Embed Size (px)
Citation preview
SEC• Mail Processing
Section
MAR 0 6 ZU1 !
SEC
17009666
ttUMB AYPRO lA_ — —1OMB Number. 323S 11123Expires, May 31, 2011estimated average burden_hours per response...... 12.Of-
SEC FILE NUMBER
Washington DC !$-4$467406 FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section I7 of theSecurities Exchange Act of 1934 and Rule 17a-5 Thereunder
Izi~.(>t>izz rrllz I;?;: r~r~l)I) I3i:<iIti~1IAc; 01/01/2016 ,;;~ I l7((; 12/31/2016
A. REGISTRANT IDENTINWATIOti
,JAI~•Ii t ~r I>ROi:({It-uI ;~t.Iat. ELE Wealth Advisors, Inc ! OFFICIAL USE ONLY ̀.— - -
.- DDRI:SS Ui- I'I0N('I1'.M N ACID_ (1(' W ISINESS. FIRM LD. NO.
18700 W 10 Mile Road, Suite 10011. rmd StrzAt
Southfield Michigan 48075rtit; M t7.il) CAL:I
ANNUAL AUDITED REPOR-1—4111 liii'llolooll
$1141"W4:1
`iAh'!•: \NI) IT 1. Iii'lIOhl;NM1 11; l:litlt'VEN`UN lC1t (ll;,s,i I 1;\ J' "'CHI) IU iliiS:il.i'Oil'(Tammie Parran (281) 646-7333
- ---- _ {.rear'ode _T~•Icphune?lunthor
B. ACCOUNTr1~NVT IDENTIFICATION
IIvllHl'I:Ui )I~V ! ;'( ~IsiJt' ~At,'( !Ji':~I':AN i u(iusr ~)I)i~tn)r, tti runtain~~ ;v ti,i, Rcl~z+)t~
McConnell & Jones LLP.. Name - ! rndir::d1•3!. Onh laa jrr•t nodi!_ ;,•;,),,-)_
4828 Loop -Central--Dr.-,.- Suite 1000 Houston Texas 77081i;ldrcss) a'itr) (lip Code)
CHECK ONE
F-71Ccrii(ic•d Pr1,11C ,iccouruanri'(Wh%: A%:LVirllt Qrli
:~Cl'+n;t,lanl not trsiL.knt 10 (.l)j)I;:k'. \tjtej ~,I :till' ciP tip i~t)as~»t~Ul S.
FOR OFFICIAL USE ONLY
i'/aIws for cxL,I)Ipticrrt J (Juf 1114- x that the u+ratra! rrpr,ri h,• cur yr ed hl, ila• o*Inii op of art imITiliulejlf lmhlic tic comliunlrtttts•! !)e sr!l)lrnt•t d ht' ,r.ttulavrrr!rt t)l fucf-z ,,n,?rircunr.t!nnrrc re iecf nn av thr hnsrc tor- Nrr exe•ntt,!,o:,. Sc e A4,eriwr '-th. t'u-~(
potential persons who are to respond to the collection of
EC 1410 f0(i 02) lntormation contained in this form are not required to respondunless the form displays acurrently valid OMBcontrol number-
(
OATH OR AFFIRMATION
I Tammie Parran sllcal (01 affirm) that. t++ the best u.
alt knim ledge and ocher the accoillpan~ uip fillaucial stt!cu;cn_ :rod supportirl: schLdulc, }pertaining to the film o:
ELE Wealth Advisors, Inc
,1 December 31 'U 16 are true anti correct. i further sl+ear tot ;iffirm 1 that
neither the coutpanl nor anc parsnC-. Proprietov rriucipal officer or dilcctor I:a> am. proprietarx 1lntewit in am account
CL:r.S,IfICd SOICIV a.S lhel 01'a CUS101711c'1- CXCCI11 i" I0Ilt+li'1
S iQnature
Vice President- --- ---- -- —Title
~~4~e~r~ •. iNotary Public
Ihi: report contains te!uck all agplical-~ir iul~c,1: k "' I ,•y Cam;;~ssl rr4x,., a 2.(a) Facin,_. Pape. •~ / 5-::~TSer 22 2b'3
Q'lb1 tiintculcnt ui Financial Condition. - ~ic1 SlalCnrCn1 of Inc'omc I Loss_ 1_
lJ' I d I SIAClnrnt nl• Changes in Fiaancial t •onJihon.Eric) St.iterticatalt C•1ianV'Ci in Stackllol&ri !_t!llill of Pitt?t:Cr: or Solt'P'i~nt!ctt+i~ i 111111x1.
