The Morgan Stanley Power of Attorney form grants a designated agent the authority to manage the signatory's investment accounts with full discretion. This legal document allows the agent to execute a wide range of transactions, including withdrawing and transferring funds, buying and selling securities, and more, without seeking prior approval. However, Morgan Stanley's policies strictly prohibit its employees from being appointed with such discretionary powers. For those ready to establish or modify the control of their investment accounts, click the button below to fill out the form.
In the intricate world of financial management and security, legal documents serve as essential tools that delineate the powers and responsibilities delegated from one party to another. Among these, the Morgan Stanley Power of Attorney form stands out as a significant legal instrument designed for clients who wish to grant another individual—their agent—comprehensive control over their securities account, encapsulating a range of activities from withdrawing funds to managing investments. This robust authorization is not only restricted to transactions involving buying and selling securities but also extends to the ability to subscribe and trade in a wide array of financial instruments on behalf of the principal. It embodies a trust placed in the agent, granting them full discretionary powers, subject to the strict proviso that Morgan Stanley employees are barred from playing this role, thereby safeguarding against potential conflicts of interest. The form is undergirded by warnings highlighting its serious legal implications, including its enduring validity even in the face of the principal’s incapacitation, underscoring the necessity for thoughtfulness before execution. Furthermore, it imposes a framework within which the agent must operate, including limitations on gifting and the requirement for the agent to be accountable for their actions through mechanisms such as receiving and approving transaction statements. Morgan Stanley has established strict protocols to ensure that the authorization, while broad, does not overstep legal bounds or the firm's policy limits. This document is a testament to the intricate balance between granting significant financial authority to an agent while embedding safeguards to protect the principal’s interests and comply with regulatory standards.
For Internal Use Only
Branch No.
Account No.
Financial Advisor No.
Durable Power of Attorney Security Account
Full Discretionary Authorization
(Non-Morgan Stanley Employee)
his authorization is a full discretionary authorization. It empowers the Agent named herein to withdraw money, securities or other property in his or her own name, in the name of the principal(s) or otherwise. Morgan Stanley policy does not permit its employees to exercise full discretionary authority.
WARNING
his is an important legal document. It creates a durable power of attorney. Before executing this document, you should know these important facts:
a)his document may provide the person you designate as your attorney-in-fact with broad powers to dispose, sell, convey and encumber your property.
b)hese powers will exist for an indeinite period of time and will continue to exist notwithstanding your subsequent disability, incompetency or incapacity.
c)You have the right to revoke or terminate this durable power of attorney by giving us written notice addressed to the branch oice servicing your account. Such revocation shall not afect your liability for any transaction initiated prior to our receipt of said evocation.
To: Morgan Stanley Smith Barney LLC and applicable ailiates (“MSSB”)
1. he undersigned hereby appoints:
AGENT’S NAME
for the following account (complete name of account)
,
as the undersigned’s Agent and attorney-in-fact (“Agent”), with full and unlimited power and authority to act for the undersigned in
all matters in connection with the undersigned’s account/accounts or any available lines of credit at MSSB or its ailiates, however
designated and whether presently open or hereafter opened. Without limiting the foregoing general authority, the Agent is authorized
to buy and sell (including short sales) to subscribe for and trade in stocks, bonds, options (including uncovered short positions in
option contracts or in the uncovering of any existing short position in option contracts), limited partnership interests, trust units and
any other securities and/or contracts relating to the same, on margin or otherwise, in accordance with MSSB terms and conditions for
the undersigned’s account and risk in the undersigned’s name or number on MSSB books. It is further understood that any transaction
may be efected with MSSB as a principal or dealer or through MSSB as agent or broker as a principal or dealer, and that any such
transactions may involve securities in the distribution of which MSSB or its agent or broker may have an interest as an underwriter,
member of a selling group, or otherwise.
