Chapter 25: Fee-Based Accounts

In this section

• 25.1 Overview of Fee-Based Accounts
  • 25.1.1 Definition and Characteristics
    An in-depth look at fee-based accounts, discussing fee structures and the alignment of interests between financial advisors and their clients.
  • 25.1.2 Benefits and Limitations
    An exploration of the advantages and disadvantages of fee-based accounts, including cost transparency and potential drawbacks.
• 25.2 Managed Fee-Based Accounts
  • 25.2.1 Separately Managed Accounts (SMAs)
    An in-depth exploration of Separately Managed Accounts (SMAs) in the context of managed fee-based accounts, highlighting the customization and control offered, as well as the advantages of direct ownership in investment portfolios.
  • 25.2.2 Unified Managed Accounts (UMAs)
    Exploration of Unified Managed Accounts (UMAs), focusing on the integration of assets, and the benefits of efficiency and simplicity in portfolio management.
  • 25.2.3 Discretionary Accounts
    A detailed exploration of discretionary accounts within fee-based account structures, emphasizing advisor authority and suitability for investors.
• 25.3 Non-Managed Fee-Based Accounts
  • 25.3.1 Self-Directed Accounts
    An exploration of self-directed accounts within non-managed fee-based accounts, focusing on investor autonomy and cost implications.
  • 25.3.2 Wrap Accounts
    Explore the bundled services and evaluate the Pros and Cons of Wrap Accounts within Fee-Based Accounts.
• 25.4 Transitioning from Commission-Based to Fee-Based Models
  • 25.4.1 Reasons for Transition
    An exploration of the key factors driving the shift from commission-based to fee-based financial advisory models, focusing on evolving client preferences and regulatory trends.
  • 25.4.2 Implementation Strategies
    Strategies for transitioning from commission-based to fee-based models including client communication and service adjustments.