DESCRIPTION OF OUR BUSINESS CONTINUITY PLAN

To Our Valued Clients: VSR Financial Services is a full-service securities broker-dealer dedicated to serving the professional investment Representative who works with you, and to serving you, our client. Accordingly, VSR is furnishing this document to you to provide information about our efforts to ensure that impact to our business is minimized in the event of an emergency or disaster.

Government regulations require financial services firms to develop a Business Continuity Plan to meet the challenges which might arise in the event of an emergency that causes a sudden disruption of their businesses, whether by natural disasters, acts of terrorism, or other actions. Accordingly, VSR Financial Services has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business.

Below, we have summarized important information which you should know about our Plan. Of course, the timing and impact of natural disasters and other emergencies are unpredictable. Consequently, our response to specific events must remain flexible and may require sudden and unexpected changes in our Plan.

Contacting Us: After a significant business disruption, you should first try to reach your VSR Representative at his or her local office. If you cannot reach your Representative, you should try to reach the VSR Home Office at 913-498-2900. Alternatively, you may go to our website, www.vsrfinancial.com, where we will post emergency contact information. If you have an account with one of our clearing firms, you may contact them using the information provided below. If you have an account with a mutual fund company or an insurance company, you should contact that company directly at the telephone number or website shown on statements they send you.

Varying Disruptions: Significant business disruptions can vary in their scope, and may affect only our firm or our building, or they may affect the business district, city, or region where our headquarters is located. Within each of these areas, the severity of the disruption can also vary from minimal to severe. If a disruption affects only our firm or building, we will, if appropriate, transfer our operations to another local site, to the extent reasonably possible, and use reasonable efforts to resume business in a timely fashion. If a disruption affects our business district, city, or region, we will attempt to transfer our operations to a site outside of the affected area, and resume time sensitive functions as soon as key personnel and operations can reasonably be relocated. In either situation, we will attempt to notify you through our website www.vsrfinancial.com with respect to our plans and our progress.

If the business disruption is so severe that it prevents us from remaining in business, our clearing firms, or the mutual fund companies or insurance companies which hold your accounts will be responsible for providing prompt access to your funds or securities. It is possible that your orders and requests for access to your funds or securities could be delayed during this period.

Our Business Continuity Plan: In the event of a significant business disruption, our Business Continuity Plan provides that we will protect our employees, property, books and records, and make a financial and operational assessment of our business, with the goal of allowing us to resume business as soon as reasonably practical, given the scope and severity of the disruption. In addition, our Plan addresses: data back up and recovery; mission critical systems; alternative communications with customers, employees, and regulators; alternate physical locations for our employees; impact on critical suppliers, contractors, and bank relations; regulatory reporting; and steps we will take to help our customers obtain prompt access to their funds and securities.

The Plan identifies critical computer processes and applications for which VSR has developed or acquired systems to provide redundancy needed to continue or promptly resume our business. These systems and other aspects of the Plan are tested on a regular basis.

Our clearing firms have also developed Business Continuity Plans to continue to provide essential services to VSR and our clients in the event of a significant business disruption. In case of an emergency situation, these firms can also be contacted for access to or information about your funds or securities, or to process orders for your account. They can also be contacted for further information about their Business Continuity Plans. The firms and their contact information are:

First Clearing LLC
Riverfront Plaza, WF2090
4th Cloor, 901 East Byrd Street
Richmond, VA 23219
(877) 549-1390
www.firstclearing.com

Pershing LLC
One Pershing Plaza
Jersey City, NJ 07399
(201) 413-2001
www.pershing.com

First Southwest Company
325 North St. Paul Street, Suite 800
Dallas, Texas 75201
(214) 953-4000
www.firstsw.com

For more information    If you have questions about our business continuity planning, you can contact us at 913-498-2900 or via email at webmaster@vsrfin.com.  Because Business Continuity Plans are subject to modification, we will post to our website significant changes to our Plan. Alternatively, we will provide you upon written request with a copy of this notice.

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