The Securities Investor Protection Corporation (SIPC®) provides account protection up to $500,000 in value, including $250,000 in cash awaiting reinvestment. SIPC provides protection for brokerage firms against losses should a SIPC member firm fail financially and become unable to meet obligations of its securities clients. More information about the protection of account assets through SIPC is available at Delray Financial Group LLC clients are covered through Kovack Securities, Inc. and Pershing, LLC which are SIPC member firms.

In addition to SIPC protection, Pershing, LLC provides coverage in excess of SIPC from Lloyd’s of London in conjunction with other insurers.

The excess of SIPC coverage provides the following protection for assets held in custody by Pershing, LLC, and its London-based affiliate, Pershing Securities Limited:

An aggregate loss limit of $1 billion for eligible securities—over all client accounts. A per-client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion

Neither SIPC nor excess of SIPC coverage protects against loss due to market fluctuation of investments.

Since 1939, Pershing has been a leading provider of financial business solutions with over $900 billion in assets held, focused on the segregation, safekeeping, servicing, and reporting of client assets in their custody. Please refer to Pershing LLC’s Statement of Financial Condition for additional information.

Pershing, LLC’s parent company The Bank Of New York Mellon, has a capitalization of $32.4 billion, as of September 30, 2010, and $24.4 trillion in assets held under custody and
administration. Please refer to The Bank of New York Mellon’s website for current financial statements and reports.

Securities are cleared and assets are held through Pershing, LLC, a subsidiary of
Member New York Stock Exchange, FINRA, SIPC