Discretionary account

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Discretionary account

Account over which an individual or organization, other than the person in whose name the account is carried, exercises trading authority or control.

Discretionary Account

A brokerage account in which a broker is able to make decisions without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner. However, decisions made on a discretionary account must be made in accordance with the client's stated investment goals and according to the prudent man principle.

discretionary account

A brokerage account in which the customer permits the broker to act on the customer's behalf in buying and selling securities. The broker may decide upon securities, prices, and timing—subject to any limitations specified in the agreement. Because a discretionary account can be quite risky, it should be avoided unless the customer has a great deal of confidence in the broker. Also called controlled account. Compare advisory account. See also limited discretion.

Discretionary account.

A discretionary account is a type of brokerage account in which clients authorize their brokers to buy and sell securities on their behalf without prior consent for each transaction.

A client may set guidelines for the account, such as the types of securities the broker may purchase. However, the broker can buy and sell shares at his or her discretion.

Managed accounts -- also called separate accounts and wrap accounts -- are one type of discretionary account.

References in periodicals archive ?
The focus of this study is the loan loss provision account management because it is a financial institution's main discretionary account. Second, banks have high leverage, which makes them vulnerable to volatility in asset prices and requires them to make constant adjustments to their loan loss provision accounts to maintain adequate coverage of their loan portfolios (Gonzalez, 2007).
So once again, and to be clear, this deal does not add money to discretionary accounts. It merely reduces the cuts scheduled to take place in fiscal years 2014 and 2015 by $63 billion, spread between defense and non-defense--a $22.5 billion reduction for each in fiscal year 2014 and a $9 billion reduction for each in fiscal year 2015, And the Budget Control Act totals for fiscal years 2016 through 2021 remain the same.
The discretionary account - around $20 million - is used predominately for art acquisition and museum promotion.
These private banks and wealth managers typically manage clients' assets through defined mandates in discretionary accounts (often labeled 'conservative', 'balanced' or 'growth') that are very similar to the investment strategies of mutual funds.
In 1990, the Omnibus Budget Reconciliation Act, which at the time was the largest deficit reduction package ever enacted, extracted 45 percent of its savings from discretionary accounts (Reischaner 1997: 123).
HSBC's private banking division had last week announced that it was discontinuing its service for advisory accounts that have below GBP1m under management and discretionary accounts that have below GBP300,000 under management.
Finally, two different percentage cuts are provided in the Energy-Water Development division of the act--a 1.6% cut from discretionary accounts that contain congressionally directed projects, and a 0.91% cut from other discretionary accounts.
That improvement was due overwhelmingly to a 49 per cent increase in profits derived from managing discretionary accounts.
Discretionary accounts allow the broker to make trades in a customer's account without obtaining prior approval.
Still a standard brokerage technique, discretionary accounts allow brokers to buy or sell in a customer's account without prior approval for each transaction.
The data cover contracts held by 126 investment advisory companies authorized to not only advise investors but also manage their assets in discretionary accounts.
The fund said authorities should seek to contain spending by restricting the use of the ministerial discretionary accounts and containing wage increases, moves which would free up funds for spending on education, health, justice and security;