Avantax Advisory Services Inc

Item 5: Fees and Compensation

AAS and its Advisors price services based upon various objective and subjective factors. As a result, AAS’ clients will
pay diverse fees and costs based upon, among other things, the complexity of the engagement, type of service(s),
investment products used, investment program and strategies employed, and other third-party-specific costs.
Clients may inquire at any time with their Advisor as to client-specific fees and costs. The information contained
in this Brochure cannot disclose every possible fee, expense and cost that a client may incur and is not intended to
be an exhaustive list. Rather, this section provides a description of the most commonly incurred fees, expenses and
costs associated with the products and services available through AAS. An Advisor or AAS, at the Advisor’s or AAS’
sole discretion, may pay any of these fees, expenses and costs or AAS, in its sole judgment, can choose to waive or
reduce the minimum initial investment amount or account minimums for its programs.

AAS and your Advisor are compensated in several ways, as described in this Brochure. Clients should be aware that
the receipt of economic and/or other benefits by AAS and its Advisors creates a conflict of interest and may
influence AAS’ choices for and your Advisor’s recommendations of investments, services, third-party investment
managers and TAMPs. Therefore, it is important that you understand how AAS and your Advisor are compensated,
as well as the other costs and conflicts of interest associated with the investments and services provided to you
through AAS and its Advisors.

Other brokerage account charges, such as stop payment fees, Fed Fund Wire Fees and margin interest will be
charged to your account when applicable; a list of those fees that may be charged are available on our website at
website at https://avantax.com/disclosures/account-fees-and-costs. These other brokerage account fees and
expenses defray our costs associated with such services and include a profit to AIS, our affiliated broker-dealer. The
additional compensation AIS receives represents a conflict of interest because AIS receives a financial benefit when
it provides services in connection with maintaining your account. This compensation, however, is retained by the
AIS [or Related BD] and is not shared with your Advisor, so your Advisor does not have a financial incentive to
recommend certain transactions or for the Related BD or Firm to provide such additional services.

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AAS will typically earn compensation for managing client accounts by charging you an advisory fee. This fee is called
an “assets under management” (AUM) fee. Essentially, this means that on a quarterly basis, we will charge you a fee
that is calculated as a percentage of the market value of the assets held within your advisory account.

Generally, AAS’ and your Advisor’s fees are negotiable on a client-by-client, account-by-account basis, subject to
applicable maximum fees as outlined in this Brochure. AAS and its Advisors offer a variety of services and manage
a broad range of client accounts with different mandates, fee structures and expenses. AAS’ Advisors charge differing
investment advisory fees based upon certain criteria (i.e., anticipated future earning capacity, anticipated future
additional assets, dollar amount of assets to be managed, related accounts, account composition, negotiations with
client, etc.). This is also a conflict of interest, as it creates a financial incentive for AAS’ Advisors to provide
preferential treatment to one account over others in terms of allocation of management time, resources, and
investment opportunities.

In addition to AAS’ and your Advisor’s fees, all clients will incur underlying investment expenses and, depending
upon the investments, services, and negotiated agreement, incur clearing and custody fees (“C&C Fees”), trade
execution costs (“Ticket Charges”), and other fees and expenses. This information, along with other information
regarding third-party fees, is described in the section entitled Other Expenses, Fees and Costs.

Note: Many of AAS’ advisory services are provided under “wrap fee” programs whereby the client pays a single fee,
based on a percentage of the managed assets, for investment advisory, portfolio management and trade execution.
Depending upon the investments, investment strategy, trading activity, and other factors, you (the client) may pay
more or less in fees and expenses. Refer to AAS’ Wrap Fee Program Brochure for a complete description of AAS’
wrap fee programs, including fees, costs and risks, as those are not described in this Brochure.

As referenced in Item 4 and as more fully described in Item 10, many of AAS’ Advisors are also registered
representatives of AAS’ affiliated broker-dealer, AIS, and/or licensed insurance agents with Avantax Insurance.
Brokerage services, insurance services and investment advisory services are different, and the fees charged for those
services are often separate. For example, your Advisor will earn investment advisory fees on an account managed
under a written agreement through AAS and, if applicable, in the capacity as a registered representative with AIS,
earn transaction-based compensation or commissions on brokerage services at AIS or insurance services through
Avantax Insurance. If your Advisor serves in multiple capacities, your Advisor has an incentive to recommend
investment products or services that create the greatest compensation for your Advisor. In addition to disclosing
these conflicts of interest, AAS has created and implemented a compliance and supervisory program to mitigate
such conflicts through the oversight of client accounts and investment advisory activities. AAS mitigates these
...