2.Without limiting the general authority of the foregoing, the Agent is further authorized to (a) deliver to MSSB securities for the undersigned’s account(s), and instruct MSSB to deliver securities from said account(s) to said Agent or to others, in such name and form, including the name of said Agent, as he or she may direct; (b) to instruct MSSB to make payment of money from my account(s) or to draw against lines of credit at MSSB or ailiates and to receive and direct payments therefrom payable to said Agent or to others including payment for any investment advisory fees or Power of Attorney Agent fees; (c) to sell, assign, endorse and transfer securities of any nature standing in the undersigned’s name and to execute any documents necessary to efectuate the foregoing; (d) to receive statements of transactions made for said account(s) and to approve and conirm the same; (e) to receive any and all notices, calls for margin, or other demands with reference to the undersigned’s account(s) and to enter into any and all agreements with MSSB on my
FULL DISCRETIONARY AUTHORIZATION NON-MORGAN STANLEY EMPLOYEE (02/2013)
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LACDPFULNAO
behalf including the opening of additional accounts in my name. It is understood that pursuant to this authorization, the Agent may employ any electronic services provided by MSSB for which the undersigned has subscribed or for which the Agent has subscribed on the undersigned’s behalf, including but not limited to, on-line trading, bill paying, e-delivery and automatic funds transfer (AFT).
he undersigned agrees that the Agent will not be the sole recipient of statements and conirms for the undersigned’s account and that the undersigned or another authorized party who does not have trading authority over the account will receive duplicate conirms and statements for review.
his authorization does not give the Agent the authority to make gifts of funds or property but MSSB is under no duty to inquire into the nature of any instruction given by said Agent to deliver or transfer funds or property from the undersigned’s account(s).
3.In all matters relating to the undersigned’s account(s), MSSB is authorized to follow the instructions of the aforesaid Agent in every respect and MSSB shall be fully protected in relying upon said instructions without inquiry and without liability or accountability for the use or application of any securities or moneys delivered or paid pursuant to said instructions. he undersigned hereby agrees to release, indemnify and hold MSSB harmless from any and all liabilities that may arise by virtue of your following the instructions of said Agent and the undersigned hereby ratiies and conirms any and all transactions made with MSSB heretofore or hereafter made by such Agent. Any and all losses or debit balances due you arising from instructions or transaction given by said Agent shall be paid to MSSB promptly by the undersigned upon demand. If this authorization is connected to a retirement account it does not include the authority to change beneiciaries.
4.his authorization and indemnity is in addition to (and in no way limits or restricts) any rights which MSSB may have under any other agreement or agreements between the undersigned and MSSB.
5.To revoke this authorization, the undersigned hereby agrees to submit a written notice addressed to MSSB and delivered to the MSSB branch oice serving the account, but such revocation shall not afect any liability in any way resulting from transactions initiated prior to such revocation.
6.his authorization shall inure to the beneit of MSSB and of any successor entities or assigns and shall be binding on the undersigned’s heirs, successors or assigns.
7.Arbitration
he undersigned acknowledges that I have agreed to the arbitration provisions of the Client Agreement and that by appointing an Agent, that Agent will also be subject to those arbitration provisions.
8.his authorization and all the terms herein shall be governed and construed in accordance with the laws of the State of New York without giving efect to principles of conlict of laws and without regard for the principal(s) residence, domicile or place of execution. he statute of limitations applicable to any claim shall be that which would be applied by the courts of the state in which the undersigned resides or if the undersigned does not reside in the United States, the statute of limitations shall be that which would be applied by the courts in the state where the MSSB oice servicing the undersigned’s account(s) is located.
9.If any provision of this authorization is or becomes inconsistent with any applicable present or future law, rule or regulation, that provision will be deemed rescinded or modiied in order to comply with the relevant law, rule or regulation. All other provisions of this authorization will continue and remain in full force and efect.
10.his authorization shall not be afected by the subsequent disability, incapacity or incompetency of any of the undersigned nor by a lapse of time between its execution and exercise.
11.To induce any transfer agent or other third party to act hereunder, the undersigned hereby agrees that any transfer agent or other third party receiving a duly executed copy or facsimile of this instrument may act hereunder, and that revocation or termination hereof shall be inefective as to such transfer agent or other third party unless and until actual notice or knowledge of such revocation or termination shall have been received by such transfer agent or other third party. he undersigned for myself and for my heirs, executors, legal representatives and assigns, hereby agrees to indemnify and hold harmless any such transfer agent or third party from and against any and all claims that may arise against such transfer agent or other third party by reason of such transfer agent or third party having relied on this instrument.
12.he undersigned acknowledges receiving a copy of this authorization.
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CLIENT’S SIGNATURE(S)
THIS AUTHORIZATION MUST BE SIGNED BEFORE A NOTARY PUBLIC
his authorization contains a predispute arbitration acknowledgement at paragraph 7 on page 2.
