Chapter 25 Fee-Based Accounts KT

Question 1

A team of professionals that handles all an affluent client’s financial affairs within one central location.

Answer 1

private family office

Question 2

A general term for a securities account where the client has given specific written authorization to a partner, director or qualified portfolio manager to select securities and execute trades for the client.

Answer 2

discretionary accounts

Question 3

A type of fee-based account including the same benefits as multi-disciplinary accounts with enhancements that include performance reports from the respective sub-advisors.

Answer 3

unified managed account

Question 4

A type of separately managed account that involves the coordination of holdings across a family or family group.

Answer 4

household account

Question 5

A managed product structure whereby individual accounts are created for each investor with an investment manager who is guided by an investment mandate.

Answer 5

separately managed accounts

Question 6

A manager who works with advisors in servicing clients in a partnership in which the advisor retains the client’s assets.

Answer 6

overlay manager