Final Ops Newsletter June 16

June 2016 Inside This Issue:  What’s new in Desktop Integration  Did You Know?  Registration Changes  Money Market Reform  American Funds Fees  New Branch Openings  Trust Certifications  eQuest Improvements  T+1 Update  Address Changes and Households  New Stifel EMV Chip Cards  Mutual Fund 529 Updates  Have You Met?  Advisory Account Info Traveling this summer? Don’t forget to let Money Funds know so they can code your account!A Message from Miranda Miller… Miranda Miller “Alone we can do so little; together we can do so much” (Helen Director Keller) is one of my favorite quotes. Through my last 18 years at Stifel Desktop Integration Stifel, this quote has proven time and time again to be true. As Stifel continues to grow, teamwork is one of the most important and Entitlements & secrets to the sauce that makes us the “Firm of Access Control Choice”. Continuously working to improve the platforms our branch personnel and clients utilize is one of our top priorities, but we realize this is not something that one can do alone. It takes the coordination, communication, and teamwork of many to accomplish. When working towards an enhancement, we focus on communicating closely with branch personnel to review, pilot, and provide important feedback. We also talk to many different advisors, support personnel, friends, and clients that have diverse backgrounds to stay competitive and knowledgeable. This best practice has allowed Stifel to deliver great platforms and enhancements. As you scan through the Ops newsletter, look for some helpful guides on how to utilize our current platforms as well as announcements of new features coming your way soon.Operations Newsletter – Issue 9

Hot on the heels of the new Thomson One Advisor Workstation rollout which was recently completed, Desktop Integration has already begun to rollout the next new version of Thomson One. No need to be concerned. The changes are not as significant as the previous upgrade. This upgrade’s new features include a heat map “Winners/Losers” button which will organize your flex monitor into the 10 highest winners and losers so that you can very quickly see your securities with the most significant change.Page 11 In addition to this upgrade, there are minor usability improvements and additional compatibilityPagew3hich will allow the firm to upgrade to Internet Explorer 11. The upgrade is going very smoothly with over 1500 users upgraded and should be completed by mid-June. The Stifel Access team is also working on several new projects to enhance usability to Stifel clients. In addition to features such as group level holdings views, we are also working on projects to increase the number of accounts visible to clients and also the ability to “tag” multiple Client IDs on the same machine. We look forward to rolling these new features out over the next several months. You can find an associate’s email address from their first or last name? When you open a new email, just type the name into the ‘To…’ field. On your keyboard press (Ctrl and K at the same time) and the email addresses associated with that name will come up. If the first or last name is not unique, all names matching that criteria will be displayed to choose from. Volume 2, Issue 1 ● Operations Newsletter Volume 1, Issue 4 ● Operations Newsletter 2

What does the term “Registration Change” mean in the advisory world? Advisory Operations uses theterm when ownership has continued from one account to another, but the account number needed tochange. A Registration Change, in our world, is offered for the sole purpose of continuingperformance. Below are a few examples. These examples are for illustration purposes only and are notan exhaustive list of possible scenarios! · Single-name account moves to a single-name trust · IRA is re-characterized to a Roth IRAWhen it has been determined that a Registration Change can be processed, Advisory AccountProcessing will: · Look for the Registration Form: Portal > Operations > Advisory Operations > Forms > Changes and Maintenance > Registration Change Form OR by clicking: http://portal.stifel.com/Operations/advisoryoperations/Pages/Changes-and-Maintenance.aspx · Watch for ALL assets to move from the old account to the new account – Note that performance can only be continued if all assets move from the old account into the one new account · Verify that no changes have taken place, i.e., program change, manager change or portfolio change – the features must be identical from the old account to the new account · Apply the paperwork from the old account to the new account, assuming all of the same signatories are in place OR new paperwork is not needed . If new paperwork is needed (which may be the case, depending on the scenario), the FA and Branch Manager will need to approve, as the paperwork will come directly into Advisory Account Processing with the Registration Form, and be processed outside of eQuest · Continue performance – historical performance from the old account will be carried over to the new account · Terminate management in the old account, and set up the new account in the same program, notifying the third-party, if applicable · IMPORTANT: All of the above needs to be ready to go for the registration change to be processed, i.e., within 24 hours. If not ready, then regular processes will be followed – terminate old account, set up new account upon receipt of applicable forms/paperwork through eQuest, performance will not continueHere are a few examples of changes that would NOT qualify as a Registration Change: · Deceased IRA moving to the beneficiary IRA · Business account moving to a single-name accountIf a Registration Change cannot take place, Advisory Account Processing will: · Terminate the old advisory account immediately. If the client wishes the new account to become advisory, an eQuest work request will need to be processed. The new account’s performance will have a new performance start date. For questions, contact Advisory Account Processing at [email protected], or by phone at extension 8456. 3

