RESIDENT OF VENEZUELA EXPRESSED IN WRITING CONCERN REGARDING THE POOR PERFORMANCE OF CORPORATE BONDS PURCHASED IN 12/07. CUSTOMER STATED HE FEELS BETRAYED BY HIS FAS BECAUSE HE REQUESTED FOR HIS FAS TO SELL THE BONDS IN 4/08, BUT THE FAS CONVINCED THE JOINT ACCOUNT HOLDER THAT THE BONDS WERE SAFE AND NOTHING WOULD HAPPEN TO THEIR SAVINGS. THE CUSTOMER DOES NOT STATE A DAMAGE AMOUNT, BUT LOSSES ARE ESTIMATED TO BE APPROXIMATELY $26,910.01.

THE FAS CONFIRMED RECEIPT OF THE LETTER REGARDING THE CORPORATE BONDS. THE FAS SPOKE WITH THE JOINT ACCOUNT HOLDER AND ADVISED THEM NOT TO SELL BECAUSE THE CORPORATE BONDS WERE CONSISTENT WITH THE ACCOUNT OBJECTIVES. FAS CALLED COMPLAINING CUSTOMER SUBSEQUENT TO THE MEETING AND SHE AGREED TO HOLD THE INVESTMENTS. FAS VISITED VENEZUELA IN 3/09 AND ATTEMPTED TO MEET WITH THE CUSTOMERS TO DISCUSS CONCERNS. THE CUSTOMERS DID NOT MEET WITH THE FAS. THE FAS DENY TELLING THE CUSTOMERS THE INVESTMENTS WOULD NOT LOOSE MONEY. BASED ON THE PUBLIC INFORMATION AVAILABLE AT THIS TIME, THE BONDS CONTINUE TO MAKE DISTRIBUTION PAYMENTS. THE COMPLAINT IS DENIED.

RESIDENT OF CHILE STATED IN WRITING THAT HIS FA'S RECOMMENDATION TO PURCHASE STRUCTURED NOTES IN JUNE OF 2008 WAS UNSUITABLE FOR HIS RISK TOLERANCE. THE CUSTOMER FURTHER STATED HE BELIEVES THE POSITIONS ARE OVERLY CONCENTRATED. CUSTOMER DOES NOT STATE DAMAGE AMOUNT, BUT THE LOSSES ARE ESTIMATED TO BE APPROXIMATELY $302,000.

CHILE CLIENT STATES CONCERN THAT FA ADVISED THAT HIS INVESTMENT PRINCIPAL IN AN OLD MUTUAL VARIABLE ANNUITY WAS GUARANTEED. (5/9/2007)

$52,000.00

$5,000.00

CLAIM DENIED. CLIENT PURCHASED THE OLD MUTUAL ANNUITY AT ISSUE THROUGH A DIFFERENT FINANCIAL ADVISOR IN 2007. CLIENT LATER INQUIRED WITH CURRENT FA WHETHER HIS PRINCIPAL INVESTMENT WAS GUARANTEED. FA IS ABSOLUTELY CERTAIN THAT HE ADVISED THE CLIENT AND THAT THE CLIENT UNDERSTOOD, THAT THE OLD MUTUAL ANNUITY HE PURCHASED THROUGH A DIFFERENT FINANCIAL ADVISOR DID NOT HAVE A PRINCIPAL GUARANTEE. *** IN THE INTEREST OF CLIENT RELATIONS AND TO AVOID COSTLY AND TIME CONSUMING ARBITRATION, MATTER SETTLED IN THE AMOUNT OF $5,000, WITHOUT ADMITTING LIABILITY