Managed Discretionary Accounts
Olive operates a managed discretionary account service in which clients can invest in a particular trading strategy or program, in which the investment manager or trader trades and invests the client’s capital on a discretionary basis. This means that the MDA manager can invest or trade on behalf of the client without going back to the client each time the MDA Manager seeks to make a trade. This arrangement may suit certain investment strategies and clients because trading opportunities may present themselves and with market movements disappear prior to being able to obtain instructions. Further, MDAs provide Olive with certain cost savings because we are trading multiple accounts at the same time, the benefits of which we share with our clients through lower execution costs.
Trading on behalf of clients in a managed discretionary account, must be undertaken in accordance with the investment strategy agreed with the client at the time of opening the account. This is important because a fundamental term of each managed discretionary account is that Olive and the client have agreed the kinds of securities that will be traded on the client’s behalf and the objectives of the trading.
Financial services laws impose on Olive the requirement to provide clients with periodic reports on trading and performance on each MDA account including an annual investor statement. Each year we are required to assess with you whether this product remains appropriate for you, which involves a consideration as to whether your personal circumstances have changed.