❑ It! Statenwilt of I. ilarl LC~ 111 I-1ahIldICS SUI)0ItilI J1t:d It' C ialln, UI (. rCJlli~tiQ' t=) Computalloll o1' Net Callitat.❑ Ih1 Computation For Dett inmation of kC,ClVC RC+11111-Cu1Cnl, I'UI`,Uatrt to Rule❑ l ij ln!lnm lion Rclatiu~ _c+ the Possc,sion in Control Rcrun•cnlents Unde- RulC 15c3-71z Rcr;+uciliation including a;+1 1cll,ri:1R ctil'icnlai It'll oft-11c Conlpulatior oNct Capita! I TndCl Rule• 1503-1 and tilt
Comllutauon for I)ct.nn:nat!vu of Oic R. erl 1-:•,hihit ;A of Rulc 11 3_❑ tk! A Reconciliation hctmecii the audited all,-', ltnaiud;ted Statements of Hruincial Londition frith rc;pcet to niclhod., o`
conwlidalwLi l i Ali Oath tIt- `,ll'i nuitionl III) :",cvp~ o the 51111t. Sultp!erilental Repoli
❑ 1111 A rt".1071 ticscribID~., ;inl viatcr ial ni,:ldt:gLacic, it-wi,.l ortOund 10 Ld~v eti;I A iHICC OW ~!;I!C ol*the T110IMN allUit
"* ~'!7I' COHI~i?/x)115 U~ LUN%ItIC'!tr
ELE WEALTH ADVISORS, INC.REPORT OF INDEPENDENT REGISTEP D PUBLIC ACCOUNTING FIRM,FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
REQUIRED BY SEC RULE I7A
YEAR ENDED DECEMBER 31, 2016
ELE WEALTH ADVISORS, INC..
CONTLNTS
Report of Independent Registered Public Accounting Firm
Statement of Financial Condition
Statement of income and Chanties in Shareholder's Equity
Statement of Cash Flogs
Notes to Financial Statements
Supplemental Information -
Schedule I - Comp'-tation of Net Capital Under Rule 156-1
Schedule It —Rcc of Net Capital from Quarterly FOCUS —Rule 17a-5(d)(4) of the Securities & ExchangeC;omtnissio,, to Annual. Audited Financial Statements
Report of Independent Registered Public Accounting Firm on Exemption Revort
Statement Regarding Rule 156-3
13 q c
8
9
MC_C)NNH 1 & J0NF5 111'MEMO—
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholder ofCi.E Wealth Advisor, Inc.
We have audited the accumpany'ing statement of financial condition of FI,E Wealti-r;Advisor. Inc (the -'Company') as of December 31. 2016, and the related statements of'income and changes in shareholder's equity, and cash tlmN s for the year then ended. Tixst:financial statements are the responsibility of the Compan.'s management. Ou-respomibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public CompanyAccounting Oversight Board (United States). 'Those standards require that we plan andperform the audit to obtain reasonable assurance about k% nether the financial statements arefree of material misstatement. An audit includes examining, on a test basis. evidencesupporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, asNNell as evaluating, the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion
In our opinion. the Iinancial statements referred to above present fairy, in all materialrespects. the Financial position of the Company as of December 31, 2016, and the results ofits operations and its cash floss for the year then ended in conformity %kith accountingprinciples generally accepted in the United States.
