As your registered investment adviser, Western Financial Corporation takes your privacy very seriously. We want you to understand what information we collect and how we use it.
We collect and use “non-public personal information” from our new account forms to help us determine suitability for certain investments, and to satisfy the requirements of various regulatory agencies that us. We do not disclose “non-public personal information” about you to non-exempt third parties.
In addition, we do not reserve the right to disclose “non-public personal information” to affiliates or non-affiliated third parties, except to non-affiliated third parties as authorized by law. This includes financial institutions where joint marketing agreements are in effect.
We may also collect “non-public personal information” about you from data we receive from non-affiliated third parties, including consumer and industry reporting agencies.
Business Continuity Planning
Disaster Recovery and Business Continuation Program
Western Financial Corporation has developed a Business Continuity Plan which describes how we will respond to events that may significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.
CONTACTING US – If, after a significant business disruption you cannot contact us as you usually do at (619) 544-0260, (619) 234-0196, or (619) 234-3235 you should call our alternative cell phone numbers, (619) 813-3341 or (858) 692-0037. You may also contact us by e-mail at email@example.com or firstname.lastname@example.org. If you cannot access us through any of those means, you should contact our our custodial firm, TD Ameritrade, at (800) 431-3500 option 2, or at email@example.com, for instructions on how it may provide prompt access to your funds and securities, permit you to enter orders, and process other trade-related, cash, and security transfer instructions, and, in general, answer questions related to your account.
OUR BUSINESS CONTINUITY PLAN – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our custodial firm, TD Ameritrade, Inc., backs up our important records in geographically separate areas. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our custodial firm, that their objective is to restore their own operations and be able to complete existing transactions and accept new transactions and payments within the same day. Your orders and requests for funds and securities could be delayed during this period.
VARYING DISRUPTIONS – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm, or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within the same day. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within the same day or shortly thereafter. In either situation, we plan to continue in business, transfer operations to our custodial firm, if necessary, and notify you through our customer emergency numbers, (619) 813-3341 or (858) 692-0037, how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities through our custodial firm, TD Ameritrade, Inc.
FOR MORE INFORMATION – If you have questions about our business continuity planning, you may contact us in person at 600 “B” Street, Suite 2204, San Diego, CA 92101, by telephone at (619) 234-3235, (619) 234-0196, or (619) 544-0260, or by e-mail at firstname.lastname@example.org.
SEC Rule 606
SEC Rule 606 (formerly known as Rule 11Ac 1-6)
Western Financial Corporation (“WFC”) qualifies for an exemption from the disclosure requirements of SEC Rule 606 granted to small broker / dealers by the Securities and Exchange Commission (SEC). Therefore, no report is due at this time.
WFC will, upon request, disclose to its customers the identity of the venue to which the customer’s orders were routed for execution in the six months prior to the request and whether those orders were directed or non-directed orders, and the time of the transactions, if any, that resulted from such orders. WFC does not receive any payment for order flow.
Disclosure Statement (Broker/Dealer Clients)
Western Financial Corporation
DISCLOSURE STATEMENT-FACTS ABOUT YOUR BORROWING COSTS AND OTHER MATTERS
- Interest Policy: Your account will be charged on any credit extended to or maintained for you by our Clearing Agent. The annual rate of interest will vary in relation to the size of your daily net debit balance and the prime rate in effect from time to time. The term “prime rate” means the current prime rate as correctly published in the Pacific Edition of the Wall Street Journal. The actual interest rate charged will not exceed the maximum rate of 2 1/2 % above the prime rate. Since the actual rates of interest charged are related to the prime rate, any changes in the prime rate may result in corresponding changes without notice in the actual rates charged. There may be an administrative fee charged to you, in the form of an interest rate increase of not more than one-half of one percent which will be determined by us and paid directly to us by the Clearing Agent. Please call your broker for the actual rates currently in effect.
