Authorised Signatory Bank Account Letter Template for England and Wales

An Authorised Signatory Bank Account Letter is a formal document that you need to establish or modify who can operate your organisation's bank accounts. This letter provides your bank with clear instructions about which individuals have authority to conduct banking transactions on behalf of your company, partnership, or other entity. The document serves as legal proof of authorisation and helps banks comply with regulatory requirements while protecting your organisation from unauthorised transactions.

When do you need this document?

You need this letter whenever you open a new business bank account, add or remove authorised signatories, or change existing signing authorities. This is particularly important when bringing new directors or partners into your business, when existing signatories leave the organisation, or when you need to update transaction limits. Banks also require this document when implementing new security measures or conducting periodic reviews of account authorities. If you're a company director appointing new signatories under the Companies Act 2006, or a partnership adding new partners under the Partnership Act 1890, this letter ensures your bank has proper documentation of these changes.

Key legal considerations

Your letter must clearly define each signatory's level of authority and any restrictions on their powers. This includes specifying transaction limits, whether signatories can act individually or must act jointly, and any particular types of transactions they cannot authorise. You should also consider the legal liability implications, as authorised signatories may have personal responsibility for transactions they approve. The document must include specimen signatures that match your bank's records, and you should ensure all signatories understand their duties and limitations. Consider including provisions for emergency situations and temporary authorisations when regular signatories are unavailable.

Legal requirements in England and Wales

Under the Banking Act 2009 and Financial Services and Markets Act 2000, banks must maintain adequate records of account authorities and verify customer identities. Your letter must comply with Money Laundering Regulations 2017, which require banks to conduct customer due diligence and maintain accurate records of beneficial ownership. If you're a company, the signatories' authority must align with your Articles of Association and any board resolutions under the Companies Act 2006. For partnerships, the authority must comply with your partnership agreement and the Partnership Act 1890. The letter should reference relevant board resolutions or partnership decisions that grant the signing authority, and banks may require additional documentation to verify the signatories' legal authority to act on behalf of your organisation.