The Net Capital Computation as Required b% Rule 15e3-1 of the Securities and ExchangeCommission contained in Schedule I and Ree of Net Capital from Quarterly FOCUS — 9
Rule 17a-5(d)(4) of the Securities & Exchange Commission to Annual AuditecFinancial Statement.~ contained in Schedule ii (the "Supplemental Information") hasbeen subjected to audit procedures performed in conjunction with the audit of theCompany's financial statements. The Supplemental Information is the responsibility of theCompany's management. Our audit procedures included determining ANltether theSupplemental information reconciles to the financial statements or the underlyingaccountin, and other records, as applicable, and performing procedures to test thecompleteness and accuracy of the information presented in the Supplemental Intimnation.in fanning our opinion on the Supplemental Information. i%e evaluated whether theSupplemental In,"onnation, including its form and content is presented in conformity with17 C.F.R. ~240.17a-5. incur opinion. the Supplemental information is fairly stated. in allmaterial respects. in relation to the financial statements as a whoic
1, J-OkA L—~ PHouston. "texasMarch 2. 2017
ELE WEALTH ADVISORS. IN---.STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2016
ASSETS
Current AssetsCash and cash eq valents $ 58,034Accounts receivabll, 1,318Prepaid expenses 9.167
Total Assets %a 12
LIhBILITIES AND SHAREHOLDER'S EQUYl'Y
Current LiabilitiesAccounts payable S 1,305Income tax liability 3,000
Total Liabi5ties 4.305
Shareholder's Equity 64.214
Total Liabilities and Shareholder's Equity S 6$.51.4
See accompanying notes o financial statements
2J`~FFe
ELE WEALTH ADVISORS, INC.STATEMENT OF INCOME AND CHANGES IN S[IARE14OLDERIS EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2016
Commissions and Fees Revenue $ 964,981
Operating ExpensesCommissions 843,769Accounting and audit fees 5,500Professional liability insurance 21,277(tent 12,000Professional fees: consulting 20,136Regulatory fees 2,905Business license and permits 11,613Bank service fees 185Marketing 635Computer and internet expenses 1,370Taxes: Federal 2,419Administrative services 5.400
Total Operating Expenses 927,209
Net Income $ _ 37 71-7
Beginning Shareholder's Equity 27,096
Net Income 37.772
Capital withdrawals (654)
Ending Shareholder's Equity
See accompanying notes to financial statement
3(, g
ELE WEALTH ADVISORS, INK.STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income i 37;772Changes in operating assets and liabilities:
Accounts receivable 9,418Prepaid expenses (2,129)Income tax liability 700Accounts payabie (4,604)Accrued expenses (8,004)
Net Provided by Operating Activities 33.157
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash paid to owner- withdrawal (654)
Net Cash Used by Financing Activities (654)
Increase in cash ')2,5(13,
Cash and cash equivalents at beginning of year 25,531
Cash and cash equivalents at end of year $ 58.034
Supplemental cash flows disclosures:
Income tax paid
See accompanying notes to financial statement
4 1 P a g c
ELE WEALTII ADVISORS, INC.NOTES TO FINANCiAL STATEWNI'S
DECEMBER 31, 2016
NO'l I.. - NA1111' OU OPFRATiONS
ELI: Wealth Advisors, Inc. (the "Company") is a registered broker-dealer with the Securities and
Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority, inc.I-INRA). The Company is a Michigan; corporation, with one shareholder formed in December2012. and provides investment products to individuals and closely held businesses. The soleshareholder owns I00°o ofthe Company. 1'he Company is still in the process of issuing sharescertificate to the sole shareholder. The Company is exempt from Rule 156-3 of the SEC underParagraph (k)( i ) of that rule.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of the significant accounting policies applied in the preparation of the accompanyingfinancial statements is as follows:
Basis of accountinv
The Company maintains its books and records on the accrual basis of accounting for Fnanciaireporting purposes N hick is in accordance with U.S generally accepted accounting principles andis required by the SEC and F INRA.
Cash and cash equivalents
For the purposes of the statement of cash flows the Company considers cash in banks and al lhighly liquid debt instruments with maturity, of three months or less to be cash equivalents. TheCompany may maintain its cash in bank deposit accounts which at times may exceed federallyinsured limits. The Company has not experienced any losses in such accounts. The Companybelieves it is not exposed to any significant credit risk on cash.
Use of accountine estimates
The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect the reportedamounts of certain assets and liabilities and disclosures. Accordingly, the actual amounts coulddiffer from those estimates..'%ny adjustments applied to the estimated amounts are recognized in,,he year in which such adjustments are determined.
