Q & A

With which financial institution is my account held?

Your account is held with Pershing LLC, our clearing and settlement service provider. Your assets are held in the custodian account under your own name. All securities transactions and money journals are done in this account.

What kind of protection does my investment account have?

• All the clients are insured under the SIPC coverage for the total amount of US$500,000, including the coverage for cash of up to US$250,000. For more details, please refer to: www.sipc.org
• Pershing LLC has purchased “Excess Account Protection” insurance for additional coverage on cash and securities. Lloyd’s of London provides insurance on assets exceeding the SIPC coverage, up to the maximum amount of US$1 billion for all accounts aggregated. This additional insurance includes US$1.9 million cash coverage for each account. For more information on Lloyd’s of London, please refer to: www.lloyds.com
• Please note that, the SIPC insurance covers the liabilities resulting from its member firm’s insolvency caused by financial mishaps, thus providing asset protection to its member firm’s clients. Client’s investment losses caused by market conditions are not covered in this insurance program.

Does my idle cash earn interest in the account with Griffinest Asia Securities?

Your idle cash is automatically swept into the money market fund designated by you on the “Written Consent of Sweep Program” in the account opening documents. When you write a check or buy a stock, the needed money is automatically redeemed from the money market fund. The rate of the fund is determined by market conditions and fund returns.

Will I receive a monthly statement? When do you send out the monthly statement?

Clients will receive a monthly statement when there is a transaction or account information update. The monthly statement is sent by Pershing LLC in the first week of the month. Quarterly statement will be sent to you by Pershing LLC whether you have transactions or not.

How do I withdraw money from the account?

You may withdraw money by requesting either check payment or money wire. Please fill out either the “Letter of Authorization – Check Disbursement Request” or the “Letter of Authorization – Outgoing Fed Fund Wire Request”, and fax it to us.

Can I request a withdrawal payable to a third party?

No. In order to protect your account, Griffinest Asia Securities does not allow any withdrawal paid out to a third party.