Privacy Statement

Tejas Securities Group, Inc.

Commitment to Privacy

As you may know, Tejas Securities Group, Inc. (“TSG”) and Penson Financial Services, Inc. (“Penson”) have an agreement that Penson will provide trade execution, clearing, and related activities for your account.  In connection with these services, TSG and Penson are required to communicate its position as it pertains to the privacy of customer information.  We are proud of our privacy and confidentiality practices, and we want you to know how we work with Penson to protect this information and use it to service your account.  You do not have to contact us to benefit from these protections; they apply automatically to all customers.  We review our privacy policy annually.  Our printed and online notices are then updated to reflect any material changes.

How and Why We Obtain Information

To facilitate the servicing of your account, Penson may receive nonpublic personal information about you from TSG or from any of the following sources:

•       Your registered representative and applications or forms (for example, name, address, social security number, birth date, assets, and income)

•      Transactional activity in your account (for example, trading history and balances)

•       Information services and consumer reporting agencies (for example, to verify your identity or to assess your creditworthiness)

•      Other sources with your consent or with the consent of Penson (for example, from other institutions if you transfer positions into TSG)

How We Protect Your Information

TSG has always considered the protection of sensitive information to be a foundation of customer trust and a sound business practice.  We employ extensive physical, electronic, and procedural controls in keeping with industry standards and practices, and we regularly adapt these controls to respond to changing requirements and advances in technology.

Within TSG and among our service providers, we restrict access to your information to those who require it to provide products and services to you.  We do not share or sell your personal information with non-affiliated third parties.  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 inconsistent with this policy, we will give you advance notice of the proposed change and the opportunity to opt out of such disclosure.  However, we may share the personal information that we collect about our customers, prospects, or former customers with Penson or with:

•      Affiliates, which may include our parent holding company, Tejas, Inc.

•      Government agencies, other regulatory bodies, and law enforcement officials (for example, for tax purposes or for reporting suspicious transactions)

•      Other organizations, as permitted by law (for example, for fraud prevention, identity protection)

Access to Your Information

You may access and, if necessary, correct your account information through a variety of media offered by TSG and Penson (e.g., statements or online services).  Please contact TSG if you require any additional information.

TSG does not retrieve account or personal information from visitors who browse our Web site (www.tejassec.com).

Consumer Information Disposal

TSG maintains policies and procedures to destroy or shred documents and/or erase electronic files containing consumer report information so that information cannot be read or reconstructed.  In addition, TSG continues to maintain the confidentiality of your account information in the event you close your account with TSG.

Any inquires/complaints should be directed to the Compliance Department, Tejas Securities Group, Inc., 8226 Bee Caves Road, Austin, TX  78746 –1-800-846-6803.  For more details on SIPC, or to request a SIPC brochure, visit www.sipc.org  or call 1-202-371-8300.  The FINRA Broker Check (Public Disclosure) Program allows the public to obtain current regulatory information about FINRA member firms and registered representatives.  You can obtain more information by visiting the FINRA website at: FINRA Regulation Website: www.FINRA.org or by calling: FINRA BrokerCheck Hotline Number: 1-800-289-9999.  In addition, please be aware that available on the FINRA website is an investor brochure that includes information describing the FINRA BrokerCheck resource.