Description of Services and Fees
OmniStar Financial Group is a registered investment adviser based in Wilmington, North Carolina. We
are organized as a corporation under the laws of the State of North Carolina. We have been providing
investment advisory services since 2006. Phillip L. Clark is our firm's principal owner. Currently, we
offer the following investment advisory services, which are personalized to each individual client:
•Wealth Management Services
•Financial Planning Services
•Pension Consulting Services
The following paragraphs describe our services and fees. Please refer to the description of each
investment advisory service listed below for information on how we tailor our advisory services to your
individual needs. As used in this brochure, the words "we", "our" and "us" refer to OmniStar Financial
Group and the words "you", "your" and "client" refer to you as either a client or prospective client of our
firm. Also, you may see the term Associated Person throughout this brochure. As used in this
brochure, our Associated Persons are our firm's officers, employees, and all individuals providing
investment advice on behalf of our firm.
Wealth Management Services
We offer discretionary and non-discretionary portfolio management services. Our investment advice is
tailored to meet our clients' needs and investment objectives. If you retain our firm for portfolio
management services, we will meet with you to determine your investment objectives, risk tolerance,
and other relevant information (the "suitability information") at the beginning of our advisory
relationship. We will use the suitability information we gather to develop a strategy that enables our
firm to give you continuous and focused investment advice and/or to make investments on your behalf.
Once we construct a discretionary investment portfolio for you, we will monitor your portfolio's
performance on an ongoing basis, and will re-balance the portfolio as required by changes in market
conditions and in your financial circumstances. If you have engaged our firm for non-discretionary
services, we will monitor your portfolio's performance periodically.
If you participate in our discretionary portfolio management services, we require you to grant our firm
discretionary authority to manage your account. Discretionary authorization will allow our firm to
determine the specific securities, and the amount of securities, to be purchased or sold for your
account without your approval prior to each transaction. Discretionary authority is typically granted by
the investment advisory agreement you sign with our firm, a power of attorney, or trading authorization
forms. You may limit our discretionary authority (for example, limiting the types of securities that can be
purchased for your account) by providing our firm with your restrictions and guidelines in writing. If you
enter into non-discretionary arrangements with our firm, we must obtain your approval prior to
executing any transactions on behalf of your account.
As a client of our firm we offer our Wealth Management Client Services based primarily on the assets
under management with our firm.
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule:
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Account Fee Schedule
Assets Under Management Annual Fee Cover Call Fee Rates
$15,000 - $299,9992.00%
$300,000 - $499,9991.75%0.65%
$500,000 - $999,9991.25%0.65%
$1,000,000 - $2,999,9991.00%0.65%
$3,000,000 +0.85%0.65%
Clients with account sizes greater than $250,000 under our management may be eligible to participate
in our Double 10, Equity Income, and Growth and Income Strategies. Account sizes greater than
$750,000 may be eligible to participate in our Institutional Strategies. Our ETF Strategies are not
subject to a minimum account size.
Our annual portfolio management fee is billed and payable monthly in advance based on the value of
your account on the last day of the previous month. If the portfolio management agreement is executed
at any time other than the first day of a calendar month, our fees will apply on a pro rata basis, which
means that the advisory fee is payable in proportion to the number of days in the month for which you
are a client. Our advisory fee is negotiable, depending on individual client circumstances, the type of
services to be provided, and the experience and expertise of our firm. However, advisory fees
exceeding 2% of assets under management exceed industry standards. Similar services are available
for lower fees.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:
•You provide our firm with written authorization permitting the fees to be paid directly from your
account held by the qualified custodian.
•The qualified custodian agrees to send you a statement, at least quarterly, indicating all
amounts dispersed from your account including the amount of the advisory fee paid directly to
our firm.
We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian please call our main office number located on the cover page of
this brochure.
You may terminate the portfolio management agreement upon 30 days' written notice to our firm. You
will incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
month for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees.
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Clients with account sizes greater than $250,000 are eligible for our "Advanced Wealth Management"
service, which includes comprehensive financial planning and ongoing monitoring of clients' goals and
objectives. Clients with account sizes greater than $1,500,000 under our management are eligible to
participate in our platinum services, which includes "Advanced Wealth Management" services, plus:
•Subscription to LifeLock, an identity theft protection service
•OmniCap, a centralized advanced planning system
•Estate planning cost during year one; onboarding
•CPA/tax services up to $500.
Estate planning/CPA/tax service: Our firm does not make specific recommendations to use a particular
accountant or attorney nor does our firm provide accounting or legal services. Should a client incur
fees from services rendered by an accountant or attorney of their choosing, in connection with their
investment management account, we reduce our management fee in the amount of the
accountant's/attorney's fee for eligible clients up to a maximum of $500 annually for accounting
services, and a total of $1,500 for legal services. The CPA/Tax Return services reimbursement
applies every year they are a client and the estate planning reimbursement applies up to $1,500 for
estate planning services for their first year of becoming a client.
Financial Planning Services
We offer broad-based and structured financial planning services. Our financial planning process
typically begins with an initial consultation during which we explain our services to you. If you would
like to retain our services, we require that you enter into a written agreement with our firm. You may
elect to have our firm prepare a financial plan for a set fee and then manage your assets as part of our
portfolio management services described above. Alternatively, you may elect to have our firm prepare
a financial plan for a set fee and postpone making a decision as to portfolio management services until
a later time.
