REPORT ON ACTIVITIES FISCAL YEAR 2014 – Office of the Investor Advocate.

“THE OFFICE OF THE INVESTOR ADVOCATE was established pursuant to Section 915 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), as codified under Section 4(g) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78d(g). Exchange Act Section 4(g)(2)(A)(ii) provides that the Investor Advocate be appointed by the Chair of the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”) in consultation with the other Commissioners and that the Investor Advocate report directly to the Chair. On February 24, 2014, SEC Chair Mary Jo White appointed Rick A. Fleming as the Commission’s first Investor Advocate…Investors who seek the services of a registered investment adviser are attempting to do the right thing with their savings. These investors are not chasing exorbitant returns in a fly-by-night investment opportunity. Moreover, fraudulent or abusive practices by an investment adviser can be very difficult for an individual investor to detect, particularly if the adviser goes so far as to falsify account statements or other records. As I’ve seen throughout my career, most investment advisers live up to their fiduciary duty to clients, but a few “bad apples” can shatter the fragile retirement dreams of numerous clients. To a large degree, therefore, investors rely on the regulatory system to protect them from advisers who would violate their trust. Make no mistake— governmental examinations of advisory firms are a critical part of the regulatory structure upon which investors depend.”