The assets in our clients’ accounts are protected both by Beech Hill Securities, Inc., and our clearing agent, Pershing LLC, a subsidiary of the Bank of New York Mellon Corporation.

Beech Hill Securities, Inc. is a member of Financial Industry Regulatory Authority (FINRA) and Securities Insurance Protection Corporation (SIPC). Securities are cleared and assets are held at Pershing, LLC, member FINRA, NYSE and SIPC. Pershing LLC is a subsidiary of The Bank of New York Mellon Corporation.

Pershing, a leading provider of financial business solutions for over 75 years, serves many of the world’s most respected financial organizations, and remains focused on the segregation, safekeeping, servicing, and reporting of clients’ assets in their custody. Pershing is well capitalized with capital ratios exceeding those required by regulators. Please refer to Pershing’s Statement of Financial Condition at www.pershing.com for additional information.

The financial strength of Beech Hill and Pershing provides the first measure of protection for our clients’ assets. Beech Hill and Pershing are each registered broker-dealers with the Securities Exchange Commission (SEC) and members of the Financial Industry Regulatory Authority (FINRA). Both the SEC and FINRA require us to comply with various rules intended to minimize the chance of financial failure and maximize the protection of our clients’ assets.

The SEC Customer Protection Rule requires Pershing to segregate investor assets, which are fully paid-for from its own assets. Therefore, in the unlikely event of the financial failure of Pershing, investor’s fully paid-for assets will remain separate from Pershing’s own assets. Beech Hill and Pershing are also subject to the SEC Net Capital Rule, which requires each of us to maintain enough liquid assets in the event of firm failure and liquidation. Because Pershing has custody of our clients’ assets, it must maintain an even higher level of net capital than Beech Hill, further increasing the security of our clients’ assets.

Beech Hill and Pershing are also members of the Securities Investor Protection Corporation (SIPC), a non-profit organization that provides coverage to investors if their brokerage firm becomes insolvent. It covers the replacement of missing securities and cash up to $500,000 (including a maximum of $250,000 for claims for uninvested cash awaiting reinvestment). In addition to SIPC protection, Pershing provides coverage in excess of SIPC limits.*

Neither SIPC nor excess of SIPC coverage protects against loss due to market fluctuation of investments. Account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments.

*For more detailed information, please visit www.pershing.com/strength_stability.html and www.sipc.org.