CLIENT’S NAME (PRINT)
CLIENT'S SIGNATURE
DATE
State of
SS
(SEAL)
County of
On this
day of
20
before me personally appeared
and
known to me to be the individual(s) described in and who
executed the above instrument, and acknowledged to me that he/she/they executed the same.
SIGNATURE OF NOTARY PUBLIC
he information which follows pertains to the AGENT:
A.Is Agent an INVESTMENT ADVISER registered with the SEC or a State? If Yes
Registered with the SEC
SEC NUMBER
Yes
No
Registered with a State
StateFile NumberEfective Date B. If Agent is a Registered Investment Adviser, disregard this Section B.
AGENT’S DATE OF BIRTH
AGENT’S HOME ADDRESS
CITY, STATE AND ZIP CODE
AGENT’S PRIMARY TELEPHONE NUMBER
AGENT’S ALTERNATE TELEPHONE NUMBER
AGENT’S EMAIL ADDRESS (OPTIONAL)
Investing Experience (Year Since) If no experience mark N/A:
EQUITIES FIXED-INCOME OPTIONS COMMODITIES
Are you or a member of your household ailiated with or employed by a broker-dealer?
If YES, you will need a written authorization from that broker/dealer to have trading authority over this account (NYSE 407 letter).
PAGE 3 OF 4
Agent Certiication:
Neither you nor any other person who has authority over the Account is or has been a Politically Exposed Person,1 also known as a senior foreign political igure or an immediate family member or close associate of a senior foreign political igure within the meaning of the U.S. Department of the Treasury’s Guidance on Enhanced Scrutiny for Transactions hat May Involve the Proceeds of Foreign Oicial Corruption and as referenced in the USA PATRIOT Act. In addition, you represent that neither you nor any other person who has authority over the Account is a corporation, business or other entity that is beneicially or majority owned or controlled by the senior foreign political igure. If you or any other authorized person on the Account is or has been such a igure, you agree to disclose that fact to MSSB and provide the necessary information required by law to open and/or to service this Account. You also represent that this Account will not be used for any transactions with, or for the beneit of, any person, entity or country that is the subject of any sanctions administered or enforced by the U.S. Treasury Department’s Oice of Foreign Assets Control (“OFAC”), including, but not limited to, any person, or entity designated on OFAC’s List of Specially Designated Nationals.
AGENT’S AGREEMENT AND AFFIDAVIT. THIS AGREEMENT AND AFFIDAVIT MUST BE SIGNED BEFORE A NOTARY PUBLIC
By signing below, I, the Agent for the principal(s) named herein, accept this appointment and agree to be bound by the terms of this authorization and the Client Agreement executed by the principal(s) including the provisions for arbitration of disputes. I also represent that the Agent certiications are true and accurate. Being irst duly sworn, I do hereby state that this authorization was executed by
the principal(s) at a time when he or she was legally competent to perform such act and that it has not been terminated by any means including voluntary revocation or death of the principal(s).
his authorization contains an arbitration acknowledgement at paragraph 7 on page 2.
NAME OF AGENT (PRINT)
SIGNATURE OF AGENT (INDIVIDUAL TO WHOM AUTHORIZATION IS GRANTED)
Subscribed and sworn to before me this
before me personally
appeared
known to me to be the
individual(s) described in and who executed the above instrument, and acknowledged to me that he/she/they executed the same.
For MSSB Internal Use Only
APPROVED BY BRANCH MANAGER
1 For the purposes of this paragraph, a “Politically Exposed Person” is a current or former senior oficial in the executive, legislative, administrative, mili- tary or judicial branch of a foreign government (whether elected or not), a senior oficial of a major foreign political party, a senior executive of a foreign government-owned corporation or a corporation, business or other entity formed by, or for the beneit of, such a igure. The term “politically exposed person” includes a current or former senior foreign political igure’s “immediate family,” which includes, but is not limited to, parents, siblings, children and in-laws; “close associate,” which means a person who is widely and publicly known to maintain an unusually close relationship with a senior foreign political igure, including a person in a position to conduct substantial domestic and international inancial transactions on behalf of such igure. For a fuller discussion of the preceding terms and deinitions, see http://www.federalreserve.gov/boarddocs/srletters/2001/sr0103.htm.
© 2013 Morgan Stanley Smith Barney LLC. Member SIPC.
