Power of Attorney

[colinc57]

I'm in process of moving from CMC to a DMA provider for regular CFD trading.

Looked at GNI.. seems ok, then had a call from a new company - FSA registered - I won't mention name here yet ( think a new firm setup by one of the ex directors at big advisorory firm)

When I suggested I would not likely use advisory very often, they said they could offer me execution only DMA ( white label of IG ) at what looks like attractive rates ( with ability still to use advisory service if wanted at separate rates)..

They asked me to complete a Power Of Attorney ... are there any risks to doing this ?

 

[0007]

They asked me to complete a Power Of Attorney ... are there any risks to doing this ?

I'm not a lawyer but my understanding of P o T is that you give someone else the right to act on your behalf. So you're no longer in control. Don't think I'd want that with my trading.

I'd get proper qualified advice on this one or at least ask them why they want it.

 

[colinc57]

cheers for reply...
I know its a fairly common practice ... its part of IG whitelabeling service , mentioned on IG own website. Brokers told me its to give me access to telephone trading thro' them and if I use advisory services. They state FSA don't allow them to execute trades without my authority

So perhaps I shold change my question... anyone heard of problems with a PoA being misused by a FSA regulated firm.