An account authorised party is a person designated by the holder to access funds on their behalf. The authorised party is not really the account owner and is therefore not responsible for the debts or equity in the account. This person will be able to carry out many of the daily transactions permitted through an account: draw down funds, sign cheques and withdrawals, order transfers, etc. They will also be able to request information without the holder's permission: remember, in many cases these representatives are appointed when the holders do not have the faculties to make decisions or manage the account (due to serious illness, death, etc.).
What an authorised party cannot do is cancel any of the holder's products, block or modify the account requirements, apply for debit or credit cards in their name, or even use the account in the event of the holder's death.
How to appoint an authorised party
You must request it in writing at your bank branch. You will need to take your ID and specify that you authorise the designated person to manage your account.
Account proxies and authorised parties
A proxy is a person who is granted powers by a third party (the principal) to carry out certain procedures and actions on their behalf. The difference between a proxy and an authorised party is that a proxy is a legal entity (a company) with a power of attorney, whereas an authorised party is an individual without a power of attorney.
Since banks have to carry out a broad range of transactions every day, they often appoint proxies as representatives. So, for example, when you open a bank account and sign the contract, it will also be signed by a proxy as a representative of the bank.
What happens to the bank account of a deceased family member or holder
When the holder of a bank account dies, you need to notify the bank and present the death certificate. The funds in the account will then be immobilised until the will is executed. Remember, heirs inherit obligations as well as rights.
In the case of an indistinct account, the other holders will still be able to carry out transactions and manage the account, and if it is a joint account each holder will need permission from the heirs to access the funds.