Common use of Client Referrals Clause in Contracts

Client Referrals. In addition to the referral arrangements referenced in Item 12, we have established several other arrangements whereby we compensate individuals and outside entities for client referrals. When a client is introduced to us by either an unaffiliated or an affiliated person or company, we will pay the referring party a portion of the client's total investment management fee in accordance with the requirements of applicable federal and state “solicitor” rules. For example, employees of the firm or one of our advisory affiliates may refer clients to us. In these cases, we will compensate the referring individual by paying a percentage of the total fee charged by the firm to the client. Outside entities are compensated by either a percentage of the revenue earned by the firm on the client relationship or a flat fee. When a prospective client is introduced to us by an unaffiliated referring party, the referring party, at the time of initially introducing Creative Planning, is required to disclose the nature of the referral arrangement, and must provide the prospective client with a copy of this Disclosure Brochure together with a copy of a specific solicitor disclosure statement which explains the terms of the solicitation arrangement between Creative Planning and the referring party, including the compensation to be received by the referring party from Creative Planning. Affiliates and employees of Creative Planning that refer clients and receive compensation from our firm must disclose the nature of his/her relationship to prospective clients at the time of the solicitation. We have received an economic benefit from Schwab to be used towards technology, research, marketing, and compliance consulting related expenses. In evaluating whether to recommend that clients custody their assets at Schwab, we take into account this benefit and other arrangements noted in Item 12 as part of the total mix of factors we consider which creates a conflict of interest. As part of our fiduciary duty to clients we endeavor at all times to put the interests of our clients first. Clients should be aware, however, that the receipt of economic benefits by us or our related persons creates a conflict of interest and may influence our choice for custody and brokerage services.

Client Referrals. In addition to the referral arrangements referenced in Item 12, we have established several other arrangements whereby we compensate individuals and outside entities for client referrals. When a client is introduced to us by either an unaffiliated or an affiliated person or company, we will pay the referring party a portion of the client's total investment management fee in accordance with the requirements of applicable federal and state “solicitor” rules. For example, employees of the firm or one of our advisory affiliates may refer clients to us. In these cases, we will compensate the referring individual by paying a percentage of the total fee charged by the firm to the client. Outside entities are compensated by either a percentage of the revenue earned by the firm on the client relationship or a flat fee. When a prospective client is introduced to us by an unaffiliated referring party, the referring party, at the time of initially introducing Creative Planning, is required to disclose the nature of the referral arrangement, and must provide the prospective client with a copy of this Disclosure Brochure together with a copy of a specific solicitor disclosure statement which explains the terms of the solicitation arrangement between Creative Planning and the referring party, including the compensation to be received by the referring party from Creative Planning. Affiliates and employees of Creative Planning that refer clients and receive compensation from our firm must disclose the nature of his/her relationship to prospective clients at the time of the solicitation. We have received an economic benefit from Schwab to be used towards technology, research, marketing, and compliance consulting related expenses. In evaluating whether to recommend that clients client’s custody their assets at Schwab, we take into account this benefit and other arrangements noted in Item 12 as part of the total mix of factors we consider which creates a conflict of interest. As part of our fiduciary duty to clients we endeavor at all times to put the interests of our clients first. Clients should be aware, however, that the receipt of economic benefits by us or our related persons creates a conflict of interest and may influence our choice for custody and brokerage services.