Fees/Revenue How fees are disclosed to plan sponsor clients 2017 Contract Annual review 408(b)(2) disclosure statement Fee disclosure statement Form ADV Requests for proposals Average division of revenue 2016 85% 79% 83% 81% 72% 65% 67% 69% 44% 48% 34% 32% How advisers are paid for qualified plan business 2017 Fees based on assets Hard-dollar/Flat fee (regardless of size) ERISA budget/ERISA reimbursable Per project Commissions/12b-1 fees (flat fee) Commissions/12b-1 fees (variable) Per participant Adviser salary Broker/dealer Staff salaries General expenses Partner salary Travel expenses Marketing expenses Tools and services 2016 87% 88% 87% 80% 44% 50% 43% 35% 19% 32% 15% 26% 10% 8% Compliance expenses Other 2017 2016 27% 30% 24% 20% 17% 16% 11% 9% 8% 3% 3% 3% 2% 3% 9% 4% 3% 3% 2% 3% Whether compensation varies based on products or services offered 2017 Yes No Average annual charge for services to retirement plan, by plan size (bps = basis points) $1mm 0% 1% 1% 5% $5mm <1 bp 1 - 5 bps 6 - 10 bps 11 - 25 bps 26 - 50 bps 51 - 75 bps 76 - 100 bps >100 bps Do not service this size 0% 0% 0% 43% 21% 10% 5% 14% 33% 50% 7% 1% 0% 9% $20mm 0% 3% 13% 72% 6% 1% 1% 0% 3% $50mm 0% 9% 39% 39% 2% 0% 1% 0% 11% $100mm 2% 28% 41% 7% 0% 1% 0% 0% 22% 2016 33% 43% 67% 57% $250mm 4% 41% 14% 0% 0% 1% 0% 0% 39% $500mm $1b 11% 33% 5% 0% 1% 0% 0% 0% 49% " Our broker/dealer is extremely committed to the retirement business and is always looking for things that will differentiate us in the market. We now can provide financial plans to all of our participants, which has been greatly received by my clients. " National full-service wirehouse; adviser plan assets: >$900mm - $1b 50 | planadviser.com november-december 2017 16% 20% 1% 0% 1% 0% 0% 0% 63%http://www.planadviser.com