Schedule D - Page 1 of 5

Section 6.B

(and Form ADV Part II - Page 2, item C, D

In addition to the business of being an investment advisor, our business involves the creation of significant financial strategies and financial planning techniques to result in additional value for the client and/or to help them achieve certain goals and objectives, some financial and some non-financial.   Investment advice provided by FMC or by its President and owner, Frank Sisco, is only one facet of the business, and a relatively small one.   Our primary service to individuals is our creation of significant financial strategies, which, if implemented, result in a greater likelihood of additional savings of money, an increase in income or growth, or the creation of additional present or future wealth for our clients and/or their family members than the present course being followed by the client.  

We are able to create these strategies after we perform a detailed integrated financial analysis of a client's financial profile, goals and objectives, cash flows, risk tolerance level, family considerations, and various other issues.   In connection with this analysis for varied types of clients we review matters affecting many aspects of personal finance and business, including matters involving the allocation of resources, the capacity for earning income and the level, identifying and managing risks, enhancing growth, reviewing and evaluating expense patterns, tax planning and tax reduction, restructuring of assets, liabilities and cash flow, reducing expenses, managing and overseeing businesses, and planning for changes in regulations, economy, and business environment.  

We provide the client with a detailed report (often called "Financial Strategies Report") including a summary of the suggested financial strategies and a quantification of the estimated additional savings or wealth that might be realized, a detailed description of each strategy, schedules of assets, liabilities, income, expenses, other cash flow items, estimated growth, estimated income taxes, projections of cash flows under various scenarios, and attachments of supporting research or memos.   This report is discussed in detail with the client.   If the client is not fully satisfied, as discussed below, we immediately refund the fee to the client.   If the client decides to implement one or more of the strategies, we discuss the alternatives for implementation (e.g. the client may decide to implement on their own or with their own advisors, the client may ask us for referrals of advisors, the client may ask us to do the implementation work for them.)  

Our proprietary approach has been sometimes referred to in publications as "Sensitive Financial Services" because we are especially sensitive to what are the clients true or real underlying objectives and needs, which we believe we are able to understand using certain proprietary techniques including our in-depth exploration of the client's family structure, relationships and attitudes, and an extensive review of the client's knowledge of personal finance matters and economic matters and the client's risk tolerance.   The proprietary method we use of presenting financial strategies in the context of the value to be gained has sometimes been referred to in publications as "Ideasmoney Financial Planning."  

Related to delivering our services are the disciplines of investment planning and allocation and selection of appropriate products and services, tax planning and preparation, insurance planning and selection of appropriate products and services, estate planning, budgeting, accounting, and projections of cash flow and investment growth.

In addition to this creation of financial strategies and the related detailed financial analytical and advisory service performed for a set fee, we provide other financial analytical and advisory services for more narrowly-defined projects regarding particular issues such as investment allocation of a portion of a client's assets, and certain transactions involving debt, investments, and insurance.   Also, for certain clients, when they request, we prepare updates of summaries of their assets, liabilities, and cash flows.   These services are discussed with clients, including the timing and extent of our work and fees, which are based upon estimated hours multiplied by our hourly rates, and are not negotiable.   In certain cases our work leads to suggestions that involve investments and insurance for which Frank Sisco can earn commissions, and this is disclosed to the client before the work begins.

