Monarch Wealth Strategies

Investment Advisor BROCHURE PART 2A Monarch Wealth Strategies 222 E. Carrillo Street, Suite 208 Santa Barbara, CA 93101 805.564.0800 www.mwsus.com This brochure provides information about the qualifications and business practices of Monarch Wealth Strategies. If you have any questions about the contents of this brochure, please contact us at (805) 564- 0800. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or any state securities authority. Additional information about Monarch Wealth Strategies also is available on the SEC’s website at www.adviserinfo.sec.gov. The use of the term registered investment advisor does not imply a certain level of skill or training. Revision 02.27.2026  Item 2 – Material Changes There have been no material changes to this brochure since the last annual amendment was submitted. P a g e 2 | 9  Item 3 – Table of Contents ITEM 1 – COVER PAGE .......................................................................................................................................................... 1 ITEM 2 – MATERIAL CHANGES ............................................................................................................................................. 2 ITEM 3 – TABLE OF CONTENTS ............................................................................................................................................. 3 ITEM 4 – ADVISORY BUSINESS ............................................................................................................................................. 4 ITEM 5 – FEES AND COMPENSATION ................................................................................................................................... 4 ITEM 6 – PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT ........................................................................... 5 ITEM 7 – TYPES OF CLIENTS .................................................................................................................................................. 5 ITEM 8 – METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS ................................................................ 6 ITEM 9 – DISCIPLINARY INFORMATION ................................................................................................................................ 6 ITEM 10 – OTHER FINANCIAL INDUSTRY ACTIVITIES AND AFFILIATIONS .............................................................................. 6 ITEM 11 – CODE OF ETHICS, PARTICIPATION OR INTEREST IN CLIENT TRANSACTIONS AND PERSONAL TRADING ................ 7 ITEM 12 – BROKERAGE PRACTICES ....................................................................................................................................... 7 ITEM 13 – REVIEW OF ACCOUNTS ........................................................................................................................................ 8 ITEM 14 – CLIENT REFERRALS AND OTHER COMPENSATION ................................................................................................ 8 ITEM 15 – CUSTODY ............................................................................................................................................................. 8 ITEM 16 – INVESTMENT DISCRETION ................................................................................................................................... 9 ITEM 17 – VOTING CLIENT SECURITIES ................................................................................................................................. 9 ITEM 18 – FINANCIAL INFORMATION ................................................................................................................................... 9 P a g e 3 | 9  Item 4 – Advisory Business Our Firm Monarch Wealth Strategies (referred to as “we,” “our,” or “MWS”) is a registered investment advisor legally bound by the fiduciary standard when serving clients. This means that we will always act in our client’s best interest. Our firm was established in 2008 and is owned by Aaron Clark through his trust. Wealth Management Services MWS provides wealth management services to its clients on a discretionary basis. When we manage client assets on a discretionary basis, we execute securities transactions for clients without having to obtain specific client consent prior to each transaction. Discretionary authority is limited to investments within a client’s managed accounts. However, clients may impose restrictions on investing or trading in certain securities or types of securities. Wealth Management Services include, among other things, providing advice pertaining to asset allocation, tax loss harvesting, asset location, rebalancing, distribution planning, and specific investment selection, as well as the ongoing monitoring and management of client assets. Our firm relies on the stated objectives of the client and considers the client’s risk profile and financial status prior to making any recommendations. MWS does not participate in wrap fee programs by providing portfolio management or any other services. Financial Planning & Consulting Services MWS provides financial planning and consulting services that are consistent with the client's objectives, goals, and financial status. Services may include providing advice and information in the areas of personalized investment management, retirement planning, tax planning, education planning, major purchases planning, business succession, insurance needs, budgeting, estate planning, and qualified retirement plan reviews. A conflict of interest is created whenever MWS or an associated person of MWS recommends products or services to a client for which we or an associated person receives compensation. However, MWS clients are under no obligation to act upon any recommendations of MWS. Financial Institution Consulting Services MWS provides investment