1. ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. What the 2010 Financial Performance Study Reveals About Advisory Firms November 2010 Mark Tibergien CEO Pershing Advisor Solutions

2. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 2 Business Revolution >Professional management is one of the fast-track career developments >A new picture of a performance-driven culture is emerging >Advisory firms are learning to “sell” again >Firms with multiple owners outperformed the average

3. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 3 But There Are Symptoms of Strain >Productivity decline >Increases in Malfeasance and Misfeasance >Higher staff turnover >Expenses rising faster than revenue

4. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 4 Root Causes >Span of control >Poor recruiting, training and delegation >Inattention to profit levers >No clear strategy or positioning >Absence of effective leadership and management

5. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 5 Trends to Continue Aggravating Operations >Greater compliance burden >Multiple locations >Rapid client growth >Talent shortage >Rising human capital costs

6. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 6 What Are the Top Performing Firms Doing? >Investing in management and leadership development >Organizing workflow to reflect new reality >Matching the right people to the right jobs >Managing to profitability

7. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 777777 Separating from the Masses How Are the Top Performing Firms Making Strides?

8. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 8 Top Performers Produced Lower Gross Profit Margins Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Advisory Firms. Top performers are defined as the top 25% of respondent firms based on a combination of profitability, owner compensation and productivity.

9. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 9 Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Advisory Firms. Top performers are defined as the top 25% of respondent firms based on a combination of profitability, owner compensation and productivity. But Produced Better Net Margins

10. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 10 Expenses at the Average Advisory Firm Trending Up Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

11. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 11 Top Performers Spend More on the Client Experience Per Client Expense Is 15% Higher Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

12. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 12 Top Performers Spend More on People Median People Cost as % Exp. (Prof + Non-Prof Comp Expense) Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

13. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 13 Yet, Top Performing Firms Are More Productive and More Cost Conscious Overhead as % of Revenue (Total) Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

14. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 14 Top Quartile Get a Better Return on Labor High-Performing Firms Surround Their Professionals With the Types of Individuals and Processes That Help Them Be More Productive Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

15. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 15 Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Advisory Firms. Top performers are defined as the top 25% of respondent firms based on a combination of profitability, owner compensation and productivity. Median Revenue per Staff (Total Headcount)

16. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 16 Top Performing Firms Are More Productive and More Cost Conscious Smaller Staff + Streamlined Infrastructure = More Work Completed Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

17. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 17 Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Advisory Firms. Top performers are defined as the top 25% of respondent firms based on a combination of profitability, owner compensation and productivity. Median Revenue per Client

18. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 18 Top Quartile Firms Had More Owners Top-Quartile Firms on Average Had More Owners, Paid Them Better, and Seemed to Be Getting More From Those Owners in Terms of Management Skill and Engagement TQ Firms (All) AO Firms (All) TQ Ensembles AO Ensembles TQ Solos AO Solos Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

19. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 19 Greater Reliance on Non-Advisors Source: Moss Adams LLP

20. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 20 Action Steps What Are Top Advisors Planning to Do Now?

21. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 21 Advisors Are Raising Fees Larger Firms Will Continue to Increase Fees for Their Smaller Clients Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

22. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 22 Owners Plan to Spend More Time on Business Development A Systematic and Strategic Approach to Business Development Will Be Critical to Future Success Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

23. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 23 Refer Madness Referrals Still Reign Supreme in Business Development Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

24. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 24 But Relying on Pure Salespeople Not a Good Option Firms Using Dedicated BDOs Did Not Necessarily Outperform Source: Moss Adams/InvestmentNews 2010 Financial Performance Study of Financial Advisory Firms

25. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 25 Other Big Challenges Becoming the Employer of Choice Improving Workflow Managing Risk Creating a Differentiating Message Improving Gross Profit Margin

26. Your Business Without Limits ® ©Copyright 2010, Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, member FINRA, SIPC. Clearing, custody or other brokerage services may be provided by Pershing LLC, member FINRA, NYSE, SIPC. Pershing Advisor Solutions relies on its affiliate Pershing to provide execution services. Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public. The information contained herein, including any attachments, is proprietary to, and constitutes confidential information of Pershing Advisor Solutions LLC. It may not be reproduced, retransmitted or redistributed in any manner without the express written consent of Pershing Advisor Solutions. 26 Page 26 The Best Invest in Leadership and Management Success Starts With Commitment and Culture