n NISM Certifications
NSM General NISM
Medium

Which PMS type involves the manager recommending investments while the client approves trades before execution?

Practice question from CWM A B1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Discretionary PMS

  2. Non-Discretionary PMS

    Correct answer

  3. C

    Advisory PMS

  4. D

    Passive PMS

Why this is the answer

In Non-Discretionary PMS, the manager provides recommendations, but the client’s approval is required before execution.

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