51
ELF WEALTH ADVISORS, INC.NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
Revenue recognition and accounts receivable
The Company recognizes revenues fmm commission generated from variable annuities andmutual funds sales on behalf of its clients. Revenues are recognised when earned. In the event ofa commission chargeback. the Company reduces client commission earned in the amount of thechargeback. During 2016 there was $1,305 in chargebacks. Accounts and commission,receivable are carried at coFt. No allomance for uncollectable accounts is required at December31. 2016 as management dc-es not believe it is exposed to any risr of loss based upon itshistorical experience.
Income Taxes
Deferred tax assets and liabilities are recognized for the tax ei1ec,_s of differences between thefinancial statement and tax basis of assets and liabilities. A valuation allowance is established toreduce deferred tax assets if it is more likely than not that a deferred tax asset will not berealized. The Compan) doc5 not have adeferred tax asset as of December 31, 201(1.
The Company follows FAS3 ASC 740, Accounting for Uncertainty in Income Taxes ("ASC740"). ASC 740 creates a s:nble model to address accounting for the uncertainty in income taxpositions and prescribes a minimum recognition threshold a tax position must meet beforerecognition in the financial statements. The Company does not have a tax position meeting thecriteria specified in ASC 7'3. The Company remains subject to examination by U.S. federal andstate jurisdictions for years subsequent to 2013, and upon completion of these examinations (ifundertaken by the taxing jurisdictions) tax adjustments may be necessary and retroactive to allopen tax years. The Company recorded a provision for income taxcs at the cfiective tax rate of15°/0.
NOTE 3 - CAPITAL REOLIREMENTS
The Company is subject to :,ie Uniform Net Capital Rule (Rule 150-1) under the SecuritiesExchange Act of 1934, which requires that aggregate indebtedness (as defined) shall not exceed:ifteen times net capital (as defined). Rule 150-1 also provides that equity capital may not bewithdrawn or cash dividends paid if the resulting net capital ratio would exceed ten to one.
The following is a sumtnai} of the Company's net capital position at December 31, 2016.
Net capital $55,747Excess of net capital over requirements $50,047Aggregate indehtedress to net capital 7.82%
HX WEALTH ADVISORS, INC.NOTF'S TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
NOTE 4 - RELATED PARTY TRA\SACTIONS
Ellis Liddell is the sole shareholder of the Company and also generates a portion of the
Company's gross income. The Company paid Ellis $700,965 in commissions as a result of his
production in 2016. The Company cantered into a lease agreement with ELE Properties, Li.C, an
entity commonly owned by the sole shareholder. on April 1, 2014. The Company will pal$1,000 per month for office space through March 31, 2017. The Company paid $12,000 in rent
to ELE Properties, l .I.0 during 2016.
Additionally, the Company entered into an agreement with ELI: Adx isory Services, LLC, an,amity commonly owned by the; sole shareholder. on August 25, 2015 to pay $600 per month forthe use of personnel to provide administrative services to the Company; beginning April 2016.The Company paid $5,400 for administrative services in 2016.
NOTF 5 - SUBORDINA I'ED LIABILITIES
There were no liabilities subordinated to claims of general creditors at any time during the yearended December 31, 2016. Therefore, the statement of changes in liabilities subordinated tcclaims of general creditors specified by rule 17a-5(d)(2) has not been presented for the yearended December 31, 2016.
'COTE 6 - SFC'L:RITILS INVESTOR PROTECT ION CORPORATION
Me Securities Investor Protection Corporation (SIPC) supplemental report specified by rule 17a-5(e)(4) has not been submitted_ ELF. Wealth Advisors, Inc. is not a member of SIPC and isexempt from SIPC membership as it engages solely in the business of mutual funds and variableinsurance and annuities.
NOTE 7 - RLSERVE REQUIRENIENTS AND INFORMATION RELATING TO THEPOSSFSSION OR CONTROL RE QUIRUMENTS FOR BROKER-DEALERS
A computation for determination of res.rve requirements and information relating to possessionar control of securities as specified by rule 150-3 and rule 17a-5(d)( 3) were both omitted andare not required as the Company operates pursuant to the exemptive provisions of SEC Rule15c3-3(k)(1). The Company does not hold customer funds or securities.
