SIE: Discretionary Accounts

Discretionary Accounts

In a discretionary account, the representative or financial adviser has written authority to place trades in the customer’s account without permission before each order is placed. Before the account can be opened, the customer will need to provide written permission granting discretionary authority to the representative. This authority will need to be given prior to the representative placing any trades.

Recall that if a representative does not have discretionary authority, he must get the name of the security, whether to buy or sell the security, and the amount of the security