consulting services to broker-dealer customers (“Brokerage Customers”) of broker- dealers, members of the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investor Protection Corporation (“SIPC”). Brokerage Customers provide written consent to receive the consulting services of and have entered into written advisory agreements with MWS. A conflict of interest is created whenever MWS or an associated person of MWS recommends products or services to a client for which we or an associated person receives compensation. However, MWS clients are under no obligation to act upon any recommendations of MWS. Assets Under Management As of December 31, 2025, MWS manages $463,476,339 in client assets on a discretionary basis. Item 5 – Fees and Compensation Wealth Management Services Wealth management services fees are negotiated with each client based on the individual client’s situation and complexity at the start of the engagement. The maximum annual fee will not exceed 1.95% of the assets under management, with a minimum fee of $7,500. The fee to be deducted directly from client accounts will be detailed in the client’s signed Wealth Management Services Agreement or account documentation. MWS may direct bill P a g e 4 | 9  clients upon request. Fees are billed on a pro-rata basis quarterly in advance based on the average daily balance of the Client account(s). If accounts are opened during the quarter, the pro-rata advisory fees will be deducted during the next regularly scheduled billing cycle. Financial Planning and Consulting Services Financial planning and consulting services fees are based on the individual client’s situation and complexity at the start of the engagement. The maximum hourly fee to be charged will not exceed $1000, with a maximum flat fee of $30,000. The fee to be assessed will be detailed in the client’s signed Financial Planning and Consulting Services Agreement. MWS may require a retainer of fifty percent (50%) of the ultimate financial planning or consulting fee at the time of signing. The remainder of the fee will be directly billed to the client upon completion and due within thirty (30) days. Under no circumstances will we earn fees in excess of $500 more than six months in advance of services rendered. Financial Institution Consulting Services MWS receives a consulting fee based on the assets under management from Brokerage Customers who have provided written consent to broker-dealers to receive investment consulting service from MWS and have entered into written advisory contracts with MWS. Consulting fees payable to MWS will not increase the total fees the client must pay. Since the compensation MWS receives may differ depending on the agreement with each Brokerage Customer, MWS may have an incentive to recommend one Brokerage Customer over another. Fees paid by clients to Brokerage Customers are established and payable in accordance with the policies of each Brokerage Customer. This information is contained in the applicable Brokerage Customer agreement the client signs and any corresponding disclosure information. Other Types of Fees and Expenses The account custodian may charge fees in addition to and separate from our fees, regardless of whether a client elects to implement recommendations made in a financial plan. Accounts may incur transaction costs, retirement plan administration fees, mutual fund annual expenses or other fees. Clients should note that fees for comparable services vary, and lower or higher fees may be charged by different providers for similar services. Termination Clients will have a period of five (5) business days from the date of signing an agreement to unconditionally rescind the agreement and receive a full refund of all fees. Thereafter, either party may terminate an agreement by providing the other party with thirty (30) days’ written notice. Upon termination, wealth management services fees will be prorated to the date of termination, and any unearned portion will be refunded. For financial planning and consulting services, clients will receive a pro-rata refund of unearned fees based on the time and effort expended by MWS at the fee currently in effect. Receipt of Additional Compensation Associated persons of MWS do not receive brokerage or mutual fund trail commissions from the purchase or sale of securities in advisory accounts. Additional information about brokerage costs and services is provided in Item 12. Item 6 – Performance-Based Fees and Side-By-Side Management MWS does not charge or receive, directly or indirectly, any performance-based fees. Item 7 – Types of Clients MWS generally provides advisory services to affluent individuals/families, pension/profit sharing plans, trusts/estates/charitable organizations, broker/dealers and businesses with investible assets of at least $750,000. P a g e 5 | 9  Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss Methods of Analysis MWS utilizes several disciplines of analysis – fundamental (including macroeconomic and microeconomic), technical (including charting and cyclical), and third-party. Fundamental analysis involves predicting the price movement of an asset based on measures that are related to the underlying business. Technical analysis involves predicting the price movement of an asset based on factors unrelated to the underlying business. Sources of financial information may include prospectuses, official statements, annual reports, SEC filings, company press releases, corporate rating services, and research materials prepared by others. We strive to mitigate the risks of any one analysis method by incorporating several methods. Investment Strategies Investment strategies are guided by a client’s objectives and vary accordingly. MWS may make long-term purchases (securities held at least a year), short-term purchases (securities sold within a year), and on rare occasions, trading (securities sold within 30 days). Generally, there