Limited Power of Attorney (LPOA)
With our revised LPOA for ELX accounts, your total control is non-negotiable
What is a Limited Power of Attorney (LPOA)
According to Investopedia, Limited Power of Attorney (LPOA) is authorization for a portfolio manager to perform specific functions on behalf of a client in that client’s account.
An LPOA gives the portfolio manager discretion to perform functions, such as trading authorization, disbursement authority, fee-payment authority and permission to have forms sent straight to a broker (proxy statements, tender offers, etc.). Before a client registers and agrees to our LPOA, they should be aware of the specific functions they have authorized our portfolio manager to perform.
LPOAs allow our traders to execute their investment strategy for the client without continually having to contact the client to approve the order before it gets executed. We have drafted the powers we require to perform our clients basic trading and they are clearly outlined in the next section.
What Powers do we require to perform your basic trading?
When you (a client signs up), you agree to our LPOA agreement which is stated below:
1. To do business with ELX Advanced Trading Systems (the “Company”) pursuant to the customer agreement with them and in accordance with the rules applicable thereto; and
2. For that purpose to:
a. open, operate and close the Customer’s account (as appropriate) with the exclusion of cash withdrawals and third party payments;
b. deal on the Customer’s behalf with the Company which the Attorney undertakes on such terms as the Attorney shall determine in its discretion, including (without limitation) entering into transactions using any electronic or online trading system provided by the Company to the Attorney, or by giving oral or written instructions;
c. make margin payments on the Customer’s account;
d. do anything else contemplated by the customer agreement which is reasonably necessary for the purposes of the Customer’s dealing with the Company pursuant to that agreement.
3. The Customer authorises the Company to accept all instructions for its account, whether orally or in writing, from the Attorney and its servants and agents. The Company shall not be obliged to make any enquiry of the Customer or of any other account, account holder or person before acting on such instructions.
4. The Customer accepts full responsibility and liability for all such instructions (and for all transactions that may be entered into as a result) and will indemnify the Company and keep it indemnified against any loss, damage or expense incurred by it as a result of its acting on such instructions. This indemnity shall be effective:
a. whatever the circumstances giving rise to such loss, damage or expense;
b. whatever the knowledge, acts or omissions of the Company in relation to any other account held by any other person or body (including the
Attorney named above) with the Company.
5. The Customer further agrees that this indemnity shall extend to loss, damage or expense incurred by the Company in reversing incorrect
or erroneous instructions submitted by the Attorney that result in a transaction that must, for the protection of the Company or its other
customers or for reasons of market integrity, be reversed.
6. The Customer acknowledges and accepts the inherent risk that online or electronic communications may not reach their intended destination or
may do so much later than intended for reasons outside your control. The Customer accepts that it bears the risk of the Attorney’s instructions
being lost for any reason whatsoever (including, without limitation, malfunctions in any electronic or online trading system).
7. The Customer acknowledges and accepts that, in providing an electronic or online trading system to the Attorney, the Company has the right but
not the obligation to set limits, controls, parameters and/or other controls on the Attorney’s ability to use such a system. The Customer accepts that if the Company chooses not to place any such limits or controls on the Attorney’s trading, or if such limits or controls fail for any reason, the Company will not exercise oversight or control over such instructions given by the Attorney and the Customer accepts full responsibility and liability for the Attorney’s actions in such circumstances.
8. The Customer undertakes to ratify whatever the Attorney does under the authority or purported authority of this power. The Customer agrees to indemnify the Attorney against all expenses, losses and liabilities incurred by it when acting in pursuance of this power.
9. This authorisation may only be amended or revoked by the Customer in writing. Unless notified otherwise in writing by the Company, any such variation or revocation shall not be effective until two working days after it is received by the Company. The Customer acknowledges that it will remain liable for all instructions given to the Company prior to the revocation/variation being effective, and that it will be responsible for any losses which may arise on any transactions which are open at such time. The Customer will indemnify and keep the Company indemnified in respect of any such losses.
10. Each Customer who is an individual consents to and authorises the Company to disclose to the Attorney such personal information concerning the Customer as is reasonably necessary for any of the purposes specified in Clause 2 or any purpose incidental thereto.
11. This Deed shall be governed by and construed in accordance with the laws of the State of Malta and I irrevocably submit to the jurisdiction of the Maltese courts in relation to any dispute arising out of this Deed.
How to opt out from ELX LPOA
To cancel your LPOA agreement with ELX, you must agree to close down your trading account with ELX. Simply send us a message with subject to close down your account, we will process your request including closing down your LPOA agreement with us.
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