Item 5. Fees and Compensation
A. Basis of Compensation: The Advisor offers investment advisory management and
asset consulting services. Investment advisory management services ("Investment Management")
are compensated (the "Management Fee") by a percentage of the market value of assets under
management (“Managed Assets”) as set forth in a written Investment Advisory Management
Agreement between the Client and the Advisor (the “Investment Management Agreement”). The
Management Fee is generally an annual fee of 1% of the market value of the Managed Assets held
in a custodial brokerage account (a “Custodial Account” or “Brokerage Account”) by a third-party
broker-dealer (“Custodian”) unrelated to Advisor, but may be negotiated based on unique
circumstances. The Custodian may be a Designated Broker, as that term is defined in Item 12.A.
The Management Fee on Managed Assets held in a Custodial Account is paid quarterly, either in
advance or in arrears, depending upon the terms of the investment advisory agreement.
The Advisor also offers asset advisory and consulting services (the “Consulting Services”) with
respect to Client assets other than securities held in a Custodial Account with a Designated Broker
(each, a “Client-Managed Account”), and/or with respect to Client assets that are not securities.
Consulting Services may include financial planning, investment consulting and retirement plan
consulting services. Advisor's fees for Consulting Services are typically fixed fees (“Consulting
Fees”), the amount and timing of payment of which are determined based on a number of
circumstances, including the value and number of the assets and securities accounts managed by
the Client (which may include pledged and margin accounts), the amount and nature of research
required to complete the consult, the frequency of Client contact and the number of reports
requested by the Client as set forth in the written Investment Advisory Consulting Services
Agreement between the Client and the Advisor (the “Investment Consulting Agreement”).
Depending on the Consulting Services requested by the Client, the Advisor may charge a flat fee
(at the discretion of the Advisor), but no less than $100 for any such account as set forth in the
Investment Consulting Agreement. The Consulting Fees may be higher in those instances where
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FORM ADV - Part 2
Investment Advisor Brochure - Colley Asset Management, Inc.
Client requests are more comprehensive. Consulting Fees are for investment advisory consulting
services and incidental planning only and do not include any transaction or other fees which may
be charged separately, and not by the Advisor, in connection with the Client-Managed Account.
B. Method of Fee Collection: (i) Management Fees. The Client may authorize the
Advisor to directly deduct the Management Fee from the Client's Brokerage Account in
accordance with the terms of the Client's Investment Management Agreement and the Client's
agreement with its Custodian. The Management Fee is generally deducted quarterly, but may be
deducted more or less frequently upon the Client's request. In the event the Client authorizes the
Advisor to directly deduct the Management Fee from the Client's Brokerage Account, the Advisor
sends invoices to the Client's account Custodian(s), authorizing the quarterly deduction of the
Advisor's fee pursuant to the terms of the Client's Investment Management Agreement. In which
case, the Advisor also provides the Client with a copy of the invoice. A Client may also choose to
pay Management Fees to the Advisor directly, instead of having such fees withdrawn from the
Client’s Brokerage Account, in which case the Client receives a billing invoice from the Advisor
quarterly or annually. (ii) Consulting Fees. At the option and direction of the Client and in
accordance with the terms of the Client's Investment Consulting Agreement, Consulting Fees may
be paid by (a) the Client authorizing such fees to be deducted from a Client-Managed Account and
paid to the Advisor in accordance with billing information prepared and submitted to the custodian
of the Client-Managed Account by the Advisor, or (b) the Client electing to pay the Advisor
directly. In all cases, Consulting Fees (and the Advisor's Management Fees) are in addition to fees
that may be charged by the Client's Brokerage Account Custodian.
C. Other Fees and Expenses: Currently, the Advisor does not charge any other fees to
or impose any other expenses that are not described in this Brochure. The Advisor reserves the
right to adjust the fees as the Advisor deems appropriate depending on the overall facts and
circumstances of the Client relationship (e.g., change in dollar amount of assets to be managed,
account composition, anticipated future additional assets), as agreed upon by the Client and set
forth in the written Investment Management Agreement or Investment Consulting Agreement, as
the case may be.
D. Timing of Fees: Management Fees are charged either on a quarterly or annual basis
and billed either in advance or in arrears in accordance with the Investment Management
Agreement. Fees for Consulting Services are billed pursuant to the client’s Investment Consulting
Agreements.
E. Commissions: The Advisor's principal, John E. Colley (the “Principal” or “Mr.
Colley”), does not receive a commission for the sale of securities or other investment products.
The Advisor currently does not have any “supervised personnel” (as defined by the SEC).