Compass Financial Advisory Services LLC

Item 5 – Fees and Compensation
Investment Management
Fees are paid quarterly and will generally not exceed 1% of assets under management unless the scope,

 Disclosure Brochure

complexity, amount of time or expertise required warrant a higher fee. Asset Management Fees are charged in
arrears based on the first full quarter as follows:

                     November, December and January          billed end of February
                     February, March and April               billed end of May
                     May, June and July                      billed end of August
                     August, September and October           billed end of November

   •     Clients will receive at least quarterly statements from the Custodian that provides details of the advisory
         fees.

   •     Asset management fees are exclusive of and in addition to, brokerage fees, transaction fees, and other
         related costs and expenses.

   •     The firm will not have the authority or responsibility to value portfolio securities.

Mutual Fund Share Class Disclosures
Compass Financial Advisory Services, LLC strives to select the lowest cost share class available; however, certain
mutual fund share classes charge a 12b-1 fee that generally amounts to an additional .25% expense ratio or
more. The purpose of 12b-1 fees, as approved by the SEC, are to cover marketing expenses and shareholder
services such as support services and “other expenses” such as legal, accounting and the administrative functions
of the custodian. When selecting a mutual fund, Investment Advisor Representatives have a fiduciary duty to
choose the share class that helps manage the overall fee structure of the account. The entire fee structure
includes such fees as the asset management fee, the expense ratio and ticket charges.

     •    Mutual funds typically offer multiple share classes, including lower-cost share classes that do not
          charge 12b-1 fees and are therefore usually less expensive.

     •    Investment Advisor Representatives will consider investing Client funds in 12b-1 fee-paying share
          classes even when a lower-cost share class is available as appropriate to account for the overall fee
          structure and tax considerations as well as attributes of a fund not available for lesser fees.

Financial Planning
Financial planning is offered at no cost and no obligation to determine the appropriate fee-based planning
service to be considered.

Compensation for Sales of Securities
Compass Financial Advisory Services, LLC does not receive commission compensation for advisory services.

 Disclosure Brochure

Compensation for the sale of Insurance Products
Investment Advisor Representatives of Compass Financial Advisory Services, LLC can receive commissions and
other compensation from insurance companies and insurance intermediaries for the sale of insurance products.
Commission rates differ from product to product and carrier to carrier. In addition to commissions, Compass
Financial Advisory Services, LLC and its representatives can also receive marketing support, reasonable meals
and entertainment, and costs to attend training, conferences, and events hosted by insurance companies and
third-party marketing organizations that are contracted with and receive compensation from the insurance
company.

Insurance commissions and other benefits are significant sources of compensation and are paid separately from
advisory fees on assets in a client’s managed securities account. Commissions are generally paid up-front, at
the time of sale, unlike asset-based fees which are paid periodically over the course of the relationship. This
amount and form of insurance compensation creates a conflict of interest in that Investment Advisor
Representatives in their individual capacity as insurance agents are incentivized to recommend insurance
products based on the compensation received rather than on a client’s needs.

Investment Advisor Representatives in their individual capacity of insurance agents are not required to offer the
products of a specific insurance company. Any compensation received is separate from, and does not offset
regular advisory fees. Compass Financial Advisory Services, LLC does not charge advisory fees on insurance
products. Clients are under no obligation to implement any recommendations, and have the option to implement
such recommendations through brokers or agents of their choice.

Compass Financial Advisory Services, LLC addresses the conflict of interest related to insurance products sales
by requiring its Investment Advisor Representatives to act in the best interest of the client, including when
acting as insurance agents. Compass Financial Advisory Services, LLC and insurance-licensed Investment
Advisor Representatives employ a process of analyzing each customer’s financial situation, needs, goals and
risk profile for the purpose of making recommendations that are based on an objective evaluation of each
Client’s best interest rather than on the receipt of any commissions or other benefits. Compass Financial
Advisory Services, LLC will disclose in advance how it or its supervised persons are compensated and will
disclose conflicts of interest involving any advice or service provided. At no time will an advisory client be
required to use the insurance or other services recommended by Compass Financial Advisory Services, LLC.

Other Fees and Expenses
Clients will pay the following separately incurred expenses, which we do not receive any part of: 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). If a Client’s assets are invested in mutual
funds or other pooled investment products, Clients should be aware that there will be two layers of advisory fees
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Item 7 – Types of Clients
The advisory services offered by Compass Financial Advisory Services, LLC are available for individuals,
individual retirement accounts (“IRAs”), and profit-sharing plans, including plans subject to Employee
Retirement Income Security Act of 1974 (“ERISA”) and other business entities.