Wealth Management Solutions Helping You Grow Your High-Net-Worth Business

Your Business Without Limits®

The Wealth Management Opportunity Being able to offer your high-net-worth clients a full complement of wealth management solutions is critical to solidifying long-term relationships and potentially consolidating more of your clients’ business with your firm. Pershing’s wealth management solutions can help your clients effectively manage, grow and protect their wealth. By leveraging the experience and knowledge of our professionals, you can maximize the opportunities that wealthy clients present.

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> Leverage Our Corporate Executive Services Our dedicated team of experts can help your high-net-worth clients take full advantage of illiquid wealth. Employee stock options and restricted securities may represent sizable, and somewhat illiquid, elements of compensation at executive or other senior management levels. Pershing’s Corporate Executive Services provides support of cashless employee stock option exercises, restricted and control stock transactions, and securities-based lending opportunities.

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Restricted and Control Stock Liquidating large holdings of restricted or control stock can be difficult and must be done with a thorough knowledge of the regulations that pertain to these types of securities. Our Corporate Executive Services team can help. The team’s in-depth knowledge of the rules and regulations regarding the disposition of restricted and control securities can be leveraged to help

your clients determine the best way to generate liquidity from their positions. The team can assist with the process of filing restricted and control stock, which may consist of filing with the appropriate exchanges, obtaining opinion of counsel and facilitating the execution of the transfer. The team can also assist with the preparation of the required paperwork to satisfy the reporting requirements, such as SEC Rule 144, 144b(i), 701 and 904, or Shelf Registration.

Employee Stock Options If your client wishes to exercise his or her stock options without self-funding the transaction, Pershing can facilitate a number of alternatives. Your client can exercise his or her stock options in a full or partial sale with the ability to margin all or a portion of the shares. Our Corporate Executive Services team can assist in the coordination of grant eligibility confirmation, payment disbursement processing, and tracking the timely delivery of shares, giving your clients prompt access to liquidity that can be used for further investment.

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Employee Stock Plan Administration Services BNY Mellon Shareowner Services provides full administration services for equity compensation programs and stock purchase plans for executives and employees around the globe. The administrator’s portal—one of the most customizable administrative tools in the industry—provides innovative data management and reporting solutions, allowing plan administrators to access data in real time, control file transmissions and make time-critical updates. BNY Mellon Shareowner Services also offers core employee stock plan services that can be tailored to clients’ unique needs. > Incentive and nonqualified stock options > Restricted stock awards and units > Stock appreciation rights > Performance awards and units – 423, nonqualified and leveraged employee stock purchase plans >C  ustomizable and flexible reporting tools with real-time access to data > F inancial Accounting Standards (FAS) 123R, 128 and 109 compliance support > Tailored executive services >A  ffiliated foreign currency exchange and multicurrency tracking > Coordinated transfer agent services If your client would like to establish a plan, the professionals at BNY Mellon will be happy to assist with the implementation and ongoing administration. If your client already has a plan and only wants to execute trades, Pershing can easily facilitate that activity.

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Powerful Lending Solutions Implementing effective borrowing strategies enables you to help clients minimize taxes, improve cash flow, avoid liquidating securities, reduce high-cost debt, diversify their portfolios and make the most of investment opportunities. In addition, by incorporating a liability management approach to your clients’ finances, you are in a better position to provide a holistic view of their wealth and further strengthen your financial relationships. Pershing’s range of lending solutions includes: > CreditAdvance® is a multipurpose, secured, revolving line-of-credit and a valuable margin lending tool. This source of leverage enables your clients to attain a higher level of investment and utilize the liquidity gained for any purpose. > LoanAdvance® is a securities-based consumer lending tool designed to offer investors access to a loan at competitive interest rates with no fees, points or closing costs.1 Investors can take advantage of the value and borrowing power of the investments in their brokerage or managed accounts to meet their financing needs. Best of all, the approval process is quick and easy. >R  ealAdvance is a mortgage origination program that allows you to offer competitive fixed- and adjustable-rate first mortgages for purchases and refinancing to investors who reside in the United States. In addition, rapid loan decisions are available online, following the completion of an application via NetX360 . TM

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> F ully Paid Securities Lending provides you with a specialized service offering that will help you solidify relationships with your high-net-worth investors and also gives you a competitive advantage to attract new high-net-worth relationships. The Fully Paid Securities Lending program permits high-net-worth clients holding fully paid-for securities to loan those securities to Pershing.2 Pershing then has the option to utilize those securities to satisfy both internal and external borrowing needs. A portion of the spread earned on the loaned securities becomes revenue for your participating client.3 Pershing’s Lending Solutions can help meet your clients’ liquidity needs, position you to manage both sides of their balance sheet and lead to deeper client relationships.

