Item 5: Fees & Compensation
How We Are Compensated for Our Advisory Services
Asset Management:
Assets Under Management Annual Percentage of Assets Charge
Assessed Quarterly
First $2,500,000 25 bps (0.2500%)
Next $2,500,000 15 bps (0.1500%)
$5,000,000 - $10,000,000 10 bps (0.1000%)
$10,000,000 & Above 7.5 bps (0.0750%)
Our firm’s annualized fees are billed on a pro-rata basis quarterly in arrears based on the value of
your account on the last day of the quarter. Adjustments will be made for deposits and withdrawals
during the quarter. Our firm bills on cash unless indicated otherwise in writing.
If we feel like the services requested are outside the normal and customary scope of services, we
reserve the right to charge additional fees. These fees would be agreed upon in writing, and in
advance of any type of work. See Value Add Service Fees below. Specific fee arrangements will be set
forth in your service agreement (“Agreement”) with us. Fees for our Asset Management service will
be automatically deducted from your managed account via the custodian.
Contemporaneously with the execution of the Asset Management Agreement, you will be asked to
sign an authorization that will allow the custodian of any of your account(s) to debit the account(s)
the amount of our service fees and remit the fee to us. The authorization will remain valid unless and
until we receive a written revocation of such authorization from you. In connection with this fee
deduction process, the custodian will send you a statement, at least quarterly, indicating all amounts
disbursed from the account, and the amount of advisory fees paid directly to us.
Value Add Service Fees:
For those services requested that are outside of the normal and customary scope of service, our firm
charges a flat fee 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. Flat
fees range from $1,000 to $100,000. Our firm requires a retainer of 50% of the ultimate financial
ADV Part 2A – Firm Brochure Page 6 Byron Financial, LLC
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 the completion of the services. The fee-paying arrangements will
be determined on a case-by-case basis and will be detailed in the signed consulting agreement. Our
firm will not require a retainer exceeding $1,200 when services cannot be rendered within 6 months.
Other Types of Fees & Expenses
In addition to our service fees, you may be assessed other fees by parties independent from us. You
may also incur, relative to certain investment products (such as mutual funds), charges imposed
directly at the investment product level (i.e. advisory fees, administrative fees, and other fund
expenses.) Brokerage fees/commissions charged to you for securities trade executions may be billed
to you by the broker-dealer or custodian of record for your account, not us. Any such fees are
exclusive of, and in addition to, our compensation. You will be solely and directly responsible for all
fees, including fees other than those we may bill directly to you. Our recommended custodian, Charles
Schwab & Co., Inc. (“Schwab”), does not charge transaction fees for U.S. listed equities and exchange
traded funds.
Termination & Refunds
We charge our advisory fees quarterly in arrears. If you wish to terminate our services, you need to
contact us in writing and state that you wish to cancel the advisory agreement. Upon receipt of a
proper notice of termination (“Termination Notice”) as described in the Agreement, we will proceed
to close out your account and charge you a pro-rata advisory fee(s) for services rendered up to the
point of termination. Specific fee arrangements will be set forth in your Agreement with us.
Commissionable Securities Sales
We do not sell securities for a commission in our advisory accounts.