ITEM 5: FEES AND COMPENSATION
All advisory fees are subject to negotiation. Keystone retains a portion of the advisory fee and pays a
portion to the IAR managing the account.
In general, the fee charged by Keystone is established in the client’s written agreement with Keystone.
Keystone may bill its fees on a monthly or quarterly basis depending on the program and client’s
preference. Clients may elect to pay fees in advance or arrears as specified in the advisory agreement.
The Qualified Custodian, Primary Advisor or Third Party Manager generally deducts advisory fees from
the client account. The Qualified Custodian will send statements directly to the client reflecting the
deduction of these fees.
For some programs, fees may be paid to us by check, as outlined in the advisory agreement. In this case,
we will send an invoice to you for fees owed. The invoice will include, in addition to other information,
the total Fee owed and the method the Fee was calculated.
Keystone receives fees for its advisory services based on assets under management, hourly rates or fixed
fees. In the event Keystone utilizes a third party manager, compensation may be received in the form a
percentage of assets under management (“AUM”). Keystone may receive a portion of the fee charged by
the Primary Advisor or Third Party Manager as disclosed in the account opening documents.
Some assets in your managed account may not be included in the calculation of your advisory fee. For
example, assets that you recently paid a commission on may be exempt from this advisory fee. It is the
responsibility of the IAR and the Client to identify Eligible and Non-Eligible assets. Keystone relies on
the IAR and the client to conduct a detailed review of the Eligibility of account holdings and may not
independently verify the information provided by the IAR and Client regarding inclusion or exclusion of
assets when calculating the advisory fee.
In addition to the investment advisory fees and transaction charges, accounts may also incur certain
charges imposed by third parties in connection with investments made through the program. These may
include, but are not limited to, the following: mutual fund or money market 12b-1 fees, mutual fund,
money market or ETF management fees and administrative expenses, mutual fund transaction fees, other
transaction charges and service fees, IRA and qualified plan fees, processing and handling fees or other
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charges on a fully disclosed basis. Further information regarding charges and fees assessed by a mutual
fund are available in the appropriate prospectus.
Mutual funds and exchange-traded funds also charge internal management fees, which are disclosed in a
fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to Keystone’s
fee. Keystone shall not receive any portion of these commissions, fees, and costs. Clients may generally
avoid additional fees by purchasing funds directly from a fund family and not receiving investment
advisory services and/or advice.
A customized program account may cost the client more or less than purchasing program services
separately. Factors that bear upon the cost of the account in relation to the cost of the same services
purchased separately include: the type and size of the account, the historical and/or expected size or
number of trades for the account, and the number and range of supplementary advisory and client related
services provided to the account.
The costs associated with a program may be more than costs associated with a traditional brokerage
account arrangement where the client pays a commission for each transaction but does not receive
ongoing investment advice. In general, the client is paying for ongoing investment advice from the IAR.
The IAR recommending a program account to the client receives a portion of the Account Fee as a result
of the client’s participation in the program. This compensation may be more than what the IAR would
receive if the client participated in another program. As a result, the IAR may have a financial incentive
to recommend one program or services over other programs or services.
IARs may also be registered representatives of Keystone’s broker-dealer. In such capacity, he or she may
sell securities and receive normal and customary commission as a result of purchases and sales as well as
12b-1 fees from mutual funds held in client accounts.
To the extent that the IAR recommends that a client invest in a security, which results in a commission
being paid to the IAR in their capacity as a registered representative, this presents a potential conflict of
interest. Keystone conducts ongoing reviews of IAR commission and advisory fees to ensure suitability
for source of funds for new advisory deposits. The focus of the review includes the IAR’s past
compensation on advisory assets.
FEE SCHEDULE
All advisory fees are negotiable.
Auour Advisory
Adviser will receive a fee (the “Fee”) for investment supervision and management of the Account(s)
based on the current market value assets in the Account(s) (including cash and equivalent items)
according to the following schedule:
On amounts up to $1,000,000 1.00% annually
On amounts over $1,000,000 0.75% annually
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Fully disclosed Fees will be payable in arrears in monthly or quarterly installments with each installment
based on the market value of the Account(s) as of the end of the billing period. Payment will be due to
Adviser within 30 days after receipt of billing by Client. Interest of 1.0% per month will be charged on
unpaid invoices after 30 days. All Fees are negotiable and agreed upon by the IAR and Client in the
Advisory Agreement.
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