This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
A power of attorney (POA) on a stock trading account grants another person the authority to make decisions and place trades on the account owner's behalf. The POA is granted through a form from the broker, and the appointment is usually revocable at any time. The trader who has granted a POA and wants to revoke it must follow the broker's procedure, notify the appointed person in writing, and confirm the revocation with the broker.
The liability during the POA period remains with the account owner. Revoking the POA ends the appointed person's authority from the moment the broker processes the revocation, but it does not reverse any trades placed before the revocation was processed.
The grounds for revocation
A POA can be revoked for any reason, or for no reason at all. The most common reasons are that the appointed person is no longer trusted, that the appointed person is no longer needed (the account owner is now managing the account themselves), or that the appointed person has died, become incapacitated, or lost their own legal capacity to act.
The account owner can also revoke the POA if the appointed person has been acting outside the scope of the authority granted (for example, trading without the owner's knowledge or in a way that is not consistent with the owner's instructions). The revocation is a formal step, and the account owner should keep a copy of the revocation document for the records.
The revocation process
The process varies by broker, but the general steps are similar across most jurisdictions. The account owner sends a written revocation to the broker (usually through a signed form, a letter, or an email from the registered address), and the broker processes the form and confirms the revocation. The broker may also ask the account owner to confirm the revocation by phone or by video call.
The revocation form is often the same as the POA appointment form, with a box ticked for revocation. The broker may also accept a written statement from the account owner that revokes the POA, provided the statement is signed and dated. The account owner should check the broker's procedure before starting the process.
What the broker will do
Once the broker receives the revocation, the broker will remove the appointed person's access to the account. The appointed person will no longer be able to place trades, withdraw funds, or view the account. The broker will confirm the revocation to the account owner in writing, and the confirmation is the account owner's record.
The broker will also notify the appointed person, usually by email or by letter, that the POA has been revoked. The notification is a courtesy, and the account owner may want to notify the appointed person directly before the broker's notification arrives.
The legal implications
The revocation of a POA is a formal legal step, and the account owner should document the revocation clearly. The revocation does not reverse any trades the appointed person placed before the revocation was processed. The account owner is responsible for all trades placed while the POA was in effect, and the account owner cannot hold the broker or the appointed person liable for losses incurred during that period.
If the appointed person has been acting fraudulently (placing trades that the account owner did not authorise, withdrawing funds without permission), the account owner should report the matter to the broker and to the relevant law enforcement authority. The broker may freeze the account pending an investigation, and the broker may reverse fraudulent trades if they are identified quickly enough.
The account owner should also check whether the POA was registered with any third party (a bank, a custodian, or a family member). The revocation should be communicated to those third parties as well, because the POA may still be valid in relation to those parties until they receive the revocation.
Common questions about revoking POA
How long does the revocation take to process? Most brokers process the revocation within 1-3 business days after receiving the signed form. The appointed person's access is removed as soon as the broker processes the revocation.
Can I grant a new POA after revoking one? Yes, you can grant a new POA at any time, to the same person or to a different person. The new POA is a separate appointment, and it requires a new form from the broker.
Does a POA survive the account owner's death? No, a POA ends when the account owner dies. The appointed person's authority ends at death, and the account is managed by the estate's executor.
Related resources
Where to start
If you are revoking a POA, the most useful first step is to check the broker's procedure, to prepare a written revocation, and to submit it. Our broker comparison lists the brokers that offer POA accounts and the documentation required, which together tell you what the process looks like before you start it.