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NY CS 7319994 02/13
CLIENT’S COPY—KEEP FOR YOUR RECORDS
After choosing to grant a Power of Attorney for your Morgan Stanley account, it's essential to complete the form carefully to ensure your designated Agent has the correct authority to manage your financial matters. This form grants broad powers and continues indefinitely, so understanding each section is crucial. By following the outlined steps, you'll be able to accurately complete the form and proceed confidently with granting these powers.
Once the form is submitted and processed, Morgan Stanley will acknowledge the Power of Attorney and your Agent will be able to begin managing your account under the granted authority. It's recommended to regularly review this arrangement to ensure it continues to meet your financial management needs.
The Morgan Stanley Power of Attorney form is a legal document that gives an individual (the Agent) the authority to manage the financial affairs of another person (the Principal) regarding their Morgan Stanley security account(s). This includes, but is not limited to, the power to buy and sell securities, withdraw money, and transfer assets. It is a full discretionary authorization, meaning the Agent has broad powers to act on behalf of the Principal.
Full discretionary authorization means the Agent has the full authority to make decisions about buying, selling, and managing the securities and money within the Principal's Morgan Stanley account(s) without needing to seek approval for each transaction. This level of authority allows the Agent to act swiftly and efficiently in managing the account(s) but also requires a high degree of trust in the Agent’s judgment and integrity.
No, Morgan Stanley's policy prohibits its employees from being granted full discretionary authority under this type of Power of Attorney. This restriction ensures that potential conflicts of interest are minimized.
The Principal can revoke the Power of Attorney at any time by providing written notice to the Morgan Stanley branch office servicing their account. It's important to note that revocation will not affect any transactions initiated before Morgan Stanley receives the notice of revocation.
No, this Power of Attorney includes a durability clause, meaning that the Agent’s authority continues regardless of the Principal’s later disability, incapacity, or incompetency. This ensures continuous management of the Principal's financial affairs without interruption.
To change the designated Agent, the Principal must revoke the existing Power of Attorney and complete a new POA form designating the new Agent. This process involves submitting a written revocation notice to Morgan Stanley and completing a new POA form with the details of the new Agent.
The POA contains an arbitration agreement, which means that any disputes arising out of the transactions or activities conducted under the POA will be resolved through arbitration, according to the arbitration provisions in the Client Agreement. Both the Principal and the Agent agree to be bound by this arbitration process, which is intended to provide a private, efficient alternative to court litigation.
Not thoroughly reviewing the broad powers granted to the Agent, which include the ability to dispose, sell, and manage properties, can lead to unexpected or unintended financial transactions made by the Agent.
Failing to understand that the powers granted to the Agent are durable and continue to exist even if the principal becomes incapacitated, disabled, or incompetent, underscoring the need for absolute trust in the chosen Agent.
Omitting to properly appoint an Agent by not clearly printing the Agent's full name and identifying the specific accounts they are authorized to manage, which can result in processing delays or the refusal of the document.
Overlooking the requirement for the authorization to be signed in the presence of a Notary Public, which is mandatory for the document’s validity, might render the entire agreement ineffective.
Not providing or incorrectly providing the details of the Agent (if they are an Investment Adviser registered with the SEC or a State), which is crucial for compliance and verification purposes.
Ignoring the clause related to the arbitration provisions of the Client Agreement, which means that by appointing an Agent, that Agent will also be subject to those provisions, potentially affecting dispute resolution methods.
Forgetting to distribute a copy of the authorization to the necessary parties or to keep a client’s copy for personal records, which ensures that all parties are informed and can refer to the agreed terms.
In summary, when filling out the Morgan Stanley Power Attorney form, individuals must proceed with caution, fully grasp the extent of authority they are granting, and ensure all procedural steps are meticulously followed to avoid future complications.
When managing financial matters, particularly with an institution like Morgan Stanley, having the right documents in place is as crucial as the financial decisions themselves. The Morgan Stanley Power of Attorney (POA) form is a significant document that empowers an agent to act on the principal's behalf in managing their securities account. Yet, this form is often just a part of a broader document ecosystem needed for comprehensive management and oversight of financial affairs. Below, we outline six other forms and documents that are frequently used in conjunction with the Morgan Stanley POA form, highlighting their purpose and importance.
