Privacy Policy

A.B. Watley Direct, Inc. carries your account as the introducing broker by arrangement with either Penson Financial Services, Inc (Penson) and BNY Clearing Services (The Bank of New York) as clearing brokers. At A.B. Watley Direct, Inc., we understand that privacy is an important issue for our customers. It is our policy to respect the privacy of all accounts that we maintain as introducing broker and to protect the security and confidentiality of nonpublic personal information relating to those accounts. Please note that this policy applies to former customers as well as current customers.

Personal Information Collected

In order to service your account as an introducing broker, information is provided to a clearing broker by your introducing broker who collects information from you in order to provide the financial services that you have requested.

The information collected by A.B. Watley and provided to these clearing brokers may come from the following sources.

• Information received from you, such as your name, address, telephone number, social security number, occupation, and income;
• Information relating to your transactions, including account balances, positions, and activity;
• Information which may be received from consumer reporting agencies, such as credit bureau reports and other information relating to your creditworthiness; and
• Information which may be received from other sources with your consent or with the consent of your clearing broker

Sharing of Nonpublic Information
A.B. Watley does not disclose nonpublic personal information relating to current or former customers to any third parties, except as required or permitted by law and in order to facilitate the clearing of customer transactions in the ordinary course of business.

Security
A.B. Watley strives to ensure that our systems are secure and that they meet industry standards. We protect personal information that is provided to A.B. Watley by you by maintaining physical, electronic and procedural safeguards that either meet or exceed applicable law. Where appropriate, we employ firewalls, encryption technology, user authentication system (i.e. passwords and personal identification numbers) and access control mechanisms to control access to systems and data. Third parties who may have access to such personal information must also agree to follow appropriate standards of security and confidentiality.

Rev.12/01