Your adviser can’t give proper advice until they can see what you already have.
Before recommendations are made or plans are updated, advisers need accurate information about your existing pensions schemes, insurance policies, and investments. That information sits with product providers, not your adviser.
A Letter of Authority (LoA) is the document that allows that information to be shared.
In simple terms, a Letter of Authority is a written document that gives your financial adviser permission to request specific information from product providers so they can provide accurate, informed advice.
In this blog, we’ll cover:
What a Letter of Authority is (and what it isn’t)
How it works in practice
What a good LoA should include
Common reasons LoAs get delayed
How to revoke an LoA
Data privacy, consent, and regulatory expectations
What Is a Letter of Authority (LoA)?
A Letter of Authority is a written permission that allows your adviser to request information from third parties holding your financial products, including:
Pension providers and administrators
Insurance companies
Investment platforms and schemes
The information requested typically includes:
Policy start dates and benefit details.
Current values and contributions.
Fund holdings and asset allocation.
Fees, charges, penalties, guarantees, and exit terms.
Servicing rights and who can request future updates.
This information gives advisers a full picture of your financial position, which is essential for the suitable advice.
What it isn’t
A Letter of Authority is not a blank cheque.
It does not give permission to:
Move money
Make withdrawals
Change investments
Cancel or amend policies
LoAs are also time-limited. Most are valid for a set period, often around 90 days, unless stated otherwise. After that, providers may require a new LoA before releasing further information.
Which LoA Do You Mean?
The term “Letter of Authority” is a common buzzword across several industries, which can cause confusion.
Some common uses include:
LoA for Financial Advice: Allows advisers to request product and policy information for planning and recommendations.
LoA for HMRC or Tax: Grants permission to access tax records or liaise with HMRC.
LoA for Utilities or Brokers: Used to manage or switch services such as energy, telecoms, or insurance.
Other uses: Legal matters, healthcare, or estate administration.
Each type has a different scope and purpose, even though the name is the same!
For clarity, this blog focuses on Letters of Authority used in Financial Advice.
What a Good LoA Includes (Provider Acceptance Checklist)
Must-have fields
Providers will usually reject LoAs that are incomplete or unclear. A strong LoA should include:
Client details: Full name, date of birth and address exactly as held by the provider
Policy or scheme references: Policy numbers or plan identifiers where available
Adviser firm details: Firm name and FCA registration number (if applicable)
Clear scope: A specific description of what information is being requested
Client signature and date
The clearer the scope, the fewer questions providers need to come back with.
Common rejection reasons and fixes
Field | Common rejection reason | Fix |
Client details | Do not match provider records | Check against recent provider correspondence |
Signature | Wet signature required but digital submitted | Confirm accepted signature type before sending |
Scope of request | Too broad or unclear | Specify exactly what information is needed |
Small mismatches often lead to long delays.
How an LoA Works (Step by Step)
Step 1: Information identified
The adviser identifies what pensions, insurance policies, or investments their client has.
Step 2: LoA prepared
The LoA is created using a provider-specific or firm-approved template.
Step 3: Client signs
The client signs using a wet or digital signature, depending on provider requirements.
Step 4: Submission
The LoA is sent via email, provider portal, or post.
Step 5: Provider verification
The provider confirms the client’s identity and authority to release the information.
Step 6: Provider response
Policy information is returned, often as PDFs or valuation letters.
Step 7: Adviser updates records
The information is securely stored and used to update the factfind and CRM records.
LoA vs Power of Attorney (POA): Key Differences
A common misconception is that a Letter of Authority allows advisers to act on your behalf. It doesn’t.
Letter of Authority: Allows a third party to request specific information only.
Power of Attorney: Grants legal authority to act on your behalf, which may include making financial decisions too.
The confusion usually comes from the word “authority.” LoAs allow access to information, not action.
How to Revoke a Letter of Authority
You can revoke an LoA at any time.
Steps to take:
Notify your adviser in writing that you wish to revoke the LoA.
Contact the provider directly if required.
Confirm revocation with both parties to ensure no further information is shared.
Once revoked, providers should stop releasing information under that authority.
