PORTFOLIO MANAGEMENT ACCOUNTS

Financial Advisers of America's Portfolio Management Account (PMA) was specifically created for the advisor who wants maximum control and flexibility in his asset management practice. Designed for Asset Managers, PMA is a representative-as-manager fee-based advisory account. PMA offers a low cost, open architecture solution for advisors who wish to set their own management fees and make their own investment decisions. Because of the platform's adaptability, advisors can effectively meet the investment needs of virtually any client, regardless of account size or investment objectives.

PMA's open architecture allows FAA IARs the freedom to manage client portfolios using general securities, no-load and load-waived mutual funds, UITs, options and/or exchange-traded funds. Commissions or sales charges are not allowed, and IARs are able to choose their own fee schedules within FAA's established parameters. Consistent with SEC guidelines, FAA requires all IARs to follow a FiveStep Prudent Process with all clients before implementing a PMA account. Several tools are available from FAA to perform the Prudent Process, but IARs are given the freedom to implement their own tools as well. FAA provides billing services and offers performance reports for all accounts in the PMA program. The minimum account size is $25,000 per account.