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<p><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">Press Release - April 2007<br /></span></span></span></span></p>
<p align="right"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">For additional information:</span></span></span></span></p>
<p align="right"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">Chris McConnell, AIFA</span></span></span></span></p>
<p align="right"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">(310) 943 � 6509 </span></span></span></span></p>
<p align="left"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-size: x-small;"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: medium;"><strong>Court strips Brokers' "camisole"!</strong></span></span></span></span> </p>
<p align="left"><span style="font-family: verdana,arial,helvetica,sans-serif;">The U.S. Court of Appeals for the District of Columbia issues majority opinion in FPA v. SEC.</span></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif;">See the link </span><a href="http://pacer.cadc.uscourts.gov/docs/common/opinions/200703/04-1242a.pdf"><span style="font-family: verdana,arial,helvetica,sans-serif;">http://pacer.cadc.uscourts.gov/docs/common/opinions/200703/04-1242a.pdf</span></a></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Brokers who charge an asset based fee or a fixed fee also known as a commission replacement arrangement are in receipt of "special compensation", are not exempt "other persons" rather are deemed investment advisers. Investment advisers must register and comply with the Investment Advisers Act of 1940 (IAA). </span></p>
<p align="center"><strong><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Recommended steps for:</span></strong></p>
<p align="center"><strong><span style="text-decoration: underline;"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Estate Planners, Trust counsel, Tax and ERISA Counsel, Business Managers and CPA�s</span></span></strong></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">The Center for Fiduciary Studies and the AICPA released Prudent Practices for Investment Stewards, over 20 steps based on Uniform Prudent Investor Act (adopted by over 45 states), ERISA, Uniform Management of Public Employees Retirement Systems Act, Uniform Management of Institutional Funds Act, case law and or regulatory opinion letter.</span></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">1. IAA 202(a)(11)(B) names attorneys, accountants, engineers and teachers as exempt from registering as investment advisers provided they refrain from: </span><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">a. Providing more than solely incidental investment advice; </span><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">b. Related definition: receiving compensation as a regular part of one�s professional practice.</span></p>
<blockquote style="MARGIN-RIGHT: 0px" dir="ltr">
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">i. Some attorneys and CPAs have formal or informal revenue or fee-sharing arrangements with brokerage firms, financial planners, investment advisers, insurance agents in return for referring customers. </span></p>
<p><span style="font-size: xx-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">ii. Some have established a separate investment advisory unit to accomodate this aspect of their professional practices; clearly s</span><span style="font-family: verdana,arial,helvetica,sans-serif;">ubjects the attorney and or CPA to the investment fiduciary standards of care and for ERISA accounts, liable for both the acts and or omissions of other fiduciaries.</span></span></p>
<p><span style="font-size: xx-small;"><span style="font-family: verdana,arial,helvetica,sans-serif;">iv. Have you reviewed your malpractice or E&O insurance policy? F</span><span style="font-family: verdana,arial,helvetica,sans-serif;">iduciary liability and or ERISA related claims may not be covered.</span></span></p>
</blockquote>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">2. Refrain from recommending to a client any investment company (mutual fund or any investment product), trust company, investment adviser, stock broker, securities or insurance licensed individual who at a minimum, fails to provide a fiduciary acknowledgement letter to your client as should be specified in the client's investment policy statement. Awareness, understanding and acknowledgement of fiduciary status is essential in the overall investment program.</span></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">3. Determine which clients are fiduciaries. Alert these clients to their fiduciary responsibilities.</span></p>
<p><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">4. <span style="text-decoration: underline;">Before</span> clients accept a trusteeship or board position suggest training in fiduciary responsibility from a totally independent, experienced and qualified source.</span></p>
<p align="center"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;"><span style="text-decoration: underline;"><strong>Fiduciary responsibility(1) and liability rests on trustees of:</strong></span></span></p>
<p> </p>
<span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* Revocable, irrevocable, charitable and other types of private trusts</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* 401k, defined benefit pension or profit sharing plans</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* State, County or City public employees� pension plans</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* Union or Taft Hartley pension plans</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* 501 c 3 Non-profit organization, Foundation or Endowment investment accounts</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* May and often includes other securities, banking and insurance licensed persons and entities</span></pre>
<pre><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">* May include, depending on the circumstances, legal counsel and or CPA</span></pre>
<pre><span style="text-decoration: underline;"><span style="font-family: Verdana; font-size: xx-small;"><strong>(1) Responsibility remains with trustees, it cannot be delegated away.</strong></span></span></pre>
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<pre style="text-align: center;"><span style="font-size: xx-small;"> </span><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">CHRIS McCONNELL & ASSOCIATES</span></pre>
<pre style="text-align: center;"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Accredited Investment Fiduciary Analyst<br />Provides objective fiduciary training and education<br />to legal counsel, trustees and CPAs.</span></pre>
<pre style="text-align: center;"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Decidedly independent:<br />Does not market or sell any type of securities, investments or insurance.<br />Does not accept fees to refer clients to investment advisers, stock brokers, etc. Not even paid for lunch, dinner or even a Starbucks gift card.</span></pre>
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<p> <span style="font-family: verdana,arial,helvetica,sans-serif;"><span style="font-size: xx-small;">For more information <a href="mailto:info@fiduciaryexpert.com">info@fiduciaryexpert.com</a> or (310)</span></span><span style="font-family: verdana,arial,helvetica,sans-serif;"><span style="font-size: xx-small;"> 943 - 6509<br /></span></span></p>
<p align="center"><span style="font-family: verdana,arial,helvetica,sans-serif; font-size: xx-small;">Copyright Chris McConnell & Associates 2007 - 2011. All rights reserved.</span></p>
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