Any complaints should be submitted to:
Hazlett Burt & Watson, Inc.
1300 Chapline Street
Wheeling, WV 26003
The Disclosure of FINRA BrokerCheck Program Hotline Number is 1.800.289.9999. You may obtain further information pertaining to the Disclosure of FINRA BrokerCheck Program by visiting their web site at www.brokercheck.finra.org or by contacting our office at 304.233.3312.
E-mail sent through the Internet is not secure. Do not use e-mail to send us confidential information such as credit card numbers, changes of address, PIN numbers, passwords or other important information. Do not e-mail orders to buy or sell securities, transfer funds, or send time sensitive instructions. Your e-mail messages are not private in that its subject to review by Hazlett, Burt & Watson, Inc.; it's officers, agents and employees
The following information pertains only to clients who are opening margin accounts
with HBW. A special customer
security hypothecation agreement must be signed.
Purchases of securities on credit, commonly known as margin purchases, enable you to increase the buying power of your equity and thus increase the potential for profit or loss. A portion of the purchase price is deposited when buying securities on margin, and credit is extended for the remainder. This loan appears as a debit balance on your monthly statement of account. Interest is charged on the debit balance and requires you to maintain securities, cash, or other property to secure repayment of funds advanced and interest due.
Interest will be charged for any credit extended to you for the purpose of buying, trading, or carrying any securities, for any cash withdrawals made against the collateral of securities, or for any other extension of credit. When funds are paid in advance of settlement on the sale of securities, interest will be charged on such amount from date of payment until settlement date. In the event that any other charge is made to the account for any reason, interest may be charged on the resulting debit balance.
The initial minimum amount of collateral, which you must provide when you buy securities on margin is determined by the rules of the Board of Governors of the Federal Reserve. The present initial margin requirement is 50%. (Thus, you must provide a minimum of 50% of the market value of the stock you purchased on margin and credit is extended to you for the balance of the purchase price.) The initial margin requirement is subject to change by the Federal Reserve Board without prior notice. In addition to the Federal Reserve Board's initial margin requirement, you must have a minimum of $5,000 equity every time you enter into a new commitment in your margin account.
Interest will be charged to your account for any credit extended to you for the
purpose of buying or trading or carrying any securities or for other
The annual interest rates on borrowed funds shall be applied as follows:
|Average Debit Balance||Interest to be Charged Above Brokers’ Call Money Rate|
|$0 – $24,999||3.75%|
|$25,000 – $99,999||3.25%|
|$100,000 – and over||2.25%|
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 identities 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 utilize a third-party information provider for verification purposes and/or ask for a copy of your driver’s license or other identifying documents.
Before investing in mutual funds, it is important that you understand the sales
charges, expenses, and management fees
that you will be charged as well as the breakpoint discounts to which you may be
entitled. Understanding these charges
and breakpoint discounts will assist you in identifying the best investment for your
particular needs and may help you to
reduce the cost of your investment. This disclosure document will give you general
background information about these
charges and discounts; however, sales charges, expenses, management fees, and
breakpoint discounts vary from mutual fund
to mutual fund. Therefore, you should discuss these matters with your investment
professional and review each mutual
fund’s prospectus and statement of additional information (which are available from
your investment professional) to obtain
the specific information regarding the charges and breakpoint discounts associated
with a particular mutual fund.
Investors who purchase mutual funds must make certain choices, including which funds to purchase and which share class is most advantageous in light of their specific investing needs. Each mutual fund has a specified investment strategy. You need to consider whether the mutual fund’s investment strategy is compatible with your investment objectives. Additionally, many mutual funds offer different share classes. Although each share class represents a similar interest in the mutual fund’s portfolio, the mutual fund will charge you different fees and expenses depending upon your choice of share class. As a general rule, Class A shares carry a “front-end” sales charge or “load” that is deducted from your investment at the time you buy the fund shares. This sales charge is a percentage of your total purchase. As explained below, many mutual funds offer volume discounts to the front-end sales charge assessed on Class A shares at certain predetermined levels of investment, which are called “breakpoint discounts.” In contrast, Class B and C shares usually do not carry any front-end sales charges. Instead, investors who purchase Class B or C shares pay asset-based sales charges, which may be higher or lower than the charges associated with Class A shares. Investors that purchase Class B or C shares may also be required to pay a sales charge known as a contingent deferred sales charge when they sell their shares, depending upon the rules of the particular mutual fund.
Most mutual funds offer investors a variety of ways to qualify for breakpoint
discounts on the sales charge associated with
the purchase of Class A shares. In general, most mutual funds provide breakpoint
discounts to investors who make
large purchases at one time. The extent of the discount depends upon the size of the
purchase. Generally, as the
amount of the purchase increases, the percentage used to determine the sales load
decreases. In fact, the entire
sales charge may be waived for investors that make very large purchases of Class A
shares. Mutual fund prospectuses
contain tables that illustrate the available breakpoint discounts and the investment
levels at which breakpoint
discounts apply. Additionally, most mutual funds allow investors to qualify for
breakpoint discounts based upon
current holdings from prior purchases through Rights of Accumulation and from future
purchases based upon Letters
of Intent. Mutual funds have different rules regarding the availability of Rights of
Accumulation and Letters of
Intent. Therefore, you should discuss these matters with your investment
professional and review the mutual fund’s
prospectus and statement of additional information to determine the specific terms
upon which a mutual fund offers
Rights of Accumulation or Letters of Intent.
