4 exclusively from and against the engaged professional. Please also note, it remains the client’s responsibility to promptly notify LBA if there is ever any change in their financial situation or investment objectives for the purpose of reviewing, evaluating, or revising previous recommendations and/or services.
The Fidelity Management Account Xchange (FMAX) This program allows your IAR to provide you advisory services by using a third-party advisory service. Depending on the advisory program selected, the day-to-day management of the advisory account may be performed by the IAR, a third-party manager, or a combination of the two. This is a tri-party investment advisory platform and is sponsored by Fidelity Institutional Wealth Advisers, LLC (“FIWA”) and the clearing custodial firm, National Financial Services, LLC (NFS). A custodian is the entity that holds your securities and other investments on behalf of LBA. The FMAX program consists of an extensive range of investment advisory services, including Separately Managed Accounts, Fund Strategist Portfolios of Mutual Funds and ETFs, Unified Managed Accounts, and an Advisor Model Management Program. Clients who select the FMAX program and one of the following programs: Separately Managed Accounts, Fund Strategist Portfolios of Mutual Funds and ETFs, Unified Managed Accounts will also receive FIWA Form ADV Part 2A, which provides greater detail regarding the program sponsor. Each of these programs has distinct fees and charges such as a program, firm and intermediary fee and are outlined in the Statement of Investment Selection (SIS) that is provided to you prior to investing as are the minimum fee amounts by program type. In certain instances, additional costs may be incurred such as an asset-based surcharge for mutual funds that are deemed by the Custodian to be non-revenue paying. Your IAR can discuss the features of each program with you so that you may determine your preferred cost option that best suits your investment style.
The FMAX program charges a wrap fee based on a percentage of the assets in a program account. A wrap

fee is a bundled fee for services such as investment advice, including portfolio management, research, custodial services, reporting and trading and execution. A wrap fee is not based directly on the amount of transactions in a client’s account but rather the fee is calculated based on the asset value of the Client’s account. Accordingly, if there is little or no trading activity in the account, it is possible that a Client may pay more in advisory fees than he or she would have in commission charges if the account was a brokerage account, depending upon the number of trades that occur in an account from year to year. Each Program generally includes investment management, custody, reporting, performance-monitoring, and trade execution services. LBA acts as an intermediary to the FIWA program. Fees paid to the Third-Party Manager generally range from .25% to .50% and are applied as a weighted average based on each sleeve’s allocation relative to the total portfolio. The FMAX structure offers Advisors and Clients the ability to bundle multiple model portfolios and investment strategies together in one account, the Client could pay more for an investment strategy in this program. This means that they may pay more for this program than they would otherwise pay for the strategy in one of LBC’s other fee programs. LBA retains .01%-.03% of all AUM on this FIWA platform in addition to any other fees discussed in this brochure.
Assets Under Management As of January 2, 2024, we manage $232,011,373.14 in discretionary assets. We do not manage accounts on a non- discretionary basis. We offer 4 types of management programs: Traditional LBA Managed Account Compensation for advisory services is a flat percentage based on assets under management computed using the closing account balance on the last business day of the previous quarter. Maximum Fees in a traditional managed account are as follows; all fees are subject to negotiation. Total ticket charges (commissions and service fees) and other fees may also apply, see item 12 brokerage practices. Management fees will be deducted or billed quarterly four times per year.