Fees and charges -

For our primary service - At the outset of this work, we estimate our total fee based on our estimated hours multiplied by our hourly fees.   These are not negotiable with the client. The current hourly fee rate is often $285 for Frank Sisco, and is set within the range of $200 and $300 per hour.   The more complicated and/or creative the work, the higher the hourly fees.   A typical engagement will be for a fee of $2,850 (10 hours X $285).     Clients pay this fee before we begin our work.   Our clients may terminate this arrangement within five business days and receive a full refund.   We commit to provide a written report of our suggested financial strategies within 30 days of their providing us the necessary records and data for us to do our work.   If we are not timely, the client has the option of requesting a refund and we then comply immediately.    Furthermore, we commit to the client that the client shall be fully satisfied with our report and our suggested financial strategies upon presentation of the report to the client and a thorough discussion with the client.   One measure of satisfaction is whether the additional total amount of savings and/or growth that can be generated from our suggested financial strategies when implemented, using conservative present value estimates, is at least three times the fee charged.   If the client is not satisfied, the client has the option of requesting a refund of the fee.    If the client requests a refund because they are not satisfied, we immediately refund the fee even if we have demonstrated a hypothetical savings and/or growth in excess of 3 times the fee.   In certain cases our suggested strategies involve investments and insurance for which Frank Sisco, as a registered representative of Walnut Street Securities, Inc., a registered broker/dealer, Member NASD & SIPC, and as a licensed insurance agent, can earn a commission if the client chooses for Sisco to arrange the transaction.   This is disclosed to the client before the transaction.    In cases that do not involve investments and insurance but do involve additional work by us (e.g. further analysis, implementation work, coordination with other advisors), we arrange with the clients the timing and extent of our work and the fees involved before the work begins.   In certain cases, our fees are expressed as a percentage of the quantified value delivered to the client.   An example would be 5% X $800,000 of quantified value = $40,000.   In these cases, we and the clients agree beforehand on the measurement criteria, and we agree that the fees will be based only on strategies accepted by the client.

For our other services - In addition to this creation of financial strategies and the related detailed financial analytical and advisory service performed for a set fee, we provide other financial analytical and advisory services for more narrowly-defined projects regarding particular issues such as investment allocation of a portion of a client's assets, and certain transactions involving debt, investments, and insurance.   Also, for certain clients, when they request, we prepare updates of summaries of their assets, liabilities, and cash flows.   These services are discussed with clients, including the timing and extent of our work and fees, which are based upon estimated hours multiplied by our hourly rates, and are not negotiable.   In certain cases our work leads to suggestions that involve investments and insurance for which Frank Sisco can earn commissions, and this is disclosed to the client before the work begins.   In certain cases, these special projects and services could be billed on the basis of a percentage of the achieved value or alternatively there might be assurance to the client that value attained will be a certain multiple of the estimated hourly fees.

Clients may get a refund or may terminate an investment advisory contract before its expiration upon written request, and money will be refunded except for hourly fees accrued to date.

Sample contracts

Our contracts take the form of a letter agreement containing the key provisions of the above paragraphs, which relate to the particular client engagement.   Fees are specified (e.g. hourly rates, estimated hours, value measurements including multiples and/ or percentages whichever apply.)

Form ADV, Part II, item 3.L.

Other investments include fixed-rate annuities, immediate annuities, life insurance (whole life, term, universal), and money market accounts.

Form ADV, Part II, item 5

The applicant requires of those involved in determining or giving investment advice to clients that they (a) have an undergraduate degree from an accredited college or university (b) have significant financial analytical knowledge, skills and experience, and (c) have at least 2 years experience in analyzing and advising about investments.

Form ADV, Part II, item 6

Information about the applicant's principal officers is as follows:

Frank Sisco - President and owner of 99% of the stock of FMC

Home address - 30 Mill Road, New Rochelle, NY 10804

•   Date of birth: 4/26/49

•   Formal education after high school

- Graduate of Iona College, B.B.A., cum laude,   Accounting major

- Certified Public Accountant, licensed 2/74

- Passed NASD Series 7 examination in 12/85 to become a Registered representative

- Passed NY insurance examination in 1986 for life, accident and health and variable annuities

- Met requirements in 4/98 to be an Accredited Estate Planner by the National Association of Estate Planners and Councils.

- Passed examination and met requirements in 6/1999 to be designated as a Personal Financial Specialist by the American Institute of Certified Public Accountants

•   Business background for preceding five years

- President and shareholder of Financial Management Corporation, Harrison, NY 10528, 6/95 to present

- Self-employed as a Certified Public Accountant (and Personal Financial Specialist and Accredited Estate Planner) in Harrison, NY, Mamaroneck, NY and New Rochelle, NY, 10/97 to present

- Registered Representative of Walnut Street Securities, Inc. from July 2002 to present (and before that with Nathan & Lewis Securities, Inc., FSC Securities Corporation, Pruco Securities, Inc. and Prudential-Bache Securities, Inc.)