Rights of Accumulation—Many mutual funds allow investors to count the value of previous purchases of the same fund, or another fund within the same fund family, with the value of the current purchase to qualify for breakpoint discounts. Moreover, mutual funds may allow investors to count existing holdings in multiple accounts, such as individual retirement accounts (IRAs) or accounts at other financial organizations to qualify for breakpoint discounts. Therefore, if you have accounts at other financial organizations and wish to take advantage of the balances in these accounts to qualify for a breakpoint discount, you must advise your investment professional about those balances. You may need to provide documentation establishing the holdings in those other accounts to your investment professional if you wish to rely upon balances in accounts at another firm.
In addition, many mutual funds allow investors to count the value of holdings in accounts of certain related parties, such as spouses or children, to qualify for breakpoint discounts. Each mutual fund has different rules that govern when relatives may rely upon each other’s holdings to qualify for breakpoint discounts. You should consult with your investment professional or review the mutual fund’s prospectus or statement of additional information to determine what these rules are for the fund family in which you are investing. If you wish to rely upon the holdings of related parties to qualify for a breakpoint discount, you should advise your investment professional about these accounts. You may need to provide documentation to your investment professional if you wish to rely upon balances in accounts at another firm.
Mutual funds also follow different rules to determine the value of existing holdings. Some funds use the current net asset value (NAV) of existing investments in determining whether an investor qualifies for a breakpoint discount. However, a small number of funds use the historical cost, which is the cost of the initial purchase, to determine eligibility for breakpoint discounts. If the mutual fund uses historical costs, you may need to provide account records, such as confirmation statements or monthly statements, to qualify for a breakpoint discount based upon previous purchases. You should consult with your investment professional and review the mutual fund’s prospectus and statement of additional information to determine whether the mutual fund uses either NAV or historical costs to determine breakpoint eligibility.
Letters of Intent—Most mutual funds allow investors to qualify for breakpoint discounts by signing a Letter of Intent, which commits the investor to purchasing a specified amount of Class A shares within a defined period of time, usually 13 months. For instance, if an investor plans to purchase $50,000 worth of Class A shares over a period of 13 months, but each individual purchase would not qualify for a breakpoint discount, the investor could sign a Letter of Intent at the time of the first purchase and receive the breakpoint discount associated with the $50,000 investment on the first and all subsequent purchases. Additionally, some funds offer retroactive Letters of Intent that allow investors to rely upon purchases in the recent past to qualify for a breakpoint discount. However, if an investor fails to invest the amount required by the Letter of Intent, the fund is entitled to retroactively deduct the correct sales charges based upon the amount that the investor actually invested. If you intend to make several purchases within a 13 month period, you should consult your investment professional and the mutual fund prospectus to determine if it would be beneficial for you to sign a Letter of Intent.
As you can see, understanding the availability of breakpoint discounts is important because it may allow you to purchase Class A shares at a lower price. The availability of breakpoint discounts may save you money and may also affect your decision regarding the appropriate share class in which to invest. Therefore, you should discuss the availability of breakpoint discounts with your investment professional and carefully review the mutual fund prospectus and its statement of additional information, which you can get from your investment professional, when choosing among the share classes offered by a mutual fund. If you wish to learn more about mutual fund share classes or mutual fund breakpoints, you can also review the investor alerts that are available on the FINRA web site at http://www.finra.org/InvestorInformation/InvestorAlerts/MutualFunds/UnderstandingMutualFundClasses/Index.htm and http://www.finra.org/InvestorInformation/InvestorAlerts/MutualFunds/MutualFundBreakpointsABreakWorthTaking/Index.htm.
Mutual Fund and Money Fund Fees and Revenue Sharing
Hazlett, Burt & Watson, Inc. may receive fees from funds for compensation for certain recordkeeping and other administrative tasks Hazlett, Burt & Watson, Inc. performs in connection with your account. Should you have any questions in this regard, please contact your investment professional
As a consumer who uses electronic funds transfer (EFT) services, you have certain rights and responsibilities. These rights and responsibilities are defined by the Electronic Fund Transfer Act (15 U.S.C. 1693, et seq.) and Regulation E of the Federal Reserve Board. THE FOLLOWING PROVISIONS APPLY TO BOTH PREAUTHORIZED ACH DEPOSITS AND REDEMPTIONS TO AND FROM YOUR HAZLETT BURT & WATSON, INC. (HAZLETT) BROKERAGE ACCOUNT:
Preauthorized deposits and redemptions are only permitted to be made to and from Hazlett brokerage accounts.
