Chapter 25 - CSC.pdf

Fee-Based Accounts 25 CHAPTER OVERVIEW In this chapter, you will learn about the various types of fee-based accounts, both managed and unmanaged. LEARNING OBJECTIVES CON...

Fee-Based Accounts 25 CHAPTER OVERVIEW In this chapter, you will learn about the various types of fee-based accounts, both managed and unmanaged. LEARNING OBJECTIVES CONTENT AREAS 1 | Describe the advantages and disadvantages of Overview of Fee-based Accounts fee-based accounts. 2 | Compare the features, advantages, and Managed Fee-based Accounts disadvantages of the various types of managed fee-based accounts. 3 | Describe the various types of non-managed Non-Managed Fee-based Accounts fee-based accounts. © CANADIAN SECURITIES INSTITUTE 25 2 CANADIAN SECURITIES COURSE      VOLUME 2 KEY TERMS Key terms are defined in the Glossary and appear in bold text in the chapter. discretionary accounts mutual fund wraps exchange-traded fund wraps overlay manager fee-based accounts private family office household account robo-advisor managed accounts separately managed accounts multi-manager accounts unified managed account © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 3 INTRODUCTION Participants in the securities industry have witnessed an ongoing shift away from the traditional advisor/client relationship model toward a fee-based account model. With the traditional model, the advisor is compensated with commissions. The fee-based model bundles various services and charges a fee based on the client’s assets under management. Typically, these accounts are owned by high-net-worth clients (also called affluent clients). This chapter focuses on the various types of fee-based accounts available in the marketplace, both managed and unmanaged. The products discussed in this chapter clearly show how the compensation model continues to evolve, and how the advisor’s traditional role continues to change dramatically. OVERVIEW OF FEE-BASED ACCOUNTS 1 | Describe the advantages and disadvantages of fee-based accounts. The past decade has seen a tremendous increase in the types and availability of fee-based accounts. Growth in this area has significantly outpaced the growth of traditional, commission-based accounts. This shift in the advisor/ client relationship model arose out of several key demands of high-net-worth clients: More services High-net-worth clients need more from their advisors than simple stock and bond picking, as provided under the traditional commission-based model. Along with trading strategies, they require advice on risk management, estate planning, debt management, insurance, and retirement planning. Payment tied to Market surveys show that high-net-worth clients want a portion of the advisor’s fee tied performance to assets under management, with fees varying depending on the performance of the portfolio. This approach puts both the client and the advisor on the same side and erases the potential for conflict of interest inherent in commission-based selling. Greater transparency High-net-worth clients appreciate the clear disclosure that comes with a fee-based account. They pay fees directly, and the amounts appear on their regular account statements. Greater trust Under a commission-based structure, the client might wonder whether the advisor is suggesting investments because the product carries a higher commission. In a fee-based relationship, clients can be confident that recommendations are based on their best interests. ADVANTAGES AND DISADVANTAGES OF FEE-BASED ACCOUNTS Fee-based accounts enable advisors to provide broader services to clients, including financial planning and wealth management services. They are also able to continue recommending securities and third-party mutual funds, without regard for the commissions those products normally carry. Fee-based accounts thus allow access to more investments and greater diversification opportunities. However, not everyone in the industry feels that the move to fee-based brokerage accounts is entirely positive. Opponents of fee-based brokerage accounts cite various disadvantages. © CANADIAN SECURITIES INSTITUTE 25 4 CANADIAN SECURITIES COURSE      VOLUME 2 Higher potential cost If clients buy and hold their investments, they may not fully benefit from a fee-based account, given that trades are part of the service package. Limited number Some fee-based accounts have a limit on the number of trades allowed in the account. of trades The maximum depends on the firm, and on the size and the type of account. Potential for neglect The continuing stream of income, regardless of time and effort put into the account, can lead an advisor to neglect the account. However, most advisors avoid this type of behaviour, as it would likely cause them to lose the client eventually. Extra fees In some limited circumstances, the client can be charged for extra costs, especially in programs where costs are not all-inclusive. Investments with a trailer fee (such as structured products and mutual funds) have fees or commissions buried into their price, so clients pay an additional fee on top of the fee charged on the account. However, recent regulatory oversight and enforcement of disclosure requirements has effectively mitigated this practice. The two broad categories of fee-based accounts are managed accounts and non-managed accounts. MANAGED FEE-BASED ACCOUNTS 2 | Compare the features, advantages, and disadvantages of the various types of managed fee-based accounts. Managed accounts have become a significant part of the investment services available in the