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 estrictions in some states may affect credit line amount minimums and broker-dealer and investment professional licensing requirements. In addition, this product R may not be available in certain foreign countries, as well as to residents of Mississippi, Nevada, Rhode Island and Vermont.

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To participate in the Fully Paid Securities Lending program, clients must maintain a minimum net worth of $1 million in their brokerage accounts held with Pershing.

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 nrollment in the Fully Paid Securities Lending program does not guarantee that Pershing will actually borrow securities from your clients. Pershing will borrow E securities based on the needs of its business.

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> Trust Network Over five million households have at least one trust.4 As the first wave of baby boomers nears retirement age, trusts are becoming the tool of choice for protecting and enhancing their wealth, minimizing future estate tax liabilities and ensuring the efficient transfer of their assets. In spite of this, 61% of individuals over 60 years old have not yet implemented a trust.5 Using Trust Network, you can help your clients realize the benefits of a trust and grow your investment management business. Many clients who use a corporate trustee to administer their trust may not realize that their investment professional can manage their trust assets. Pershing’s open-architecture platform, Trust Network, enables you to manage your clients’ trust assets, while expert trust administration services are provided by some of the nation’s most highly regarded trust companies, including: > The Advisory Trust Company of Delaware, part of the Wilmington Trust corporate family, oversees approximately $1.3 billion in assets and provides directed trustee and trust administration services for high-net-worth individuals and families. Advisory Trust works exclusively with you, assisting you in helping your clients achieve their financial goals by using the full range of trust strategies available under Delaware law.

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Spectrem Group, 2009 Personal Trust Update, page 5.

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Spectrem Group, 2009 Personal Trust Update, page 15.

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> Reliance Trust Company is one of the largest independent trust companies in the nation with more than $70 billion in trust assets. Reliance Trust offers integrated directed trust solutions designed to help you provide your clients with industry-leading personal trust services. > Santa Fe Trust, Inc. is an independent trust company that exclusively offers full trustee and directed trust account administration, charitable planning and record keeping services. Santa Fe Trust does not provide investment management services, and as a result it is not in a competitive position with its investment professional clients. Santa Fe Trust administers over $500 million in trust assets. > Wilmington Trust Company has more than a century of trust expertise and is recognized as one of the nation’s leading experts in exercising fiduciary judgment in complex family situations.

Affording you maximum flexibility to meet your clients’ specific needs, Trust Network provides access to a wide range of services, including: > Administration of the trust > Distribution of principal and income in accordance with the terms of the trust > Custody of trust assets > Fiduciary accounting and record keeping > Preparation and filing of tax returns For clients who are not seeking the services of a corporate trustee, agent for trustee and trust

reporting services are also available. And, because all marketable securities and investable cash are held at Pershing, you have complete access to all account functions, resources, and data via NetX360, Pershing’s complete technology solution for investment professionals and registered investment advisors. Trusts can help your clients preserve what they have worked a lifetime to build. Through Trust Network, your clients can realize all of the benefits of a trust—while maintaining their investment management relationship with you.

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> Introduce Structured Products The global retail structured products market made a strong recovery at the end of 2009 and is poised to return to—and possibly exceed—previous highs in the near future.6 An investment staple throughout Asian, European and Latin American markets, structured products have recently experienced an increase in popularity among U.S. investors. Able to address a wide variety of investor objectives, structured products can help investors diversify their portfolios and manage risk. Structured products combine the features of traditional investments—such as bonds—with financial derivatives—such as options. With returns linked to the performance of underlying investments, such as individual securities and market indexes, structured products provide a range of features, including: > Different levels of principal protection > Enhanced yield > Higher-than-market coupons Pershing’s Syndicate Desk is committed to providing one-stop syndicate shopping across a broad range of structured products. By leveraging strategic alliances with multiple issuers, the desk offers you a wide array of new issue structured products on one platform and at very competitive prices.

