Question & Answer

Question: We've had a customer for a good many years who has no relatives at all that we know of. She comes in regularly to the safe deposit area, and has become good friends with our safe deposit officer. Our customer is concerned about her own health, and fears she will have to go to a home, and has asked our safe deposit officer to act as her power-of-attorney. Is there a problem with that?

Answer: Indeed there could be. Most financial institutions not only object strongly to their employees acting in this capacity, but most also have in their code of conduct that it is forbidden without special permission from their board of directors and/or their legal advisor. Acting as power of attorney for a customer could lead to charges of conflict of interest. In your case, particularly, where the employee would have access to a customer's safe deposit box in your own branch during business hours, the employee could be considered to be representing the financial institution. Not a healthy situation!

Copyright © 1995 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 12, 8/95