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 a written
agreement with the Advisor.
A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
agreement. Investment advisory fees are based on the market value of assets under management at the end of the
prior calendar quarter. Investment advisory fees range from 0.50% to 1.50% annually based on several factors,
including: the 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 investment advisory 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 are 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 Regal Wealth will be independently valued by the Custodian. Regal Wealth will not have the authority or
responsibility to value portfolio securities.
Clients may make additions to and withdrawals from their account[s] at any time. However, reconciliations are
performed on a quarterly basis to capture if, in any given day, assets in excess of $10,000 are deposited into or
withdrawn from an account after the start of the quarterly billing period. An adjustment will be made in the form of a
credit or debit the following billing period to reflect the interim change in portfolio value from the date of the
deposit/withdrawal until the end of the quarter.
Use of Independent Managers
For Client account[s] implemented through an Independent Manager, the Client’s overall fees typically includes
Regal Wealth’s investment advisory fee (as noted above) plus advisory fees and/or platform fees charged by the
Independent Manager[s], as applicable. The Advisor will only earn its investment advisory fee as desribed above.
The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will not exceed 3.00%
annually. For Client assets managed by Piton, fees are assessed separately, and are based on an annual rate of
up to 1.00%, charged quarterly in arrears, based on the average daily blance of the quarter.
Selection of Other Advisors
For Clients referred to an Unaffiliated Manager, the Client’s fee will be deducted from the Client’s account[s] with
the Unaffiliated Manager and a portion of the investment advisory fee will be provided to Regal Wealth.
Financial Planning Services
Regal Wealth offers financial planning services either on an hourly basis or a fixed engagement fee. Hourly
engagements range up to $500 per hour. Fixed engagements are based on the expected number of hours to
complete the engagement scope at the negotiated hourly rate. Fees are negotiable based on the nature and
complexity of the services to be provided and the overall relationship with the Advisor. An estimate for total hours
and/or total costs will be provided to the Client prior to engaging for these services.
Investment Consulting Services
For investment consulting engagements the Advisor will charge a fixed rate of up to 1.50% of assets advised on,
which may be negotiable, at the sole discretion of the Advisor, depending on the nature and complexity of each
Regal Wealth Management, LLC
209 East 31st Street, New York, NY 10016
Phone: (212) 370-6060 | https://regalwm.com
Client’s circumstances. The investment consulting fee in the first quarter of service is prorated from the inception
date of the engagement to the end of the first quarter.
B. Fee Billing
Investment Management Services
Investment advisory 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-end date. The amount due is calculated by
applying the quarterly rate (annual rate divided by the number of days in the year multiplied by the number of days
in the quarter) to the total assets under management with Realth Wealth at the end of the prior quarter. Clients will
be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory
fee. Clients are urged to also review and compare the statement provided by the Advisor to the brokerage
statement from the Custodian, as the Custodian does not perform a verification of fees. Clients provide written
authorization permitting advisory fees to be deducted by Regal Wealth to be paid directly from their account[s] held
by the Custodian as part of the investment advisory agreement and separate account forms provided by the
Custodian.
Use of Independent Managers
Client account[s] implemented through Independent Manager[s] will be billed its fees and will typically add Regal
Wealth’s investment advisory fee and deduct the overall fee from the Client’s account[s]. Clients do not have the
ability to separately negotiate its fees with the Independent Manager[s], as the Advisor has discretion to engage
respective parties and negotiates accordingly. Assets managed by Piton are deducted separately the Independent
Manager. In addition, Client’s of the Advisor do not have the ability to negotiate fees directly with Piton, however,
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