First Washington - Disclosure Statements
USA Patriot Act
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT OR ESTABLISHING A CUSTOMER RELATIONSHIP
To help the federal government fight the funding of terrorism and money laundering activities, Federal law requires that First Washington obtain, verify, and record information that identifies each individual or institution that opens an account or establishes a customer relationship with us.
This means that if you enter into a new customer relationship with First Washington, we will ask you for your name, address, date of birth (if applicable) and other identification information. This information will be used to verify your identity. If necessary, and as required, First Washington may ask for additional documentation or information. If required information is not provided, First Washington may not be able to open your account, or establish a relationship with you.
Securities Processing (Clearing)
First Washington has contracted with Pershing LLC to serve as our clearing firm. Pershing LLC has nearly $1 trillion in assets under administration and its parent company, The Bank of New York Mellon Corporation, has more than $23 trillion is assets in custody. Pershing LLC offers unequaled experience built over seven decades of serving financial organizations. Pershing LLC offers state-of-the-art technology, a highly reliable infrastructure and a host of innovative products and services to help with your every financial need.
For more information regarding Pershing LLC, please visit their web site: http://www.pershing.com/about_us/4575.htm
Business Continuity Summary Disclosure Statement
Pursuant to SEC and NASD regulation, First Washington Corporation ("First Washington") has created a Business Continuity Plan in the event that First Washington were to become the subject of a significant business interruption ranging from an interruption effecting on the firm or effecting a larger area such as the City of Seattle. First Washington's recovery time for such an event will vary depending upon the severity and significance of the event.
Due to First Washington's clearing relationship with Pershing LLC ("Pershing") and its ability to conduct business with Pershing from any location capable of supporting Internet or telephone communications, employees of First Washington can continue to operate from several locations. However, First Washington has identified a specific off site location where both trading and operations will move should there be a significant business interruption. Customer's ability to contact First Washington by telephone at 800 874-8749 or 206 624-8320 will not be compromised during any off-site interval.
As First Washington's clearing dealer, Pershing maintains client accounts, including any securities or funds associated with the account. In the event of a business interruption that is city wide or regional in nature, including a natural disaster, a terrorist attack, etc. where First Washington would be incapable of continuing operations, Pershing will provide appropriate support to ensure business continuity.
Pershing may be contacted at (201) 413-3635.
Should you have any questions regarding this summary, please call (206) 624-8320.
Privacy Policy
At first Washington Corporation, Inc. (FWC), we are committed to protecting your privacy and the confidentiality of your personal and financial information. The measures we take to keep your personal information private and secure are outlined below.
How we Protect Confidentiality
FWC uses procedural, physical, and electronic system safeguards to store and secure information about you in compliance with the federal standards. Our systems protect your information from unauthorized access, alteration, and destruction. Access is permitted only to those individuals within our organization who need the information to perform their job responsibilities.
When we enter into agreements with other companies to provide service to us or to make products and services available to you, we include a confidentiality clause. Under such an agreement, these companies may receive information about you, but they may only use it for the intended purpose - to benefit you.
Persons covered by the privacy policy
The FWC privacy policy applies to anyone who is a current or former FWC brokerage client. We provide you with a copy of this policy when you open an account.
How we obtain information about you
In the normal course of business, we collect, retain, and use information about you to serve your financial needs, administer your account(s), and inform you of products and services that may be of interest. This data, known as non-public personal information, may be collected from several sources, including: applications and other forms you file with us (e.g. name, assets, income) and records of transactions with us, our affiliates, non-affiliated third parties, and others (i.e. credit report). Because we strive to provide you with the best possible service, the accuracy and completeness of your personal information is important to us. We ask that you review your information regularly to ensure that it is correct. Please contact your account representative or FWC directly if you need to correct or update your personal information.
Sharing Information - With Whom and Why
FWC does not sell your personal information to anyone. We restrict the types of information we share and the types of entities with whom we share it. The primary reason for sharing information about you is to increase your convenience in transacting business with us and to give you more financial service choices.
