ISA -Appointee

tali

I have a BF57 form DWPensions which makes me a appointee for my adult son due to his disability.
I opened a isa with HLansdowne by sending that form - no problems.
This tax year i tried to open cash isa for my son and Virgin Money do not accept the form they say i need Power of Attorney from a solicitor. I informed them that HLansdowne accepted it and they claimed that this was a breach of financial regulations :think:
So who is right?

innovate

Very unique situation. You should ask HMRC / DWPensions for a formal position. Don't rely on what some random strangers (like me) on an Internet forum tell you.

SnowMan

Being an appointee for benefit purposes is a specific role to do with claiming and managing welfare benefits on behalf of another person and reporting change of circumstances etc.

Part of this role would be to open a bank account to receive benefits which you would normally do in your own name and manage on behalf of your son in this case.

I can understand how you might want to open an ISA in your son's name as part of managing his benefits.

I am not sure if there is a requirement or expectation for providers to accept the BF57 to enable an ISA to be opened.

However DWP guidance indicates that it is up to the provider to decide whether they will allow you to open an ISA for your son using the BF57 only. My logic here is that an ISA is an individual account (i.e. in the name of your son here) and the guidance talks about opening an account in your son's name only been possible if the provider 'gives its approval'.

The guidance notes for ISA managers are a bit vague here (see para 5.24 onwards) as they don't specifically mention appointees. Para 5.27 suggests that it is allowable in this case for you (as mother) to open an ISA for your son, in your son's name, if the disability is a mental health disability.

So looks like Hargreaves Lansdown are right and Virgin Money are wrong to say HL have breached regulations. However Virgin Money are probably within their rights to not allow you to open an ISA for your son.

tali

Thanks - when i submitted BF57 in store -the VirginMoney assistant (who seemed experienced) didn't query the form and said it was fine, took copy which she said would be sent to HQ.
HQ later send me letter requesting proof-so i go back to store and the 2 staff members (one who seemed to be a manager) very unaware of BF57
Need to give DWP and VMoney a phone call methinks

Below section highlighted poorly thought out because no DLA documents afaik mention a particular illness
5.27 An application may also be made by the parent, guardian, spouse, civil partner, son
or daughter of an individual who is suffering from a mental disorder. ISA managers
should
 ask the person making the application to confirm that the investor is suffering
from a mental disorder, and to state the nature of their relationship with the
investor
 ask to see documentation to show that the investor is suffering from a mental
disorder. Suitable documentation would include letters or payment books that
show the applicant is entitled to disability living allowance, severe disablement
allowance or incapacity benefit