Agency by Necessity is a legal concept which allows certain persons or entities to act and make decisions on behalf of another individual or entity, even when explicit permission has not been granted by the beneficiary. Agency by Necessity functions as a safeguard to ensure that individuals or entities can be properly taken care of during times of urgency or emergency, providing them with the protection and assistance they require during such occasions.

When it comes to finance and investing, Agency by Necessity is particularly important in allowing financial agents and advisors to act on behalf of their clients who are unable to make decisions due to lack of experience or whether they are facing legal or health issues, or any other issue that prevents them from making decisions on their own. Agency by Necessity provides the necessary flexibility required, allowing brokers and advisors to make decisions on behalf of their clients, while also working as an additional layer of protection to ensure that the rights and best interest of the client are considered.

By allowing financial agents to act on behalf of their clients during times of emergencies and distress, Agency by Necessity ensures that clients’ investments, assets and other financial needs are taken care of in the best way possible. This is why it is important for financial professionals to understand the concept of Agency by Necessity and remain within the boundaries of the legal framework when making decisions on behalf of their clients. It is equally important for clients to provide clear instructions on their expectations and actions to be taken during times of emergency, to ensure that the broker understands their wishes and can act accordingly.

Overall, Agency by Necessity is an important concept that ensures necessary and immediate action can be taken on behalf of those who are unable to make decisions due to urgent or emergency situations. Doing so provides an additional layer of protection to those individuals and entities, while also maintaining the necessary flexibility that is required during such times.