ends.

Issued on behalf of TISA by Atlas Partners, for further information please contact:

Sarah Evans, telephone: 020 7183 7154 or 07523 609413, email sarah.evans@atlas-partners.co.uk

Email: tisa@atlas-partners.co.uk

 

Notes for Editors

TISA is a unique, rapidly growing, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence-based proposals to government, policy makers and regulators; the proposals provide practical solutions to major consumer issues.

TISAs increasing membership comprises over 190 firms involved in the supply and distribution of savings and investment products and associated services. These members represent all sectors of the financial services industry, including the UKs major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTech businesses, financial consultants, financial advisers, software providers and stockbrokers.

TISAs current strategic policy and industry solution developments include financial guidance; digitalisation including the development of a Digital ID, developing open standards that support the growth of FinTech and increase consumer access to financial services, while lowering costs for providers; financial education for children; retirement savings; consumer engagement; the TISA and KPMG Savings Index.

TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. This work currently includes: MiFID II, CASS, the UK Fund Trading and Settlements initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and reregistrations.