Financial Council LLC

Item 5 – Fees and Compensation Fee Schedule for Advisory Services
Portfolio Management Services
Clients who elect to receive asset management services through Financial Council’s asset
management program will generally pay Financial Council for those services with an annual asset
management fee, billed quarterly in arrears, based on a percentage of assets under management,
including cash and money market positions.
Clients are urged to carefully review and discuss the contents of this Brochure with their advisor,
including descriptions of the program and services offered, the fees and charges clients will pay,
the means by which Financial Council and your advisor are compensated, and the conflicts of
interest that exist between the client and Financial Council and your advisor in respect to each
program or service offered, to determine the most appropriate programs or services for your specific
needs.
The fee schedule for assets under management up to $500,000 is 1.25% of assets under
management.
The complete current fee schedule is as follows:
          The amount up to the first $500,000.00                    1.25% per year
          On the next $500,000.00 to $1,000,000.00                  1.00% per year
          Amounts from $1,000,000.01 to $3,000,000.00               0.75% per year
          Amounts from $3,000,000.01 to $7,500,000.00               0.50% per year
          Amounts from $7,500,000.01 to $50,000,000.00              0.25% per year
          Amounts from $50,000,000.01 and up                        Negotiable

EXAMPLE: an account valued at $1,500,000 would pay 1.25% on the first $500,000, 1.00% on the
next $500,000 and 0.75% on the remaining $500,000 for an effective aggregate, or average, fee
rate of 1.00%.
In addition to the annual management fee, and unless otherwise agreed between the client and the
advisor, clients will pay charges as described in the “Other Fees and/or Costs” section below.
Clients may pay more or less than they might otherwise pay if purchasing the services separately.
There are several factors that determine whether such costs would be more or less, including, but
not limited to, the size of the account; the types of securities and strategies involved; the amount of
trading effected; and the actual costs of such services if purchased separately.
Financial Council advisory fees are negotiable as indicated in the fee schedule above. Program
and/or platform fees (if applicable), transaction charges and other account-related fees assessed
by the account custodian or Commonwealth are not negotiable. Financial Council may waive all or
a portion of the advisory fee, whether on an ongoing or a one-time basis, in its sole discretion. In
the event a client terminates an advisory agreement with Financial Council, any unearned fees
resulting from payments made by clients in advance will be refunded to the client.
Payment of Advisory Fees
Commonwealth performs fee billing on our firm’s behalf. Fees are collected in arrears (i.e. fees are
collected based on the period just ending and not in advance of the upcoming quarter period).
Managed account fees are typically automatically charged to the client’s account pursuant to
instructions provided to the account custodian by Financial Council. Fees are deducted from client
assets.

If the advisory relationship is terminated by either party (within 30 days written notice by one to the
other), fees for the current billable period will not be charged. The specific way fees are charged by
Financial Council is described in a client’s written agreement with Financial Council.
Financial Council allows for the aggregation of assets among a client’s “related” managed accounts
for purposes of determining the applicable advisory fee to be paid by a client. We reserve the right
to determine whether client accounts are “related” for purposes of aggregating a client’s accounts
together for a reduction in the percentage fee amount. Billing groups are established and
maintained by Financial Council.
As a matter of policy, Commonwealth credits 12b-1 fees it receives from mutual funds purchased
or held in Financial Council managed accounts back to the client accounts. These rebates appear
as separate credits in client accounts. Financial Council’s fees are exclusive of brokerage
commissions, transaction fees, and other related costs and expenses which can be incurred by the
client. Clients will incur certain charges imposed by custodians, brokers and other third parties such
as fees charged by custodians, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. These fees are in addition to the advisory fees
charged by Financial Council.
Client portfolios may include mutual funds and exchange-traded funds (ETFs) as part of Financial
Council’s investment strategy to provide exposure to certain sectors, markets, or securities. Mutual
funds and ETFs charge their own internal fees and expenses, including management fees paid to
the fund’s investment adviser. These fees are separate from and in addition to the advisory fee
charged by Financial Council. As a result, clients invested in mutual funds or ETFs will indirectly
pay two layers of fees on those investments: (1) the advisory fee paid to Financial Council and (2)
the fees and expenses charged by the mutual fund or ETF. Clients are responsible for these
underlying fund fees in addition to Financial Council’s advisory fee.
Account values in the Commonwealth reporting system will be used for our firm’s quarterly fee
calculations for advisory accounts custodied at National Financial Services (NFS). Although
account holdings and asset valuations should generally match, month-end market values reflected
in Commonwealth's Practice360 reporting system sometimes differ from those provided by NFS on
their month-end statements. The three most common reasons why these values may differ are (i)
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Item 7 – Types of Clients
Financial Council offers advisory services primarily to individuals, trusts, estates, charitable
organizations, and corporations.