PMS players face power of attorney worries amid Covid-19 pandemic

Getting signatures on physical documents a concern amid Covid-19 pandemic

Those who sign in wealthy individuals to invest through the portfolio management service (PMS) route face problems in adding clients because the process has a physical component to it.

Portfolio managers require clients to sign a document called the power of attorney (PoA). They need this document to manage funds in their clients’ investment account. The process of getting the physical signature on the documents creates friction and requires seven days or more for an account to be opened, whereas brokerages and mutual funds can sign on clients online, according to industry officials.

The PMS industry manages close to Rs 20 trillion