ITEM 5 – FEES AND COMPENSATION
The specific manner in which fees are charged by LSA is established in a client’s written agreement
with LSA. LSA will generally bill its fees on a monthly basis.
We provide portfolio monitoring on a pre-determined basis, such as monthly, quarterly, semi-annually
or annually; and based on the client’s selection we then correspondingly bill on a monthly, quarterly,
semi-annual or annual basis.
Clients participating in Lion Street Select Program will generally pay a monthly fee, in advance, for the
Lion Street Select account, the fee is based on the average balance of the assets as of the last business
day of the preceding calendar month. Clients may elect to be billed directly for fees or to authorize
LSA to directly debit fees from client accounts. Accounts initiated or terminated during a calendar
month will be charged a prorated fee. Upon termination of any account, any prepaid, unearned fees
will be promptly refunded, and any earned, unpaid fees will be due and payable.
Fees are based on the following fee schedule:
Total Account Value Minimum Maximum
Account Fee Account Fee*
First $1,000,000 1.00% 2.80%
Next $2,000,000 1.00% 2.20%
Assets Over $3,000,000 0.50% 1.75%
In addition, there is a Service Fee (trading platform fee) of 10 bps (.10%) added to the maximum
account fee for all LSF Select accounts. This fee is charged by our broker-dealer.
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*Fees can be negotiated and usually vary from Client-to-Client based upon a number of factors,
including, but not limited to, type of account, account size, historical relationship with the Client,
services to be provided, or other factors. Moreover, fees can vary as a result of the application of prior
fee schedules depending upon the specific date the Client began participation in the Program.
Fees are assessed on all assets in the Account, including securities, cash and money market balances.
We allow the use of margin accounts, which will result in a client paying additional fees for securities
bought on margin. Margin debit balances do not reduce the value of the assets in the Account. As a
result of these potential additional fees, the IAR and the Firm has a conflict of interest when
recommending the purchase of securities on margin as it can increase the advisory fees. The Provider
may in their sole discretion pay all or a portion of the above stated fees to other parties involved in
providing service with respect to the Program Account and as permitted by law. All such shared
payments will be fully disclosed to the Client. Clients paying a fee of 2.5% or greater should consider
that such fee is in excess of that normally charged in the industry and that similar advisory services
can be obtained for less.
Some clients may pay more than the maximum fee for assets under management where clients have
elected to have additional services billed as a percentage of assets under management. Those
services may include but are not limited to, retirement planning, estate planning, wealth planning, and
charitable gifting. These fees are agreed to in advance between the client and the advisor.
These fees do not include mark-ups/mark-downs in principal transactions; certain odd-lot
differentials; national securities exchange fees; clearing; custody; postage and handling; and
transaction and service fees (i.e. Brokerage Portfolio Accounts or other cash management type
accounts), annual, maintenance and/or termination fees for retirement accounts or qualified plans;
ACAT transfer fees; interest on debit account balances; electronic fund transfer fees; IRA and qualified
plan fees; and transfer taxes and other costs or charges associated with securities transactions
mandated by law. All fees and charges, including the above, will be charged to the Account. Client
understands that LSA IAR’s receive compensation for providing advisory and client-related services in
connection with the Programs based on the value of the assets under their management. The Client
may also incur certain charges imposed by other third-parties in connection with investments made
through the Program Account, including among others the following types of charges: mutual fund
12b-1 fees, mutual fund management and administrative servicing fees, fees charged by Investment
Managers, and certain deferred sales charges on previously purchased mutual funds.
Please refer to Item 14, Client Referrals and Other Compensation, for information regarding cost
avoidance benefits received by LSA and our affiliate, LSF, through the availability of no-transaction fee
Funds (“NTF funds”) from our approved custodian.
We require that all IARs disclose this conflict of interest when such recommendations are made. We
also require IARs to disclose to Clients that they may purchase recommended products from other
representatives not affiliated with us. Our Code of Ethics requires our IARs do what is in the client’s
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best interests at all times. Our CCO monitors all transactions to ensure that representatives put their
clients first, not the commission they could receive. Some investment advisers will rebate these fees
for advisory clients.
This compensation may be more than what the Client would pay if the Client participated in other
programs of the IAR, programs of another IAR, or paid separately for investment advice, brokerage
commissions and other services. Therefore, the IAR has a financial incentive to recommend the Lion
Street Select Program over other programs or services.
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