Client claims Financial Advisor's recommendation of an outside money manager who employed a covered call options strategy was inappropriate, resulting in losses on the options when the underlying security appreciated substantially. Client seeks reimbursement for losses on the options. (11/8/2021-12/13/0224)

CLIENT ALLEGES THAT A PURCHASE FOR A STRUCTURED NOTE LINKED TO FANNIE MAE (FNM) WAS MADE OF JANUARY 22, 2009. CLIENT CLAIMS HE DOES NOT RECALL FNM AS BEING THE UNDERLYING SECURITY OF THIS NOTE AND HAS FILED A COMPLAINT TO THIS AFFECT.

$22,618.17

CLIENT HAS FILED A COMPLAINT IN REGARDS TO THE PURCHASE OF A STRUCTURED PRODUCT LINKED TO FNM ON 1/22/2009. CLIENT HAS OWNED BETWEEN 8-10 OF THESE NOTES AND HAS LADDERED THEM IN THE PORTFOLIO AS A ABOVE AVERAGE INCOME STRATEGY. DUE TO THE CLIENT'S EXPERIENCE WITH THESE NOTES, THEY UNDERSTAND THE TERMS, PRINCIPAL RISK, ETC, THEY ARE UNDERTAKING TO EARN A ABOVE AVERAGE COUPON. FOR THESE REASONS EACH NOTE IS PURCHASED FOR APPROXIMATELY 4 - 6% OF THE OVERALL PORTFOLIO VALUE. CLIENTS COME IN FOR A MONTHLY MEETING AND ALL INVESTMENTS ARE DISCUSSED WITH THE REQUIRED MATERIAL (DISCLOSURES, PRELIMINARY PROSPECTUSES, ETC.) CLIENTS WERE FULLY AWARE AND ARE QUITE FAMILIAR WITH THESE PRODUCTS. IN THIS CASE THE UNDERLYING SECURITY DROPPED IN VALUE CAUSING A SIGNIFICANT DECLINE IN THIS PARTICULAR INVESTMENT. DUE TO THE FREQUENCY OF THE CLIENT MEETINGS ALL STANDARDS OF SUITABILITY, PROFILING, RISK TOLERANCE, TIME HORIZON AND INVESTMENT EXPERIENCE WERE ADHERED TO.