Documentation of Customer Authorization: Full Versus Limited

What this video covers

• The three written requirements for full discretionary authorization: prior written customer authorization, firm acceptance evidenced in writing, and principal order-by-order approval
• Alternative actors who may evidence firm acceptance and approve discretionary orders (the firm itself, or a specifically designated partner, officer, or manager)
• The scope of limited time-and-price discretion: only the price at which, or the time when, a definite amount of a specified security is executed
• Why limited time-and-price discretion requires no prior written customer authorization, no firm acceptance, and no principal order-by-order approval
• The automatic end-of-business-day expiration for limited time-and-price discretion, and the signed-and-dated written extension required to continue it
• The institutional account exception: valid good-till-cancelled instructions on a not-held basis are not bound by the end-of-day cutoff
• The second industry meaning of full versus limited: for third-party power of attorney, limited means trade only while full adds withdrawal of cash and securities