Western Financial Corporation - Business Continuity Plan Financial Retail Brokeraage

Business Continuity Plan

Disaster Recovery and Business Continuation Program

EXECUTIVE SUMMARY

Western Financial Corporation (“WFC”) is a broker-dealer located in San Diego, California.

Securities transactions and customer account maintenance are provided by a clearing firm, Wedbush Morgan Securities (“WMS”), which is located in Los Angeles.

WFC regularly evaluates its internal hardware and software systems. Because of the size of the firm replacing the systems or providing back-up systems is not difficult and not costly to implement.

WMS uses an external vendor, Thomson Transaction Services, to provide processing services related to its securities activities. Activities relating to customers’ accounts are accessed by WFC using WMS’ vendor provided computer system.

WFC’s offices are located on the twenty-second floor of a high rise building in San Diego’s downtown financial district. The building’s owner and management are responsible for the elevators, power, and other utilities.

The Disaster Recovery and Business Continuation contingency plans of WFC have as their primary objective the continuation of normal operations. In the event of computer system failure, access to WMS for order entry and account information will be by telephone. In the event of telephone system failure, personal cellular telephones will be used. Clients will also be provided with the telephone number for the Correspondence Services Department at WMS (when they open new accounts and on monthly statements) should they be unable to reach WFC’s offices or personnel. Firm contact with WMS can also be made through its San Diego branch office, which is situated only a few blocks away from WFC’s facilities, and at a secondary alternate location, WMS' branch office in Seattle, Washington. Account information will be provided by reference to the most recent customer month-end statements and any subsequent money lines and transaction confirmations, by remote access to the External WMS Vendor Systems and via ClientLink Internet service.

WFC’s accounting and reporting records are printed on hard copy each month and are filed in the firm’s office as well as at an offsite location. Files are also backed up electronically and stored at an offsite location.

Firm Policy

Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing our customers to transact business. In the event that we determine we are unable to continue our business, we will assure customers prompt access to their funds and securities through our clearing firm, Wedbush Morgan Securities.

Western Financial Corporation will respond to questions regarding its Business Continuity Plan by telephone (619) 544-0260 or by emailing us at: rick@westfincorp.com.