Core Compliance Group LLC

Item 5 Fees and Compensation
Investment Management Fees and Compensation
CORE charges a fee as compensation for providing Investment Management services on your account
and/or other planning services. These services include advisory and consulting services, trade entry,
investment supervision, and other account maintenance activities. The custodian may separately charge
custodial fees, transaction costs, redemption fees, retirement plan and administrative fees or commissions.
See additional fee and expense information below.

The fee may also include Financial Planning and Consulting services if agreed upon. Advisory fees are
negotiable between CORE and the client, and the amount of the advisory fee will be as agreed upon in
writing between CORE and the client. The advisory fee assigned may be higher or lower than fees
charged by other investment advisors for similar services.

Advisory fees are billed quarterly in advance or arrears, depending on custodian, and calculated based on
the account’s market value on the last business day of the prior quarter. The initial advisory fee is due at
the beginning of the quarter following execution of this Agreement and will include the prorated fee for
the initial quarter in addition to the standard quarterly fee for the upcoming quarter. Additional deposits
and withdrawals will be added or subtracted from the account’s value which may lead to an adjustment of
the advisory fee. All assets under management will either be held with LPL Financial as custodian or will
be held with a third-party approved custodian.

Non-Wrap Fee Basis
If client engages CORE to provide investment advisory services for a fee, the annual investment advisory
fee shall be based upon a percentage (%) of the market value and type of assets. The annual advisory fee
for management services is a maximum of 2.0% and is based on a percentage of the market value of your
account, including cash holdings. The IAR may at their discretion, negotiate a fee with the client,
provided that fee falls below the maximum annual fee provided above.

Wrap Fee Basis
A Client investing in a Wrap Account pays a single annual fee, assessed quarterly as a percentage of
assets, for the active management of their account without incurring any additional commissions or
trading costs. CORE’s Wrap Fee Program is available on the SWMII platform provided by LPL
Financial. In a Wrap account, CORE and the associated IAR absorbs any fees resulting from the trading
activity within the account, therefore there is a potential conflict of interest for the IAR to assess a higher
fee than otherwise in a non-wrap account due to the additional expenses incurred. Clients who prefer
frequent trading would be most suitable for this program. CORE regularly reviews client accounts to
determine the ongoing suitability for a client within the wrap program. Clients in a wrap account may still
incur custodial fees for services such as wire transfer requests and account closure fees.

Clients participating in separately managed account programs of TPIA’s may be charged various program
fees in addition to the advisory fee charged by CORE. Such fees may include the investment advisory
fees of the TPIA, which may be charged as part of a wrap fee arrangement. In a wrap fee arrangement,
clients pay a single fee for advisory and other services. Client’s portfolio transactions may be executed
without commissions, markups or transaction charges in a wrap fee arrangement. In evaluating such an

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arrangement, the client should also consider that, depending upon the level of the wrap fee charged by the
TPIA, the amount of portfolio activity in the client’s account, and other factors, the wrap fee may or may
not exceed the aggregate cost of such services if they were to be provided separately. The current annual
wrap-fee range is generally between 2%-2.5%, which includes the advisory fee for management
referenced above. It is possible that certain client assets could incur additional advisory fees. We will
review with clients any separate program fees that may be charged on their accounts.

Although neither Client nor the CORE advisory representative pay a transaction charge for transactions in
the account(s), Client should be aware that CORE pays the custodian an annual administrative / asset-
based pricing fee based upon a percentage of assets under management within the CORE Program
account – this percentage is capped based on each advisory representatives’ individual underwriting
conducted at the time of joining CORE. Because CORE pays the Custodian an annual administration /
asset-based pricing fee in lieu of paying transaction charges, there is a conflict of interest. Client
understands that the cost to CORE of the annual administration fee may be a factor that he/she considers
when deciding how much of an annual advisory fee to assess to the account(s).

CORE Portfolio Services
This service is currently offered within the SWMI/SWMII platforms, as well as SAMI/SAMII platforms
for investment advisory representatives affiliated with LPL Financial. The annual program fee for CORE
Portfolio Services is generally 25% of the advisory fee assessed on the account. This fee is agreed upon
by both CORE and the IAR by signing the “Portfolio Management Agreement” prior to engaging in our
services. CORE’s fee is assessed as a reduction of advisor compensation, and not as an additional fee to
the client.

Example: Client Advisory fee = 1.35%. (25% of which will be paid to CORE for services)
(1.35% x 0.75) = 1.0125% Net Fee to Advisor, CORE retaining the remainder of the fee, or 0.3375%.

Although the Client does not directly pay this program fee, the client should be aware of this fee structure
as it may present a conflict for his or her advisor, who may be inclined to assess a higher advisory fee
than otherwise would be charged if the advisor were not utilizing the CORE Portfolio Service.
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Item 7 – Types of Clients
CORE offers investment advisory services to individuals, high-net-worth individuals, retirement plans,
corporations, LLC’s, profit sharing plans, trusts, and charitable organizations. CORE does not usually
require a minimum for establishing or maintaining a client’s account.