ITEM 5. FEES AND COMPENSATION
The following describes our fees so you will know how much you are charged and by whom for
our advisory services provided to you. Our fees are generally negotiable. Factors that impact
what we charge our clients may include but are not limited to:
Scope of services rendered
Complexity
Size
Number of plans / relationships with the client
Number of participants
Location of participants
Number of meetings required
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No other fee or expense is charged by FAAS to you for the services except those disclosed below.
Our fees will always be detailed in the signed written agreement between the client and FAAS.
Clients may incur certain charges imposed by custodians, brokers, and third-party managers or
other third parties that FAAS does not control. These charges can include such things as
deferred sales charges, transfer taxes, wire transfer and electronic fund fees, brokerage account
fees, and other fees, charges or taxes.
Upon engagement, the client has five (5) business days to terminate the contract and receive a
full refund of any fees collected in advance without penalty.
In the event that you wish to terminate our services in the future, we will refund the unearned
portion of our fee to you. You need to contact us in writing and state that you wish to terminate
our services. Upon receipt of your notice of termination, we will proceed to close out your
engagement and process a pro-rata refund of unearned fees.
Our fees may be charged in advance. Particularly complex plans may require prepayment of a
portion of the estimated fee for services. For lengthy engagements, interim payments may be
requested. We do not require nor do we solicit prepayment of more than $1,200.00 six months
or more in advance of completion of service. The remainder of the fee will be billed directly to
you and due to us within thirty (30) days of your financial plan being delivered or consultation
rendered to you. The total estimated fee, as well as the ultimate fee that we charge you, is
based on the scope and complexity of our engagement with you.
Consulting:
We charge on an hourly or flat fee basis for financial planning and consulting services. Our hourly
fees range from $75.00 to $175.00. The total estimated fee, as well as the ultimate fee that we
charge you, is based on the scope and complexity of our engagement with you. In addition, the
hourly fee charged by each IAR is determined by their experience, credentials and expertise. Your
estimated fees will be based on the estimated hours of the services agreed upon and will be
written in your Consulting Agreement. Any unearned fees will be returned. Examples of our fees
include:
Comprehensive Financial Planning: Up to $175.00 per hour (negotiable)
Administrative Services: Up to $75.00 per hour (negotiable)
Consulting Services: Up to $175.00 per hour (negotiable)
Investment Fiduciary and Retirement Plan Consulting:
Due to the wide variance in complexity and scope of our work with Retirement Plan sponsors,
as well as the requirements of Plan service providers, the method of billing and amount of fees
charged for these services is negotiable. We offer two different billing options for Plan Sponsors
at the Plan Level:
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Pay an asset-based fee of a percentage of the Plan assets, payable quarterly.
Pay an annual flat fee, payable quarterly or in one lump sum on a specific date agreed
to between Sponsor and FAAS
By default, our billing frequency is quarterly in arrears, but the Plan Sponsor can choose advance
fee billing with any unearned fees to be refunded. The Plan Sponsor may choose whether to pay
the fees from plan assets or from the Sponsor directly. Also, depending on a Plan’s third party
payor support, FAAS offers an option for direct billing.
For Separate or Additional Services:
One-time payment for Project-Based Services
First Year Transition Expense Fee
Fees for Investment Fiduciary and Retirement Consulting services are fully negotiable between
the FAAS IAR and the Plan Sponsor, but at no time will be greater than 2% of total plan assets.
Flat fees generally range from $500.00 to $20,000. The total estimated fee, as well as the
ultimate fee that we charge you, is based on the scope and complexity of our engagement
including the number of services and the specific services you select in your agreement (see Item
4 above). All fees will be discussed and agreed upon ahead of time and noted in your agreement.
Any unearned fees will be returned.
Other Compensation for the Sale of Securities or other Investment products
Our management and our IAR’s are registered representatives and investment advisor
representatives with LPL Financial (LPL), a full-service securities broker-dealer and investment
adviser. LPL is a member of the Financial Industry Regulatory Authority (“FINRA”) and the
Securities Investors Protection Corporation (“SIPC”). In their registered representative role, our
associates may accept compensation for the sale of securities or other investment products,
including distribution or service (“trail”) fees from the sale of mutual funds.
Transactions in LPL advisory program accounts are generally effected through LPL as the
executing broker-dealer. Our IAR’s may receive compensation as a result of a client’s
participation in an LPL program. Depending on, among other things, the size of the account,
changes in its value over time, the ability to negotiate fees or commissions, and the number of
transactions, the amount of this compensation may be more or less than what they would receive
if the client participated in other programs, whether through LPL or another vendor, or paid
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