» How can I be sure I am dealing with an AIPC member? Why is that important?

If you have a question as to whether or not a particular firm is a member of AIPC, you may call or email the AIPC Membership Department for verification.

Why is the issue of AIPC membership relevant to you? AIPC protects customers of broker- dealers as long as the broker-dealer is an AIPC member. The AIPC relinquishes authority over the protestation of customers of former AIPC members 180 days after the broker-dealer ceases to be a member of AIPC. Normally, international regulators will not permit the termination of the registration and AIPC membership of a broker-dealer if the firm owes securities or cash to customers.

» What should I be vigilant about before a problem occurs?

Some AIPC members may have affiliated companies or persons that conduct financial business, but are not members of the AIPC. Some of these affiliates may have similar names to that of the AIPC member, and in some cases even operate from the same premises or with the same employees. It's vital that you receive written confirmation of each securities transaction in your securities account with the AIPC member, and that each confirmation statement and each statement of account is issued by the AIPC member and not by a affiliate.

When you are required to make deposits for securities, they should not be made payable to your account executive, registered representative, or to any other individual, other than the AIPC member. If they require the deposit to be made payable to another entity (such as to the issuer of the securities you are purchasing or to a bank escrow agent), you should takes measures into your own hands and carry out your own due diligence, in order to ensure that your funds will be properly applied before you transfer any funds.

Clients should also make sure that they receive their accounts statements on a consistent and timely basis. If the company fails to provide accounts statements on a regular basis, this may indicate that they have gone out of business or are experiencing operational or financial difficulties. If you do not receive regular account statements when they are due and do not receive a satisfactory explanation for their delay, or if for any other reason you believe the brokerage house may have ceased business operations, you should promptly contact the applicable regulatory body, which would be the AIPC, if they are registered members. If a broker-dealer relinquishes their AIPC membership, while still owing cash and/or securities, their clients should notify the AIPC immediately, in order to proceed with a claim for the owed securities and/or funds.

» How long will it take for my investment to be reimbursed?

The Majority of clients can expect to receive their owed funds and/or securities within one to three months. If the financial records of the brokerage firm are accurate and up to date, the delivery of securities and cash to the clients will begin shortly after the trustee receives their completed claim forms, or at an earlier date, if the trustee can transfer the clients accounts to another broker-dealer. Lengthy delays in the reimbursement of funds or securities are only likely to arise if the failed brokerage firm's records are not accurate and up to date. It also is not uncommon for delays to occur if the brokerage firm or any of its principals were involved in fraudulent activity.

» Who is not eligible for AIPC protection?

Clients with funds and/or securities owed to them by their brokerage firm are eligible for AIPC assistance. However, AIPC's funds may not be used to the cover claims made by any of the failed brokerage firms' clients. Below is a list of additional persons, not eligible for AIPC protection:

• A general partner, officer, or director of the brokerage firm.
• The beneficial owner of 5% or more of any class of equity security of the firm (other than certain nonconvertible preferred stocks).
• A limited partner with 5% or more, in the net assets or net profits of the brokerage firm.
• Someone with the authority to exercise a controlling influence over the management or policies of the brokerage firm.
• A broker, dealer or bank protecting their own best interest, rather than, that of their clients.

» Where do I submit my claim forms?

If your brokerage firm goes into liquidation, the court-appointed trustee will then notify all clients, in addition to sending a claim form and instructions. The client is then required to return the completed claim forms to the trustee within the given time frame, outlined within the notice and as described in the attached instructions. Failure to do so in the given time frame could potentially result in the loss of a portion of, or worst case scenario your entire claim. If you receive a notification stating that your brokerage account has been transferred to another brokerage firm, you are still required to file a claim form in order to preserve the right to correct any errors that may occur during the transfer of the brokerage accounts.

» Is there a time limit for filing claims?

Yes - the time frame outlined in the bankruptcy court for the filing of client claims is generally 60 days after the notice of the proceeding has been published, however in some cases, it could be as little as 30 days after the publication date. The deadline outlined in the published notice and the copy of the notice is mailed to clients in addition to the claim forms and instructions which also prominently display the date of the deadline. It is vitally important that all clients pay close attention to the deadline set forth within the notice and make sure the trustee receives their claim in a timely manner.

» Do I have to prove what the brokerage firm owes me? How does that work?

Yes, the client is required to state within the claim form all of the cash and securities that are owed to them. The court-appointed trustee will then compare the claim against the books and records of the brokerage firm in order to ascertain exactly what is owed. In most cases, the brokerage account will be transferred to another brokerage firm before you have even filed a claim. However, there have been instances of discrepancies and/or mistakes in the brokerage firms' records, which show transactions made without the consent of the client. Clients are required to always keep copies of their trade confirmations and latest monthly or quarterly statement of account from the brokerage firm. The trustee will ask for copies of these documents, which is why it is important that if you ever discover an error in a confirmation or statement, you should immediately bring the error to the attention of the brokerage firm in writing. It's also important to keep a copy of all correspondence between yourself and the brokerage firm regarding any errors or discrepancies. Remember, if there are any errors within the brokerage firm's records of your account, you will need to prove that, or the AIPC and trustee will assume that the firm's records are complete and accurate.