Risk Factors Update Summary

• Investment business requires associates to act in best interests of clients, affecting business.
• Added mention of "funding" and "liquidity" risks, highlighting the importance of maintaining adequate funding and liquidity sources.
• Addressed market risks, including interest rate changes impacting securities portfolio value and net interest spread.
• Cultural fit is crucial for recruiting and acquisitions, but assimilation success is uncertain.
• Introduced a contingency funding plan to guide actions during disruptions from normal funding and liquidity sources.
• Added risks related to credit markets, including limited access for subsidiaries, impacting overall liquidity and capital resources.
• Expansion assumptions may not be fully realized post-acquisition, impacting profitability.
• Disclosed the potential negative impact on operations if funding is inadequate, leading to scaling back operations and limiting recruiting.
• Disclosed potential consequences of a downgrade in credit ratings, affecting access to capital markets and triggering higher fees on unused credit facilities.
• Regulatory scrutiny and compliance costs increase with business growth and acquisitions.
• Highlighted risks related to subsidiaries' inability to generate cash for distribution, impacting the parent company's liquidity.
• Increased regulatory capital standards negatively impact profitability and may require additional capital.
• New regulations and initiatives could increase compliance costs and affect business operations.
• Regulatory changes may impact asset management business, increasing compliance and legal costs.