is more risk involved with shorter-term trading. Both strategic and tactical asset allocation may be deployed. Asset allocation allows portfolios to participate in a variety of markets while potentially minimizing overall volatility but does not ensure a profit or protect against loss. The goal is to help achieve an optimal blend of investments tailored toward client goals. This process entails setting investment objectives, establishing weightings for various asset classes, choosing specific investments, and adjusting as circumstances dictate. MWS typically recommends one or a combination of the following assets or investment strategies: mutual funds, exchange-traded funds, institutional investments, individual securities (equity and debt), and cash instruments. On a case-by-case basis, we may utilize additional investment strategies, which may include but are not limited to: private investment funds, hedge funds, partnership interests, options contracts, futures contracts, real estate investment trusts, variable annuities, and variable life insurance. Risk of Loss Clients are advised that investing may involve the risk of loss of the entire principal amount invested, including any gains. Clients should not invest unless they are able to bear this risk. Even hedging strategies may fail if markets move against the hedged investments. In addition, investing carries opportunity risk as it is impossible to accurately predict the sectors of the market or asset classes that will have more favorable returns for a given period. Clients should always be aware of their risk tolerance and financial situation. The successful performance of an investment cannot be guaranteed. Past or historical returns are not indicators of future returns. Any type of investment (including CDs, T-Bills, and Cash) may lose money. Item 9 – Disciplinary Information MWS does not have any legal or disciplinary events that are material to the evaluation of its advisory business or the integrity of its management. Item 10 – Other Financial Industry Activities and Affiliations Associated persons of MWS may be insurance agents appointed with various insurance companies. A conflict of interest is created whenever our firm or an associated person of MWS recommends products or services to a client for which MWS receives compensation. However, clients are under no obligation to act upon any recommendations of associated persons. Clients are free to select any insurance agent that they may wish to employ. To mitigate conflicts, we make recommendations in the best interest of clients. Associated persons hold insurance licenses for acquisition purposes only. P a g e 6 | 9  MWS has entered into agreements with Brokerage Customers to provide investment consulting services. Brokerage Customers will pay compensation to MWS for providing investment consulting services. These consulting arrangements do not include assuming discretionary authority over Brokerage Customers’ brokerage accounts or the monitoring of securities transactions. These consulting services offered to Brokerage Customers may include a general review of Brokerage Customers’ investment holdings, which may or may not result in MWS’ investment advisor representatives making specific securities recommendations or offering general investment advice. Brokerage Customers will execute written advisory agreements directly with MWS. These relationships present conflicts of interest. Potential conflicts are mitigated by Brokerage Customers consenting to receive investment consulting services from MWS, by MWS not accepting or billing for additional compensation on assets under management beyond the consulting fees in connection with the investment consulting services, and by MWS not engaging in, or holding itself out to the public as, a securities broker-dealer. MWS is not affiliated with any other broker-dealer. Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading Code of Ethics As a fiduciary, MWS has a duty of utmost good faith to act solely in the best interests of each of our clients. Our firm has adopted a Code of Ethics (“Code”) that sets forth standards of conduct expected of MWS and associated persons, as well as address conflicts that may arise from personal trading. Associated persons are obligated to adhere to the Code, as well as applicable securities and other laws. The Code covers a range of topics, including general ethical principles, personal securities trading, insider trading, and reporting ethical violations. We will provide a copy of the Code to any client or prospective client upon request. Participation or Interest in Client Transactions Neither our firm nor a related person recommends, buys, or sells for client accounts securities in which our firm or a related person has a material financial interest. Additionally, neither MWS nor any associated persons recommend that clients buy from or sell securities to other clients. Personal Trading Associated persons of MWS may buy or sell securities and other investments that are also recommended to clients. In order to minimize this conflict of interest, associated persons will place client trades and interests ahead of their own trades and interest, as well as adhere to our firm’s Code. Item 12 – Brokerage Practices Factors in Selecting or Recommending Broker-Dealers Client assets must be maintained by a qualified custodian. MWS seeks to recommend a custodian who will hold client assets and execute transactions on terms that are overall most advantageous when compared to other available providers and their services. With this in consideration, we have an arrangement with Charles Schwab & Co., Inc (“Schwab”), a registered broker-dealer and member FINRA/SIPC, as our qualified custodian. Schwab services include brokerage, custody, research, and access to investments that are otherwise generally available only to institutional investors or would require a