- Method of Computing interest: Your account will be charged interest using a 365 day per year factor on the daily net debit balance in your combined account types. Each day your settled money balances in each account type will be combined in determining your daily net debit balance. A daily net debit balance results whenever the total of combined debit balances exceeds the total of combined free credit balances. For purposes of this calculation, free credit balances exclude credit balances in short accounts, and the sales proceeds included in settled balances from transactions in cash accounts involving non-negotiable long positions, technical short positions and uncovered option positions. Short account credit balances are disregarded because the securities sold by you are not available for delivery and collection of the sales proceeds resulting from short sales. Sales proceeds included in settled balances from the other described sales transactions in cash accounts are disregarded because such credit items are not available to our Clearing Agent, until the related securities sold are rendered deliverable. Although the interest charge is calculated daily, it is generally posted once a month and compounded monthly. Interest charges are summarized on your monthly account statement. The summary uses a weighted average of the daily net debit balance (weighted average balance) and an imputed average interest rate for the period shown. The summary is determined by dividing the total amount of the interest charge (calculated on a daily basis using the actual daily net debit balance and the applicable interest rate) by the product of the weighted average balance multiplied by the number of calendar days the account had a daily net debit balance divided by 365 days. A copy of the daily calculation is available upon written request.
- Interest Credit Policy: Your account will be paid interest by our Clearing Agent (unless not permitted by state law) on qualified free credit balances left on deposit for investment or reinvestment purposes only. Unless you advise otherwise, our Clearing Agent will continue to rely on this representation for credit interest. There may be an administrative fee charged to you, in the form of an interest rate decrease of not more than one-half of one percent which will be determined by us and paid directly to us by the Clearing Agent. Monthly interest amounting to under $6.00 will not be paid. The Clearing Agent’s interest participation policy is non-discriminating, uniform and fair. A free credit balance represents funds payable to you upon demand (including checks deposited pending satisfactory clearance) which, although properly accounted for on the books and records, are not segregated and may be used in the conduct of the firm’s business, including the financing of customers’ securities purchased on margin (subject to the limitations of Section 240.15c3-3 of the Securities Exchange Act of 1934). You have a right to receive, in the course of normal business operations, upon demand, the delivery of: (a) any free credit balance to which you are entitled; (b) any fully paid security to which you are entitled; and (c) any security purchased on margin upon full payment of any indebtedness.
- Prepayments: Prepaid amounts (i.e. instances where the proceeds from sales transactions are paid to you prior to each respective settlement date) are recorded as debit entries in your account on the date of each prepayment. Such prepayments are included in the money balances when calculating daily net debit balances.
- Liens & Additional Collateral: With respect to all your accounts (either individual or joint with others) carried or maintained by our Clearing Agent containing securities, or other property which has been deposited for any purpose, including safekeeping, our Clearing Agent as pledgee has a general lien on all such property for the discharge of all your obligations to the Clearing Agent, regardless of origin or the number of accounts you may have with such Clearing Agent. The Clearing Agent may require you to deposit additional collateral in accordance with the rules and regulations of various governmental and self-regulatory organizations having jurisdiction over the Clearing Agent. The Clearing Agent also may (but shall have no obligation to ) require you to deposit additional collateral as the Clearing Agent, in its sole discretion, determines is needed as additional security for your obligations.
- Marking-To-The-Market: All short positions in your short account will be “marked to the market”, which means that the money balance maintained in the short account will be adjusted from time to time to reflect any changes in the market value of the short securities. The opposite side of such adjustments will be reflected in your margin account balance, thus increasing or decreasing the money balance in the margin account, which is the amount used in computing your interest charge. For example, if you are short 1000 Shares of XYZ against a credit balance in your short account of $50,000, and XYZ falls to $40 per share, the credit balance in your short account will be reduced by $10,000 and a corresponding $10,000 credit adjustment will be made in your margin account, thereby decreasing the amount subject to interest by $10,000.
- Dividend and Interest Payments: When you select the payment option, dividends and interest (including other similar distributions) generally will be distributed to you on a monthly basis.
- THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE. BY SIGNING AN ARBITRATION AGREEMENT THE PARTIES AGREE AS FOLLOWS:
(A) ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED.
(B) ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED.
(C) THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS.
(D) THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.
(E) THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY.
(F) THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT.
