SECURITY OF ASSETS

Client assets are accurately tracked and held separately from any Penson Financial assets. We are routinely reviewed by both internal and external auditors who independently evaluate their books and records. Each client’s account is protected up to $150 million, including cash of up to $2 million. The first $500,000 of coverage (including $100,000 of cash holdings) is provided by the Securities Investor Protection Corporation (SIPC). Penson Financial purchases an additional insurance policy through London Underwriters (with Lloyd’s of London Syndicates as the Lead Underwriter). A $600 million aggregate limit applies as well, which is the most the London Underwriters will pay in the event of liquidation. SIPC insures the assets held in brokerage accounts if the brokerage firm fails. SIPC does not protect investors against investment decline or loss.