An Authorized Trader can be a lawyer, family member, close friend, financial advisor or anyone given the authority to access an investment account on behalf of the owner, due to poor health, age, availability or many other reasons.
Read on to learn how to determine if one is right for your situation, how it’s different from a Power of Attorney, and how to establish one with Janus Henderson.
Questions to ask before you ask for help
Establishing an Authorized Trader is an important decision and it's natural to have questions. Find your answers here.
What are the advantages?
It can often be comforting to know that someone else is taking the lead with obligations like timely bill payments, investment strategies and more. An Authorized Trader will have the ability to speak with a Janus Henderson Representative on your behalf and allow them specific privileges on your account that can be helpful in a few different scenarios:
- Your spouse needs to manage household finances.
- You’ll be out of the country or unavailable for a period of time.
- You want your financial advisor to have easy access.
- Your adult child helps you with paying bills, taxes or account management.
Be aware: Authorized Trader privileges can be established quickly on your Janus Henderson accounts, but are limited in authority.
How does it work?
The Authorized Trader designation allows specific privileges on Janus Henderson accounts and does not extend to other institutions outside of Janus Henderson. Authority can be revoked at any time by the account owner.
Authorized Traders can:
- Purchase, sell and exchange shares.
- Change the mailing address on accounts.
- Make inquiries and receive information on accounts.
- Make certain changes on the account, such as cost basis election.
Authorized Traders cannot:
- Add, delete or change any banking information.
- Redeem shares and have proceeds made payable to anyone other than the account owner.
- Add, delete or change beneficiary designations.
- Have check writing privileges on accounts.
- Establish online credentials.
- Change the ownership of an account.
How is it different than Power of Attorney?
Power of Attorney can be as broad or limited as necessary.
A Power of Attorney (POA) is a legal document, usually drafted by an attorney that gives another person (your agent) the authority to make property, financial and other legal decisions for you. Depending on how this document is crafted, it is possible to give the agent very broad or very limited authority.
Granting a Power of Attorney is a legal process with serious implications; in some cases it grants the same abilities as the account owner across all financial institutions. This might be a good solution for someone who wants to grant very specific authorities to their agent or give broad control. Once you have gone through the process to create a POA document, in order to establish authority on your Janus Henderson accounts, Janus Henderson generally requires:
- A copy of the Power of Attorney document
- A notarized Janus Henderson Power of Attorney Affidavit and Indemnification Form dated within the last 30 days
Be aware: Power of Attorney is not a permanent decision and can be revoked at any time.
How do I start this conversation with a loved one?
Honesty is the best policy.
Asking a loved one or trusted friend to assume Authorized Trader responsibility of your Janus Henderson account is easiest when you both trust each other implicitly. If you’re dealing with a hardship or can’t handle your finances, take time to consider your choice of Authorized Trader.
The clearer you can be about the duties required, the better. If you have a person in mind, it’s a good idea to have a specific conversation about how you expect them to act on your account. Making financial decisions without first discussing your goals and needs can lead you off course quickly.
Review your accounts with your chosen candidate and discuss your risk tolerances, plans and ultimate investing goals.
Establish an Authorized Trader or a Power of Attorney on Janus Henderson Accounts
When you're ready to add an Authorized Trader or Power of Attorney to your Janus Henderson accounts, just download, complete and submit the appropriate form. To remove an Authorized Trader or Power of Attorney from your Janus Henderson Account, contact us.
Contact a Janus Henderson Representative
Our Janus Henderson Representatives will answer your questions and assist you through the movement of assets process. We are available at 800.525.3713 weekdays 9 a.m. to 6 p.m. EST.