Letters Of Authority

Question 1

Define what “letters of authority” is and why is it needed?

Answer 1

1. Clients often lack detailed records, such as investment values, pension arrangements, or mortgage terms.
2. A letter of authority allows advisers to request information from third parties regarding the client (e.g., banks, insurers, product providers).
3. This authorisation is essential when clients do not have full access to their financial details.
4. Enquiries to third parties can take weeks, so advisers must factor in time for gathering accurate data.