Item 5. Fees and Compensation
SWM offers its services for fees based upon assets under management. Additionally, certain of the
Adviser’s Supervised Persons, in their individual capacities, offer insurance products under a separate
commission-based arrangement.
Financial Planning and Consulting Fees
For financial planning and consulting outside its wealth management services, SWM offers services for a
one-time fixed fee, a monthly or quarterly fixed fee, and/or an hourly fee. These fees are negotiable. Fixed
fees generally range from $1,500–$10,000, and hourly fees generally range from $100–$500, depending
upon the level and scope of the services and the professional rendering the financial planning and/or the
consulting services. Monthly and quarterly fixed fees are negotiable, depending upon the level and scope
of the services and the professional rendering the financial planning and/or the consulting services. In
limited circumstances, SWM charges an ongoing consulting fee based upon a percentage of the assets
covered by the consulting agreement. The terms of the fee structure, including timing and the amount of
the fee, is agreed upon with the client in advance of rendering services. If the client engages SWM for
additional investment advisory services, SWM may offset all or a portion of its fees for those services based
upon the amount paid for the financial planning and/or consulting services.
Prior to engaging SWM to provide financial planning and/or consulting services, clients are required to enter
into a written agreement with SWM setting forth the terms and conditions of the engagement. Generally,
SWM requires one-half of the financial planning/consulting fee (estimated hourly or fixed) payable upon
entering the written agreement. The balance is generally due upon delivery of the financial plan or
completion of the agreed-upon services.
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Disclosure Brochure
Wealth Management Fees
SWM provides wealth management services for an annual fee based upon a percentage of the market
value of the assets being managed by SWM. The annual fee is exclusive of, and in addition to brokerage
commissions, transaction fees, and other related costs and expenses incurred by clients. SWM does not,
however, receive any portion of these commissions, fees, and costs. SWM’s annual fee is prorated and
charged monthly, in advance, based upon the market value of the assets being managed by SWM on the
last day of the previous month. The annual fee varies (between 0.50% and 2.50%) depending upon the
market value of the assets under management and the type of wealth management services to be rendered.
The Sica Wealth advisory fee charged with respect to client assets invested in Private Funds is often based
on valuations provided by the sponsor of such Private Funds, which may fluctuate after the date of such
valuations, based on updated valuations provided by the fund sponsor. Nonetheless, Sica Wealth does not
make retroactive adjustments to the originally-charged fees based on updated valuations provided by fund
sponsors, and, therefore, clients may pay higher or lower fees than they would otherwise pay in connection
with advisory services related to the assets in such Private Funds as a result of this practice.
Further, with respect to certain CSQ Funds, in addition to the SWM advisory fee charged to clients investing
in such funds, CSQ charges the fund an advisory fee, and CSQ, CS Manager, or one of CS Manager’s
wholly-owned subsidiaries may earn other compensation from the fund. As a result, a conflict of interest
exists, as there is an incentive for Sica Wealth to recommend an investment in the CSQ Funds to its clients.
Fee Discretion
SWM, in its sole discretion, may negotiate to charge a lesser management fee based upon certain criteria
(e.g., anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing client, account retention, pro bono activities).
Fees Charged by Financial Institutions
In addition to the advisory fees paid to SWM, clients also incur certain charges imposed by other third
parties, such as broker-dealers, custodians, trust companies, banks, and other financial institutions
(collectively “Financial Institutions”). These additional charges include securities brokerage commissions
and other transaction costs; custodial fees; fees attributable to alternative investments; reporting charges;
fees charged by Independent Managers; margin costs; charges imposed directly by a mutual fund or ETFs
in a client’s account, as disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses); fees and expenses associated with investments in Private Funds (which are reflected in the
Governing Documents for such funds); deferred sales charges; odd-lot differentials; transfer taxes; wire
transfer and electronic fund fees; and other fees and taxes on brokerage accounts and securities
transactions. The Adviser’s brokerage practices are described at length in Item 12.
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Disclosure Brochure
Fee Debit
SWM’s advisory or custody agreement and the separate agreement with any Financial Institutions authorize
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