In our last Operations Newsletter, The last quarterly cycle will end in May payable inwe outlined the recent regulatory June. For FA’s still interested in receiving thechanges that could impact American Funds Advisor Asset Statements they willmoney market funds. If you be available on DST Vision by clicking the 12b-1missed it, please see page 11 of Advisor Statement link on the Managementthe March newsletter found here. Company Assets page. The statements provide on-going compensation details for eligible assetsWe are working diligently to held directly with the American Funds.ensure our money marketofferings are compliant with WELCOME TO STIFEL:these regulations and to minimize Sioux Falls, SD – March 30ththe impact to you and yourclients. Be on the lookout over Stockton, CA – May 12ththe next few months for Jacksonville, FL – May 19thimportant announcements andclient communications explainingthese changes.Please call the CashManagement Products team at(314)342-7443 if you have anyquestions regarding moneymarket reform, money marketfunds, or industry news. Operations would like to give special recognition to two associates celebrating a milestone anniversary with Stifel. Please join us in congratulating Vicki Brinker, Managing Director of Operations, andKim Ray, Director of Margins, Money Funds and Risk Management on their 40th anniversary with Stifel Operations. 4

Why is this document so important for Advisory Accounts?Advisory paperwork needs to be signed by the applicable authority, i.e., account owners, appointedcorporate officer(s), ERISA plan representative(s) and trust Trustees. For Trusts, Advisory Account Processors willbe looking for the Trust Certification (TRCT) on OnBase. This document shows not only who is authorized to signfor the Trust (and if the Trustees may or may not act alone), but also shows IF the Trust allows for third-partymanagement. That is important! If the account is giving discretion to a third-party manager (either internal orexternal), the Trust Certification must indicate that the trust allows a third-party to act. The reason for rejectionwill be in the AUDIT field, stating that the Trust Certification indicated that third-party management is notallowed.Many of you have come to Stifel’s shores from other firms, and the accounts were “grandfathered” intoadvisory without Trust Certifications. Your former firm may have only required the Trust to be on file, but NOT aTrust Certification. However, Stifel Advisory Operations requires Trust Certifications to be on file! Going forward,if this “grandfathered” account now needs to go through a change, i.e., portfolio, manager or programchange, the Trust Certification will need to be on file. If no Trust Certification is on file, the work request will berejected. The reason for rejection will be in the AUDIT field, indicating that no Trust Certification is on file.Points to remember:  Advisory trust accounts should have a Trust Certification on file – DOCA code, TRCT  The Trust Certification shows a summary of the powers of the trust, including the important issue of whether or not the Trust allows third-party management.  The Trust Certification shows WHO is authorized to sign paperwork, and if the Trustees may or may not act alone.  For those advisory trust accounts that do not have a Trust Certification on file, please obtain one to prevent the account from being rejected for advisory set-up! For questions, contact Advisory Account Processing by phone at 314-342-8456, or by e-mail at [email protected] Watch for important email announcements coming this summer Enhanced Look and Feel, coming soon! (ETA July 2016) • Significant improvements are being made to the look, feel and responsiveness of the application.o Grid display and buttons have been redesignedo Warnings, errors, messages will be easier to read.o Audit, document, and workflow information is being repositioned to the top of the page. 5

Mutual Funds have moved to a standard T+1 settlement. For almost 2 months over 250 Mutual Fund companies’ transactions have been processed with an automatic T+1 settlement and the results have been fantastic. The process of having to mark trades with T+1 notes and Special Instructions has all but vanished.Page Unfortunately there are still a small number of Mutual Fund transactions which will require the override if T+1 is needed. These will include all transactions for First Investors and some Alliance Bernstein, Invesco, and Janus Funds. There are also a few Funds that will not allow T +1 and will always settle T+3. These include CGM and some of the Integrity Funds. See the Trading Exceptions List on Stifelnet at http://portal.stifel.com/Operations/MutualFundOps/ Pages/Funds-Family-Trade-Settlements.aspx for continued exceptions. 6

