Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
QCI offers discretionary direct asset management services to advisory Clients. QCI charges
an annual investment advisory fee based on the total assets under management as follows:
Assets Under Management Annual Fee Quarterly Fee
Up to $250,000 1.50% .375%
Above $250,000 1.25% .3125%
This is a flat rate/breakpoint fee schedule, the entire portfolio is charged the same asset
management fee. For example, a Client with $750,000 under management would pay
$9,375.00 on an annual basis. $750,000 x 1.25% = $9,375.00.
For box spreads managed by us, we charge .50% annually based on the amount borrowed.
The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with
Clients, etc.). Fees are billed quarterly in arrears based on the amount of assets managed as
of the close of business on the last business day of the previous quarter.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. After the initial five (5) business days,
the agreement may be terminated by QCI with thirty (30) days written notice to Client and
by the Client at any time with written notice to QCI. Client shall be given thirty (30) days
prior written notice of any increase in fees. Any increase in fees will be acknowledged in
writing by both parties before any increase in said fees occurs.
FINANCIAL PLANNING AND CONSULTING
QCI charges a maximum fixed fee of $2,400 for financial planning, based on complexity and
unique Client needs for financial planning. Prior to the planning process the Client will be
provided an estimated plan fee.
Fees for financial plans are due upon delivery of the completed plan.
Services are completed and delivered inside of ninety (90) days contingent upon timely
delivery of all required documentation. Client may cancel within five (5) business days of
signing Agreement with no obligation and without penalty. If the Client cancels after five
(5) business days any unpaid earned fees will be due to QCI.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets based on the
following fee schedule:
Assets Under Management Annual Fee Quarterly Fee
Up to $250,000 1.50% .375%
Above $250,000 1.25% .3125%
This is a flat rate/breakpoint fee schedule, the entire portfolio is charged the same asset
management fee. For example, a Client with $750,000 under management would pay
$8,625 on an annual basis. $750,000 x 1.25% = $9,375.00.
The annual fee is negotiable. Fees may be charged quarterly or monthly in arrears or in
advance based on the assets as calculated by the custodian or record keeper of the Included
Assets (without adjustments for anticipated withdrawals by Plan participants or other
anticipated or scheduled transfers or distribution of assets). If the services to be provided
start any time other than the first day of a quarter or month, the fee will be prorated based
on the number of days remaining in the quarter or month. If this Agreement is terminated
prior to the end of the billing cycle, QCI shall be entitled to a prorated fee based on the
number of days during the fee period services were provided or Client will be due a
prorated refund of fees for days services were not provided in the billing cycle.
The fee schedule, which includes compensation of QCI for the services is described in detail
in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees, however
the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or have fees
deducted from Plan Assets. QCI does not reasonably expect to receive any additional
compensation, directly or indirectly, for its services under this Agreement. If additional
compensation is received, QCI will disclose this compensation, the services rendered, and
the payer of compensation. QCI will offset the compensation against the fees agreed upon
under the Agreement.
Client Payment of Fees
Fees for asset management services are:
• Deducted from a designated Client account. The Client must consent in advance to
direct debiting of their investment account.
Fees for financial plans will be billed:
• Check – to be remitted by Client to QCI
• Electronic Payment via ACH, Debit Card, or Credit Card (fees will be paid via a third
party payment processor in which the client will securely input payment
information and pay the advisory fee through a secure portal. QCI will not have
continuous access to the Client’s banking information.)
Fees for ERISA services will either be deducted from Plan assets or paid directly to QCI. The
Client must consent in advance to direct debiting of their investment account
Additional Client Fees Charged
Custodians may charge transaction fees and other related costs on the purchases or sales of
mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
market funds and exchange-traded funds also charge internal management fees, which are
disclosed in the fund’s prospectus. QCI does not receive any compensation from these fees.
All of these fees are in addition to the management fee you pay to QCI. For more details on
the brokerage practices, see Item 12 of this brochure.
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