IA Private Wealth USA Inc

ITEM 5 FEES AND COMPENSATION

iAPW (USA) offers its services on a fee-for-service basis that may include fixed fees and fees
based on assets under management.

All fees and charges incurred will be automatically debited from your account when due (e.g.,
our Investment Management Fee, Pershing and Lockwood’s fees and charges, etc.). A portion
of your account assets may be liquidated to cover those fees and charges. Liquidation may
affect the relative balance of your account and can have tax consequences and/or may cause
the account to be assessed transaction charges. Please consult with your professional advisors
to obtain legal or tax advice to understand how liquidation may result in tax consequences and
prior to opening your iAPW (USA) account. iAPW (USA) does not provide legal or tax advice.

Investment Management Fee
iAPW (USA) provides investment management services for an annual fee that is commonly
based on a percentage of the market value of the assets managed by us for Managed and SMA
Accounts (but not for Wrap program). The annual fee, where applicable, is in addition to
brokerage commissions, transaction fees and other applicable fees. You will also be responsible
for management fees imposed by mutual fund and SMA Account managers, and other related
costs and expenses, which are incurred by you. iAPW (USA) does not receive any portion of
these commissions, fees, and costs.

Our annual fee is prorated and charged monthly by our custodian (discussed below in “Other
Fees and Expenses”) in arrears and is calculated based on the average monthly account
balance of the billable assets being managed by us. For partial billing periods, we only charge
fees for the period that we managed your account. Any outstanding fee(s) are fully due and
payable should your account be terminated.

Our annual fee varies (between 0.5% and 2.5%) depending upon the market value of the assets
under management, the client and the type of investment management services to be rendered,
negotiations with us, and various other factors.

We may, at our sole discretion, negotiate a lesser or different management fee, depending upon
objective and subjective factors that include, for example: the amount of assets to be managed;
portfolio composition; the scope and complexity of the engagement; the anticipated number of
meetings and service needs; related accounts; future earning capacity; anticipated future
additional assets; the professional(s) rendering the service(s); a prior relationship with iAPW
(USA) and/or its representatives, and/or client negotiations. This means that similarly situated

clients may pay different fees, and therefore the services we provide to you could be available
from other service providers at a lower fee.

Account assets consisting of cash and money market mutual funds are included in the value of
account assets for the calculation of our fees.

Reporting Only Fee
At the request of a client, iAPW (USA) may consider charging a fixed annual fee, or AUM based
fee, for consolidating the performance of investments that are not purchased or sold though us,
but which are part of a client’s overall asset allocation. This is a service provided by our
supervised persons 1 in their capacity as an iAPW (USA) IAR and is not an advisory service.

Idle Assets
At any time, and for a substantial length of time, iAPW (USA) may hold a significant portion of
your assets in cash or money market mutual funds. Investments in these assets may cause you
to miss out on upswings in the markets.

Wrap Fee
Under our Wrap program, iAPW (USA) offers you discretionary investment management
services for a single, specified annual fee inclusive of trade execution, custody, reporting, and
investment management fees. For example, clients who enroll in our Wrap program are not
charged brokerage commissions or transaction fees in addition to our investment management
fee. The terms and conditions pertaining to our Wrap program are discussed in our Wrap Fee
Brochure (“Wrap Brochure”), Part 2A, Appendix 1 of Form ADV. We provide a copy of our Wrap
Brochure to all prospective Wrap program participants.

If you are interested in our Wrap program you should read both this Brochure and our Wrap
Brochure and ask us any questions that you may have prior to enrolling in our Wrap program.
Selecting our Wrap program may cost more or less when compared to purchasing each service
individually. The Wrap program fee charged by iAPW (USA) for participating in the Wrap
program may be higher or lower than those charged by other service providers of comparable
wrap fee programs. Please refer to our Wrap Brochure for more information.

Pershing Advisor Solutions LLC.
Pershing Advisor Solutions LLC. is a registered investment adviser with the SEC and charges
fees based on the SMA offering selected. These fees are in addition to iAPW (USA)’s, and any
other applicable, fees and charges. Information about SMA offerings and Pershing Advisor
Solutions fees can be found in its Form ADV – Part 2A “Brochure”, its “Wrap Fee Brochure” and
its “Managed360 Program Terms and Conditions”. Some Pershing Advisor Solutions offerings
are subject to a minimum amount that varies according to the Managed360 selected.

1 “supervised person” means iAPW (USA)’s officers, partners, directors (or other persons occupying a
similar status or performing similar functions), employees or any other person who provides investment
advice on our behalf who is also subject to iAPW (USA)’s supervision or control.

Pershing Advisor Solutions fees are billed in advance from the date you open the account
through the end of that calendar quarter. Thereafter, fees are billed in advance for the next
calendar quarter based on the value of the assets at the end of the prior calendar quarter.

Clients in our SMA Program will also incur additional management fees charged by the
investment manager(s) who manage all or a portion of your account. These management fees
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ITEM 7 TYPES OF CLIENTS

We provide services to retail clients that include individuals, trusts, estates, corporations and
other business or charitable entities.

iA Private Wealth (USA) Inc. has received the required exemptive relief permitting it to service
Canadian resident clients with qualifying retirement accounts located in the U.S. These clients
will benefit from the same level of service as our U.S. resident clients. The Investment Advisers
Act of 1940, as amended (“Advisers Act”), under which iAPW (USA) is registered, do not apply
to advisory services provided to Canadian clients in relation to their U.S. located accounts.
iAPW (USA) and its financial advisors are not subject to full Canadian regulatory requirements
otherwise applicable since these accounts are held in the U.S.