SC RESIDENT WRITES THAT HE WAS NOT ADVISED ABOUT 1% CDSC WHEN HE PURCHASED CLASS C SHARES OF AMERICAN FUNDS AND FRANKLIN FUNDS FROM 2002 THROUGH 2004, RESULTING IN $7,000 OVERCHARGE. AGGREGATE C SHARE PURCHASES TOTALED $400,000. CLIENT ALSO WRITES THAT STATEMENTS FROM AUGUST THROUGH OCTOBER 2004 OVERSTATED HOLDINGS BY $11,000, AND INSTRUCTIONS TO LIQUIDATE AMERICAN FUNDS WERE NOT EXECUTED IN TIMELY FASHION AND RESULTED IN LOST OPPORTUNITY COST OF $12,000.

$7,000.00

FA DISCUSSED A SHARES WITH CLIENT, BUT CLIENT REFUSED TO PAY SALES CHARGE, AND DID NOT COMMIT TO INVESTING MORE THAN THE INITIAL $200,000 WITH WACHOVIA OR IN AMERICAN FUNDS. ONLY AFTER INITIAL INVESTMENTS PERFORMED TO CLIENT'S SATISFACTION DID HE DECIDE TO ADD TO ACCOUNT. INVESTMENTS WERE PROFITABLE OVERALL, AND C SHARES OUTPERFORMED HYPOTHETICAL A SHARE PURCHASES WITH BREAKPOINT FOR LENGTH OF TIME CLIENT REMAINED IN THE FUNDS. NO WRONGDOING FOUND. CLAIM DENIED.

CLIENT COMPLAINS IN WRITING THEY INVESTED $84K IN ANNUITY IN 12/99 AND THOUGHT THEY WERE IN GET FUND WHEN IN FACT THEIR ANNUITY LACKED THIS FEATURE.

$44,000.00

CLAIM DENIED BY FIRM JANUARY 16, 2003 ON GROUNDS THAT INVESTMENT WAS APPROPRIATELY DISCLOSED AND SOLD AND WAS CONSISTENT WITH CLIENTS STATED GOALS AND OBJECTIVES.