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Account Protection

All accounts held by Penson Financial Services, Inc. are protected through the Securities Investor Protection Corporation (SIPC) and customers are afforded the benefits under the Securities Investor Protection Act of 1970. SIPC provides protection up to a $500,000 limit, of which $100,000 may be for cash claims. Visit www.sipc.org or contact SIPC at (202) 371-8300 for more information about SIPC coverage.

Penson has purchased an additional insurance policy through a group of London Underwriters (with Lloys's of London Syndicated as the Lead Underwriter) to supplement SIPC protection. This additional insurance policy becomes available to customers in the event that SIPC limits are exhausted and provides protection for securities and cash up to an aggregate of $600 million. This is provided to pay amounts in addition to those returned in a SIPC liquidation. This additional insurance policy is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $150 million, including cash of up to $2 million. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of investment securities and does not cover all assets.

For a full description of the assets and securities that are covered, please visit www.sipc.org.