Advanced English Dialogue for Business – Discretionary account

Listen to a Business English Dialogue About Discretionary account

Zoey: Hey Kyle, do you know what a discretionary account is in finance?

Kyle: Yeah, Zoey. It’s an investment account where a client gives a financial advisor or broker authority to make investment decisions without needing approval for each transaction.

Zoey: That’s correct, Kyle. With a discretionary account, the advisor can buy or sell securities on behalf of the client based on agreed-upon objectives and risk tolerance.

Kyle: Right, Zoey. It offers convenience for the client who may not have the time or expertise to manage their investments actively.

Zoey: Exactly, Kyle. However, the client still retains ownership of the assets in the account and can set guidelines for the advisor to follow.

Kyle: That’s true, Zoey. But it’s essential for clients to choose a trustworthy advisor and regularly review their account statements to ensure transparency and alignment with their financial goals.

Zoey: Agreed, Kyle. Clients should also communicate any changes in their investment objectives or risk tolerance to their advisor to ensure the strategy remains appropriate.

Kyle: Absolutely, Zoey. A discretionary account can be a valuable tool for investors seeking professional management and guidance in navigating the financial markets.

Zoey: Indeed, Kyle. It allows investors to delegate investment decisions to experienced professionals while maintaining control over their overall financial strategy.

Kyle: Right, Zoey. And by working closely with their advisor, clients can strive for long-term financial success and achieve their investment objectives.