marketplace. Clients elect to have licensed portfolio managers make investment decisions at their discretion and execute them on the client’s behalf. The portfolio manager uses his or her particular expertise to make suitable investment decisions for the client. Managed accounts can be solicited by investment dealers and typically have various features in common. Professional investment The manager is a licensed portfolio manager with trading authority over the account. management Assets within the The client has direct ownership of the investments within the account. The assets account held exclusively are not pooled, as they are with a mutual fund, and the investment management is for the client provided to the client—not to the trust. A package of services At the basic level, a package may include the following services: trading; rebalancing; custody of the assets; operations to support the client, advisors, and portfolio managers; and specialized reporting for clients. Services beyond Beyond investment management, services may include wealth management and investment financial planning. management An investment policy The investment policy statement allows the client to specifically outline how the assets statement within the accounts are to be managed, and to name any special considerations. © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 5 Greater transparency Disclosure of investment management activities include supplemental quarterly reports and a year-end summary. The summary often provides market and economic commentary from the portfolio managers, performance charts, tables and portfolio composition, respective gains and losses per security, and a fee-based summary. Additionally, these types of accounts include a bundled fee to cover a package of related services. However, fees paid for managed accounts differ in the following ways from the management expense ratio that is commonly charged on mutual funds: Fees are tax deductible for non-registered accounts. Depending on the client’s assets, the fees tend to be lower than on mutual funds. Unlike standardized fees on mutual funds, the fee on managed accounts is negotiable. In most cases, it is based on the size of the client’s assets and the required services. All fees on a managed account are transparent; they are clearly reported and charged separately to the client. DID YOU KNOW? A discretionary account is one where the client chooses to give discretionary authority on a temporary basis. Unlike a managed account, discretionary accounts must not be solicited. Clients must clearly indicate their reasons for requesting the discretion, such as in the case of illness or temporary absence from the country. Discretionary authority is valid for a maximum term of twelve months. A discretionary account must be specifically authorized, approved, and accepted as such, in writing, by a designated supervisor. Both the client and the dealer member must sign a discretionary account agreement, which includes any restrictions to the trading authorization. Within the category of managed accounts, clients have several alternatives, depending on their desired level of customization and amount of investable assets. Figure 25.1 shows the various types of services in ascending order of product sophistication. Figure 25.1 | Types of Fee-Based Accounts Private family offices Product Sophistication Household accounts Separately managed accounts Advisor-managed accounts Mutual fund wraps and exchange-traded fund wraps Minimum Account Size © CANADIAN SECURITIES INSTITUTE 25 6 CANADIAN SECURITIES COURSE      VOLUME 2 EXCHANGE-TRADED FUND WRAPS AND MUTUAL FUND WRAPS The most basic services offered within managed accounts are exchange-traded fund (ETF) wraps and mutual fund wraps. EXCHANGE-TRADED FUND WRAPS Exchange-traded fund wraps are often directed by a single portfolio manager who creates the model for a specific managed account. The managed account holds a basket of ETFs for security selection. The underlying ETFs tend to be passive in the investment management. The added value comes from the asset allocation and the geographic, currency, and sector selection. This extra service can follow either a passive or active approach. Passive approach The portfolio manager determines the optimal asset allocation and establishes the portfolio, with ongoing rebalancing back to the set asset mix. Active approach The portfolio manager again determines the optimal asset allocation, but then applies a short-term tactical approach by actively overweighting or underweighting the sector and the client’s asset allocation. The manager has greater discretion in rebalancing the portfolio to take advantage of changing market conditions. The active management approach has the following key advantages: Client fees are relatively low because the lower cost of the underlying investment management is low, compared to other types of managed accounts. The portfolio manager provides expert evaluation of ETFs to determine which ones are best able to fulfill the investment mandate. This service is done directly within the client’s account. A selection of standardized asset allocation models is available to meet the many needs of investors. There is greater ability to hedge currency exposure within the portfolio, given the choice of hedged or unhedged ETFs. Because the portfolio manager researches and trades securities daily, the advisor can focus more time on financial planning, estate management, and other wealth management services. The firm normally provides its advisors