What type of consultant provides investment recommendations but leaves final decisions to an investment committee vote?

• A. Discretionary investment consultant
• B. Non-discretionary investment consultant
• C. Investment advisor
• D. Fund manager

Answer: (B)

The designation of a non-discretionary investment consultant is appropriate in this context because this type of consultant provides investment recommendations but does not have the authority to make final investment decisions, which are reserved for an investment committee. Non-discretionary consultants typically work alongside clients, providing insights, strategies, and guidance, but ultimately empower the investment committee to deliberate and decide on actions based on the recommendations provided. This aligns with the nature of their role, emphasizing their advisory capabilities while maintaining the client's control over investment decisions.

In comparison, discretionary investment consultants have the authority to make investment decisions on behalf of their clients without requiring additional approval or committee oversight. An investment advisor generally provides broader financial advice, which might or might not involve a similar structure. Fund managers are typically responsible for managing portfolios and executing investment strategies, often making decisions autonomously without directly involving a committee vote for each action. Each of these roles differs significantly from that of a non-discretionary investment consultant, who focuses on providing recommendations while ensuring that final decisions are made collaboratively.