Provider Response Times and Why LoAs Sometimes Get Stuck
Common reasons for delays
LoAs rarely fail because of one big issue. Delays usually come from small problems that add up:
Client details not matching provider records.
Missing policy or scheme references.
Provider-specific templates not used.
Signature method not accepted.
Multiple administrators involved in one scheme.
Each issue adds friction, even when the advice itself is clear.
Read Related Recourse: Why Blaming Providers Won’t Fix Your LoA Delays
Some practical ways to speed it up
Pre-check client details against recent provider documents.
Send one LoA per provider for clearer tracking.
Use a structured follow-up schedule, such as day 7, 14, and 21.
Keep a central LoA tracker with submission dates and next actions.
Consistency matters more than volume when chasing providers.
LoA, GDPR Compliance, and FCA Expectations
Under UK GDPR, personal data shared through an LoA must be handled lawfully and only for its intended purpose.
Consumer Duty also requires firms to provide advice based on accurate, up-to-date information to protect client outcomes.
Key principles include:
Secure storage of client data.
Controlled access for authorised staff only.
Clear retention periods.
The ability for clients to withdraw consent at any time.
LoAs support good advice only when data is handled properly.
Servicing Rights and Information Access
Servicing rights define who can request ongoing valuations, updates, and policy information.
Why this matters:
It avoids repeated LoA requests
It supports smoother annual reviews
It reduces delays when information is needed quickly
Important to note: servicing rights still do not allow changes to policies or withdrawals.
Wet Signatures vs Digital Signatures
Providers vary widely in what they accept.
Some accept digital signatures through portals. Others still require wet signatures due to legacy systems or fraud controls.
Before signing, it’s worth confirming what each provider accepts to avoid re-signing later. Here's a table for quick reference:
Provider | Accepts digital signature? | Best submission method |
Provider A | Yes | Online portal |
Provider B | No | Email or post |
Provider C | Unknown | Call provider |
A Quick Checklist for Administrators
Before sending
Confirm client details match provider records
Verify policy numbers and products
Clarify the exact scope of information needed
After sending
Log submission date and method
Set follow-up dates
Store responses securely in the client file
Simple discipline here prevents weeks of delay later.
Streamlining LoA Processing with 4admin
Managing LoAs manually is where most delays creep in.
Provider PDFs arrive in multiple formats. Each information demands to be read, checked, and rekeyed. Missing details aren't usually spotted until you're halfway through the process.
Platforms like 4admin remove the slowest parts of this workflow by automatically reading LoA responses, even scanned or poorly formatted PDFs, and extracting the relevant data into a structured view.
Missing fields are recognised early. Clean and structured data syncs directly into your CRM without rekeying or double handling.
The result? Faster LoA turnaround, fewer errors, and a calmer, more productive workflow for your paraplanners and admin teams.
Conclusion
A Letter of Authority is a simple document that plays a crucial role in good financial advice.
When well drafted, accurate recommendations and smooth onboarding are the desired end result. When handled poorly, it creates delays, rework, and frustration for everyone involved.
For clients: ask your adviser which providers they’re contacting and what information they’re requesting.
For intermediaries: use clear templates, trackers, and checklists to keep LoAs moving.
Small improvements throughout make a big difference across the process.
FAQs
1. How long does a Letter of Authority last?
Most are valid for a limited period, often around 90 days, unless stated otherwise.
2. Can I cancel or withdraw a Letter of Authority?
Yes. You can revoke it at any time by notifying your adviser and, if required, the provider.
3. What’s the difference between a Letter of Authority and Power of Attorney?
An LoA allows access to information only. A POA allows someone to act on your behalf.
4. Why are provider response times so slow after I sign an LoA?
Delays usually come from mismatched details, missing information, or provider-specific requirements.
5. Do providers accept digital signatures on LoAs?
Some do, some don’t. It depends on the provider.
6. What should I check before signing a Letter of Authority?
Ensure your personal details are correct and the scope of information requested is clear.
7. What information can a provider share under a Letter of Authority?
Only the information explicitly covered by the LoA, such as values, charges, and policy details.
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