NOTE 8 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events through February 29, 2017, the date the financialstatements Here available to be issued. No events have occurredysubsequent to the balance sheetdate through February 29, 2017 that would require adjustment or disclosure in the financialitatemcnts.
7► 1-1
HLE WEALTH ADVISORS, INC.
- SCHEDULE 1COMPUTATION OF NET CAPITAL UNDER RULE 156-1
AS OF DECL-MBER 31, 2016
Net CapitalShareholder equity $ 64,214Deduct shareholder equity not allowed for net capital -
Total shareholder equity qualified for net capital 64,214
Additions/other credits: -
Total shareholder equity and allowable subordinated liabilities 64,214
Deductions/odwr charges:Prepaid assets
Total deductionsf'other charges (9,167)
Tentative net capita.' 55,047
Haircut on trading sxurities -
Net capital $ 55,047
Aggregate indebtednessAccounts pa`,able and accrued expenses $ 4.305
Total aggregate indebtedness $ 4,305
Computation of basic net capital requirementMinimum net capital required $ _ 5.000
Excess of Net Capital Over Minimum Requirements $ 50,04-7
Ratio- aggregate indebtednesq to net capital 7.8211/6
$1'' ,
ELE WEALTH ADVISORS, INC:.
SCHEDULE ItREC OF NET CAPITAL FROM QUARTERLY FOCUS - RULE 17 A-5(D)(4) OF THE
SECURITIES AND EXCHANGE COMMISSION TO ANNUAL AUDITED FINANCIALSTATEMENTS
DECEMBER 31; 2016
Net capital as reported on 4th Quarter FOCUS
Adjustments from 4th Quarter FOCUS to Annual Audit
Audit adjustments:Income tax liabilityTotal adjustments
Revised Net Capital as reported in the Annual Audit
$ 55,747
(7001(700)
911,pg;J
MC CC)NNFI.1. ['L JO, --S 1-117
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMON EXEMPTION REPORT
To the Shareholder ofFLE Wealth Advisor, Inc.
We have reviewed management's statements_ included in the accompanying M.11"
Wealth Adviser, Inc. Exemption Report for the year ended December 31. 2016, inwhich (1) ELF-. Wealth Advisor, Inc identified the following provisions of I7 C.F.R.240.150-3(k) under which ELF Wz-alth Advi%..ir, Inc claimed an exemption From 17
C.F.R. § 240,150-3(k)(1) (the "exbrilption provisions") and (2) ELL: 'Wealth Advisor.Inc. stated that ELE Wealth Advisor, Inc.
met the identified exemption provisionsthroughout the most recent fiscal year w=ithout exception. ELE Wealth Advisor. Inc.'smanagement is responsible for compliance with the exemption provisions and itsstatements.
Our review was conducted in accordance 1,vith th-- standards of the Public CompanyAccounting Oversight Board (Unite: States) aid, accordin gly, included inquiries andether required procedures to obta n evidence about ELF Wealth Advisor. Ine.'scompliance with the exemption provisions. A review is substantially less in scope thallan examination, the objective of which is the expression of an opinion onmanagement's statements. Ac;cordinQly, we do not express such an opinion.
I Rased on our review, we are not avvnrc of any material modifications that should bemade to management's statements re=ferred to aho -- for them to be fairly stated, in allmaterial respects, based on the provesions set forth in paragraph (k)(1) of Rule 156-3under the Securities Exchange Act of 1934.
Houston, TexasMarch 2. 2017
L x -t-': k .A li F. . ; is - >i .t .
ELE WEALTH ADVISORS, INC.STATEMENT REGARDING RULE 150_3
DECEMBER 31, 2016
The Exemption Report
The Company has claimed an exemption from Rule 156-3 of the Securities and ExchangeCommission under paragraph (k)(1) of that roe.
