Fees and Compensation
AMS Plus (“AMS+”) Platform
AMS+ accounts are charged a Total Wrap Fee negotiated between the Client and the IAR, subject to a maximum annual rate of 2.0%. The Total Wrap
Fee is comprised of the Advisory Fee and an optional portion designated as a Strategy Fee.
The Total Wrap Fee is billed in advance on a quarterly basis based on the market value of the Assets in the Account as valued by the custodian and
may include prorated fees for assets deposited to the Account during the prior quarter. The Total Wrap Fee is a flat rate based on the amount of
assets in the account.
Upon payment, the Total Wrap Fee is divided as follows:
• If applicable, the optional Strategy Fee which is paid to the investment manager. Up to 100% of the Strategy Fee portion is paid to the
investment manager.
• Next, DFPG retains a portion of the Advisory Fee for administrative and other services.
• Finally, DFPG shares the remaining portion of the Advisory Fee with the IAR, based on the agreement between the IAR and DFPG. In
some instances, the same person may act as investment manager and IAR.
The Advisory Fee is negotiable based on several factors including the longevity of the account, the type of Client, whether the Client wishes to impose
restrictions on DFPG’s discretionary investment authority, the amount of assets under management with DFPG, and other business considerations.
Changes to fee schedules generally become effective the following billing cycle.
DFPG Managed Solutions (“DMS”) Platform
DMS accounts are billed by a DFPG-approved sub-advisor or third-party service provider. DMS accounts are charged a Total Wrap Fee, subject to a
maximum annual rate of 2.0%. The Total Wrap Fee is comprised of the Advisory Fee and a Management Fee.
The Total Wrap Fee is billed in advance on a quarterly basis based on the market value of the assets in the account as valued by the custodian and
may include prorated fees for assets deposited to the account during the prior quarter.
Upon payment, the fees are divided as follows:
• The Advisory Fee is paid to the IAR based on the agreement between the IAR and DFPG.
• DFPG retains a portion of the Management Fee for administrative and other services.
• The remainder of the Management Fee is paid to any sub-advisors or third-party investment managers directly or indirectly employed by
DFPG in the management of the account. In some instances, DFPG IARs may act as investment manager, and thus may receive a portion
of this Management Fee.
The Advisory Fee is negotiable based on several factors including, but not limited to, the longevity of the account, the type of Client, whether the
Client wishes to impose restrictions on DFPG’s discretionary investment authority, the amount of assets under management with DFPG, and other
business considerations. The Management Fee varies depending on the strategy selected.
Because multiple strategies with different fees may be combined as separate sleeves of a single account, the total blended rate applied to the account
may vary from the fee on any one sleeve within the account. Changes to fee schedules generally become effective the following billing cycle.
Member FINRA/SIPC 5 of 12 rv. 03/30/2023
AGREEMENT AND TERMINATION
The agreement for portfolio/investment management services shall continue in effect until terminated by either party by giving to the other party
written notice at least thirty (30) days prior to the date on which the termination is to be effective (“Effective Termination”), and any prepaid,
unearned fees will be promptly refunded. (The Client will be charged only a pro-rated portion of the pre-paid quarterly fee, calculated from the first
day in the quarter up until the date of Effective Termination.)
There will be no termination fee; however, Client accounts may be subject to a modest cost of reimbursement of fees, charged by the Custodian,
related to transferring the account(s) and the Custodian may impose a fee to close the account(s). Client has the right to terminate the contract
without penalty within five (5) business days after entering into the agreement. If the Client terminates the contract on this basis, all fees paid by the
Client will be refunded.
On the termination of the agreement, neither DFPG nor its IARs will have any obligation to recommend or take any action regarding the securities,
cash, or other investments in the account. If Client is a natural person, the death, disability, or incompetency of Client will not terminate or change
the terms of the agreement. However, Client’s executor, guardian, attorney in-fact, or other authorized representative may terminate the agreement
by giving written notice to the IAR.
ADDITIONAL FEES AND EXPENSES
In addition to the Total Wrap Fee that is inclusive of fees for portfolio/investment management, transaction costs, and custody, Clients may incur
other custodian fees and/or costs assessed by third parties and/or DFPG, such as transfer taxes, wire transfer and electronic fund fees, odd-lot
differentials, and other fees and taxes on brokerage accounts and securities transactions.
The Total Wrap Fee does not cover fees associated with assets that may be held in the same account (such as alternative investments) but are not
part of the selected Platform. It should be noted that certain mutual fund share classes may be subject to deferred sales charges and/or 12(b)-1 fees,
and other mutual fund annual expenses as described in each fund’s prospectus. Many mutual funds may have lower cost share classes that do not
charge some of these fees. The custodian may receive distribution or service (“trail”) fees from the sale of certain mutual funds (including money
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