New banking industry guidelines for powers of attorney
The British Bankers’ Association (BBA) has recently implemented guidelines for all banking staff in England, which should make handling the financial affairs of a loved one much easier.
In the past, the criteria and procedures associated with handling another person’s finances varied from bank to bank. Confusion reigned regarding the documents needed and processes to be followed. Another common complaint was that bank staff often had no knowledge of recognised financial arrangements. Now however, these new guidelines will ensure that the process is standardised across all banks.
For customers with a physical disability but with sound mental capacity, they may require assistance over the short term. In this instance, the helper may simply contact the person’s bank and complete the relevant form for a “third party mandate”. For longer periods of time however, it may be advisable to apply for power of attorney.
If the individual either has limited mental capacity or is looking to plan for this eventuality, then lasting power of attorney rights can be granted to their specific nominated person.