Exam ICWIM Topic 1 Question 18 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 18
Topic #: 1
When an investment manager manages and makes changes to a portfolio without referring to the client, this is known as:

Suggested Answer: C Vote an answer

* Discretionary Management Defined:
* In discretionary management, the investment manager is authorized to make decisions and implement changes in a portfolio without client consultation.
* This requires a pre-agreed mandate outlining the client's goals and risk tolerance.
* Elimination of Other Options:
* A: Execution-only involves the client making all decisions without advice.
* B: Advisory dealing requires client approval for transactions.
* D: Financial planning is broader and focuses on comprehensive client goal-setting, not direct portfolio management.
References:
* ICWIM Module 4: Explanation of portfolio management styles.

by Maxwell at May 03, 2026, 09:01 AM

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