LPL Financial LLC

Item 5: Fees and Compensation

Financial Planning & Consulting Services
For these services, the fee is negotiated between the IAR and client and the amount of the fee is as stated in Schedule
A to the client agreement. The fee is paid to LPL, and LPL shares up to 100% (typically between 90% and 100%) of the
fee with the IAR based on the agreement between LPL and the IAR. Clients generally pay either a flat or hourly fee
and will be billed at such frequency (e.g., upfront, monthly, quarterly or annually) as determined between Client and
IAR. These fees typically range from $0 to $15,000, or up to $500 per hour, but may exceed this amount depending on
the frequency and scope of complexity of the financial planning engagement. The IAR may elect to provide these
services on a discounted or complimentary basis for no fee. Clients should understand that the fee client negotiates
with IAR for these services will be higher than the fees charged by other investment advisors for similar services in
certain circumstances and particularly if the fee is at or near the maximum fees set out above. The IAR is responsible
for determining the fee to charge each client based on factors such as total amount of assets involved in the
relationship, the complexity of the planning services, and the number and range of supplementary advisory and client-
related services to be provided. Clients should consider the level and complexity of the planning services to be provided
when negotiating the fee with IAR. If IAR engages LPL’s home office team to assist with advance financial planning
analysis, the IAR may incur consulting fees for such services which may result in the client being charged a higher fee
by the IAR than if LPL’s team was not retained by IAR.
Clients may pay the financial planning fee by check made payable to LPL Financial LLC. In the alternative, clients may
instruct and authorize LPL to debit the fee on a one-time or reoccurring basis either (i) from a non-retirement account
of the client held at LPL or (ii) through an LPL approved third party payment processing service. The client may
terminate their services agreement at any time and request a pro-rata refund of unearned fees, if any, based on the
time and effort of services completed prior to termination of the agreement.

TAMP – Co-Investment Advisory Services
For co-investment advisory TAMP arrangements, LPL and the TAMP sponsor each charge an advisory fee to the client
for their respective services as indicated in the TAMP sponsor’s account paperwork. The IAR negotiates the fee payable
to LPL typically up to a maximum of 2% (but may be higher in certain circumstances) and the TAMP sponsor often
discloses a standardized fee schedule with a set minimum or maximum fee, though its fees may also be negotiable.
The advisory fee is ordinarily based on the value of assets under management as calculated by the designated
custodian, which generally deducts and pays fees to LPL and the TAMP sponsor either quarterly in arrears or in
advance, although some arrangements may support monthly fees. The total advisory fee is often paid to the TAMP
sponsor which in turn pays the agreed upon portion to LPL. LPL typically shares between 90% and 100% of its advisory
fee with the IAR based on the agreement between LPL and the IAR. The program agreements and/or disclosure
brochures provided by LPL and the TAMP sponsor will outline how a client may terminate a TAMP arrangement and
request a refund of any pre-paid unearned fees.
There are other fees and charges imposed by the TAMP sponsor or third parties that apply to investments in TAMP
accounts. Some of these fees and charges are described below and should also be outlined in the TAMP sponsors’
respective disclosure brochures as applicable. The client will be charged commissions, markups, markdowns, or
transaction charges by the broker-dealer who executes transactions in the TAMP account. There also are custodial
related fees imposed by the custodian of assets for the program account. These additional fees and charges will be
set out in the TAMP disclosure brochure and the agreements executed by the client at the time the account is opened.
LPL does not share in any of the transaction fees or custodial fees associated with TAMP accounts.
If assets are invested in mutual funds, ETFs or other pooled funds, there are two layers of advisory fees and expenses
for those assets. Client will pay an advisory fee to the fund manager and other expenses as a shareholder of the fund.
Client will also pay the TAMP advisory fee with respect to those assets. The mutual funds and ETFs available in the
programs often may be purchased directly. Therefore, clients could avoid the second layer of fees by not using the
advisory services of the TAMP and IAR and by making their own decisions regarding the investment.

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LPL Financial, Member FINRA/SIPC                            7

LPL Financial Firm Brochure

A mutual fund in a TAMP account may pay an asset based sales charge or service fee (e.g., 12b-1 fee) that is paid to
the broker-dealer on the account. LPL and IARs generally are not paid these fees for TAMP accounts.
If client transfers into a TAMP account a previously purchased mutual fund, and there is an applicable contingent
deferred sales charge on the fund, client will pay that charge when the mutual fund is sold. If the account is invested
in a mutual fund that charges a fee if a redemption is made within a specific time period after the investment, client
will be charged a redemption fee. If a mutual fund has a frequent trading policy, the policy can limit a client’s
transactions in shares of the fund (e.g., for rebalancing, liquidations, deposits, or tax harvesting).
If client holds variable annuity or variable universal life insurance subaccount assets that are managed as part of a
TAMP account, there are mortality, expense and administrative charges, fees for additional riders on the contract and
...

Item 7: Types of Clients
LPL’s advisory services are available for individuals, individual retirement accounts (IRAs), banks, thrift institutions,
credit unions, pension and profit sharing plans, including plans subject to ERISA, participants in such plans, trusts,
estates, charitable organizations, state and municipal government entities, corporations and other business entities.
LPL does not require a minimum asset amount for financial planning and consulting services, participant consulting
or research services. For customized advisory services, any required minimum account value will be set out in the
client agreement.
For TAMPs, the TAMP sponsor typically establishes a minimum account value, which will be set out in the account
opening documents and Form ADV Part 2A of the TAMP sponsor.

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LPL Financial, Member FINRA/SIPC                            10

LPL Financial Firm Brochure