- Insurance agent of various insurance companies, from offices in Harrison, NY, Mamaroneck, NY and New Rochelle, NY, 1986 to present

- Business strategist and inventor, 1977 to present

- Author and columnist.

Lorrie Sisco (spouse of Frank Sisco) - Secretary and owner of 1% of the stock of FMC

Home address - 30 Mill Road, New Rochelle, NY 10804

•   Date of birth: 8/4/1948

Lorrie Sisco has no responsibilities in the overall determination of the advisor's investment policy.   Her duties are primarily secretarial, clerical and administrative, and part-time.

•   Formal education after high school

- Graduate of Nancy Taylor Business Institute

- Passed and met requirements for being a real estate agent in NY State

•   Business background for preceding five years

- Legal secretary for the law office of Kahn, Kahn and Scutieri, located at 175 Main Street, White Plains, NY 10601 - 1/1991 to present

Form ADV, Part II, item 7

Information about the applicant's other activities (as further described at the beginning of Schedule F) and time spent:

Activities (not outside)

(a) Activities in connection with its primary service and other services that to investments.

Outside activities

(b) Activities in connection with its primary service and other services that are not necessarily related to investments (These may involve some of the non-investment areas of our services)

(c) Activities as registered representative of Walnut Street Securities, Member NASD & SIPC.

(d) Activities as a licensed insurance agent of various insurance companies

(e) Activities as a Certified Public Accountant and Personal Financial Specialist

Summary of time spent on all activities

Service                                     Approx. F.Sisco time            

(a)                                                 20%                                    

(b)                                                 20%                                    

(c)                                                 20%

(d)                                                 20%                                    

(e)                                                 20%                                    

Total time                                  100%

Form ADV, Part II, item 8

Arrangements that are material to its advisory business or its clients are with Frank Sisco, who is a stockholder and officer of the applicant, who is also:

 (a) a registered representative of Walnut Street Securities, Inc., a registered broker/dealer, Member NASD & SIPC.   Clients are under no obligation to purchase or sell securities through Frank Sisco; however, if they choose to implement the report's suggested financial strategies or other suggested strategies, commissions may be earned in addition to any fees paid for advisory services.   The commissions may be higher or lower at Walnut Street Securities, Inc. than other broker/dealers.  

(b) a licensed insurance agent with various insurance companies.    Commissions may be earned in addition to any fees paid for advisory services.   The commissions may be higher or lower at these insurance companies than other insurance companies.

 (c) a Certified Public Accountant and Personal Financial Specialist (sole proprietor) who earns fees for various financial, tax and accounting services, including financial and business analysis and advisory services, tax planning and tax return preparation, and accounting and the preparation of financial reports and financial statements.   Clients are under no obligation to use these services; however, if they choose to implement the report's suggested financial strategies or other suggested strategies, fees may be earned in addition to any fees paid for advisory services.   The fees may be higher or lower of Frank Sisco than other accountants or personal financial specialists.

Form ADV, Part II, item 9 B. D, E

Item 9.B.

Frank Sisco is a related person of the Applicant because he is a stockholder and officer (President) of the Applicant.   He effects securities transactions for clients of the Applicant, and does so as a registered representative of Walnut Street Securities, Inc. (owned by MetLife), a registered broker/dealer, Member NASD & SIPC.   Clients are under no obligation to purchase or sell securities through Frank Sisco; however, if they choose to implement the plan or the report's suggested financial strategies or other suggested strategies, commissions may be earned in addition to any fees paid for advisory services.   The commissions may be higher or lower at Walnut Street Securities, Inc. than other broker/dealers.   There are restrictions, internal procedures, or disclosures that are used for conflicts of interest in those transactions.   The transactions are reviewed by the other stockholder of the Applicant and are subject to the scrutiny of the client, clients are advised of the relationships before the transactions are done, and records are maintained of all securities bought or sold, which are available for client inspection upon request.

Item 9.D.