The following statements are made to the best knowledge and belief of Tammic Parran as Fin0pfor ELE Wealth Advisors, Inc_
1, Tmrr ie Parran, as the Fingp for ELE Wealth Advisors, Inc., (the f omparly) am responsible forcomplying with 17 C.F.R. y§240.17a-5, "Reports to be made by certain brokers and dealers" andcomplying with 17 CYR_ §240.156-3(k)(1) (the "exemption provisions"). 1 have perforated anevaluation of the Company's compliance with the requirements of 17 C.F_R. §§ 240.17a-5 and the
exemption provisions. Based on this :valuation, I assert the following:
(1) I identified the following provisions of 17 C.F.R. § I56-3(k) under- which the Companyclaimed an exemption from 17 C.F.R. § 240.15c3-3(x)(1) (the "exemption provisions") and (2) theCompany met the identified exemption provisions throughout the most recent fiscal yearDecember 3 1, 2016 without exception.
Tammie Parran, Vice President Date
111:
Securities Investor Protection Corporation})67 K St.N.W.. Suite 1000
:Vishington, DC 20006-1620
Forwarding and Address Correction Requested
CD IT I
N 8`4 84 to 7
M &LL Weck1-th
1$?oC~ W• IU IA1'~e t 100
Form SIPC-3
Q(i) as principal business, in the determination of SIPC, taking into account business of aMs isted
entities, is conducted outside the United States and its territories and possessions;*
(it) its business es a brokerdeakr u c,pcctcd to conuist exclusively of
0 0) the distribution of shares of registered open end investment companies or unit investment trusts,(11) the sale of variable enmities:
(In) the business of insurance.
(I1) the business of rendering investment advisory services to one or more registered investmentcompanies or insurance company separate accounts;
(nu) it is registered pursuant to 15 U S C. 78o(bx) IXA) as a brd erdeakr with respect to baruactiora insecurities futures products;
Pursuant to the term s-~~,f this
~ fnorm (detailed below).
i~ -C i~ lNwt 1,7w L. 06 Jan 2016
Authorised Signature/Tide Date
Securities Investor Protection Corporation1667 K St. N.W., Suite 1000Washington, DC 20006-1620
FY 2016
Certification of Exclusion From Membership.TO BE FILED BY A BROKER-DEALER WHO CLAIMS EXCLUSION FROM MEMBERSHIP IN THE SECURITIES
INVESTOR PROTECTION CORPORATION ("SIPC") UNDER SECTION 78ccc(a)(2)(A) OF THE SECURITIES INVESTOR
PROTECTION ACT OF 1970 ("SIPA").
The above broker-dealer certifies that during the year ending December 31, 2016 its business as a broker-dealer is expected toconsist exclusively of one or more of the following (check appropriate boxes):
(i) its principal business, in the determination of SIPC. taking into account business of affiliated entities, isconducted outside the United States and its territories and possessions:*
(ii) its business as a broker-dealer is expected to consist exclusive) of:(I) the distribution of shares of registered open end investment companies or unit investment trusts:
.~ (II) the sale of variable annuities:Q (III) the business of insurance:❑ (IV) the business of rendering investment advisory services to one or more registered im•estment companies or
insurance company separate accounts:
(iii) it is registered pursuant to 15 U.S.C. 78o(b)(11)(A) as a broker-dealer with respect to transactions in securitiesfutures products:
and that, therefore. under section 78ccc(a)(2)(A) of SIPA it is excluded from membership in SIPC.
~'If you have any questions concerning the foreign exclusion provision please contact. SIPC via telephone at 202-371-8300 or a-mailat asksipc'ct.sipc.org to request a foreign exclusion questionnaire.
The following bylamv was adopted by the Board of Directors:Interest on Assessments.... If any broker or dealer has incorrectly filed a claim for exclusion from membership in the Corporation, such broker ordealer shall pay, in addition to all assessments due. interest at the rate of 20% per annum of the unpaid assessment foreach day it has not been paid since the date on which it should have been paid.
In the event of any subsequent change in the business of the undersigned broker-dealer that would terminate such broker-dealer'sexclusion from membership in SIPC pursuant to section 78ccc(a)(2)(A) of the SIPA, the undersigned broker-dealer will immediately
give SIPC written notice thereof and make payment of all assessments thereafter required under section 78ddd(c) of the SIPA.
Sign, date and return this form no later than 30 days after the beginning of the year, using the enclosed return envelope.
Retain a copy of this form for a period of not less than 6 years, the latest 2 years in an easily accessible place-
