1. Why did I receive this check from Richard Keith Robertson & IFP Advisors, LLC?

You received a check because your account(s) was impacted as described in the Settlement Order entered by the United Security and Exchange Commission (the “Commission” or “SEC”) and you have been identified as an Eligible Claimant.

2. What was the settlement about?

On August 10, 2022, the Commission issued the Order instituting and simultaneously settling cease-and-desist proceedings against the Respondent. In the Order, the Commission found that from January 2011 to October 2020, Robertson engaged in a cherry-picking scheme whereby he unfairly allocated purchases of securities between his personal and family accounts and his other IFP clients’ accounts. Robertson disproportionately allocated profitable trades to his personal and family accounts and disproportionately allocated unprofitable trades to his other advisory clients. IFP failed to supervise Robertson, failed to implement policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules by its supervised persons, and made false and misleading statements in its Forms ADV concerning supposed safeguards it had to prevent investment adviser representatives from placing their own interests ahead of those of its advisory clients.

3. What is the relevant period for those impacted by this settlement?

The settlement timeframe (“Relevant Period”) is January 2011 through October 2020.

4. How much was Richard Keith Robertson and IFP Advisors, LLC ordered to pay in the settlement?

The Commission ordered Robertson to pay disgorgement of $592,437.00, prejudgment interest of $28,173.12, and a civil money penalty of $300,000; and IFP to pay a civil money penalty of $400,000, for a collective total of $1,320,610.12 to the Commission. In each of the Orders, the Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties collected, along with the disgorgement and prejudgment interest collected, can be distributed to harmed investors, and further ordered that it may be combined with the monies paid in a parallel proceeding arising out of the same facts that are the basis for the violations in this matter, and that it is expected for the monies collected pursuant to the Orders to be distributed together.

5. Why is the amount I received less than the preliminary recognized loss amount?

The Recognized Loss may not be the amount of the Distribution Payment you will receive. Instead, in accordance with the Plan, you may receive a pro rata portion of the Fair Fund. Payees will receive a Distribution Payment equal to his, her, or its distribution amount. In no event will a Payee receive from the Fair Fund more than his, her, or its Recognized Loss, plus Reasonable Interest, if applicable.

6. Who performed the payment calculations?

Commission staff, in the course of its investigation, calculated who suffered a loss during the relevant period.

7. What is my payment amount comprised of?

Your distribution payment is comprised of disgorgement, prejudgment interest, and civil money penalties, paid by Richard Keith Robertson and IFP Advisors, LLC.

8. What do I need to do if I disagree with the amount of the distribution check I received?

The preliminary recognized loss payment amounts were calculated by the SEC. The fund administrator calculated the final payment amounts and a payment file was reviewed and accepted by the SEC. The payment amounts are final for all eligible claimants.

9. How long do I have to cash the check?

Checks may be cashed within 120 days of the original issuance date noted on the check. If you requested a replacement check, it must be cashed within 30 days of the reissuance date noted on your check. In no event will a check be reissued after 120 days from the original check date without approval of the Commission staff. Once these periods have passed, the funds will no longer be available. It is important that you cash your check(s) as soon as possible to ensure that you receive all the money that was allocated to you. Checks WILL NOT be honored after the stale date.

10. What if the check cashing period has ended?

Once the time for cashing checks has passed, the remaining funds will be sent to the U.S Treasury, per terms of the settlement. DO NOT try to negotiate your check(s) after this point as the payment will no longer be valid and your banking institution may charge you a fee for presenting a stale dated or bounced check.

11. What happens if I do not cash the check?

The monies for checks that are not cashed will be sent to the U.S Treasury, per terms of the settlement.

12. I have more than one account. Will I receive one check or multiple checks?

Depending on the account registration, address of record and eligibility, shareholders owning more than one account may receive one or more checks.

13. My check(s) has been lost/destroyed. What should I do?

If you are unable to cash your check, or have lost it, you can request a replacement check over the phone or sending a signed letter requesting a replacement check.

If you are not requesting a replacement by phone, please forward your replacement request to one of the following:

Upon receipt, we will reissue a replacement check exactly as it was originally issued. Please allow 10-14 calendar days to receive the replacement check.

14. Will I receive a Form 1099 to use when filing my taxes?

1. You will receive a Form 1099-INT for the distribution if you cash the check, are a U.S. person and the interest portion of your distribution is $600 or more and the payment is being made to you as opposed to a retirement account or plan.
2. You will receive a Form 1042-S if you cash the check and:
   1. You are a Non-Resident Alien;
   2. We do not have a W-8 and W-9 to prove your tax status; or
   3. You are subject to FATCA reporting.
3. The IFP Advisors Fair Fund is a Qualified Settlement Fund (QSF) under the Internal Revenue Code.
   1. The 1099-INT or 1042-S will be produced and mailed under separate cover by Heffler, Radetich & Saitta, LLP; and
   2. Reported to the IRS for the tax year in which the payment is made.
4. You may also receive a Form 1099-R if you ask to have a check payable to an IRA or a retirement plan re-issued to you personally depending on a number of facts.

NOTE: You should consult with your tax advisor with respect to the tax consequences of the distribution payment, including the effects of U.S. Federal, State, Local, and Non-U.S. tax rules and the effect of possible changes in laws.

15. Are there tax implications to receiving this payment?

The Commission appointed Heffler, Radetich & Saitta, and LLP as Tax Administrator in this matter. Heffler, Radetich & Saitta, LLP will review the potential tax consequences and a Statement to Eligible Claimant posted to the Tax Information page on the www.ifpadvisorsfairfund.com website.

NOTE: You should consult with your tax advisor with respect to the tax consequences of the distribution payment, including the effects of U.S. Federal, State, Local, and Non-U.S. tax rules and the effect of possible changes in laws.