In combination, these documents form the foundational paperwork that supports an investor's relationship with Morgan Stanley and other financial institutions. Each plays a distinct role in ensuring that financial operations are conducted smoothly, in line with the investor's intentions, and within legal and regulatory frameworks. Understanding the purpose and function of each is pivotal for anyone engaged in managing their finances or acting on behalf of another in a professional or personal capacity.
A General Power of Attorney form also designates another person to act on the principal's behalf, similar to the Morgan Stanley Power of Attorney. The key similarity lies in the broad authorization given to the agent, allowing them to conduct financial transactions and make decisions affecting the principal's assets. However, the General Power of Attorney can encompass a wider range of actions beyond financial decisions and may not specifically cater to securities accounts.
The Limited Power of Attorney form shares the concept of empowerment in designated areas like the Morgan Stanley document but is more restrictive. This form specifically limits the agent's authority to certain conditions or for a finite duration. For example, it might authorize actions only related to a specific event or transaction. Unlike the full discretionary authority granted by the Morgan Stanley form, a Limited Power of Attorney would not permit the agent to make all decisions across the principal's accounts or assets.
A Healthcare Power of Attorney designates someone to make healthcare decisions on the principal's behalf, illustrating the concept of empowerment seen in Morgan Stanley's Power of Attorney. Although this form pertains to medical rather than financial decisions, both documents entrust a chosen agent with significant decision-making powers over personal aspects of the principal's life in circumstances where they cannot make those decisions themselves.
The Durable Power of Attorney for Finances closely aligns with the Morgan Stanley form by allowing an agent to manage the principal's financial matters, including investments, and withstands the principal's incapacity. This document emphasizes enduring authority, akin to the Morgan Stanley form’s provision for the agent’s power to continue despite the principal's subsequent disability or incapacity, ensuring ongoing management of financial affairs without interruption.
Lastly, a Revocable Living Trust appoints a trustee to manage the trust's assets, analogous to how an agent is empowered under the Morgan Stanley Power of Attorney. In both cases, someone is given authority to handle assets according to the document's provisions, with potential benefits of continuity in management. However, a trust is a legal entity that holds assets, differing from a power of attorney, which is an authorization to act on someone's behalf regarding their existing accounts or property directly.
When filling out the Morgan Stanley Power of Attorney form, it's critical to ensure that the information you provide is accurate and complete. To help guide you through this process, here are some dos and don’ts:
Following these simple guidelines can make the process of filling out the Morgan Stanley Power of Attorney form smoother and help safeguard your interests.
When handling the complexities of investing and financial management, having a Power of Attorney (POA) can be an essential tool. The Morgan Stanley Power of Attorney form, specifically designed for non-Morgan Stanley employees to manage securities accounts with full discretionary authority, is often misunderstood. It's crucial to clarify these misunderstandings to ensure account holders and their appointed agents are fully aware of the form's power and limitations. Here are seven common misconceptions about the Morgan Stanley Power of Attorney form:
Understanding the specific provisions and limitations of the Morgan Stanley Power of Attorney form is crucial for both account holders and their agents. Misinterpretations can lead to unexpected outcomes, making it essential to read and comprehend the fine print carefully before signing. This ensures that all parties are adequately informed about their rights, responsibilities, and the extent of the authority being granted.
When individuals complete the Morgan Stanley Power of Attorney (POA) form, they grant a named agent broad authorization to manage their securities account. This includes the power to buy, sell, transfer, and essentially control the financial assets within the specified account without limitation. It's crucial for individuals to understand the extent of the authority they are transferring when they sign this document.
This POA grants enduring powers. The appointed agent retains their authority even if the principal becomes disabled, incapacitated, or otherwise unable to manage their affairs. The durability of this POA means individuals need to consider the trustworthiness and financial acumen of the person they are appointing as their agent, as this authority continues indefinitely unless explicitly revoked in writing.
Morgan Stanley's policy prohibits its employees from being granted full discretionary powers under this form. This is a significant restriction designed to avoid conflicts of interest and to protect clients. When selecting an agent, individuals must choose someone outside of Morgan Stanley's employment to ensure compliance with this policy and safeguard their financial interests.
The power to revoke the POA exists at any time, as long as this revocation is communicated in writing to the Morgan Stanley branch handling the account. Nevertheless, it's important to note that any actions taken by the agent prior to the revocation being processed will not be invalidated. This highlights the importance of promptly communicating any decision to revoke the powers granted to ensure no unwanted transactions are carried out.
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