What to Do If a Bank Refuses a Representation Agreement in BC

You have been named as a representative, you bring the agreement to the bank, and you are told it is not enough. That is frustrating, especially when a loved one's bills need paying.

Often the problem is the type of agreement or the limits on what it covers, not the bank being difficult. This article explains what a representation agreement can and cannot do about money in British Columbia, and what else may be available.

This article covers the law of British Columbia.

What a representation agreement can cover about money

A section 7 (standard provisions) agreement may authorize a representative to help make, or make, decisions about routine management of the adult's financial affairs. The word routine matters, since it is a limited authority.

A section 9 agreement covers personal and health care with non-standard powers and does not cover finances. If yours is a section 9 agreement, a bank has no financial authority to rely on.

Why a bank may say the agreement is not enough

• The agreement may be a section 9 agreement, which does not cover finances.
• The agreement may not give authority over routine financial affairs.
• A section 7 agreement needs its certificates completed to be effective.
• If it gives financial authority, it must name a monitor, or that provision is invalid unless an exception applies.
• The agreement may start on a later date or event named in it.
• A bankruptcy or dishonesty conviction can cancel financial provisions.

A monitor is not required if the representative is the adult's spouse, the Public Guardian and Trustee, a trust company or a credit union, or if two or more representatives must act unanimously. Banks may also have their own internal requirements, so ask what exactly they need.

Alternatives to consider

A certificate does not apply if a committee under the Patients Property Act already manages the adult's affairs. When someone becomes a patient, powers of attorney and the property provisions of a representation agreement are suspended.

Whether an enduring power of attorney can still be made depends on the adult's capacity, which a lawyer can help assess.

Staying accountable and raising concerns

A representative must act honestly and in good faith, use reasonable care, stay within their authority, consult the adult about current wishes, and keep the adult's accounts and records separate. A monitor may require the representative to produce accounts and records.

If you suspect financial abuse, concerns can be reported to the Public Guardian and Trustee using its online form, and Assessments and Investigations can be reached at 1-877-511-4111. In urgent cases, it may tell a financial institution not to allow withdrawals from an account, for up to 30 days and no more than 120 days in total.

What to do next

• Ask the bank in writing exactly what it needs and why.
• Check whether your agreement is section 7 or section 9, and whether it covers routine financial affairs and names a monitor.
• Confirm the certificates were completed and the agreement is in effect.
• Look for any enduring power of attorney the adult signed.
• See a lawyer before considering a court application, since committeeship is a last resort.

Frequently asked questions