with marketing support. MUTUAL FUND WRAPS Mutual fund wraps are established with a selection of individual funds managed within a client’s account or accounts. Mutual fund wraps differ from funds of funds because clients hold the actual funds within their account, whereas a fund of funds simply invests in other funds and investors hold units of the fund of funds. In most cases, a separate account is established for the client and the selected funds are held inside that dedicated account. The composition and weighting of individual funds within the account are directed by an overlay manager. The investment management of the underlying funds is conducted by sub-advisors. Overlay managers play an active role by rebalancing the client’s holdings back to their target asset mix, or by adding and removing funds based on the quality of the investment management or their views on the market. DID YOU KNOW? The overlay manager is the portfolio manager of record. In other words, the overlay manager is the person or group responsible for investing the assets, implementing the investment strategy, and carrying out the day-to-day management of the portfolio. © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 7 Mutual fund wraps have the following key advantages: A coordinated investment account optimized on the asset allocation and selection of managers. A selection of standardized asset allocation models to meet the many needs of investors. The ability to hedge currency exposure within the portfolio, given the choice of hedged or unhedged mutual funds. Ongoing oversight management of the funds. ADVISOR-MANAGED ACCOUNTS As with other types of managed accounts, advisor-managed accounts give discretion to another person to make investment decisions on the client’s behalf. The advisor who services this type of account also manages its investments and must be licensed as a portfolio manager. The actual securities are held within the client’s account in amounts that follow the advisor’s portfolio model. The portfolios offered tend to focus on the advisor’s area of expertise and take advantage of the advisor’s skills in either fundamental or technical analysis. In each case, the advisor determines the client’s risk profile and establishes a portfolio that aligns with a suitable model. The model portfolios are often guided by the firm’s security selections and portfolio construction. An advisor-managed program offers the following key advantages: The cost may be lower because no other parties are involved with the account. The advisor understands the specific client’s needs and applies a tailored investment management approach. Some programs permit client accounts to exclude certain securities. In some cases, the program allows for tax loss selling. DID YOU KNOW? Tax loss selling involves a temporary deviation from the model portfolio. The purpose of tax loss selling is to realize a capital loss to offset some of the gain for the benefit of a specific client. Advisors as portfolio managers use two types of programs to service their clients. Model-based account This refers to the ongoing programs under which investment advisors manage their management clients’ portfolios. These programs tend to use model portfolios, which are applied to similar clients but tailored to the needs of the specific client. With many models to select from, some customization for unique needs can be applied. Non-model-based These programs are typically used temporarily when clients are unwilling or unable to account management tend to their own accounts. They are used, for example, when clients are ill or absent from the country. Given the short-term nature of the programs, the advisors tend not to use a model portfolio. Instead, they simply monitor an existing account of securities. SEPARATELY MANAGED ACCOUNTS As investors’ assets grow, so do their choices in investment programs. Depending on their needs, clients can opt for an external portfolio manager to have control over the investments held directly in their individual accounts. Instead of being held in a mutual fund or a pooled account, assets are held separately, which is why these accounts are often called separately managed accounts (SMA). © CANADIAN SECURITIES INSTITUTE 25 8 CANADIAN SECURITIES COURSE      VOLUME 2 With this type of account, the external portfolio manager (called the sub-advisor) controls the holdings based on a portfolio model. As the sub-advisor makes investment decisions, the actual securities are debited and credited to the client’s dedicated account within the firm. Because the client holds the underlying securities, the portfolio models can be set to exclude investments or sectors in which the client prefers not to invest. In addition, each investor’s distinctive tax situation can be taken into consideration. Even though the sub-advisors manage hundreds of client accounts, their clients are able to tailor their holdings because they are held separate from all other clients’ investments. SMAs have the following key advantages: They provide access to dedicated and sophisticated external portfolio managers. Supplemental reports collectively report on the performance of each separate account. The performance is specific to the investor and to other factors in the holdings. Reports show when the holdings are purchased and sold, and when specific securities are deposited to and withdrawn from the accounts. The client directly holds the securities in an SMA, whereas assets in a fund run by external portfolio managers are pooled. This key difference