12th July 2017

Prudential: Investing for vulnerable clients

For those looking after the financial affairs of vulnerable individuals, the responsibility of managing someone else's money is onerous. Graeme Robb, Senior Technical manager at Prudential explores the legal background to this common issue.

Key points

• The Office of the Public Guardian applies in England and Wales. The equivalent bodies in Scotland and Northern Ireland are The Office of the Public Guardian (Scotland) and The Office of Care and Protection.
• Where someone loses mental capacity then, under the different jurisdictions ‘deputies’, ‘guardians’ or ‘controllers’ will be appointed.
• Powers of Attorneys can be established while individuals are still mentally capable.
• Those looking after the affairs of others need to be aware of their powers and limitations.
• Managing your own money is one thing. Managing someone else’s money is an entirely different matter.
• Those acting on behalf of someone else should keep the donor’ s money and property separate from their own.
• In broad terms, attorneys and deputies acting for older clients should generally consider the provisions of the Trustee Act  and the short term investment codes set out below.

This article considers the financial and investment aspects of those who lack mental capacity. It supplements an existing article in our technical centre which examines the position for attorneys and court appointed deputies when making gifts on behalf of another person.

Starting with England and Wales, the Office of the Public Guardian (OPG) protects those who may not have the mental capacity to make certain decisions for themselves, such as health and finance decisions.

Read the full article here.

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