What it is:
A managed account is anaccount in which a or other kind of is responsible for managing in the best interests of a client or .
How it works/Example:
Let's say John Doe cash, assets or title to property for the benefit of John Doe. Her job is to appropriately manage the assets in the account and ensure that they are disbursed in the best interests of the client. This means that Jane Smith can buy and sell without prior approval from John Doe.a managed account with Jane Smith, who is a . The account has $3 million of assets. Because the account is a managed account, Jane Smith is responsible for ensuring that the assets are invested according to John's wishes. Jane Smith might hold
Why it matters:
Managed accounts involve Fiduciary requires a person to act in the best interest of his or her clients, and when a does not do so, the consequences can involve civil or even criminal penalties., which is one of the most revered and powerful aspects of the financial world.