means that the needs and wants of investors with SMAs can be catered to separately. DID YOU KNOW? Different investors have different views on the markets, with some wanting to hold and others wanting to sell. With SMAs, clients who want to hold avoid the risk of being forced to sell positions to meet the cash needs of other investors. Moreover, they avoid the related potential capital gain distributions for tax purposes. An SMA with an external portfolio manager can be either a single-mandate or a multi-mandate managed account, also called a unified managed account (UMA). SINGLE-MANDATE SEPARATELY MANAGED ACCOUNTS Single-mandate managed accounts are directed by a single portfolio manager (or team of managers). These sub- advisors focus considerable time and attention on selecting securities, the sectors to invest in, and the optimal asset allocation. They often maintain a model portfolio and then execute bulk purchases and sales based on their investment decisions. They then allocate the sales and purchases to their respective clients’ accounts. Some programs permit clients to exclude securities they do not wish to invest in for ethical, social, or other reasons. Clients also benefit from the manager’s use of tax loss selling. The key advantage of these accounts is that they can offer clients access to dedicated and sophisticated institutional portfolio managers while maintaining a relationship with their advisor. The challenge occurs when two mandates are required to meet a client’s investment objective. In such cases, each objective would require a separate account to house that portfolio manager’s model. In addition, investors cannot co-mingle non-managed stocks or bonds in a managed account that is dedicated to a specific mandate. MULTI-MANDATE MANAGED ACCOUNTS With multi-mandate managed accounts, the overlay manager consolidates a client’s investments within a collection of dedicated accounts (the UMA) and provides oversight. The UMA reflects the optimal asset mix that best mitigates risk, while helping to attain the client’s overall investment objectives. It offers clients and their advisors more choice in terms of products and services in one account. These accounts provide access to a dedicated group of sophisticated institutional portfolio managers, who are considered sub-advisors to the overlay manager. © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 9 These managers often align clients with two or more portfolio models, with each model representing a component of the client’s greater diversified holdings. DID YOU KNOW? Account holdings can be subdivided into different portions known as sleeves. Each sleeve may hold securities to which different management strategies are applied. ROLE OF THE OVERLAY MANAGER IN A MULTI-MANDATE MANAGED ACCOUNT Overlay managers play the following key roles in the management of their clients’ portfolios: They conduct ongoing due diligence reviews of each of the underlying portfolio managers (the sub-advisors). As managers of managers, they set the evaluation metrics for ongoing evaluations, evaluate new managers, and remove poorly performing managers from the program. They set the overall optimal asset mix and the proportions for each sub-advisor, which allows the advisors to maximize performance and mitigate risk for each client. Clients can also customize the investment portfolio to suit their needs as they move through the various life stages. The customized asset mix is then administered by the overlay manager. They conduct ongoing monitoring of the client’s investments and the composition of the overall investment portfolio. They coordinate the efforts of the sub-advisors and sometimes conduct rebalancing. They provide market insight to advisors and coordinate the views of the sub-advisors. They also reflect on the broader picture of the markets and convey this knowledge to the advisors and their clients. DID YOU KNOW? The professional oversight of multi-manager accounts provides high-net-worth clients with greater confidence in their investment programs. They know that the overlay manager is continually monitoring the sub-advisors to ensure that their money management is on track with the stated objectives. Overlay managers work in a partnership with the advisor—a partnership in which the advisor retains the client’s assets. This arrangement provides a superior offering for the client because it incorporates an existing relationship with a trusted advisor. The primary advantage of multi-manager accounts is the direct access clients have to a dedicated and sophisticated group of industry professionals. For clients, this access provides a coordinated approach to managing their assets in one account. More importantly, however, it allows advisors to change their business model. They can redirect time previously spent on research and security selection to focus on the complex wealth management needs of their high-net-worth clients. The fees for multi-manager accounts cover the underlying investment management, the oversight functions of the overlay manager, custody, and the various aspects of wealth management and financial planning. HOUSEHOLD ACCOUNTS The household account is a concept that is still being defined. However, many industry experts are working toward providing this holistic level of service to high-net-worth clients. Household accounts are a type of separately managed account that involve the coordination of holdings across a family or household. In this approach, one overall portfolio model is used to coordinate investment