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Mutual Fund Ops 529 Plan Account Opening Reminders  If Stifel is broker dealer on the 529 plan and a shell account is needed to network, please choose yes to “Does this Plan Exist at the Fund?” The yes choice also determines which required Stifel documents are generated through eQuest.  Once the account is approved by the FA and Branch Manager and the client has signed where applicable, submit all paperwork including the original 529 plan application (or applicable fund paperwork) to the MF Ops 529 Team.  Always choose “held away” for Account Type.  Retain the original Stifel documents in the branch client file along with a copy of the 529 Plan application and check (remember, the originals should be sent to 529 Ops).Step by Step eQuest Instructions can also be found on Stifel Portal at http://portal.stifel.com/Operations/MutualFundOps/Pages/Step-by-Step-eQuest-Instructions.aspxMutual Fund Ops 529 Plan Changes RemindersThe Missouri MOST 529 Advisor College Savings Plan no longer exists as of May 6, 2016. If youhad the MOST Advisor 529 Plan and did not roll it to another Advisor 529 plan prior to May 6,2016, the accounts are now direct only. Clients should have received packets from MOSTwith their new direct account number(s) and new account information.Alliance Bernstein will no longer manage and administer the Rhode Island College BoundFund 529 Advisor Plan and the plan will no longer be using the DST Vision platform. Invescowill be taking over as plan manager in July and Ascensus will be the record keeper on the529 Quickview platform. The Dashboard Reports offer the ability to include Goal Based Return for a client? To include this you will need to set up a Custom Benchmark. For help setting up a custom benchmark you can get step by step instructions here: http://portal.stifel.com/Operations/clientservices/Pages/Dashboard.aspx and select Dashboard How To – Set a Custom Benchmark. 8

Carl Wessling Carl Wessling, Security Transfer Sr. Team Lead, will be celebrating his 10 year anniversary with Stifel this year. The Security Transfer Senior Team Lead department transfers certificates into street name, makes them Security Transfer eligible for sale, corrects registrations and removes restrictions. For TODs, they process the paperwork completed by the client to convert an account into a TOD account and ultimately process distribution paperwork upon the TOD account holder’s death. Although Carl likes the unique aspects and opportunities of his day to day job, what he likes the most is the work environment because the people are friendly and helpful. If asked, he would share with a new employee that they should be willing to learn as many new things as possible. Carl is a huge Cardinals fan and enjoys attending their games. He has attended each Cardinal home opener since 1997. He also enjoys traveling and says that Key West is his favorite destination as he has vacationed there every November for the last 10 years. Have you met…Shelley Kertz, New Accounts Sr. Team Lead, joined the Stifel Shelley Kertzteam almost 8 years ago. The New Accounts departmentassists the branches in account opening, account changes, Senior Team Leadcustomer verification, document review, returned mail issues, New Accountsnew recruit account processing, and ensuring that accountsare set up accurately to comply with the various regulatory 9rules and Stifel policies.Although Shelley likes the variety of functions and challengesher job brings daily, what she likes best is the camaraderie. Shefeels that the people she works with are not just co-workers butfriends as well. The advice she would give to a new associate isto always understand what you are doing and why it’s needed.The more you expand your knowledge base, the further youcan go.During Shelley’s time away from Stifel, she enjoys spending timewith her husband and 3 kids. They spend a lot of time outdoorsattending sporting events, such as soccer, cheer, and t-ball, aswell as taking hikes or relaxing on the beach. They also serve intheir community doing outreach and special projects with theirchurch.

ERISA accounts, Profit Sharing Plans (PSP), 401(k) accounts now need moredocumentation on file before the account may be coded as advisory!These account types must have the QPCT, Qualified Plan Certification, document on file:  To indicate who the Plan’s Trustees are, and how many signatures are needed for authorizations on the plan’s behalf  To indicate if a plan participant (for segregated FBO accounts only) is able to direct the investments within the account  Submit this form to New Accounts for imaging to the account, under DOCA code, QPCTThese account types must also have the ERAD, FA Application to Conduct ERISA AdvisoryBusiness, on file:  ERISA standards say that FAs must provide advisory clients comprehensive, continuous and prudent investment advice  FAs must meet certain requirements prior to conducting fee-based advisory business  This form shows what qualifications the FA has in place in order to conduct ERISA advisory business  Submit this form to Tina Morales, Consulting Services Marketing. Tina will then obtain the sign-offs by Consulting Services, Retirement Plans and Compliance, and then she will image to the account, under DOCA code, ERADIf BOTH of these forms are not on file at the time the advisory work request comes through,Advisory Account Processing must reject the work request back to the branch. The requestcan then be resubmitted for processing once both forms are in good order, and on file.For questions regarding these two forms and what they mean for advisory business can bedirected to the Advisory Product Groups! 10