What is a discretionary account?
If I start a discretionary account with a financial advisor, I deposit money into the account and the advisor can exercise his discretion in selecting securities for the account. He may buy securities for my account without asking me. The advisor has good amount of control over the selection of assets in the account. Non-discretionary accounts - the advisor has to seek client’s permission before he/she can transact on the acccount
I do believe that the definition is not clearly defined in both text book or Schweiser. I remember seeing the term discretionary account dozens of times in Schweiser (in ethics) but it’s never defined anywhere. I should have just googled it as per andytrader’s suggestion.