What is the role of a non-discretionary advisor in investment decisions?

A non-discretionary advisor plays a significant role in investment decisions by requiring pre-approval of investment decisions. This means that while the advisor can provide valuable insights, strategies, and recommendations based on their expertise, the final decision-making authority remains with the client or the entity they represent. This setup fosters collaboration, ensuring that the investor retains ultimate control over their portfolio, which reflects their individual risk appetite and investment objectives.

Such advisors prioritize transparency and accountability, guiding investors without overstepping into making investment choices on their behalf. By seeking pre-approval for each decision, the advisor encourages an informed decision-making process, allowing clients to consider the advice and align it with their financial goals before acting. This collaborative approach differs from discretionary advisors, who would make investment decisions independently, often without the need for prior consent from the client.