Authority Scope
Define permitted instruments, order types, and any exclusions so the agent’s power is unambiguous and auditable by the custodian.
A precise Trading Agreement Mandate reduces disputes, documents delegated authority, and creates an audit trail useful for compliance and reconciliation. It protects account holders and brokers by specifying limits, reporting cadence, and termination terms, and it supports electronic execution under the ESIGN Act (15 U.S.C. §7001) and state e‑transaction laws.
Common users include financial institutions, registered representatives, and individual investors; each party has distinct responsibilities under the mandate.
A properly completed mandate aligns onboarding, settlement, and audit processes across the signers and the custodian.
A person or entity named in the mandate permitted to place orders and manage positions within defined limits; their authority should be described by asset class, dollar limits, and trade types to reduce execution risk and compliance review time.
The natural person or legal entity granting authority; the account holder must provide verifiable identity, attestations, and an explicitly dated signature to create enforceable delegation of trading authority.
| Field | Configuration |
|---|---|
| Signature Field | Require signer name, signature, and date |
| Conditional Fields | Show fields only if specific options are selected |
| Authentication Method | Choose email, SMS code, or KBA as required |
| Retention Policy | Set automated archival and audit trail retention |
Mandates executed electronically should meet signer authentication, document integrity, and retention standards required by the custodian.
Confirm the receiving broker’s format and authentication preferences before sending to avoid processing delays.
Define permitted instruments, order types, and any exclusions so the agent’s power is unambiguous and auditable by the custodian.
Specify per‑trade and aggregate dollar ceilings, margin permissions, and stop‑loss authority to control risk exposure.
State effective and expiry dates, renewal mechanics, and the process for immediate revocation or suspension of authority.
Set cadence for trade reports, confirmations, and reconciliations to ensure timely oversight by the account holder and compliance teams.
Document broker fees, commissions, and any fee‑sharing arrangements to prevent later disputes over costs.
Provide notice methods, delivery addresses, and confirmation procedures for revoking the mandate to terminate authority cleanly.
Attach ID copies, account statements, corporate resolutions, and proof of authority (e.g., board minutes) required by the custodian.
Save executed mandates as PDF/A or PDF with embedded audit trail to ensure reproducibility and long‑term accessibility.
Include the signed document, certificate of completion, IP/timestamp data, and any authentication logs for compliance reviews.
Record version history and who made edits; keep previous versions archived for dispute resolution.
Effective when all required signatures and verifications are complete
Processing commonly completes within 1–3 business days after verification
May take several business days depending on completeness of supporting documents
Varies by mandate; implement immediate suspension provisions where necessary
Retention begins on the effective date or date of execution
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7‑day trial, no credit card | Varies by promotion | Varies by promotion | Varies by promotion | Varies by promotion |
| Bulk Send | Available (Business Premium) | Available | Available | Available | Varies by plan |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
A pension fund appoints an external manager to place equities and derivatives trades
A high‑net‑worth investor authorizes an advisor to trade within agreed risk parameters