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url: /glossary/discretionary-management.md
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## Discretionary Management

Management mode of a life insurance contract in which the policyholder delegates the switching decisions to a mandate holder (the discretionary manager). The mandate holder decides the switches within the limits of an investment strategy that is agreed in advance. The mandate holder does not need a new approval from the policyholder for each switch.

In a life insurance contract, the policyholder does not own the underlying assets. The policyholder has a contractual right to switch between funds, and delegates this right. Thus, the legal term is "switching mandate" ("mandat d'arbitrage" in French). It is not a portfolio management mandate as MiFID II defines it.

There are two types of discretionary management:

* Profiled Managed Portfolio: the policyholder selects a standard investment profile.
* Personalised Discretionary Management: the investment strategy and the limits are adapted to the policyholder.

In the API, the management mode is `discretionary-management`. A mandate defines the framework of each compartment.

Synonyms:

* Delegated management
* Switching mandate

*Note*: In French, do not use the term "mandat de gestion" for a life insurance contract. Use "mandat d'arbitrage".