If we do not complete a transfer to or from your account on time or for the correct amount according to our agreement with you, we may be liable for losses or damages. However, there are some exceptions. We will not be liable in certain situations, such as, but not limited to:
You have no liability for unauthorized payments from your Hazlett account provided you have exercised reasonable care to prevent such activity and you notify us immediately if you believe that someone has transferred or may transfer funds from your account without your permission. You agree to protect your account information and not to give or make available your account information to any unauthorized individuals. If you believe that your account information has been compromised or that someone may attempt to transfer money from your account without your consent, you must notify Hazlett immediately at 800.537.8985.
If you have told us in advance to make redemptions (payments) from
you account, you can stop these
payments by calling or writing:
Hazlett, Burt & Watson, Inc. Attn: Customer Service
1300 Chapline Street
Wheeling, WV 26003
To stop a payment, you must notify us at least three (3) business days before the payment is scheduled to be made. You must confirm your stop payment instructions in writing immediately to assure that they are received within fourteen (14) calendar days after you call.
If you order us to stop a preauthorized payment five (5) business days or more before the transfer is scheduled, and Hazlett does not do so, Hazlett will be liable for your reasonable actual losses, subject to the conditions set forth in “Liability for failure to make transfers” section.
You may be charged a stop payment fee of $15.
Business days are Monday through Friday, excluding New York Stock Exchange holidays and regional bank holidays, 8:00 a.m. to 5:00 p.m. (Eastern Time).
There are no fees associated with preauthorized redemptions or deposits.
It is our general policy to treat your account information as confidential. However, Hazlett will disclose information to third parties about your account or the transfers:
You have the duty to exercise reasonable care to examine your account
statement and report any discrepancies immediately. If you think your
account statement is wrong or if you need more information about payments
listed on your statement, telephone us at 800.537.8985, or write us. If
you tell us orally, Hazlett requires that you send us a written affidavit
regarding your complaint or question within ten (10) days to:
Hazlett, Burt & Watson, Inc.
Attn: Customer Service
1300 Chapline Street
Wheeling, WV 26003
We must hear from you no later than sixty (60) days after we sent you the FIRST statement on which the problem or error appeared. If you do not tell us within sixty (60) days, you may lose any amount transferred without your authorization. When notifying us, you must provide:
Hazlett may amend any of the above terms and applicable fees from time to time upon thirty (30) days notice to you. Further, we reserve the right to terminate our agreement with you.
|Security Description||Symbol / CUSIP|
|Intercontinental Exchange Inc.||ICE|
|United Bankshares Inc. WV||UBSI|
|WV Univ. Rev Ser. 200A 0.00% - 4/1/2029||956704TM2|
|Glenville St College W Va 3.25% - 6/1/2022||397170AA1|
|Buckhannon WV Dev Rev 4.10% - 12/1/2033||118325CK3|
|Wood Co. WV Rev 6.70% - 9/1/2037||97835PAA9|
Securities in accounts carried by National Financial Services LLC (“NFS”), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (including cash claims limited to $100,000). For details, please see www.sipc.org. NFS has arranged for additional protection for cash and covered securities to supplement its SIPC coverage. This additional protection covers total account net equity in excess of the $500,000/$100,000 coverage provided by SIPC. Neither coverage protects against a decline in the market value of securities.
Hazlett Burt & Watson’s Commitment to Clarity
Clarity of Rights and Responsibilities. Clarity of Performance. Clarity Through Understanding.
The foundation of any successful business is built on the right culture – on shared values of honesty, integrity and genuine concern for clients. These and other values are inherent in the Hazlett Burt & Watson culture and are central to how we serve clients in our mission to provide the best financial advice and service. We believe in partnerships with clients, for they inspire us to work harder and smarter every day. We believe that to abide by the highest professional standards is an obligation we incurred when we chose to earn our living by managing our clients’ investments.
As an active member of the Securities Industry and Financial Markets Association (SIFMA), Hazlett Burt & Watson has partnered with other industry leaders to create Commitment to Clarity, a dedication to openness and understanding as the guiding principles for all interactions between investors and the firms that serve them. At the center of the commitment is the Investors’ Bill of Rights, which outlines the rights and responsibilities that should guide investors and advisors when making investment decisions. SIA adopted the Bill of Rights in November 2004, a measure that Hazlett Burt & Watson was proud to commit to and share with clients.
Investors' Bill of Rights
Clarity is the cornerstone of trust between investors and their Financial Advisors.
SIFMA is committed to clarity through full and unambiguous disclosure, as well as enhanced understanding of the securities markets.
We believe that the needs of the investor should always come first. As an investor, you have important rights, including the right to high-quality products and services from the securities firm you choose.
At the same time, investors need to shoulder certain responsibilities themselves — for example, to plan carefully to meet their investment goals and to stay informed about the risks and rewards of their investments.
Your Rights as an Investor
As an investor, you have the right: