Prospect Financial Group LLC

ITEM 5:    FEES AND COMPENSATION
Clients with Assets Under Management Over $1,000,000
For clients with over $1,000,000 in assets under management, we provide ongoing investment
advisory and financial planning services for an asset-based fee. The fee schedule for new clients
as of January 1, 2024 is as follows:

   Assets Under Management               Base Fee (Per         Plus           Of Assets Under
                                         Annum)                Percentage     Management
                                                                              Over
   $0 to $1,000,000                      $10,000
   $1,000,000 to $2,000,000              $10,000               1.00%         $1,000,000
   $2,000,000 to $5,000,000              $20,000               0.5%          $2,000,000
   $5,000,000 to $10,000,000             $35,000               0.25%         $5,000,000
   Over $10,000,000                      $47,500               0.125%        $10,000,000

Fees are billed quarterly based on the value of assets at the end of the quarter. The minimum
fee is $10,000 per annum or $2500 per quarter.

                                                                        Prospect Financial Group LLC
                                                                                      March 31, 2026

Clients with Assets Under Management Less Than $1,000,000
As of January 1, 2024, clients with less than $1,000,000 in assets under management may engage
investment advisory and financial planning services separately. The minimum annual fee is
$5,000.

Investment advisory fees are 1% of assets under management. Fees are billed quarterly based
on the value of assets at the end of the quarter.

Financial planning services are provided for a subscription fee, fixed fee, or hourly fee. Current
hourly fees are $350 for a Senior Advisor, $125 for a Financial Planner, and $75 for a Customer
Service Associate but may be adjusted annually (to reflect rising costs) upon 30 days written
notice to the client. Subscription fees are charged at the end of each quarter and typically
range from $500-$2500 based on the client’s net worth and the complexity of the services
provided. Fixed fees for financial plans are typically $5,000-$10,000 and vary based on the
component services included and the complexity of the client situation.

Deposits and Refunds
Clients will receive a full refund if the contract is terminated within five business days after
entering into the contract.

A deposit may be required for 50% of anticipated fees in certain circumstances, such as when a
written financial plan will be delivered before transferring assets or as a separate service. The
client will be invoiced upon delivery of the financial plan or requested services. The deposit will
be applied to the invoice with the remainder due immediately or the excess refunded to the
client. Prepaid fees will not exceed more than $1200 or extend for more than 6 months in
advance.

Fee Payment
Prospect Financial Group LLC deducts fees from client accounts if the client has authorized an
independent custodian to debit fees. Clients should be aware that it is their responsibility to
verify the accuracy of the fee calculation and that the custodian will not determine whether the
fee is calculated accurately. Fees may also be paid by electronic payment or check and are
due within 30 days of receipt.

Other Fees and Expenses
Clients will also incur brokerage and other expenses in connection with investment advisory
services. The custodian may impose trading fees on the purchase of securities or redemption
fees on the sale. Mutual funds and exchange traded funds will generally include a
management fee, other fund expenses, and possibly a distribution fee or sales charge. Please
see the Brokerage Practices section of this brochure. The trading fees and mutual fund
expenses are paid to the custodian or mutual fund. Prospect Financial Group LLC does not
accept compensation for the sale of securities or other investment products.

If an independent third-party advisor is utilized for the separate account management as
described earlier in Item 4 on Advisory Business, that advisor can charge fees in addition to
Prospect Financial Group’s. All fees and expenses charged by separate account manager are
separate and distinct from those charged by Prospect Financial Group LLC and are withdrawn
from the client’s account by the separate account manager. Prospect Financial Group LLC
does not receive any fees or payments from separate account managers. Prospect Financial
Group LLC will review the aggregate fee charged by both Prospect Financial Group LLC and
the selected separate account manager to ensure it will be fair and reasonable and will be
competitive with those fees customarily charged in the industry for similar services.

                                                                      Prospect Financial Group LLC
                                                                                    March 31, 2026

Additional asset-based fees may apply to accounts with optional services, such as trading of
held-away assets through an order management system. Prospect Financial Group LLC will bill
separately for any services provided outside the scope of the investment supervisory
engagement at current hourly rates.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are based on a percentage of assets within the plan.
Rates are negotiable and vary based on the nature, scope, and frequency of our services as
well as the size and complexity of the plan. Typically, the plan sponsor instructs the
recordkeeper or custodian to automatically deduct fees from participant’s accounts, but we
may invoice the plan sponsor upon request.

Contract Terms
All fees are negotiable and certain clients may have fee schedules that differ from our current
...

ITEM 7:    TYPES OF CLIENTS
Prospect Financial Group LLC provides investment advice to individuals and high net worth
individuals, including their personal trusts and estates, as well as retirement plans. Prospect
Financial Group LLC does not have any requirements for opening or maintaining an account.