(G) THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT.BY SIGNING THE “ACCOUNT AGREEMENT, TAXPAYER CERTIFICATION AND BENEFICIAL OWNERSHIP ELECTION” FORM (THE “AGREEMENT”) YOU AGREE, AND BY ESTABLISHING AN ACCOUNT FOR YOU, WE AND OUR CLEARING FIRM AGREE THAT ALL CONTROVERSIES WHICH MAY ARISE BETWEEN YOU AND OUR FIRM AND/OR OUR CLEARING AGENT (OR ANY OF OUR/THEIR OFFICERS, EMPLOYEES OR AGENTS OR ASSIGNEES) CONCERNING ANY TRANSACTION OR THE CONSTRUCTION, PERFORMANCE OR BREACH OF THIS OR ANY OTHER AGREEMENT BETWEEN YOU AND OUR FIRM AND/OR OUR CLEARING AGENT, SHALL BE DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE RULES, THEN IN EFFECT, OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS, THE NEW YORK STOCK EXCHANGE OR ANY OTHER EXCHANGE OR FORUM OF WHICH OUR FIRM AND/OR OUR CLEARING AGENT IS A MEMBER, AS YOU MAY ELECT. If you do not make such election by registered MAIL SENT TO OUR FIRM AT ITS MAIN OFFICE WITHIN TEN (10) DAYS AFTER THE RECEIPT OF NOTIFICATION FROM OUR FIRM AND/OR OUR CLEARING AGENT REQUESTING SUCH AN ELECTION, THEN YOU AUTHORIZE US TO MAKE SUCH ELECTION ON YOUR BEHALF.FURTHERMORE, YOU AGREE AND ACKNOWLEDGE, AND OUR FIRM AND OUR CLEARING AGENT AGREE AND ACKNOWLEDGE THAT NO PERSON SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO ENFORCE ANY PREDISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS INITIATED IN COURT A PUTATIVE CLASS ACTION; OR WHO IS A MEMBER OF A PUTATIVE CLASS WHO HAS NOT OPTED OUT OF THE CLASS WITH RESPECT TO ANY CLAIMS ENCOMPASSED BY THE PUTATIVE CLASS ACTION UNTIL: (I) THE CLASS CERTIFICATION IS DENIED; OR (II) THE CLASS IS DECERTIFIED; OR (III) THE CUSTOMER IS EXCLUDED FROM THE CLASS BY THE COURT. SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO ARBITRATE SHALL NOT CONSTITUTE A WAIVER OF ANY RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT STATED HEREIN.
- THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE. BY SIGNING AN ARBITRATION AGREEMENT THE PARTIES AGREE AS FOLLOWS:
- OTHER REMUNERATION: The firm does not receive remuneration, or payment in any form, for directing orders to specific brokers or dealers or to market centers for execution. All orders received are directed to whatever source will offer our customer the best execution at the prevailing best bid or offer. Additionally, all orders are subject to price improvement opportunities.
- IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means to you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
- IMPORTANT INFORMATION ABOUT SECURITIES INVESTOR PROTECTION CORPORATION (SIPC): Western Financial Corporation is a member of SIPC which is an important part of the overall system of investor protection in the United States. You may obtain information about SIPC, including the SIPC brochure, by contacting SIPC at http://www.sipc.org or (202) 371-8300.
- IMPORTANT INFORMATION ABOUT PLACING BUY/SELL ORDERS: Western Financial Corporation cannot accept buy or sell orders via email or voicemail. If you would like to place a buy or sell order please call us at (619) 544-0260.
ANNUAL MARGIN DISCLOSURE STATEMENT
As your brokerage firm, we are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. You should carefully review the margin agreement provided by us. Consult your investment executive or our management regarding any questions or concerns you may have with your margin account(s).
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price for marginable securities. If you choose to borrow funds, you will open a margin account. The securities purchased are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
1. You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to deposit additional funds to your account to avoid the forced sale of those securities or other securities or assets in your account(s).
2. The firm can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements or the firm’s higher “house” requirements, the firm can sell the securities or other assets in your account(s) to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale.
3. The firm can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling securities without notice to the customer.
4. You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which securities to sell in order to protect its interests.
5. The firm can increase its “house” maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the firm to liquidate or sell securities in your account(s).
6. You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customer under certain conditions, a customer does not have a right to the extension.
This site has been designed for informational purposes only and does not constitute an offer to sell or a solicitation to buy any security which may be referenced upon the site. The services and information provided through this site are for personal, non-commercial use and display. Western Financial Corporation does not intend to provide investment advice through this site and does not represent that the securities or services discussed are suitable for all investors. Investors are advised not to rely on any information contained in the site in the process of making a fully informed investment decision. Western Financial Corporation does not intend to, and this site does not intend to, render tax or legal advice.
Western Financial Corporation is currently seeking Series 7, Series 63 and Series 65 or Series 66 licensed financial advisors with an established book of business.
For more information, please contact: