Kestra Advisory Services LLC

Item 5: Fees and Compensation

General Information on Fees
Our asset-based fees range up to 2.5 percent of assets under management and are determined by your
Advisor based upon a variety of factors, such as the value of your assets under management, your
account registration type (e.g., retirement), the nature of services we provide to you, the platform(s) and
the program(s) you or your Advisor choose and the current market and pricing for similar services. You
may pay a higher or lower fee than other clients pay for similar services.

You pay an asset-based fee typically on a quarterly basis in advance or arrears, as determined between
you and your Advisor. All fees are negotiable, subject to the maximum amount set forth above. We may
waive or charge a lesser fee or may charge a flat fee for our services. The advisory fees we charge may
be higher or lower than those charged by other investment advisers for comparable services. The fees
that we charge to manage assets in your account may be more than the amount you would pay us or our
affiliated broker-dealer to buy or sell securities on a commission basis in a non-managed account.

If you have multiple accounts, you are eligible to consolidate account assets by “household” for fee billing
purposes. Generally, householding your accounts will reduce overall management fees and should be
considered where applicable. Clients should discuss with their Advisor which accounts will be included
within the client’s household for purposes of fee billing.

We pay our Advisors a percentage of the fees we receive. Our affiliate broker-dealer Kestra IS pays its
registered representatives a percentage of the commissions it receives. Our Advisors receive a higher
percentage of the fees we receive as their production of fees and their production of commissions in their
separate capacity as a registered representative of Kestra IS increases. We will also aggregate the
production of several Advisors in the same branch or firm which can allow these Advisors to reach higher
payouts more quickly than if the payout were based on individual production. The practice of providing a
tiered payout and aggregation of production creates a conflict of interest as your Advisor is incentivized to
increase their production with us and our affiliate to obtain higher compensation percentages and
additional compensation. In addition, certain Advisors that meet internal criteria that include production
receive additional benefits such as practice management consulting or producer trips.

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When an Advisor terminates their relationship with us, we will notify you and will resign as fiduciary for all
Advisor as portfolio manager accounts. This action will make your account a commissionable account and
you will be charged standard fees and commissions for transactions and other services. The fees billed to
your account for advisory services will stop once the account has been converted.

In the event your account has been billed in advance, and your advisory agreement is terminated prior to
the end of the term for which fees have been collected, we will return any unearned fees to you. Where
your assets are invested with Third Party Strategist, or Separately Managed Accounts, your accounts will
continue to be managed and billed advisory fees. We will retain those billed fees previously allocated to
your advisor.

An overview of the fee breakdown for managed accounts is provided below:

Advisor as Portfolio Manager Tickets on AdvisorEnterprise (APM-Tickets)
Maximum Client Fee: 2.5%
Ticket charges apply.

A Program Fee ranging from 0.02% to 0.14% is deducted from the Client Fee you negotiate with your
advisor. This payment structure incentivizes your advisor to increase the Client Fee assessed by an
amount sufficient to offset the Program Fee, which is a conflict of interest.

Advisor as Portfolio Manager Wrap on AdvisorEnterprise (APM-Wrap)
Maximum Client Fee: 2.5%
Ticket charges do not apply.

A Program Fee ranging from 0.02% to 0.19% is deducted from the Client Fee you negotiate with your
advisor. This payment structure incentivizes your advisor to increase the Client Fee assessed by an
amount sufficient to offset the Program Fee, which is a conflict of interest.

Advisor as Portfolio Manager (APM) on Advisor Choice
Maximum Client Fee: 2.5%
Ticket charges apply. Ticket charges are typically higher than those on our other platforms.

A Program Fee ranging from 0.00% to 0.05% is charged to your Advisor. This payment structure
incentivizes your advisor to increase the Client Fee assessed by an amount sufficient to offset the
Program Fee, which is a conflict of interest.

Fund Strategist Portfolio (FSP) Wrap on AdvisorEnterprise
Maximum Client Fee: 2.5%
Manager Fee: Ranges from 0.02% to 0.45%
Custom FSP arrangements will typically fall out of the above quoted range.
Manager Fees in the FSP Program will vary by manager and model selected.

A Program Fee ranging from 0.05% to 0.26% is deducted from the Advisor Fee you negotiate with your
advisor. This payment structure incentivizes your advisor to increase the Advisor Fee assessed by an
amount sufficient to offset the Program Fee, which is a conflict of interest.

Separately Managed Accounts (SMA) Wrap on AdvisorEnterprise
Maximum Client Fee: 2.5%
Manager Fee: Ranges 0.02% to 1.02%
Custom SMA arrangements will typically fall out of the above quoted range.
Manager fees in the SMA Program will vary by manager and model selected.

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A Program Fee ranging from 0.05% to 0.26% is deducted from the Advisor Fee you negotiate with your
advisor. This payment structure incentivizes your advisor to increase the Advisor Fee assessed by an
amount sufficient to offset the Program Fee, which is a conflict of interest.
...

Item 7: Types of Clients

Our clients include individuals, banking or thrift institutions, pension and profit-sharing plans, charitable
organizations, insurance companies, and corporations and other business organizations. Certain advisory
Platforms and Advisory Programs have minimum account sizes or minimum managed household assets
as described above in the ADVISORY BUSINESS section. We also provide investment advice and
services for retirement plans, which we describe in our Retirement Plan Client Brochure.