Attorney Investment Management Compliance Checklist
This checklist is intended to assist Attorneys acting under a Lasting Power of Attorney (Property and Financial Affairs) in demonstrating compliance with their duties when appointing and overseeing a professional investment adviser or manager.
1. Confirm Authority
Confirm that the Lasting Power of Attorney (LPA) for Property and Financial Affairs is valid and registered.
Check the LPA document for any restrictions relating to investments.
Ensure that acting as Attorney is in the donor’s best interests.
2. Assess the Donor’s Circumstances
Review the donor’s financial position, assets, liabilities and income needs.
Consider the donor’s age, life expectancy, and likely future care costs.
Take into account the donor’s past and present wishes, values and risk tolerance.
3. Appointing an Investment Adviser
Select a suitably qualified and regulated investment professional.
Confirm the adviser is authorised and regulated by the Financial Conduct Authority (FCA).
Document the reasons for selecting the adviser.
Ensure written terms of engagement are in place.
4. Investment Policy Statement (IPS)
Ensure an Investment Policy Statement is prepared.
Confirm the IPS records objectives, risk tolerance, income requirements and time horizon.
Ensure the adviser agrees to manage investments in accordance with the IPS.
5. Oversight and Monitoring
Receive regular investment reports from the adviser.
Review portfolio performance periodically.
Confirm investments remain suitable for the donor’s circumstances.
Record reviews and decisions made by the Attorney.
6. Financial Records
Keep clear records of all investment decisions and adviser communications.
Maintain copies of reports, statements and agreements.
Keep the donor’s finances separate from the Attorney’s own finances.
7. Ongoing Best Interests Review
Regularly review whether the investment strategy continues to meet the donor’s needs.
Consider whether income requirements or care costs have changed.
Seek further professional advice if circumstances change materially.
Record of Review (Optional)
Date of Review: __________________________
Attorney(s) conducting review: __________________________
Summary of findings / actions taken:
________________________________________________________
________________________________________________________
________________________________________________________