Kestra Private Wealth Services LLC

Item 5 Fees and Compensation

General Information on Fee and Compensation
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

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considered where applicable. Clients should discuss with their advisor which accounts will be included
within a household for purposes of fee billing.

All retirement plan compensation, both Commission and Advisory, received in connection with the
establishment and servicing of a retirement plan must be level and may not exceed the amounts set forth
in the following grid*:

                           Asset Level                        Maximum Compensation
                    Start-up - $1,999,999                         150 basis points
                    $2,000,000 - $4,999,999                       125 basis points
                    $5,000,000 - $9,999,999                       100 basis points
                   $10,000,000 - $24,999,999                       75 basis points
                     $25,000,000 and above                         50 basis points

*This grid is exclusive to payments charged to plan assets. Direct payments from the employer plan
sponsor that are not deducted out of plan assets do not factor into the maximum compensation amount;
however, the total of all compensation from plan and non-plan assets must be reasonable in comparison to
the services provided. This grid does not apply to SEPs and SIMPLE IRAs, or Individual/Solo 401(k) plans,
nor are those account types contemplated in this brochure.

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 also pay more for the
provision of advisory products and services than our affiliate broker-dealer pays for the provision of
brokerage products and services. This serves as an incentive for your Advisor to recommend advisory
rather than brokerage services to you. 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.

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 Strategists, Third Party Asset Management Platforms, or
Separately Managed Accounts, your account 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.

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A Program Fee ranging from 0.08% to .02% 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 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 0.14% to 0.02% 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.
...

Item 7 Types of Clients

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Our clients include individuals, pension and profit-sharing plans, charitable organizations, insurance
companies, 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.