If you retain our firm for financial planning services,
we will meet with you to gather information about
your financial circumstances and objectives. We will establish priorities and continue a dialogue with
you as your information is assessed. As appropriate, we will conduct follow-up interviews for the
purpose of reviewing and/or creating financial data. Once we review and analyze the information you
provide to our firm, we will deliver a written plan to you, designed to help you achieve your stated
financial goals and objectives.
If you only require advice on a single aspect of your finances, we offer structured financial plans and/or
general consulting services in a format that addresses only those specific areas of interest or concern,
depending on your unique circumstances.
Financial plans are based on your financial situation at the time we present the plan to you, and on the
financial information you provide to our firm. You must promptly notify our firm if your financial
situation, goals, objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to
act on any of our recommendations, you are not obligated to implement the financial plan through any
of our other investment advisory services. Moreover, you may act on our recommendations by placing
securities transactions with any brokerage firm.
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Broad based financial planning fees start at $1500. The fee charged will depend on the client's
individual circumstances and the scope and complexity of the financial plan. The firm charges an initial
retainer of 50% of the financial planning fee with the remainder due and payable upon completion of
the contracted services. Under no circumstances will OmniStar Financial Group require prepayment of
a fee more than six months in advance or greater than one half of the agreed upon planning fee.
Factors that are considered when determining the cost of a financial plan, include but are not limited to:
a. The scope of the plan, i.e. plans that cover all aspects of a client's financial plan such as
business succession, estate planning, retirement needs, education planning, and successor
trust, among others, would warrant a higher fee than a more simplistic client situation covering
typical financial needs for current money management and retirement.
b. Complexity of the client's financial situation, i.e. trusts, estates, business ownership, tax
brackets, and other personal needs.
We charge an hourly fee of $250 for specific consulting related services. These fees are calculated
and payable at the completion of each session. Specific consulting services may be in the form of
general advice given on retirement needs or education planning, among others. In these cases, you
would not be charged for a written financial plan but instead will only be billed for hourly consultation
with a professional. The hours needed vary from client to client. In limited circumstances, the time/cost
could potentially exceed the initial estimate. In such cases, we will notify you and request that you
approve the additional fee. We will not require prepayment of a fee more than six months in advance
and in excess of $500.
If you need an individual consultation only, we will charge the entire fee at the end of the consultation.
After the conclusion of a consultation, the fee will not be refundable.
Either party may terminate the financial planning agreement within five business days of entering into
the agreement without penalty. After the five-day period, either party may terminate the agreement by
providing written notice to the other. You will incur a pro rata charge for services rendered prior to the
termination of the agreement. If you have pre-paid advisory fees that we have not yet earned, you will
receive a prorated refund of those fees.
Pension Consulting Services
We offer pension consulting services to employee benefit plans and their fiduciaries based upon the
needs of the plan. In general, these services may include an existing plan review, assistance in the
development of a retirement plan, evaluation of retirement plan vendors, asset allocation advice,
money management services, communication and education services to plan participants, investment
performance monitoring, and/or ongoing consulting.
These pension consulting services will generally be non-discretionary and advisory in nature. The
ultimate decision to act on behalf of the plan shall remain with the plan sponsor or other named
fiduciary.
Our fee for pension consulting services is generally based on an hourly rate of $250 per hour;
however, the fee will be negotiated on a case-by-case basis. The fees and terms will be clearly set
forth in the executed agreement for services. The amount of the fees charged to the client will be
based on the scope and complexity of the qualified plan and the requested services. An estimate of the
total cost will be determined at the start of the advisory relationship. The final fee shall be directly
dependent upon the facts and circumstances of the client's financial situation and the complexity of the
pension consulting services provided.
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All client accounts are regulated under the Employee Retirement Income Securities Act ("ERISA"). The
Firm will provide consulting services to the plan fiduciaries as described above. Typically, the named
plan fiduciary must make the ultimate decision as to retaining the services of such investment advisers
as the Firm recommends. The plan fiduciary is free to seek independent advice about the
appropriateness of any recommended services for the plan.
The client may terminate the pension consulting agreement within five days of the date of execution
without penalty to the client. After the five-day period, either party may terminate the agreement by
providing 30 days' written notice to the other party.
Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you. When we provide investment advice to you regarding your
retirement plan account or individual retirement account, we are fiduciaries within the meaning of Title I
of the Employee Retirement Income Security Act and/or the Internal Revenue Code, as applicable,
which are laws governing retirement accounts. The way we make money creates some conflicts with
your interests, so we operate under a special rule that requires us to act in your best interest and not
put our interest ahead of yours. Under this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our Assets Under Management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
Types of Investments
We offer advice on equity securities, corporate debt securities, certificates of deposit, municipal
securities, investment company securities, options contracts on securities, and U.S. Government
securities.
Additionally, we may advise you on other types of investments that we deem appropriate based on
your stated goals and objectives. We may also provide advice on any type of investment held in your
portfolio at the inception of our advisory relationship.
You may request that we refrain from investing in particular securities or certain types of securities.
You must provide these restrictions to our firm in writing.
Assets Under Management
As of January 13, 2023, we provide continuous management services for $160,000,000 in client assets
on a discretionary basis, and $420,000 in client assets on a non-discretionary basis.
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