5.3.3. Trading Authorization
As previously mentioned, discretion is when a professional is given written permission by a client to buy or sell securities in the client’s account as the professional sees fit. This stands in contrast to a non-discretionary relationship or account, in which the adviser has to get verbal permission from a client prior to every executed transaction.
In addition to these two options, there is a third option for designating who can initiate transactions in a client account. Under a trading authorization, a third party (meaning