A lawyer has spoken out against proposals to turn lasting powers of attorney (LPAs) completely digital.

The Financial Conduct Authority (FCA) has called for a fully-digitised system so that documents could be registered online.

This move, which the regulator said would make the application process easier, comes as part of its plan to improve financial services for the UK’s ageing population.

But Kenton-based Malcolm Muir has joined fellow members of the Solicitors for the Elderly to warn against the impact such changes could have.

Mr Muir, from Mills Chody LLP, argues that such a move could lead to an increased risk of fraud against vulnerable people since the protection provided by a physical signature would be removed.

He believes that while it is right that we should look to the future, it is important to maintain this ‘wet signature’ aspect of such an important document.

He said: “We are extremely concerned by the FCA’s push for fully digital powers of attorney.

“Although we welcome initiatives that make LPAs more accessible, the security of older and vulnerable people is paramount.

“Under the current system, the FCA’s vision of a secure, end-to-end digital LPA registration process is simply not possible.

“Removing the requirement of a wet signature has the potential to put thousands of people at risk of fraud and financial abuse.

“An LPA requires the understanding and consent of the donor, but without the witnessing of a physical signature, what is to stop a family member or friend registering a document on someone else’s behalf, perhaps even without their knowledge?

“LPAs are extremely powerful and complex documents, and the prospect of being able to take control of someone else’s bank account and even their property with the few clicks of a button is frankly reckless.”

Some people view the current process of appointing a power of attorney as complicated and, as a result, often appoint a solicitor to support them.

This is free but, when it comes to registration and the taking over of a person’s finances, there is a charge of £82.