management within and across accounts for the family or the household. This application can provide better tax management and © CANADIAN SECURITIES INSTITUTE 25 10 CANADIAN SECURITIES COURSE      VOLUME 2 inclusion of all of the holdings, regardless of size or format of the account. In a Canadian setting, the ideal account would take a balanced portfolio model and allocate the fixed-income position within a registered retirement savings plan, the equities in a Canadian cash account, and the international equities in a U.S. cash account. PRIVATE FAMILY OFFICE A private family office is an extension of the advisor-managed approach. In this approach, instead of having only one advisor, a team of professionals handles all of a high-net-worth client’s financial affairs within one central location. The client’s portfolio may include investments, trust and estates, philanthropy, corporate planning, tax planning and filing, legal work, and basic account servicing, including bill paying and other services. The investment management is unique for each family. This account is managed by institutional portfolio managers, similar to the managing of pensions. Generally, access to a family office is for clients with more than $50 million in an account. Typically, this service is conducted for a fee on the assets under management. The private family office has two key advantages: High-net-worth clients are completely free to concentrate on matters other than their financial affairs. Given that all professionals are concentrated in one service, they are aligned with the recommendations on the client’s investments, taxes, legal matters, estate, and corporate needs. DOCUMENTATION FOR MANAGED ACCOUNTS Managed accounts grant discretionary authority on an ongoing basis; in other words, it is a permanent, rather than a temporary, arrangement. Dealer members must be approved by the Canadian Investment Regulatory Organization (CIRO) to handle managed accounts and must be compliant with all the requirements detailed in CIRO rules. In order for the dealer member to approve a managed account, the client must sign a managed account agreement, and the dealer member’s designated supervisor must accept it. The managed account agreement must also clearly indicate the client’s investment objectives for this account. Furthermore, the client must be provided with a copy of the dealer member’s procedures to ensure the fair allocation of investment opportunities among managed accounts. Each managed account must be reviewed on a quarterly basis by a designated supervisor to ensure that the investment objectives of the client are diligently pursued. Moreover, the managed account must be conducted in accordance with the applicable regulations. Reviews may be conducted on an aggregate basis, where decisions are made centrally and applied across a number of accounts. For discretionary and managed accounts, both the client and dealer may terminate the account agreement as long as the request is submitted in writing. Clients may terminate the agreement at any time, but if the dealer member is terminating the agreement, the client must be given at least 30 days’ notice. It is important to note that regulation and oversight of discretionary and managed accounts is constantly evolving; you must therefore stay informed of all changes. In managed accounts, discretionary authority may not be exercised by a dealer member, or by any person on a dealer member’s behalf, unless the person responsible for the management of the account is designated and approved as a portfolio manager. © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 11 NON-MANAGED FEE-BASED ACCOUNTS 3 | Describe the various types of non-managed fee-based accounts. Non-managed fee-based accounts are either full-service brokerage accounts or self-directed accounts. FULL-SERVICE BROKERAGE ACCOUNTS Fees for full-service brokerage accounts provide clients with financial planning services, combined with a fixed or unlimited number of trades. The services are bundled under a fee charged on the client’s assets under management. Fees range from 1.0% to 2.5% of the assets under management. In most cases, the annual fee is paid quarterly out of cash held in the account. The amount depends on the following criteria: Dollar size of account Estimated number of trades Type of investment (e.g., equity, bond, money market, mutual fund, or guaranteed investment certificate) Ancillary services provided (e.g., financial planning, estate planning, and wealth management) Some investment dealers offer two levels of fee-based accounts. The higher level typically offers a higher or unlimited number of trades. SELF-DIRECTED BROKERAGE ACCOUNTS In recent years, self-directed brokerage firms have begun to offer fee-based accounts. In the past, these firms provided online trading at lower cost for accounts of all sizes. The new fee-based model builds on this base by servicing lower minimum account sizes, often at a lower cost. The firms are able to provide this service by changing the advisor’s role from the traditional one-to-one approach to a one-to-many, technology-based model. This area of service is new and evolving. Not all self-directed brokerage firms currently offer these services, and the programs they do offer differ from firm to firm. Generally, their fee-based services fall into the following two categories: Direct security and asset mix guidance Robo-advisory services DIRECT GUIDANCE Investors using the direct guidance model are provided with the following bundled services: Unlimited