Item 7: Types of Clients

AAS’ wealth management advisory services are primarily designed for individuals, corporations and other businesses
that reside or are domiciled in the United States. This includes but is not limited to natural persons, high-net worth
individuals, custodial accounts (i.e., UGMA, UTMA), estates, corporations, limited liability companies (LLCs),
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partnerships, and trusts. All advisory and retirement planning clients are required to sign a written agreement with
AAS.

AAS’ IMS Flex Choice Non-Wrap minimum account size (based on the market value of the assets held in the
account) is $15,000. Upon a client’s request, as negotiated with the Advisor, and as accepted by AAS at AAS’ sole
discretion, advisory accounts may be associated or linked together (“Related Accounts”) to meet the program
minimum of $15,000 but each Related Account must have (and maintain) an account value of at least $5,000 (“Multi-
Account Management”). The MAM feature is used for Related Accounts across both taxable and non-taxable account
registrations to create a single portfolio that is managed in a more tax-efficient manner. All Related Accounts must
be in the same IMS Flex Choice program (discretionary and non-discretionary) to count toward the program
minimum.

AAS’ IMS Fee-Based Annuity Program is designed for an individual who wants on-going, sub-account investment
advice from the Advisor who is compensated through the on-going advisory fee through an annuity contract. AAS’
Fee-Based Annuity Program has no minimum account size (based on fair market value of the assets) to participate;
however, annuity contracts are subject to the issuing insurance company’s (or insurance carrier’s) terms and
limitations.

AAS’ Collateralized, Non-purpose Loan program is designed for individuals who are seeking short-term financing and
are willing to accept volatility/payback risk. The minimum account valuation, as determined by the Bank, to
participate in the program is currently $125,000.

AAS’ financial planning services are primarily designed for individuals and AAS’ financial planning programs and
services do not have minimum account or asset requirements.

AAS’ retirement solutions and RMS Program are primarily designed for qualified retirement plans (but not the plan’s
participants or government pension plans), governed by ERISA and/or the IRC. This includes but is not limited to
ERISA 403(b) Plan (single and multi-recordkeeping), Cash Balance Plan, Profit Sharing Plan, 401(k) Profit Sharing Plan,
401(k) Plan, 457 Plan, Money Purchase Plan, Defined Benefit Plan, 401(a) Plan, SIMPLE IRA, SEP IRA, Solo(k), and
Non-ERISA 403(b) Plan (single and multi-recordkeeping). The RMS Program is not designed for non-qualified plans.
All retirement plan clients are required to sign a written agreement with AAS. AAS’ retirement planning programs
and services do not have minimum account or asset requirements.

AAS does not design its programs or services for government entities2 or municipal entities3, and these types of
clients are generally prohibited by AAS, unless otherwise approved in writing by AAS’ compliance personnel.

AAS, in its sole judgment, can choose to waive or reduce the minimum initial investment amount or account sizes
for its programs. Custodian-sponsored programs, third-party investment managers, TAMPs, Platform Providers and
other third-parties may require different account eligibility requirements and/or minimum asset levels. These
additional requirements will be set forth in the information provided by the Advisor, including, but not limited to,
the applicable third-party’s disclosures or agreement(s).

  The term “government entity” carries the same definition found in Rule 206(4)-5 of the Investment Advisers Act,
as amended, and includes, but is not limited to, any agency, authority or instrumentality of the state or political
subdivision; a pool of assets sponsored or established by the state or political subdivision or any agency, authority
or instrumentality thereof, including but not limited to a defined benefit plan or a state general fund; and a plan or
program of a government entity

 The term “municipal entity” carries the same definition found in Section 15B(e)(8) of the Securities Act, as amended,
and includes, but is not limited to municipal corporate instrumentality of a State and any other issuer of municipal
securities.

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