Regal Advisory Services Inc

Item 5: Fees and Compensation

funds that do not pay revenue sharing fees. The client is under no obligation to utilize such
programs or mutual funds. Although many factors will influence the type of fund to be used, the
client should discuss with their investment adviser representative whether a share class from a
comparable mutual fund with a more favorable return to investors is available that does not
include the payment of any 12b-1 or revenue sharing fees given the client’s individual needs
and priorities and anticipated transaction costs. In addition, the receipt of such fees can create
conflicts of interest in instances (i) where our adviser representative is also licensed as a
registered representative of a broker-dealer and receives a portion of 12b-1 and or revenue
sharing fees as compensation – such compensation creates an incentive for the investment
adviser representative to use programs which utilize funds that pay such additional
compensation; and (ii) where the custodian receives the entirety of the 12b-1 and/or revenue
sharing fees and takes the receipt of such fees into consideration in terms of benefits it may
elect to provide to the firm, even though such benefits may or may not benefit some or all
of the firm clients.

D. External Compensation for the Sale of Securities to Clients
Regal’s advisory professionals are compensated primarily through receipt of a portion of the
collected client advisory fees. Regal’s advisory professionals who are dually licensed with Regal
Securities may be paid sales, service, or administrative fees for the sale of mutual funds or other
investment products. Regal’s advisory professionals may receive commission-based
compensation for the sale of securities and insurance products. Investment adviser
representatives, in their capacity as a Regal Securities, Inc., registered representative, are
prohibited from earning an advisory fee on the securities value transferred from an advisory
client’s Regal Securities, Inc. brokerage account unless commissions earned on such securities
transactions have accreted for some period of time. Please see Item 10.C. for detailed
information and conflicts of interest.
If cash is swept into a money market or FDIC fund, Regal Securities will receive a compensation
rebate based on the value of money market or FDIC fund. Regal Securities also receives
compensation rebates on margin debits, option order routing, and credit balances. Such
compensation is exclusive of and in addition to Regal’s advisory fee; neither Regal Advisory
Services (“RAS”) nor any advisors with RAS shall receive any portion of this compensation.

                     Part 2A of Form ADV: Regal Advisory Services, Inc. Brochure

Item 7: Types of Clients
Regal provides portfolio management services to individuals including high net worth
individuals, corporations and business entities, pension and profit-sharing plans, charitable
institutions, foundations, endowments, estates, and trusts.
For Regal-advised investment management services (RDIM, RNIM, or Free Form), Regal does not
have minimum portfolio amounts.
For clients participating in RBC or HTS sponsored advisory services programs, please refer to the
respective program brochures for minimum account size and minimum fee requirements.

                     Part 2A of Form ADV: Regal Advisory Services, Inc. Brochure