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Penson is a member of the Securities Investor Protection Corporation (SIPC), which protects securities and cash of the customers of its members up to a maximum of $500,000, of which $100,000 may be cash. More information about SIPC coverage is available at www.sipc.org.

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 on cash holdings) is provided by the Securities Investor Protection Corporation (SIPC). Penson 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.