Discretionary money managers manage client portfolios without requiring approval for each transaction. The day-to-day investment decisions are made by the portfolio manager. The portfolio manager independently selects securities for portfolios based on an investment policy statement that has been reviewed and approved by the client.
Discretionary managers have a fiduciary duty to act with care, honesty and good faith and to always act in the best interest of their clients. Investment decisions must be made independently, without conflict of interest or bias.