Why You Should Consider Appointing a Trusted Contact Person

When your advisor asks you whether you want to name a Trusted Contact Person, it is something worth considering. Naming a Trusted Contact Person could help your advisor or investment firm to respond to possible situations of financial abuse or fraud affecting your account. It allows your advisor to know who you trust and who they have permission to contact when they are concerned about your well-being under specific situations. Naming a Trusted Contact Person does not give that individual any authority over your account.

Your advisor may ask your Trusted Contact Person questions about you and your wellbeing in specific circumstances, including:

If your advisor needs to get in touch with you, but cannot after repeated attempts.
If financial exploitation is suspected.
If there are concerns about your ability to make financial decisions.
To confirm your legal representative(s).

While a Trusted Contact Person can be a resource to safeguard your financial assets, they are not authorized to:

Make transactions on your account.
Make decisions on your behalf.
Have access to your account.

Naming a Trusted Contact Person is optional, but it can give you peace of mind knowing that your advisor has an additional resource to help them take appropriate action to protect you and your account.

You should consider telling the person that you have named them as a Trusted Contact Person. This may help them if your advisor contacts them.

What is the Difference Between a Power of Attorney (POA) and Trusted Contact Person (TCP)?

The purpose of both a Power of Attorney^* (POA) for property and a Trusted Contact Person (TCP) is to help protect your financial interests. However, their roles are very different.

A POA for property is a legal document that you sign to give one person, or more than one person, the authority to manage your money and property on your behalf. That person does not need to be a lawyer. Each province and territory has its own laws relating to powers of attorney.

A TCP is someone you authorize your financial advisor to contact, in limited circumstances, to protect you from financial abuse and exploitation.

Here is a quick guide to what actions a POA for Property and TCP may perform on your behalf and what they may not do:

	May Do	May Not Do
POA for Property	Perform many of the transactions with your finances and property that you could do. Do your banking, sign cheques, buy or sell real estate in your name, and buy consumer goods. Manage your money or property on your behalf if you are away or if you need help managing your affairs.	Make a will for you. Change your existing will. Change a beneficiary on a life insurance plan. Give a new power of attorney to someone else on your behalf. Change the ownership of any of your money or property.
TCP	Allow your advisor to contact someone when they are concerned about your: health and well-being, or ability to make financial decisions. Help your advisor or investment firm respond to situations of financial abuse or fraud affecting your account. Let your advisor know the name and contact information of your legal representative.	Make a transaction in your account. Make financial decisions on your behalf. Have access to your account.

For more information on appointing a power of attorney, contact a knowledgeable legal professional.

All POAs can only take effect while you are still alive. A POA expires when you die. You can also revoke a POA or it can be invalidated by a court.

Check with your dealer or financial institution to confirm whether they require additional documentation when appointing a POA for your accounts.

^* There are different types of POAs that deal with finances and property. There are also medical or personal care POAs that give another person the authority to make health and personal non-financial decisions for you. Personal care POAs are not the same as POAs for property.