By Zach Geldert

New legislation, the Powers of Attorney and Personal Directives Act, will come into force in Prince Edward Island on November 1, 2025 (the “New Act”). Along with other changes discussed in a previous article, the New Act imposes obligations on third parties who interact with Attorneys (under a power of attorney) and Agents (under a personal directive). Third parties are now expected to confirm the identity of the Attorney or Agent and, to a certain extent, confirm the qualification, in accordance with sections 11 and 25 of the New Act, of the Attorney or Agent to give directions or obtain services.^[1]

The New Act imposes obligations on a “service provider”. “Service provider” is defined in the New Act as:

“a person who carries on a business or profession that provides, or is employed to provide, a financial service or personal service, as the case may be”.^[2]

“Financial service” is not defined in the New Act. However, the plain meaning of this phrase would likely capture every day services offered by professionals in the legal, accounting, and financial services sectors.

Likewise, a nursing or community care facility would likely be a “service provider” with respect to a “personal service”. A “personal service” is defined in relation to the definition of a “personal matter” which includes:

• where a person lives, permanently or temporarily;
• a person’s basic nutrition, clothing and personal care needs; and
• a person’s social activities.^[3]

Corporations and professionals offering services in the above industries should consider how the New Act will impact their interactions with Attorneys and Agents.

The New Act requires a “service provider” to “make a reasonable effort” to verify the identity of the person purporting to act as an Attorney or as an Agent and to confirm the Attorney’s or Agent’s authority to make the decision.^[4]

“Reasonable effort” is defined in the New Act with reference to the magnitude of the decision to be made:

“…the reasonable effort required shall be no more onerous than is appropriate to the circumstances and the nature of the decision”.^[5]

This definition involves a contextual analysis. It suggests that the level of effort that is required is based on the significance of the decision to be made. For example, a decision to pay a routine bill may require less scrutiny by a “service provider” as compared to a decision that may more significantly impact a principal’s financial or personal wellbeing.

The New Act presents a significant change in the obligations of “service providers”. The previous Powers of Attorney Act,^[6] was silent on the requirements for a third party to verify the qualification and identity of an Attorney. As discussed, the New Act states the statutory obligations with which a “service provider” must now comply. Policies and processes of “service providers” may need to change to reflect the new circumstances.

Since the New Act does not offer a more detailed rubric for assessing the circumstances and nature of the decision to be made, it is imperative that “service providers” work with their legal advisors to review and/or develop strong and detailed internal policies to protect against future claims.

This article is for information purposes only. Determining the applicability of the sections of the New Act discussed in this article will require consultation with a lawyer.