We do not disclose your personal information to nonaffiliated third parties, unless one of the following exceptions applies: We disclose personal information to service providers that assist us in processing your transactions or servicing your account. An example would be our clearing correspondent or the company which prints and mails your account statement.
Option to Opt Out and Change Notices
If for any reason at any time in the future, we find it necessary to disclose any of your personal information in a way that is incompatible with this policy, we will give you advance notice of the proposed change and the opportunity to opt out of such disclosure.
Statement of Interest Charges and Margin Account Policy
To assist you in managing your borrowing needs and to familiarize you with the terms under which credit is extended on your account, we have developed this statement of Interest Charges. Please review the margin requirements and the explanation of applicable interest rate charges prior to establishing a margin position.
Accounts on Which Interest is Charged
Payments for purchases in cash accounts should be received on or before the settlement date shown on the trade confirm. If your payment is received after the due date, a late payment charge may be posed to your cash account. Disbursement for a sale in a cash account is not required to be made prior to the settlement date displayed on the confirmation of the transaction. Occasionally, we may honor your request to receive payment of the sale proceeds prior to the due date. If this privilege is utilized, an interest charge will be posted to your account.
Interest may be charged on margin credit extended for the purpose of purchasing, carrying, or trading in securities. Interest charged is calculated on a settlement date basis and the detail supporting the calculation will be displayed on your monthly statement.
Calculation of Interest
Your annual rate of interest will vary depending on the size of your daily adjusted debit balance. The adjusted debit balance is the total of the settled balances in all margin accounts reduced by any available free credit balances in your cash account.
Short positions are "marked-to-market" daily. Since the security sold short must be borrowed in order to deliver it to the buying broker, the credit that results from the sale is not available to you. Thereafter, the market value of the short sale is debited against your margin balance to arrive at an adjusted debit balance for interest purposes. The daily closing price is used to determine any appreciation or depreciation of a security sold short which will then adjust your daily net balance.
The annual rate of interest applicable to your account will be computed at a selected rate above the broker's call money rate. The broker's call money rate is the rate banks charge securities brokers. This cost of money fluctuates and will result in an automatic change in your interest rate without prior notice to you.
The table of rates is as follows:| Adjusted Debit Balance ($) | Rate of Interest |
| 0-24,999 | Broker Call + 3.25 |
| 25,000 - 49,999 | Broker Call + 2.75 |
| 50,000 - 99,999 | Broker Call + 2.25 |
| 100,000 - 249,999 | Broker Call + 2.00 |
| 250,000 - 499,999 | Broker Call + 1.75 |
| 500,000 - 749,999 | Broker Call + 1.50 |
| 750,000 - 999,999 | Broker Call + 1.25 |
| 1,000,000 + | Broker Call + 1.00 |
Interest is computed daily on the basis of a 360 day year using the following formula:
| Adjusted Debit Balance | x | Interest Rate | x | Number of Days |
| 1 | 100 | 360 |
Lien and Collateral
BNY Clearing Services, our clearing agent, has a general lien on all securities that they have, hold or carry for you (either individually or jointly with others) or that may be deposited with them for any purpose at any time.
BNY Clearing Services may require you to deposit additional collateral in the form of cash or securities in accordance with the rules and regulations of the Federal Reserve Board, the New York Stock Exchange, Inc., the American Stock Exchange, Inc., other national securities exchanges, associations or regulatory agencies under whose jurisdiction we are subject and BNY Clearing Services' own minimum house margin maintenance requirements for securities approved by them for use as collateral on credit extended in a margin account.
If such additional collateral is requested by them and is not deposited by you into your account(s), securities in your account(s) may be sold to reduce or satisfy debit balance. BNY Clearing Services retains the right to require you to deposit additional collateral as they, at their sole discretion, may determine is needed as security for your obligations to them. We believe the basis of effective service lies in maintaining good communications. Therefore, if you have any questions concerning your account, margin requirements, interest or policies, please do not hesitate to call your Investment Consultant.
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