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Investor Alert |
| Past Alerts Click Here | December 1, 2006 |
Dear Valued Client: |
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Newedge intends to complete the transfer of all of its assets to its parent company, Newedge USA, LLC by January 1, 2007.
Although this change requires no action on your part, if you agree to the proposed transfer, we encourage you to read the attached "Notice of Asset Transfer to Newedge USA, LLC" for specific information about how your account(s) with Newedge may be affected. Our affiliation with Newedge USA, along with the Newedge Group, has been an important step in creating a wide range of investment opportunities for our valued clients. The Newedge Group is ultimately wholly-owned by one of the world's leading banks, Société Générale. Newedge was founded in 1986 by Société Générale and is currently one of the world's largest global brokerage organizations. It offers a wide range of clearing and execution services on listed and OTC derivatives and cash products such as fixed income, tangible commodities, forex and equities, to various financial institutions and large trading firms. |
Newedge USA has been a major contributor to the Newedge Group's success and currently employs almost one quarter of all global Newedge staff. Newedge will
now become part of a financial company that as of August 31, 2006 has over $500 million in regulatory net capital and over $120 million excess regulatory
net capital.
In short, our clients will soon be connected to a global organization with 29 offices in 25 key financial marketplaces around the world and staff of more than 1,700. Newedge is also a member of 44 futures and options exchanges globally, and 19 stock exchanges. We Value Your Trust Widening our product offerings, increasing our capital base and providing quality customer service are all a top priority at our firm for the coming year and beyond. We are striving to bring our customers some of the best technology and services in the industry. Feel free to contact us about your account. You can contact us with any questions at (888) 781-0283 email Service@NewedgeGroup.com. |
Newedge Notification of Asset Transfer to Newedge USA, LLC |
| Newedge ("Newedge") will shortly enter into an Asset Purchase Agreement with Newedge USA, LLC ("Newedge USA"), whereby
Newedge's assets and liabilities will be transferred to Newedge USA by January 1, 2007.
Newedge is a wholly owned-subsidiary of Newedge USA, which is also a U.S. registered broker dealer and NASD member, a futures commission merchant and NFA member, and a member of other regional exchanges, the MSRB, the SIPC, selected ECNs, and relevant clearing organizations. Newedge USA's headquarters is located at 630 Fifth Ave, Suite 500 New York, NY 10111. Newedge USA is a member of the Société Générale Group, one of France's premier banking organizations. Information regarding the Newedge Group and Société Générale can be found at www.fimat.com. Under this asset transfer, your account will be serviced by Newedge USA's office in San Francisco, which is located at 220 Bush Street, Suite 650, San Francisco, CA 94104. The customer service telephone will remain (888) 781-0283. Newedge USA intends to continue in virtually all respects the current business of Newedge. Pursuant to the Agreement between Newedge and Newedge USA, Newedge proposes to transfer all positions and assets in your account to Newedge USA and will assign to Newedge USA all of the customer account documents you executed when you established your account at Newedge (and, if relevant, as amended); including, but not limited to, the customer account agreement, risk disclosure statements and other related account documents and information. Accordingly, all of the rights and obligations which Newedge has under your account documentation will be assumed by Newedge USA, and Newedge USA will thereafter be your clearing broker. In addition, your current Newedge account number(s), customer information, software access and fee schedule will remain the same. Newedge USA will be a self-clearing broker-dealer and will be responsible for holding securities and cash, settling transactions, issuing statements and confirmations and the various details incidental to the clearing of your account to the extent Newedge performs such services now. Principal Trust Company will continue as trustee for all IRA accounts at Newedge USA. Your securities account will continue to be covered by the Securities Investor Protection Corporation ("SIPC"), which currently protects securities customers of its members up to $500,000 (including $100,000 for claims for cash). An explanatory brochure is available upon request or at http://www.sipc.org. | Please note that for
purposes of SIPC coverage, money market mutual fund balances are not considered cash; they are considered to be securities. Newedge USA intends to offer
excess SIPC coverage for those accounts exceeding SIPC limits. Additional information is available upon written request. Account protection does not cover
the market risks associated with investing. Please note that SIPC protection does not apply to futures accounts.
This letter is provided to you for purposes of notification, and requires no action on your part should you decide to maintain your account(s) at Newedge USA. The transfer of your account to Newedge USA is planned to take place as of the close of business on December 31, 2006 (at no cost to you) unless you notify Newedge by no later than close of business on December 21, 2006 that you wish to liquidate your account, remit your balance and transfer your account to another broker-dealer, or we have received appropriate instructions from another broker dealer and/or futures commission merchant to transfer your account. If your securities account is to be transferred to another broker dealer, your new broker dealer must submit the appropriate Automated Customer Account Transfer ("ACAT") instructions to Newedge at 220 Bush Street, Suite 650, San Francisco, CA 94104 by no later than December 21, 2006. Also, if relevant, you must make arrangements to transfer your futures positions and balances to another futures commission merchant by no later than December 21, 2006, or liquidate open futures positions by close of business that day. There is no charge other than the normal brokerage commissions if you choose to liquidate any positions in your account and request a check be sent to the address of record for your account; however, there is a $20 wire fee if you elect to have funds sent to your bank or another broker or futures commission merchant by wire transfer. You may contact Newedge or Newedge USA directly at (888) 781-0283 or by email to customer service at Service@NewedgeGroup.com for instructions concerning the disposition of your account or for any questions. Please note that office locations, telephone and fax numbers will remain the same. Newedge USA complies with Regulation S-P (Privacy of Consumer Financial Information) and will assure you full protection of the privacy of your financial information in connection with this change, as is consistent with the regulation. |
| Newedge USA Privacy Policy (October 2006) |
| Newedge USA will comply with Regulation S-P (Privacy of Consumer Financial Information) and assure you full protection of the privacy of your financial
information in connection with this change, as is consistent with the regulation.
In connection with your relationship with Newedge USA, LLC ("Newedge"), we may collect nonpublic personal information about you from the following sources:
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If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this Notice.
Newedge does not sell personal nonpublic information about current or former customers to any third-parties or share that information with third-parties for
marketing purposes.
In short, Newedge places great importance on holding customer personal and financial information in strict confidence. In this regard, Newedge maintains physical, electronic and procedural safeguards to guard your personal nonpublic information. Nonetheless, you are responsible for maintaining the accuracy and completeness of your information. Should you need to change or correct your account information, please contact your broker or Newedge customer service to update the information. If you utilize our own or a third-party on line order routing system to access our services, please be aware that you should never give your account number or password to anyone. If you suspect someone has your password, change it immediately and call your account representative at Newedge or Newedge customer service. You are ultimately responsible for maintaining the secrecy of your password. This Notice is being issued pursuant to federal statutory and regulatory requirements, and is designed to comply fully with such provisions. |
 Newedge Member New York Stock Exchange, NASD, MSRB, NFA, SIPC and other principal exchanges Headquarters: 220 Bush Street, Suite 650, San Francisco, CA 94104 Customer Service can be reached at 888-781-0283 or by email at Service@FimatPreferred.com. Customer Service Fax (415) 520-5633 All contents of this "Investor Alert" are for educational purposes only. Graphics are also for illustration purposes only. Newedge does not offer investment advice. |