Term

Discretionary mandate

Also: discretionary management

An arrangement in which the adviser makes investment decisions within agreed limits.

Under a discretionary mandate the adviser acts within the policy without seeking approval for each trade. Clear constraints and a complete record are what keep that authority accountable.

A discretionary mandate buys convenience and speed at the cost of day-to-day control, which makes the surrounding discipline crucial. Clear constraints in the policy and a complete record of what was done and why are what let a family delegate authority without losing accountability.

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