Definition of 'Approved List'
A list of pre-selected securities that are deemed fit for purchase by a mutual fund or the clients of a brokerage firm.
In both cases, the intent is to limit the account managers' or brokers' array of choices to investments available on the brokerage's approved list. From a brokerage firm's perspective, the approved list will usually be somewhat larger than the selected holdings in any one client's portfolio, so that there are ample choices for constructing a portfolio, or changing it over time as needed. The approved list will also frequently show buy and sell target prices for the securities, and will be updated by the firm's research team and then transmitted to the brokers or account managers.
Investopedia explains 'Approved List'
The "approved list model", where brokers with limited investment knowledge choose stocks from a pre-approved list, is sometimes regarded as not suited to the individual investor, as it tries to group everyone's needs together without taking any one person's wishes or risk profile in account.