trading Tools to build and monitor an asset allocation Investment recommendations, alerts, and reminders provided by a research program or provider This service is targeted at investors who want advice from an investment advisor but do not require financial planning, wealth management, or other full-service offerings. This approach is more expensive than traditional self- directed investment, given the added level of support. However, it still provides a cost-efficient alternative, because trading and account costs are included in the package. ROBO-ADVISORY SERVICES The term robo-advisor describes a recent investment model. Currently, this one-to-many service builds on the concept of ETF wraps, using those securities to build an asset mix. The key difference is that the role of the advisor is done remotely and mostly online. © CANADIAN SECURITIES INSTITUTE 25 12 CANADIAN SECURITIES COURSE      VOLUME 2 Robo-advisory services have several advantages and disadvantages, as described below. Advantages They cost less than traditional managed accounts because support and advice are provided on a one-to-many basis. In addition, the services use low-cost ETFs to build an asset mix. Many investors (particularly young investors) prefer online services over the traditional relationship-based model. Minimum account sizes are lower than traditional accounts. Disadvantages The one-to-many service approach may not appeal to high-net-worth investors. Financial planning and wealth management services are often supported by technology that is in the early stages of development. Local service is limited; service for the most part is provided online. Because the service is new and evolving, it has not gone through a major market correction. FEE-BASED ACCOUNTS Can you differentiate between the various types of fee-based accounts that have emerged over the past several years? Complete the online learning activity to assess your knowledge. KEY TERMS & DEFINITIONS Can you read some definitions and identify the key terms from this chapter that match? Complete the online learning activity to assess your knowledge. © CANADIAN SECURITIES INSTITUTE  CHAPTER 25      FEE-BASED ACCOUNTS 25 13 SUMMARY In this chapter, we discussed the following key aspects of fee-based accounts: The fee-based account model bundles various services and charges a fee based on the client’s assets under management. Typically, these accounts are owned by high-net-worth clients. The two broad categories of fee- based accounts are managed accounts and non-managed accounts. Managed fee-based accounts offer professional portfolio management services, whereby the manager has discretionary authority over the account. These accounts typically charge a bundled fee to cover the various services included in the package of related services. Within the category of managed accounts, clients have the following alternatives, depending on their desired level of customization and amount of investable assets: Mutual fund and ETF wraps are the most basic services offered within managed accounts. The underlying ETFs in an ETF wrap tend to be passive in the investment management. The added value comes from the asset allocation and the geographic, currency, and sector selection. Mutual fund wraps are established with a selection of individual funds managed within a client’s account. In most cases, a separate account is established for the client and the selected funds are held inside that dedicated account. With advisor-managed accounts, the advisor is a licensed portfolio manager who manages the client’s investments. The actual securities are held within the client’s account in amounts that follow the advisor’s portfolio model. The portfolios offered tend to focus on the advisor’s area of expertise. With SMAs, an external portfolio manager (called the sub-advisor) has control over the client’s investments, which are held directly in their individual accounts, rather than in pooled accounts. Even though the sub- advisors manage hundreds of client accounts, their clients are able to tailor their holdings because they are held separate from all other clients’ investments. Household accounts involve the coordination of holdings across a high-net-worth family or household. With private family office accounts, a team of professionals handles all of the high-net-worth client’s financial affairs within one central location. Among other regulatory requirements for managed accounts, discretionary authority must be given by the client in writing and accepted in writing by the designated supervisor. Non-managed fee-based accounts are either full-service brokerage accounts or self-directed accounts. Fees for full-service brokerage accounts provide clients with financial planning services combined with a fixed or unlimited number of trades. Self-directed fee-based services fall into two categories: direct guidance and robo-advisory services. Direct guidance is targeted at investors who want advice from an investment advisor but do not require financial planning, wealth management, or other full-service offerings. Robo-advisors provide a one-to-many service that builds on the concept of ETF wraps, using those securities to build an asset mix. The role of the advisor is done remotely and mostly online. REVIEW QUESTIONS Now that you have completed this chapter, you should be ready to answer the Chapter 25 Review Questions. FREQUENTLY ASKED QUESTIONS If you have any questions about this chapter, you may find answers in the online Chapter 25 FAQs. © CANADIAN SECURITIES INSTITUTE