Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Understanding the Difference Between Discretionary & Non-Discretionary Accounts

In any matter of investment fraud, it is important for your lawyer to know first off whether your account falls in the category of discretionary or non-discretionary. This is often a big part of the case and can go a long way in determining if you may file an investment fraud claim.

Watch As Attorney Dave Meyer Explains Discretionary & Non-Discretionary Accounts

If an account is discretionary, it allows the brokerage firm to operate without receiving permission from the investor before investing, trading, or selling. A non-discretionary account requires the broker to speak with the investor regarding any investment actions. Oftentimes, brokers don’t know or don’t explain these accounts to their investors. Brokers may also take on non-discretionary accounts and act as if they are discretionary accounts and invest without permission.

In either case, it is the job of the broker to provide investors with the correct investment recommendations. When this isn’t the case and brokers act without permission on non-discretionary accounts, the investor may be able to recover any losses that may have occurred.

If you had a non-discretionary account with a broker and you lost money due to unpermitted trades, unsuitable investments, or breach of fiduciary duty, you may be able to file a claim against the broker. Far too often, these situations happen and it is the investor who is left wondering what to do after suffering a financial loss. It is also too common for broker’s to not fully explain the difference between discretionary and non-discretionary and investors may not know any better.

Should you find yourself in this situation and in need of legal representation to help recover your losses, Meyer Wilson is here to help. Our securities lawyers offer free case evaluations to discuss your situation and determine if you can file a claim. Reach out to us today and learn how we can help you.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram