Prospect Financial Services LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one more
written agreement with the Advisor.

A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid quarterly, in advance of each quarter, pursuant to the terms of the wealth
management agreement. Wealth management fees are based on the market value of assets under management at
the end of the prior calendar quarter. Wealth management fees range up to 2.50% annually based on several factors,
including: the scope and complexity of the services to be provided; the level of assets to be managed; and the overall
relationship with the Advisor. Relationships with multiple objectives, specific reporting requirements, portfolio
restrictions and other complexities may be charged a higher fee.

The wealth management fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed by
Prospect Financial will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the
Custodian’s valuation to ensure accurate billing.
                                                Prospect Financial Services LLC
                                        445 Broad Hollow Rd. Ste CL-43, Melville, NY 11747
                                                      Phone: 631-424-5218
                                                       https://profinserv.net

Use of Independent Managers - As noted in Item 4, the Advisor may implement all or a portion of a Client’s investment
portfolio utilizing one or more Independent Managers. To eliminate any conflict of interest, the Advisor does not earn
any compensation from an Independent Manager. The Advisor will only earn its wealth management fee as described
above. Independent Managers will not typically offer any fee discounts but may have a breakpoint schedule which will
reduce the fee with an increased level of assets placed under management with an Independent Manager. The terms
of such fee arrangements are included in the Independent Manager’s disclosure brochure and applicable contract[s]
with the Independent Manager. The total blended fee, including the Advisor’s fee and the Independent Manager’s fee
will not exceed 2.50% annually.

Financial Planning Services
Prospect Financial typically offers financial planning services as part of its overall wealth management service.
Prospect Financial also offers financial planning services on a standalone basis for a fixed engagement fee ranging
from $2,000 to $10,000 per engagement. Fees may be negotiable based on the nature and complexity of the
services to be provided and the overall relationship with the Advisor. An estimate for total fees will be determined
prior to engaging for standalone financial planning services.

Retirement Plan Advisory Services
Retirement plan advisory fees are paid quarterly or monthly (“Billing Period”), in advance or arrears, pursuant to the
terms of the retirement plan advisory agreement. Retirement plan advisory fees range up to 1.00% annually.
Retirement plan advisory fees are based on the market value of assets under management at the beginning, end,
or average daily balance during the Billing Period. Fees may be negotiable depending on the size and complexity of
the Plan and the services to be provided.

B. Fee Billing
Wealth Management Services
Wealth management fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] at the beginning of the respective quarter. The amount due is calculated by applying the
quarterly rate (annual rate divided by 4) to the total assets under management with Prospect Financial at the end of
the prior quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction
of the wealth management fee. Clients provide written authorization permitting advisory fees to be deducted by
Prospect Financial to be paid directly from their account[s] held by the Custodian as part of the wealth management
agreement and separate account forms provided by the Custodian.

Use of Independent Managers - For Client accounts implemented through an Independent Manager, the Client’s
overall fees may include Prospect Financial’s wealth management fee (as noted above) plus investment
management fees and/or platform fees charged by the Independent Manager[s], as applicable. In certain instances,
the Independent Manager or the Advisor may assume responsibility for calculating the Client’s fees and deduct all
fees from the Client’s account[s].

Financial Planning Services
Financial planning fees for fixed fee engagements may be invoiced up to fifty percent (50%) of the expected total fee
upon execution of the financial planning agreement. The balance shall be invoiced upon completion of the agreed
upon deliverable[s].

Retirement Plan Advisory Services
Retirement plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the Plan,
depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than Prospect Financial, in connection with
investments made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities
execution fees charged by the Custodian, as applicable. The fees charged by Prospect Financial are separate and
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Item 7 – Types of Clients

Prospect Financial offers investment advisory services to individuals, high net worth individuals, trusts, estates,
businesses, and retirement plans. The amount of each type of Client is available on Prospect Financial’s Form ADV
Part 1A. These amounts may change over time and are updated at least annually by the Advisor. Prospect
Financial generally does not impose a minimum relationship size.