Frank Sisco is a related person of the Applicant because he is a stockholder and officer (President) of the Applicant.    Sisco may recommend to clients that they buy or sell securities or investment products in which he has some financial interest.   Their financial interest would take the form of fees or commissions that can be earned, as detailed in within Form ADV. There are restrictions, internal procedures, procedures, or disclosures that are used for conflicts of interest in those transactions.   The transactions are reviewed and are subject to the scrutiny of the client, clients are advised of the fact beforehand, and records are maintained of all securities bought or sold, which are available for client inspection upon request.

Item 9.E.

Frank Sisco is a related person of the Applicant because he is a stockholder and officer (President) of the Applicant.    Sisco may recommend to clients that they buy or sell securities that Sisco buys for himself. There are restrictions, internal procedures, procedures, or disclosures that are used for conflicts of interest in those transactions.   The transactions are reviewed and are subject to the scrutiny of the client, clients are advised of the fact beforehand, and records are maintained of all securities bought or sold, which are available for client inspection upon request.

Form ADV, Part II, item 11, A.

Reviews

We do not provide investment supervisory services nor manage investment advisory accounts.   We perform financial analytical services and financial advisory services, which resemble, in some respects, traditional financial planning services, as detailed in the descriptions the beginning of Schedule F.   For our primary service or other services, we do not commit to an ongoing review unless requested by the client.   In those cases of special requests, we find that our reviews happen one to two times per year and that the level and frequency varies by client.   Triggering factors are that clients will often request reviews when they note that there are significant changes in their personal circumstances, the general economy, or tax laws.

Reviewers

Our reviewer is Frank Sisco, a stockholder and President of the applicant, who reviews everyone's work, and when there is a special request by the client.   The instructions from the applicant vary by client.

Form ADV, Part II, item 11, B

We do not provide investment supervisory services nor manage investment advisory accounts.   We perform financial analytical services and financial advisory services, which resemble, in some respects, traditional financial planning services, as detailed in the descriptions the beginning of Schedule F.   For our primary or other services, we do not commit to preparing a regular report unless requested by the client.   In those cases of special requests, we find that our regular reports happen one to two times per year and that the level and frequency varies by client.   Triggering factors are that clients will often request regular reports when they note that there are significant changes in their personal circumstances, the general economy, or tax laws.

Form ADV, Part II, item 12, B

The applicant suggests brokers to clients, and the factors considered in selecting brokers and determining the reasonableness of their commissions are:

(a) the nature and extent of the related work involved

(b) the level of knowledge and experience needed for the work and the level held by the broker

(c) the amount of the client's time expected

(d) associated work assumed by the broker

(e) the timing of transactions

(f) the way reports, if any, are

(g) the projected continuity of broker service

(h) the complexity of the transactions

(i) the availability of particular investment products

(j) the accuracy of recording transactions

(k) the availability and access to follow-up information

(l) the availability of tax-related services such as the summary of securities sales transactions with both sale and cost info

(m) the wishes and requests of the client

(n) the scope and availability of research, and

(o) other factors.

Related persons of the applicant may be registered representatives of Walnut Street Securities, Inc., a registered broker/dealer, Member NASD & SIPC.   Clients are under no obligation to purchase or sell securities through Frank Sisco; however, if they choose to implement the plan or the report's suggested financial strategies or other suggested strategies, commissions may be earned in addition to any fees paid for advisory services.   The commissions may be higher or lower at Walnut Street Securities, Inc. than other broker/dealers.    The applicant may suggest other brokers because if Frank Sisco cannot handle no-load mutual funds or certain investment transactions at a competitive commission or when other factors described above so dictate.   Research is used to service the applicant's accounts who pay for it.   The applicant did not direct client transactions to a particular broker in return for products and research services used.

Form ADV, Part II, item 13, A

Frank Sisco, a stockholder of Financial Management Corporation, earns and receives commissions from broker / dealers (e.g. Walnut Street Securities, Inc., Member NASD & SIPC and from various insurance companies for specific investments and life insurance and other insurance products that are sold to clients in connection with giving advice to clients.