what is limited power of attorney 
limited power of attorney lpoa is an authorization that permits a portfolio manager to perform specific functions on behalf of the account owner in general the lpoa allows the manager to execute an agreed upon investment strategy and take care of routine related business without contacting the account holder before signing an lpoa the client should be aware of the specific functions they have delegated to the portfolio manager as the client remains liable for the decisions understanding limited power of attorneylpoa authorizations have become more common in recent years as more investors choose boutique money management firms and registered investment advisors rias over traditional brokerage firms a limited power of attorney as opposed to a general power of attorney restricts the authority of the designated individual to a specific sphere in this case the portfolio manager is empowered to execute an investment strategy as agreed upon with the account holder an lpoa gives the portfolio manager the authority to buy and sell assets pay fees and handle various necessary forms certain critical account functions still can be made only by the account holder including cash withdrawals and a change of beneficiary a client can clearly state which other powers they may wish to retain at the time the account is set up there are a couple of variations on the limited power of attorney that may be used in special circumstances clients typically complete a power of attorney poa form when they open an account with a portfolio manager most forms give clients the option to choose between an lpoa or a full power of attorney a limited power of attorney restricts the authorization to a specific sphere such as investment management the client must designate an attorney in fact who is usually the portfolio manager other portfolio managers who may make investment decisions on behalf of the client must also have their details provided on the form once completed both the client and the attorney or attorneys in fact must sign the form a client who is uncertain or uncomfortable about what functions they are authorizing may want to get an attorney to review the poa form before signing it 