significantly higher minimum initial investment. Schwab offers MWS’ clients zero commission on many securities transactions. Client accounts may be charged transaction fees, commissions or other fees on trades that are executed or settled into the client’s account. Schwab may have access to certain confidential information about MWS’ clients, even if clients do not establish an account through Schwab. We will provide a copy of the Schwab Privacy Policy to any client or prospective client upon request. P a g e 7 | 9  As part of our fiduciary duty to clients, we will endeavor to put the interests of clients first. Clients should be aware, however, that the receipt of economic benefits by MWS or its associated persons creates a potential conflict of interest and may influence our choice of broker-dealer. This potential conflict of interest was examined and determined to be in the best interest of clients, as well as satisfies our fiduciary obligations, including our duty to seek best execution. In seeking best execution, the determinative factor is not the lowest possible cost, but whether the transaction represents the best qualitative execution, taking into consideration the full range of a broker-dealer’s services, including the value of research provided, execution capability, commission rates, and responsiveness. Although we will seek competitive rates to the benefit of all clients, the lowest possible commission rates for specific client account transactions may not be obtained. Research and Other Soft Dollar Benefits MWS does not receive soft dollars generated by the securities transactions of its clients. Brokerage for Client Referrals MWS does not refer clients to particular broker-dealers in exchange for client referrals from those broker-dealers. Directed Brokerage MWS does not require that clients direct their brokerage business to any particular broker-dealer. Trade Aggregation Generally, our firm does not aggregate trades for client accounts. There are occasions in which portfolio transactions will be executed as part of concurrent authorizations to purchase or sell the same security for multiple clients. When an aggregate trade is placed, the objective of the aggregated orders will be to allocate the executions in a manner that is deemed equitable to the accounts involved. Item 13 – Review of Accounts Associated persons of MWS typically review client portfolios no less than annually for consistency with investment objectives chosen by clients (among other things). Financial plans are reviewed only upon request unless we are retained to update the plan. Reviews may be triggered by changes in a client’s personal, tax, or financial status. Macroeconomic and company-specific events may also trigger reviews. Our firm does not provide written reports to clients unless asked to do so. Verbal reports to clients take place on at least an annual basis when clients are contacted. Account statements are provided directly by the custodian, who reports holdings and activities no less than quarterly. The custodian also sends confirmations following each account transaction unless confirmations have been waived. Item 14 – Client Referrals and Other Compensation MWS does not have an arrangement under which it or its associated persons compensate others for client referrals. Our firm does not receive any economic benefit for providing advisory services to clients from a person who is not a client. This includes sales awards or prizes. Item 15 – Custody Client assets are held by qualified custodians. MWS does not take physical custody of client funds or securities. Account statements are provided directly to clients from the custodian at least quarterly upon the opening of an account, which clients are urged to carefully review and notify MWS of any inaccuracies. P a g e 8 | 9  Standing Letters of Authorization The Adviser maintains custody of client funds and/or securities by virtue of having one or more Standing Letters of Authorization (SLOA) from clients of the Adviser. SLOAs provide investment advisers with the authority to disburse client funds to one or more third parties as specifically designated by the client. Clients instruct account custodians to accept the Adviser’s instructions (on the client’s behalf) to move money to third parties designated by the client in the SLOA. The Adviser’s authority is strictly limited by the terms of that instruction, and the client retains full power to change or revoke the arrangement at any time. The SEC has determined that under these circumstances, the Adviser retains custody of client assets. The Adviser will periodically review fund transfer authorizations from client accounts and wire transfer destination information to ensure that transfers conform to the authority granted in the SLOAs. Item 16 – Investment Discretion Clients have the option of providing our firm with investment discretion on their behalf, pursuant to an executed advisory services agreement. By granting investment discretion, MWS will have discretion over the selection and amount of securities to be bought or sold without obtaining specific client consent. Limitations may be imposed by the client in the form of specific constraints on any of these areas of discretion with our written acknowledgment. Item 17 – Voting Client Securities MWS does not accept the authority to vote proxies on behalf of clients as a matter of policy. Clients will receive their proxy information directly from their custodians. Clients may contact our firm with questions about a particular solicitation by telephone at (805) 564-0800. Item 18 – Financial Information There is no financial condition that is reasonably likely to impair our ability to meet its contractual commitments to its clients. We do not require prepayment of advisory fees, so no audited balance sheet is being provided. MWS has never been the subject of a bankruptcy proceeding. P a g e 9 | 9