Discretionary authority

Before you borrow money from your brokerage firm-for any reason-be sure you fully understand the terms, costs and consequences. An investor might instruct the broker to maintain a specific ratio of stocks to bonds but permit the broker freedom to invest within these asset classes as the broker sees fit.

Be accurate when you are providing the information requested on these forms. What choices do I have regarding cash sweep programs? Who do I contact if I have a question or concern regarding my account? If you work with an introducing firm, you may receive statements from the clearing firm.

Discretionary Authority Sample Clauses

Who will make the final decisions for your account? On occasion, the broker becomes aware of a specific buying or selling opportunity beneficial to all his clients. Although a history free from registration or licensing problems, disciplinary actions or bankruptcies is no guarantee of the same in the future, checking out your broker and firm in advance can help you avoid problems.

Times, Sunday Times Put 54, into a discretionary portfolio of funds and direct equities. For example, discretionary investment managers can purchase securities such as stocks, bonds, ETFs and financial derivatives.

You will have final say on investment decisions in your account unless you give "discretionary authority" in writing to another person, such as your financial professional. Times, Sunday Times It followed three months of declining discretionary income.

This is called buying securities "on margin. This publication explains what to expect if you do decide to open a brokerage account, including what information you will be asked to provide, what decisions you will be asked to make, what questions you should ask your broker and what your rights are as a customer of a brokerage firm.

Discretionary authority also extends beyond government offices. The Plan Administrators discretionary authority is intended to be absolute, and in any case where the extent of this discretion is in question, the Plan Administrator is to be accorded the maximum discretion possible.

Some firms allow you to indicate who has discretionary authority over the account directly on the new account application, while others require separate documentation. Do your investments still appear to be right for you, and what criteria will you use to decide when to sell?

In connection with these loans, a firm might ask the customer to sign a margin agreement. For example, you may have just deposited money into your account without giving instructions on how to invest it, or you may have received cash dividends or interest.

Magistrates were given wider discretionary powers. How often will I get account statements? If you want to grant a broker authorization to trade on your behalf, make sure you think through the risks involved in allowing someone to make decisions about your money. Find out what type of firm you open an account with and who will send you the account statements.

While margin loan agreements are typically used to allow investors to buy securities on margin, some firms allow their customers to take out loans for other purposes.

Times, Sunday Times It is a single premium insurance bond with a discretionary trust behind it. Ordinarily, a bank has no legal right to take possession of property.

Your broker might ask for this information in a conversation or via email as well. Who will control decision-making in my account? Times, Sunday Times Families are switching their spending from essentials such as food and petrol to discretionary items as they treat themselves to little luxuries.

There are also firms that take and execute orders and settle trades. The brokerage firm that you open an account with may not be the one that sends your account statements. No "Margin" for Error.

Definition of 'discretionary'

A new type of discretionary account comes from roboadvisers - automated investment management services carried out by algorithms with minimal human intervention. Your broker will use the information to understand your financial needs and to meet certain regulatory obligations.

Protect Your Accounts Unfortunately, unauthorized trading can sometimes happen regardless of whether you have granted discretionary power to your broker.

Make sure you think through the risks involved in allowing someone else to make decisions about your money. If the firm offers both bank deposits and money market funds, what are the advantages and disadvantages of selecting one over the other?

Additionally, many organizations may only exercise discretionary authority when certain conditions are met, although they are not required to exercise their power of discretionary authority at any time.Discretionary things are not fixed by rules but are decided on by people in authority, who consider each individual case.

Discretionary Account

Magistrates were given wider discretionary powers. Check whether you are entitled to a discretionary grant for your course. Medtronic, Inc., F.3d (8th Cir.

), the plaintiff argued that the plan’s grant of discretionary authority was overridden by procedural irregularities in plan administration, compelling use of the de novo standard of review. Discretionary authority is the power to be the sole interpreter of claims.


It is granted to insurance companies by a provision in an insurance contract. Discretionary ultimedescente.com Plan Administrator, or a party designated by the Plan Administrator, shall have the exclusive discretionary authority to construe and to interpret the Plan, to decide all questions of eligibility for benefits and to determine the amount of such benefits, and its decisions on such matters are final and conclusive.

Discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager or. Granting Discretionary Authority. Discretionary trading in your account is allowed only if you have authorized a broker to do so in writing and the broker’s firm has approved it.

If you want to grant a broker authorization to trade on your behalf, make sure you think through the risks involved in allowing someone to make decisions about your.

Discretionary authority
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