Non-discretionary accounts hold assets for a client but do not grant independent decision-making to the advisory firm by the client owning the assets. The firm is required to consult the client on proposed trades or changes made to the assets before the action can occur. In essence, the client retains discretion over the decision-making related to the assets and does not delegate this discretion to the firm.

Non-discretionary accounts are in contrast to the more common discretionary accounts seen at the UHNW level.  In a discretionary account, the client delegates some or most aspects of investment decision-making to the firm in the interest of timeliness, efficiency, economies of scale, and other factors.  A discretionary disclosure agreement outlines the benefits, procedures, limitations, and liabilities of this process for both the client and the firm.