Advisors are prohibited from serving as a client’s executor or power of attorney, but they also need to ensure they don’t run afoul of the rules inadvertently
Advisors must steer clear of taking on power of attorney, executor, trustee and beneficiary roles for clients. And if it happens without the advisor’s knowledge, they should inform their supervisor and compliance team as soon as they find out.Advisors may be a logical choice to serve as a client’s executor or power of attorney, but doing so creates a major conflict of interest – and regulators are taking notice.
The CIRO hearing panel fined the advisor $125,000, ordered her to pay $20,000 in costs, and issued a permanent prohibition from conducting securities-related business for any mutual fund dealer member of CIRO. There’s an exemption when the client is an immediate family member or the financial planner has a day-to-day job that entails administering trusts or serving as an executor .
As Ms. Lebrun-Reid points out, financial planners often see copies of powers of attorney and wills as part of the financial planning process.
Globe Advisor Appwebview Client Advisor Planner Executor Attorney Power Conflict Interest Toronto Canada Damienne Lebrun-Reid
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