What condition must be met for clients in a joint account to effectively manage investments?

For clients in a joint account to effectively manage investments, the critical condition that must be met is having shared investment objectives. This alignment ensures that all account holders are working towards the same financial goals and have a mutual understanding of their investment strategy. When clients share objectives, they can make decisions that consider all parties' interests, reducing the potential for conflicts that could arise from differing priorities.

In contrast, having identical investment horizons is not mandatory since clients may have varying timeframes for their investments. Similarly, divergent risk objectives or independence in investment strategies can lead to disagreements and challenges in managing the joint account effectively. Achieving cooperation and consensus is vital for successful investment management in a joint setting, which is why shared investment objectives are essential.