Why are we leaving H.D. Vest and moving to Fidelity Investments?

H.D. Vest (and Wells Fargo Investments) served our firm well for several years. We are not changing our custodial relationship because H.D. Vest did a poor job in any way. While we are proud that Smith Anglin Financial has grown to be H.D. Vest's largest advisory firm in the entire country over the past few years, it has become apparent to us that we have essentially "outgrown" the capabilities of H.D. Vest and feel that Fidelity is much better equipped to service the needs of a financial advisory firm our size.

How did we choose Fidelity Investments?

We evaluated several custodial firms and chose Fidelity after a very thorough process because we feel Fidelity's suite of services best fits the needs of our firm's clients and our firm. The evaluation process was long and extensive, and there were a litany of issues to consider during the decision-making process. We were impressed with Fidelity's reputation for high quality service and the service team at Fidelity that will be helping us meet the needs of our clients each day. Fidelity's technology will be a major upgrade and we look forward to getting positive feedback from our clients regarding their Fidelity online account access experience. We were also impressed with the technology Fidelity will be making available to us on an operational level, including their trading and account rebalancing applications. Powerful performance evaluation tools will now be available to our client service team and to our clients via online access.

What do I do with the paperwork packet that I received?

As the cover letter that came with your paperwork packet states, simply sign all of the forms where indicated with a black ink pen and return the signed documents in the enclosed, prepaid UPS overnight mailing envelope.

The signature page for each Fidelity form has been printed on yellow paper and each signature field is framed in bold lines and marked with an "X". Each signature field in the Investment Management Agreement form is marked with a signature tab and each box requiring client initials is highlighted in yellow.

Also, please sign the Interested Party letter where indicated at the signature tabs. This letter directs H.D. Vest to send a duplicate copy of your monthly statements to us as an "interested party" until your accounts transfer. We will use this data to maintain your historical performance data properly, incorporating your historical performance data from H.D. Vest without allowing any "gaps" in data to occur due to the transfer process.

Additionally, if any of your accounts were set up for electronic banking; please return with your paperwork packet a voided check for each bank account that you may want us to distribute money to in the future.

How long will the transfer process take?

In a way, that all depends on you. As soon as we receive your paperwork packet back, we will review each form and populate the personal data (social security numbers and dates of birth) fields that were intentionally left blank when we sent the packet to you. After review, we will forward your completed paperwork to Fidelity, where they will immediately initiate the transfer process for each account. The actual transfer process may take up to three weeks, but make note that you will never be "out of the market" during the transfer process as each of your positions held at H.D. Vest will be transferred to Fidelity "in kind" (exactly the same). Not one position will be liquidated during the transfer process.

How will online access work during the transition phase?

You can set up your online access at Fidelity immediately, even before your accounts have been transferred and funded there. However, all that will appear online at Fidelity will be a "zero balance" account until the transfer from H.D. Vest has been completed.

To set up your online access at Fidelity, go online to www.fidelity.com. On their main page, at the left near the top, there is a Login area where a "SSN / Customer ID" and a "PIN" are requested. Since you probably do not already have a PIN set up with Fidelity, click on the "Need Help Logging In?" link just below the Login button. This will take you to another page entitled "Help with Log In". Under the "Create a Pin" area, click on the "Go to New User Registration" link. This will take you to another page entitled "New User Registration". At this point, your cursor should be blinking in the "Account Number" field. Each of your new Fidelity accounts with us have already been assigned an account number and that number appears in the top right-hand corner of each Fidelity account application you received in your paperwork packet. (If you cannot locate one of your Fidelity account numbers, contact us as we have that information available as well.) After entering your account number, walk through the step-by-step process to establish a Customer ID and a PIN.

Who is Purshe Kaplan Sterling (PKS)?

We will be utilizing Purshe Kaplan Sterling (PKS) as our broker/dealer firm for our "non-managed", commission-based business - things like 529 Plan (college savings) accounts and insurance products. For our managed account clients, the vast majority of our client base, this means they will have no relationship with PKS. However, all Smith Anglin Financial clients will, due to NASD rules, see PKS's disclosure information appear on our website, letterhead, and account application paperwork.

For those clients who do have 529 plan accounts and other accounts held directly at a mutual fund company, you will be receiving a separate paperwork packet in the next few days. Please sign and complete the one-page form where indicated and return it to us in the self-addressed envelope, enclosed with that packet.

If you have any additional questions please contact your account manager at (800) 301-8486.