Trading Authorization: What You Need to Know

If you don't have the time or inclination to make your own investing choices, you can choose to have someone else make them for you. Trading Authorization (TA) allows you to give someone you trust the authority to make decisions and trade on your behalf, while you maintain ownership of your investment account.

Whether you're considering adding a TA to your account, or you've been given the authority to trade for someone else, it's important to know how TAs work. Here are some considerations.

A designated TA CAN:

• Buy, sell and short-sell securities
• Make contributions to a registered investment account (such as an RRSP or TFSA) from a bank account on file
• Transfer money between non-registered investment accounts and bank accounts on file
• Request duplicate account statements and trading confirmations
• Give instructions related to IPOs, DRIPs, reorganizations and foreign exchange

A designated TA CAN'T:

• Make any material account changes (such as opening, closing or address changes)
• Make any changes to bank account information or account beneficiary information on file
• Withdraw funds from a registered account
• Set up, modify or cancel automated account services (DRIPs excluded)
• Transfer assets between registered accounts (such as from an RRSP to a RRIF or TFSA)
• Request original or duplicate tax documents

How is a TA different from a Power of Attorney (POA)?

A TA gives someone you choose the authority to act on your behalf in your investment account only. A General or Irrevocable Power of Attorney, on the other hand, is broader in scope. Its purpose is to manage most of your affairs, such as your property, financial or medical affairs, if you become unable to do so. A Power of Attorney needs to be notarized and is a legal document. For more on POAs, please consult your legal counsel.

A word on non-personal TAs

TAs for Corporate accounts and Non-Profit Organizations (registered as a corporation) operate much the same way as a personal TA. However, a non-personal TA can make changes to contact information, banking information and open or close an account.

Keep in Mind

Upon signing a Trading Authorization form, you authorize RBC Direct Investing to accept and act upon the instructions of the person you designate as your trading authority. If you'd like to make a change or delete a TA, please call us or log in and send us a secure message from your home page. You can find trading authority forms under Forms & Agreements under the My Portfolio menu.