Power of attorney, trusted contact person, assistants to persons of full age and trading authority: what you need to know (Quebec edition)
We’d all like to believe we’ll be able to stay mentally fit and manage our own financial matters throughout our lives. But deteriorating health, unforeseen events and the natural aging process mean there may be a time when you’ll need support with your financial affairs.
In Quebec, you can appoint a power of attorney (POA), a trusted contact person (TCP), an assistant to persons of full age (APFA), and/or a trading authority. Each role has different powers and responsibilities, but all of them can support you in managing your financial affairs.
Here’s an explanation of these roles and how they differ:
Power of attorney
A POA—also known as a mandate in Quebec—is a legal document in which the principal authorizes one or more individuals to act on the principal’s behalf to make financial decisions during the principal’s lifetime.
Among other requirements, the principal must be mentally capable at the time they sign any type of power of attorney for it to be valid. The legal definition of mental capacity varies based on the laws in each province or territory.
In Quebec, there are three main types of POA:
- .General POA (procuration générale): This takes effect immediately upon execution, unless it specifies otherwise, and it ends if the principal becomes mentally incapable or is deceased. It’s written in general terms and grants powers of simple administration only.
- Special POA (procuration spéciale): Gives specific powers that are fully described. It applies only to a defined task, such as selling a house or managing a bank account.
- Protection mandate (mandat de protection): A protection mandate allows you to appoint one or more mandataries who will be responsible for managing your personal care and property if you become incapacitated. It can grant simple or full administration.
The attorney must act in the principal’s best interests. The money and property continue to belong to the principal; the principal is simply delegating authority to manage it. It’s important to note that an attorney can’t change the principal’s will, change a named beneficiary on a life insurance plan or on an account (segregated fund contract or insurance GIC) or give a new power of attorney to anyone else.
Trusted contact person
The main purpose of a TCP is to help protect your financial interests and assets by allowing your advisor to reach out to someone you trust in specific situations. Dealers are now required to take reasonable steps to obtain the name and contact information for a trusted contact person and written consent from the client to contact the TCP.
Your advisor may contact your TCP if they have concerns that you may be being financially exploited; concerns about your mental capacity and your ability to make financial decisions; to contact your legal representative, if any; or to get your contact information if your advisor is unable to locate you.
A TCP doesn't have financial decision-making authority over your accounts and can't access any account information, provide instructions on the account or transact on any of your accounts. Unlike a POA, naming a TCP is done through the dealer’s forms and is an informal arrangement.
Assistants to persons of full age
An APFA and TCP fulfill similar (but not identical) objectives, but involve different processes. The TCP is simply named through the investment dealer, and the APFA is named through a formal application process involving the Public Curator in Quebec. Unlike the TCP, the APFA can have access to your information.
Along with acting as a point of contact with your advisor, an APFA can also communicate with other third parties to assist with social or administrative tasks to help you manage your daily affairs while allowing you to keep full control over your decisions.
An APFA doesn't have financial decision-making authority over your accounts, and can't provide instructions on the account or transact on any of your accounts.
Trading authority
Trading authority is used specifically in the context of investment accounts. It allows an individual appointed through the dealer’s forms to make trading decisions on behalf of the account holder.
The authorized individual is permitted to act in accordance with the powers outlined in the trading authorization. At Manulife Wealth, a trading authority can buy and sell securities, but they can't withdraw funds or transfer assets out of the account.
Table: Key differences
Considerations when naming a POA, APFA, TCP or trading authority
In all cases, the individual(s) named as your POA, APFA, TCP, or granted trading authority should be willing, trustworthy and reliable. They also need to understand the scope of their authority and associated responsibilities. It’s not advisable to name the same person as both your POA and APFA/TCP. Selecting an individual as APFA/TCP who doesn't have authority in your financial decision-making may reduce the risk of a lack of objectivity by an individual named as both APFA/TCP and POA.
Contact your Manulife Wealth advisor to learn more about POA, APFA, TCP, or granting trading authority and how they may apply to your circumstances.
Important disclosures
Important disclosures
The Advisor and Manulife Wealth Inc. and/or Manulife Wealth Insurance Services Inc. ("Manulife Wealth") do not make any representation that the information in any linked site is accurate and will not accept any responsibility or liability for any inaccuracies in the information not maintained by them, such as linked sites. Any opinion or advice expressed in a linked site should not be construed as the opinion or advice of the advisor or Manulife Wealth. The information in this communication is subject to change without notice.
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