Using an LPA to Manage Investments

Written by Anthony Dalton · Reviewed by James Tyrrell · Last reviewed 16 March 2026

Managing someone else's investments is one of the most demanding tasks an attorney can face. A registered Property & Financial Affairs LPA gives you the legal authority to manage the donor's ISAs, shares, bonds, unit trusts, and investment platforms — but getting it right requires care, good record-keeping, and often professional financial advice.

Your Legal Duty When Managing Investments

The Mental Capacity Act 2005 requires attorneys to act in the donor's best interests at all times. When it comes to investments, this means you must manage the donor's portfolio prudently and responsibly. You are not expected to be a professional investor, but you are expected to exercise reasonable care.

The key legal principles that apply to investment management under an LPA include:

• Duty of care — you must take reasonable steps to protect the donor's assets and avoid unnecessary losses
• Best interests — every investment decision must be made with the donor's needs, circumstances, and preferences in mind
• No personal benefit — you must not benefit personally from the donor's investments (for example, by investing in a company you own or directing business to a firm that pays you commission)
• Professional advice — if the investments are beyond your expertise, you have a duty to seek qualified advice. The cost of professional advice can be paid from the donor's funds

Registering With Investment Platforms and Providers

Before you can manage the donor's investments, you need to register your authority with each investment platform, fund manager, or stockbroker. The process is similar to registering with banks, though investment companies can sometimes be slower to process LPA registrations.

You will typically need to provide:

• A certified copy of the registered LPA (including the OPG registration stamp) or an online access code from the GOV.UK "Use a lasting power of attorney" service
• Proof of your own identity (passport or driving licence)
• Proof of your address
• A completed third-party authority form (most platforms have their own version)

Major platforms such as Hargreaves Lansdown, AJ Bell, Interactive Investor, and Vanguard all have established processes for dealing with LPAs. Contact their customer service teams to request the specific forms and instructions.

Managing ISAs on the Donor's Behalf

ISAs are one of the most common types of investment held by UK adults. As an attorney, you can manage existing ISAs and, in most cases, continue to subscribe to them on the donor's behalf within the annual allowance.

Important points about ISAs:

• Cash ISAs — you can manage these in the same way as ordinary savings accounts. Consider whether the interest rate is competitive and transfer to a better rate if appropriate
• Stocks and Shares ISAs — you can buy and sell investments within the ISA wrapper, but you should ensure any changes are prudent and in the donor's best interests
• New subscriptions — you can pay money into the donor's ISA each tax year, up to the annual allowance, using the donor's own funds
• Withdrawals — if the donor needs income or capital (for example, to pay care fees), you can make withdrawals. Be mindful that withdrawing from a Stocks and Shares ISA during a market downturn may crystallise losses

Shares, Bonds, and Other Securities

If the donor holds individual shares, government bonds (gilts), corporate bonds, or other securities, you have the authority to manage these on their behalf. This includes buying, selling, and receiving dividends or interest payments.

Key considerations include:

• Share certificates — if the donor holds shares in certificated form (paper certificates), you may need to have them re-registered or transferred to a nominee account for easier management
• Dividend income — ensure dividends are being paid into the donor's bank account and that any dividend reinvestment plans are appropriate for their current needs
• Corporate actions — you will need to respond to rights issues, takeover offers, and other corporate actions on the donor's behalf
• Capital gains tax — selling shares or investments may trigger a capital gains tax liability. Keep records of all sales and seek tax advice if the amounts are significant

Working With Financial Advisers

The Financial Conduct Authority (FCA) regulates financial advisers in the UK. If you decide to appoint an adviser to help manage the donor's investments, you should ensure they are:

• FCA regulated — check the FCA register at register.fca.org.uk to confirm they are authorised
• Independent — an independent financial adviser (IFA) can recommend products from across the market, while a restricted adviser can only recommend certain products
• Experienced with LPAs — not all advisers are familiar with the specific duties and restrictions that apply to attorneys. Choose one who has experience working with LPA holders

When instructing a financial adviser, make clear that the investments are held on behalf of a donor under an LPA. The adviser should take into account the donor's current and likely future needs (including potential care costs), their existing portfolio, and the legal requirement to invest prudently.

Investments Attorneys Should Avoid Under an LPA

As an attorney, you must avoid investments that are speculative, high-risk, or inappropriate for the donor's circumstances. While there is no definitive banned list, the following types of investment would generally be considered unsuitable for managing under an LPA:

• Cryptocurrency — highly volatile and unregulated, making it unsuitable for funds held in trust
• Spread betting or CFDs — these are forms of gambling, not investment
• Unlisted or illiquid investments — if the money cannot be accessed when needed (for example, to pay care fees), the investment is inappropriate
• Investments that benefit the attorney — for example, lending the donor's money to yourself or a family business
• Speculative ventures — start-up investments, crowd-funding, or anything with a high risk of total loss

If you make investments that result in significant losses and the OPG or Court of Protection determines that you failed to act prudently, you could be held personally liable for the losses. For a fuller picture of attorney responsibilities, read our guide on how attorneys manage finances.

Record-Keeping for Investments

Thorough record-keeping is essential when managing the donor's investments. You should maintain:

• A complete list of all the donor's investment holdings, updated regularly
• Records of all transactions — purchases, sales, transfers, and withdrawals
• Statements from investment platforms and fund managers
• Notes explaining the rationale for any significant investment decisions
• Copies of any advice received from financial advisers, including suitability reports
• Tax records, including capital gains calculations and dividend income

These records serve two purposes: they help you manage the donor's investments effectively, and they provide evidence that you have acted responsibly if your decisions are ever questioned by the OPG, the Court of Protection, or the donor's family.

When in doubt, seek professional advice. It is far better to pay for expert guidance than to risk making costly mistakes with the donor's money. The cost of advice is a legitimate expense that can be paid from the donor's funds.

Investment proceeds and dividends are usually paid into bank accounts. For guidance on registering the LPA with financial institutions, see our guide on how LPAs work with banks.

Managing Investments With an LPA: Answers to Key Questions

This guide was last reviewed and updated on 16 March 2026. Information is based on current legislation and OPG guidance for England and Wales.

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