Discretionary / Non-Discretionary
I'm considering taking on a client that would like to follow one of my models but would like to approve each trade. Currently, my brochure and ADV mention discretionary management only and I only have an advisory agreement for discretionary.
I'm assuming that this would not be a material change and would not require a mid-year brochure update; rather I could make a year-end change to 'Advisory Business' section.
I'm not too keen on hiring a lawyer to draft a non-discretionary IA agreement? Any advice?
I guess, it would depend on the account size. If it is a large account, you might want to change your business model a bit. If it is a small account, taking a small non-discretionary account might not be worth it.