According to the IIROC Rules, a discretionary account must have:

Question: According to the IIROC Rules, a discretionary account must have:

Answer options:

• A pre-approved list of all individual securities that may be purchased. ✅ Written authorization from the client granting the Portfolio Manager discretion to make investment decisions.
• The client's daily approval for every trade executed.
• No explicit Investment Policy Statement (IPS).

Correct answer: Written authorization from the client granting the Portfolio Manager discretion to make investment decisions.

Explanation: A discretionary account grants the Portfolio Manager the authority to make investment decisions on behalf of the client without seeking prior approval for each trade. This authority must be explicitly granted in writing by the client as per regulatory requirements.