What form must clients sign to authorize a financial advisor to act on their behalf?

The correct answer is the power of attorney, which is a legal document that grants one individual the authority to act on behalf of another in legal or financial matters. This form is crucial because it provides the financial advisor with the necessary legal authority to make decisions, handle transactions, and manage accounts for the client.

By signing a power of attorney, the client ensures that the financial advisor can access their financial information, make investment decisions, and execute trades as needed. This empowers the advisor to act swiftly on behalf of the client, which is particularly important in managing investments and addressing financial matters without needing to constantly acquire further consent from the client for each action taken.

Other forms, such as an investment policy statement, a client satisfaction form, or an asset allocation agreement, serve different purposes. An investment policy statement outlines the client's investment goals and strategies but does not confer authority. A client satisfaction form is typically used to gauge the client's satisfaction with services provided and does not involve any delegation of authority. An asset allocation agreement, while related to investment decisions, does not legally empower the advisor to act on the client's behalf. Thus, none of these options provide the same level of authorization as a power of attorney.