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Dickinson, Clare, “BarCap praised as global volumes recover in 2009,” April 1, 2010.

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A Broad Range of Structured Products > Reverse convertibles > Principal-protected notes > Equity-linked certificate of deposits (CDs) > Fixed income structured products, including range accrual and noninversion notes

From a Wide Variety of Issuers > Barclays

> HSBC

> Royal Bank of Canada

> BNP Paribas

> JPMorgan Chase & Co.

> Royal Bank of Scotland

> Credit Suisse

> Morgan Stanley

> UBS

> Deutsche Bank

> Société Générale

> Wells Fargo

With the Convenience of Straight-Through Processing View hundreds of new issue structured products from multiple originators and buy them online through the Fixed Income Center on BondCentral® in NetX360. > Straight-through processing enables you to enter electronic indications of interest for products from different issuers, with all orders approved and executed on trade date > Low investment minimum of $1,000, or one bond, for the vast majority of new issue structured products

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> Offer a Charitable Giving Solution Charitable giving in the United States exceeded $37 billion in 2008, according to Giving USA 2009. With the help of investment professionals, baby boomers are putting more money into donoradvised funds. In the coming decades, charitable growth in general, and donor-advised funds in particular, will be fueled by an intergenerational transfer of wealth expected to result in $21 to $55 trillion in charitable gifts.7 A donor-advised fund is a charitable-giving vehicle set up under the tax umbrella of a sponsoring public charity. An individual, family or corporation makes an irrevocable, tax-deductible contribution of personal assets to the sponsoring charity and at any time thereafter can recommend grant distributions to qualified charitable organizations.

Pershing makes donor-advised funds available to you and your clients through an arrangement with American Endowment Foundation (AEF). AEF acts as a neutral platform for donor-advised funds, giving your clients the flexibility to contribute a wide range of assets, including cash, publicly traded securities, closely held stock, life insurance and real estate. AEF is completely independent and is not affiliated with any financial institution. As a result, your clients are able to recommend that you work with AEF to invest the assets in their donor-advised fund.

According to industry experts, new donor-advised fund accounts increased by 12.2% in 2007, with an average account size of $225,000—totaling $27.7 billion in assets.7

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National Philanthropic Trust, “Donor Advised Fund Market Report,” November 2008.

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Donor-advised funds give you an opportunity to: > Help your clients efficiently achieve their philanthropic objectives > Manage the assets in the donor-advised fund and custody those assets on your brokerage platform > Potentially consolidate more client assets with your firm > Establish new relationships with family members involved in grant recommendations

At the same time, your clients gain all of the benefits of a private foundation without the startup and ongoing administrative costs. In addition, your clients can: > Receive a tax deduction for the allowable amount of the value of the donated assets on the date that they are transferred to the fund > Establish a legacy of charitable giving that perpetuates their family name and values > Involve family members in recommending grants and encourage ongoing commitment to charitable endeavors

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> Attract and Retain High-Net-Worth Clients Take advantage of some of the industry’s leading wealth management solutions. Building, managing and preserving wealth for your high-net-worth clients can be a challenge. With Pershing, it doesn’t have to be. Tap into our experience, knowledge and expertise to help you grow your high-networth client business.

Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation. Member FINRA, NYSE, SIPC. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public.

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Your Business Without Limits

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Visit www.pershing.com today to learn more about how our Wealth Management Solutions can help you grow your business.

About Us Pershing LLC (member FINRA, NYSE, SIPC) is a leading global provider of financial business solutions to more than 1,150 institutional and retail financial organizations and independent registered investment advisors who collectively represent over five million active investors. Financial organizations, investment professionals and independent registered investment advisors depend on Pershing’s depth of experience and consultative approach to provide them with forward-thinking solutions that help them to grow their businesses. Located in 20 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Börse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a subsidiary of The Bank of New York Mellon Corporation. Additional information is available at www.pershing.com.

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