Item 5: Fees & Compensation
Compensation for Our Advisory Services
Comprehensive Portfolio Management:
The maximum annual fee charged for this service will not exceed 1.85%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro-
rata basis monthly in advance based on the value of the account(s) on the last day of the previous
month. Fees will be deducted from client account(s). Adjustments will be made for deposits and
withdrawals during the quarter. Unless indicated otherwise in writing, our firm bills on cash. Our
firm does not offer direct invoicing. As part of this process, Clients understand that prior to having
fees deducted via a qualified custodian, BDAP:
a) Possess written authorization from the client to deduct advisory fees from an account held
by a qualified custodian;
b) Send the qualified custodian written notice of the amount of the fee to be deducted from the
client’s account;
c) Send the client an itemized invoice including any formulae used to calculate the fee, the time
period covered by the fee, and the amount of assets under management on which the fee was
based.
If a client refers a prospective client to our firm, our firm will aggregate the household of the current
client with that of the referred client, and both clients will be charged at the tier the aggregate asset
value places them in. Employees and their family members, friends, and legacy Advisory Clients may
ADV Part 2A – Firm Brochure Page 6 Black Diamond Advisory Partners
be charged a reduced advisory fee or no advisory fee at all. For more information, we encourage you
to discuss with our firm at onboarding.
Financial Planning & Consulting:
Our firm charges on an hourly basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $350. Our firm
requires a retainer of 50% of the ultimate financial planning or consulting fee at the time of signing.
The remainder of the fee will be directly billed to the client and due within 30 days of a financial plan
being delivered or consultation rendered. Our firm will not require a retainer exceeding $500 when
services cannot be rendered within 6 months.
Retirement Plan Consulting:
Our Retirement Plan Consulting services are billed on a fee based on the percentage of Plan assets
under management. The total estimated fee, as well as the ultimate fee charged, is based on the scope
and complexity of our engagement with the client. Fees based on a percentage of managed Plan assets
will not exceed 0.85%. The fee-paying arrangements will be detailed in the signed consulting
agreement.
Portfolio Monitoring:
The maximum annual fee charged for this service will not exceed 0.25%. Annualized fees are billed
on a pro-rata basis monthly in advance based on the value of the account(s) on the last day of the
previous month. Fees will be adjusted for deposits and withdrawals made during the quarter. Clients
will be directly billed for our portfolio monitoring service according to the terms outlined in their
executed agreement.
Other Types of Fees & Expenses
Clients will incur transaction fees for trades executed by their chosen custodian, either based on a
percentage of the dollar amount of assets in the account(s) or via individual transaction charges.
These transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Charles Schwab & Co., Inc. (“Schwab”) does not charge transaction fees for U.S. listed
equities and exchange traded funds.
Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses), mutual fund
sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified retirement plan
fees, mark-ups and mark-downs, spreads paid to market makers, fees for trades executed away from
custodian, wire transfer fees and other fees and taxes on brokerage accounts and securities
transactions. Our firm does not receive a portion of these fees.
Termination & Refunds
Either party may terminate the advisory agreement signed with our firm in writing at any time. Upon
notice of termination our firm will process a pro-rata refund of the unearned portion of the advisory
fees charged in advance.
ADV Part 2A – Firm Brochure Page 7 Black Diamond Advisory Partners
Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in effect.
Clients will receive a pro-rata refund of unearned fees based on the time and effort expended by our
firm.
Either party to a Retirement Plan Consulting Agreement may terminate by providing thirty days
written notice to the other party. Full refunds will only be made in cases where cancellation occurs
within 5 business days of signing an agreement. After the initial 5 business days following the
execution of the agreement, either party must provide the other party 30 days written notice to
terminate billing. Billing will terminate 30 days after receipt of termination notice. Clients will be
charged on a pro-rata basis, which takes into account work completed by our firm on behalf of the
client. Clients will incur charges for bona fide advisory services rendered up to the point of
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