Which statement about a trust institution's fee structure is correct?

The assertion that the fee structure of a trust institution is reviewed and approved periodically by the trust committee is accurate and reflects standard practices in the industry. Trust committees are responsible for overseeing the operations of the trust department, including the setting and reviewing of fees associated with their services. This process ensures transparency, accountability, and alignment with the institution's overall strategic goals.

Regular review of the fee structure helps ensure that it remains competitive and fair, taking into account changes in the market, shifts in client needs, and the institution's operational costs. By involving the trust committee in this approval process, the institution can adapt its fees to enhance profitability while providing value to its clients.

In contrast, the other statements do not hold true for a trust institution's fee structure. For instance, fees certainly do influence competition in asset management, as clients often compare fee structures among different institutions when choosing where to place their assets. Additionally, fees are a significant aspect of a trust institution's profitability, as they directly impact the revenue generated from trust services. Lastly, approval solely by shareholders is not standard practice, as the operational decisions such as fee structures are typically managed internally by committees and not directly by shareholders.