Execution-only trading refers to transactions where the firm executes trades without providing financial advice.
Why is Option B Correct?
The client makes all investment decisions independently.
The financial firm does not assess suitability or risk tolerance.
Common in DIY investing platforms (e.g., stockbrokers, online trading apps).
Why Not Other Options?
A (Discretionary) → The firm manages investments without client approval for each trade.
C (Non-discretionary) → The firm provides advice, but the client makes the final decision.
D (Robo-advice) → Automated investment platforms provide algorithm-based recommendations.
???? Reference: FCA Conduct of Business Rules (COBS 10), CISI Wealth & Investment Management.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit