CLIENT ALLEGES SHE WAS NOT AWARE OF THE POTENTIAL CAPITAL GAINS FROM THE INVESTMENTS SHE LIQUIDATED DURING THE 2010 TAXABLE YEAR.

$15,000.00

$15,000.00

ON LEARNING OF THE CLIENT'S HIGH TAX BURDEN RESULTING FROM THE LIQUIDATIONS DURING 2010, THE FINANCIAL ADVISOR FELT IT WAS IN THE BEST INTEREST OF THE CLIENT TO HELP THE CLIENT ABSORB SOME OF THE FINANCIAL BURDEN, DESPITE THE FACT THAT THE CLIENT HAD SIGNED AN ACKNOWLEDGMENT LETTER THAT INCLUDED VERBIAGE REGARDING POTENTIAL TAX CONSIDERATIONS AND COMPELLING THE CLIENT TO CONSULT WITH THEIR TAX ADVISOR FOR ADDITIONAL INFORMATION. THE FINANCIAL ADVISOR INITIATED THE PROCESS OF STRUCTURING AN OFFER TO THE CLIENT TO RESOLVE THE MATTER IN A MANNER ACCEPTABLE TO THE CLIENT WITHOUT REGARD TO THE POTENTIAL REPORTING OBLIGATIONS.

00/00/2007-03/00/2009; THE CLIENT STATES THAT THEIR CHANGING FINANCIAL NEEDS HAVE NOT BEEN ADDRESSED IN A TIMELY AND COMPETENT MANNER. THE CLIENT STATES THEY HAVE TRUSTED THE FA EACH TIME SHE ADVISED TO HOLD THEIR INVESTMENTS RATHER THAN PROTECT THEIR ASSETS. THE CLIENT STATES DURING THEIR 10/08 MEETING THEY EXPRESSED THEIR INTENT TO SELL VOLATILE INVESTMENTS AND THE FA CONVINCED THEM TO HOLD INSTEAD. THE CLIENT CLAIMS THEY HAVE HAD THEIR PORTFOLIO REVIEWED BY OTHER ADVISORS AND CLAIM IT SHOULD HAVE BEEN CHANGED LONG AGO. THE CLIENT STATES THEY MET WITH THE FA IN JANUARY AND FEBRUARY GIVING HER OPPORTUNITIES TO SUGGEST A NEW DIRECTION AND THE CLIENT FEELS THAT THE FA PROVED SHE NEVER HEARD WHAT THE CLIENT'S NEEDS WERE FINANCIALLY. VALUE IN THE ACCOUNT HAS DECLINED IN EXCESS OF $5,000.

$5,000.00

EDWARD JONES BUY-AND-HOLD PHILOSOPHY WAS EXPLAINED ALONG WITH THE EFFECT RECENT MARKET CONDITIONS HAVE HAD ON PORTFOLIO VALUES. IT WAS STATED THAT LONG TERM GROWTH WAS AN INITIAL OBJECTIVE OF THE CLIENT'S PORTFOLIO. AS THE MARKET WAS DECLINING THE FA DISCUSSED THE IMPORTANCE OF STAYING THE COURSE DURING TURBULENT MARKETS AND THE DECISION WAS MADE NOT TO LIQUIDATE THE CLIENT'S INVESTMENTS. THE FA DID HAVE DISCUSSIONS WITH THE CLIENT REGARDING THE CURRENT MARKET CONDITIONS AND THE CLIENT'S INVESTMENTS.