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In the Matter of Securities America Advisors, Inc., Admin. Proc. File No. 3-20150

This Distribution Plan provides for distribution of funds collected in the above-captioned matter to compensate investors harmed by the conduct that served as the basis for its findings of securities law violations in the Commission’s Orders against Securities America Advisors (“Respondents”).

According to the Orders, From January 1, 2016 through February 28, 2018, Securities America Advisors invested clients in, or recommended for their clients, XIV and VIXY, which are volatility-linked ETPs. Throughout the Relevant Period, SAA failed to adopt and implement policies and procedures reasonably designed to prevent investments in, and recommendations of, volatility linked ETPs such as XIV and VIXY that were not suitable for SAA clients. The offering materials for XIV provided that the product was for sophisticated investors to manage daily trading risks, and the offering materials for VIXY similarly provided that that product was for investors who understood the consequences of seeking exposure to VIX futures contracts and was for short-term investment horizons. SAA had no policies and procedures directed specifically at volatility-linked ETPs, even though it knew that certain of its IARs were investing in XIV and VIXY on behalf of retail clients or were recommending that retail clients buy and hold the products for extended periods. During the Relevant Period, SAA client accounts held XIV or VIXY for an average of 32 days, and the total losses to clients who suffered losses from investments in XIV and VIXY were significant.

Securities America Advisors has paid, as ordered, a total of $603,776.82.

The Order also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the civil money penalty could be distributed to those harmed by the Respondent’s conduct described in the Order.

Eligible Investor’s Participation Options for this Fair Fund

Distribution Notices and Certification Forms were mailed to known Eligible Investors on May 23, 2022.

Complete details regarding participation in this Fair Fund are contained in the Distribution Notice and Distribution Plan.

If you are an Eligible Claimant, in order to receive a payment from the Distribution Fund:

• if you have no Dispute as to your Recognized Loss Amount, you must submit the Certification Form so that it is postmarked no later than 90 days from the date of the Notice.
• if you have a Dispute as to your Recognized Loss Amount, you must complete the Certification Form and write to the Fund Administrator detailing the reasons for your objection and return it so that it is postmarked no later than 60 days from the date of the Notice.

Certification forms and supporting documentation (if any) may also be uploaded using the Fund Administrator’s secure upload system:

IF YOU ARE AN ELIGIBLE CLAIMANT AND DO NOT COMPLETE A CERTIFICATION FORM AND RETURN IT TO THE FUND ADMINISTRATOR WITHIN THE DEADLINES DESCRIBED ABOVE, YOU WILL NOT RECEIVE A DISTRIBUTION PAYMENT.