Informed Consent – Definition

Cite this article as:"Informed Consent – Definition," in The Business Professor, updated October 4, 2019, last accessed October 27, 2020,


Informed consent refers to a case where an investment client makes a decision on a recommended investment program. This process actually involves the investment client having vivid and unobstructed understanding of the implications, details and the consequences of undertaking a recommended investment decision. Usually, a professional manager or analysts is the personnel who gives out such opinions or investment ideas. If the professional manager recommends a share or an investment to a client, he or she is also required to provide adequate knowledge of the cost of carrying out such an investment, the benefits that can be derived, the potential risks, and other possible issues which the client might face. For an investment client to give informed consent, he or she is required to be mentally stable and also be provided with all the facts and details about the information as listed above. However, if the investor or the client is unavailable at the period of the recommendation, his or her beneficiary would be required and empowered to give out informed consent on the recommendation if they so please. › Genera

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