Discretionary Accounts

What this video covers

• The three-element discretionary trio: prior written customer authorization, written firm acceptance, and order-ticket marking at time of entry
• How to apply the "any one of three" test (security, action, or quantity) to determine whether a trade is discretionary, using concrete customer-rep scenarios
• Why time-and-price discretion is not full discretion, what it requires, and why it expires at the end of the business day unless extended by specific signed and dated instruction
• How frequent supervisory review detects churning, and why excessive trading is judged relative to financial resources and character with no fixed trade-count threshold
• The bulk-exchange exception for money market fund shares at net asset value, including the 30-day negative-response letter activation rule
• Why options in discretionary accounts trigger registered options principal (ROP) approval requirements
• The record-keeping split: three years from record creation for authorizations, approvals, and agreements; six years from account closure for firm acceptance documentation