ITEM 5. FEES AND COMPENSATION
date the Account is opened through the end of the current calendar
Clients in the Program will be charged a non-negotiable annual fee quarter. Thereafter, the quarterly Fee is paid at the beginning of each
(“Fee”) of 1% that covers the advisory services provided by the Firm calendar quarter for such quarter. The quarterly Fee is based on the
and Lockwood under the Program, the brokerage services involved in fair market value of the assets in the Account (which includes any
purchasing and selling the Program Funds, and the custodial and assets in the cash investment style) on the last business day of the
clearing services provided by Pershing. Pershing is responsible for preceding calendar quarter as calculated by Pershing.
deducting all Fees from client Accounts. The Fee is a percentage of
the assets clients have in the Program and will be paid in advance on Clients also are subject to a Fee for any additional lump sum
a quarterly basis as described in Item 5A below. The Program Funds contribution(s) in a calendar quarter equal to or greater than $2,000.
are “no load” or “load” waived mutual funds, meaning the sales Clients will pay for that portion of the ongoing quarterly Fee that
charges typically associated with mutual funds will not be charged to relates to the number of days remaining in the calendar quarter on the
the Client. date of an additional contribution equal to or greater than $2,000.
Payment of the fee will be made in the quarter following any such
The Fee is split between Lockwood and the Firm. Lockwood receives contribution and will be based on the amount of the contribution.
up to a maximum annually of 0.15 % per Program Account based on
the Account value for providing investment advisory services under Clients may withdraw assets from their Account at any time, subject to
the Program. The Firm receives the remaining portion of the Fee. the usual and customary settlement procedures. All withdrawals are
The Firm shares its portion of the Fee with the IARs and pays first funded from the amount in the client's cash investment style.
Pershing to cover ticket charges and other transaction-related fees. Withdrawals may have tax consequences such as capital gains or other
The Firm reserves the right to lower the Fee for accounts held by applicable taxes. If the amount maintained in the cash investment
employees, associated persons, agents, or independent contractors of style is not enough to meet a withdrawal request, the remaining
the Firm or its affiliates and their immediate family members. amount of the withdrawal request will be satisfied by redeeming shares
of the Program Funds in the client's Account at Lockwood’s
To the extent that assets used for investment in the Program come discretion. Lockwood will rebalance the Account back toward the
from the redemption of mutual funds, clients should consider the selected allocation, thus triggering a possible taxable event. No
cost of any sales charges previously paid or to be paid upon adjustment to the Fee or refund is made with respect to partial
redemption. In this respect, the Firm may reduce its portion of the withdrawals that may be made during any calendar quarter.
Fee to take into account the sales charges clients may have incurred
in connection with the liquidation of mutual fund shares (“Fee If an Account is terminated, Pershing will calculate and refund to
Forgiveness”). clients a pro rata portion of any pre-paid, but unearned Fee for the
current quarter. The amount refunded to clients will be based on the
Fee Forgiveness is not automatic. Instead, clients must apply for Fee number of days remaining in the quarter after the date of termination.
Forgiveness through the IAAA and provide documentation
Fund Management Services - Tower Square Securities, Inc. 6 TSSFMSDISCLOSURE (Updated 03/13)
Clients pay the Fee and other fees and charges under the Program by subsequent contribution amount in the Program is $25 if payments is
instructing Pershing through the Program agreement to made by ACH, fed fund wires, or by check. Clients may make
automatically debit the Fee, and applicable fees and charges additional contributions to their Accounts at any time subject to the
(collectively “Expenses”), from their Account. The amount debited above minimums. Clients may fund contributions to the Program
to pay the Expenses under the Program will appear on statements with cash or securities.
clients receive from Pershing. The Expenses are first deducted by
Pershing from Assets a client has in the cash investment style (i.e., the Accounts cannot be aggregated, even if they are beneficially owned by
money market Fund or the Deposit Account, as applicable) the same person or entity, for the purpose of meeting the minimum
approximately two weeks following the end of the quarter. Lockwood thresholds. Your assets in the Program will not be managed until the
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