12/21/07-11/08; CLIENT IS QUESTIONING WHY THE FA PUT HIM CAIBX WHEN THE RETURN OVER THE LAST FIVE YEARS IS AT -9.86%. CLIENT CLAIMS SINCE FA HAS BEEN MANAGING HIS RETIREMENT ACCOUNT HE HAS LOST $65,000 OF HIS MONEY. CLIENT CLAIMS HE IS NOT HAPPY WITH THE WAY THE FA HAS MANAGED HIS MONEY. CLAIM EXCEEDS $5,000

$65,000.00

FA STATED THE INVESTMENTS (INCLUDING CAIBX) WERE DISCUSSED IN DETAIL AT THE TIME OF PURCHASE. ADDITIONALLY, HE INDICATED HE SPECIFICALLY REVIEWED CLIENT'S INVESTMENT TIME HORIZON AS WELL AS MARKET RISK ASSOCIATED WITH THE MUTUAL FUNDS. OUR RECORDS REFLECT THE FUNDS DO APPEAR TO BE WITHIN THE SCOPE OF CLIENT'S INVESTMENT OBJECTIVES AS REFLECTED ON THE ACCOUNTS. WHILE WE UNDERSTAND CLIENT'S CONCERN WITH THE PERFORMANCE OF HIS ACCOUNTS, IT DOES APPEAR TO BE ATTRIBUTED TO MARKET FLUCTUATION WHICH IS A RISK ASSOCIATED WITH INVESTING AND, AS STATED ABOVE, WAS DISCUSSED WITH CLIENT AT THE TIME OF PURCHASE. FA BELIEVES THE RETURN CLIENT HAS REFLECTED ON HIS E-MAIL REGARDING CAIBX IS NOT ACCURATE AND, WHILE CLIENT'S ACCOUNTS AS A WHOLE MAY BE DOWN, THEY APPEAR TO HAVE FARED BETTER THAN THE MARKET AS A WHOLE. FA STATED HE HAS ATTEMPTED TO CONTACT CLIENT ON FOUR DIFFERENT OCCASIONS SINCE JULY 2, 2008 TO MEET FOR A PORTFOLIO REVIEW AND COMPLETE A RISK TOLERANCE QUESTIONNAIRE; HOWEVER, CLIENT HAS NOT ACCEPTED HIS INVITATION. IF CLIENT BELIEVES CHANGES ARE NEEDED IN HIS ACCOUNTS, HIS INVESTMENT OBJECTIVES HAVE CHANGED OR HE WISHES TO DISCUSS THE PERFORMANCE OF HIS ACCOUNTS IN MORE DETAIL, HE SHOULD CONTACT FA. CLAIM DENIED.