Item 5: Fees and Compensation
A. Fee Schedule and Billing
Investment Supervisory Services Fees
These fees are negotiable (maximum annual fee 1.95%), depending upon the needs of the
client and complexity of the proposed investment strategy and overall situation, and the
final fee schedule is attached as Exhibit II of the Investment Advisory Contract. Clients at
no time will be charged a total management fee greater than the 3% industry average.
Fees are paid either monthly or quarterly in advance. Fees will be charged at the beginning
of each month or the beginning of each quarter. The account value used in the fee
calculation will include all positions, cash, dividends (declared and paid), accrued income
and interest payments (unless specifically excluded in the agreement to the Advisor).
Clients may terminate their contracts with ten days written notice to Madison Park
Advisors, LLC and Madison Park Advisors, LLC will pro-rate the fee for the portion of
the month or quarter where services were provided. Clients may terminate their accounts
without penalty within five business days of signing the advisory contract. Advisory fees
are withdrawn directly from the client’s accounts with client written authorization. Each
quarter a fee is directly deducted from a client’s account and will be listed and detailed
on the client’s custodian statement. Lower fees for comparable services may be available
from other sources.
The investment management agreement will continue in effect until terminated by either
party by giving to the other ten business days written notice. Client may terminate the
Agreement within five (5) business days of signing, without penalty, and with full refund.
Sub-Advisor and Signal Service Fees
MADISON PARK ADVISORS, LLC may also act as a sub-advisor (third party advisor to
assist in management of a client portfolio) or signal provider (providing proprietary
trading information called signals, to other investment advisors to purchase or sell
security positions based on analysis at their sole discretion) to unaffiliated third-party
advisors and MADISON PARK ADVISORS, LLC would receive a fixed asset-based fee
according to assets under advisement payable by the third-party advisor. The fees
charged are negotiable and will not exceed any limit imposed by any regulatory agency.
This relationship will be memorialized in each contract between MADISON PARK
ADVISORS, LLC and the third-party advisor.
The unaffiliated third-party advisor may terminate the sub-advisor agreement with or
without cause at any time upon written notice to the MADISON PARK ADVISORS, LLC
at least 24-hours in advance of the next trading session. MADISON PARK ADVISORS,
LLC may terminate the agreement with or without cause at any time upon one week’s
prior written notice to the unaffiliated third-party advisor. The unaffiliated third-party
advisor will pay the prorated portion of the fees as of the termination date. The
termination of the unaffiliated third-party by its client will automatically terminate
MADISON PARK ADVISORS, LLC’s role as the sub-advisor.
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B. Payment of Fees
Payment of Investment Supervisory Fees
Advisory fees are withdrawn directly from the client’s accounts with client written
authorization. Fees are paid quarterly in advance. Fees will be reflected in client’s monthly
custodial statements.
Payment of Sub-Advisor and Signal Fees
Sub-advisor fees (fees charge by a third party advisor to assist in management of a client
portfolio) and signal fees (fees charged by MADISON PARK ADVISORS, LLC for
providing proprietary trading information called signals, to other investment advisors to
purchase or sell security positions based on analysis at their sole discretion) are payable
by third-party advisors applying fixed basis points to assigned assets, and not by their
clients directly. Third-party advisors may be invoiced for such fees, as provided by
contract between MADISON PARK ADVISORS, LLC and the applicable third-party
advisor. Sub-Advisory service fees range from a fixed 20-30 basis points annually of assets
under advisement, ranging depending on the number of clients/assets and complexity of
selected trading programs, payable to MADISON PARK ADVISORS, LLC directly by the
third-party advisor. Signal service fees range from a fixed 10-15 basis points annually of
signal applied assets, ranging depending on the number of clients/assets and complexity
of selected trading programs, payable directly to MADISON PARK ADVISORS, LLC by
the third-party advisor. It is not the practice of MADISON PARK ADVISORS, LLC to
directly contract with and/or bill third-party advisor/signal clients.
C. Clients Are Responsible for Third-Party Fees
Clients may be responsible for the payment of all third-party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by MADISON PARK ADVISORS, LLC. Please
see Item 12 of this brochure regarding broker/custodian.
D. Prepayment of Fees
Fees are paid either monthly or quarterly in advance, and clients may terminate their
contracts with ten days’ written notice.
E. Outside Compensation for the Sale of Securities to Clients
MADISON PARK ADVISORS, LLC does receive compensation for the sale and
management of securities or other investment products including based sales charges or
service fees from the sales of annuities.