# BCG SECURITIES, INC. X-17A-5 (2025-03-03) — Broker-dealer annual report - Company: BCG SECURITIES, INC. - Form: X-17A-5 - Filed: 2025-03-03 - Period: 2024-12-31 - Accession: 0000009319-25-000003 - CIK: 9319 - File #: 8-12680 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman & Company, LLP - Auditor location: Florham Park, NJ - Contact: Phyllis Tsai - Phone: 856-393-1939 - Email: ptsai@bcgsecurities.com - Website: bcgsecurities.com - Signed by: Phyllis Tsai (Financial & Operations Principal) Original filing: https://www.sec.gov/Archives/edgar/data/9319/000000931925000003/BCGSSECFilling2024.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-12680 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/24 | 12/31/24 | |-----------------------------------------------------------------------------------------|----------|----------| | | MM/DD/YY | MM/DD/YY | A. REGISTRANT IDENTIFICATION ## NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ BCG Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): ! Broker-dealer ! Security-based swap dealer ! Major security-based swap participant ! Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 51 Haddonfield Road, Suite 210 | | | (No. and Street) | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------| | Cherry Hill
_____________________________________________________________________________________ | | NJ | | 08002 | | (City) | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Phyllis Tsai | | (856) 393-1939 | ptsai@bcgsecurities.com
_____________________________________________________________________________________ | | | (Name) | | (Area Code – Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Citrin Cooperman & Company, LLP
_____________________________________________________________________________________ | | | | | | (Name – if individual, state last, first, and middle name) | | | | | | 180 Park Avenue, Suite 200
_____________________________________________________________________________________ | | Florham Park | NJ | 07932 | | (Address) | | (City) | (State) | (Zip Code) | | 11/02/2005
_____________________________________________________________________________________ | | | 2468 | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | FOR OFFICIAL USE ONLY | | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION | ا ( رقالة 1 Sal | | swear (or attirm) that, to the best of my knowledge and belief, the | |------------------------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of BCG Securities, Inc. | as of | | 12/31 | | 2 024 | | | | partner, officer, director, or equivalent person, as the case may proprietary interest in any account classified solely | | as that of a customer. | | | | | | | | | SYLVIA M. KING
Commission # 2370045 | Signature:
hyllit | | | Notary Public, State of New Jersey | | | | My Commission Expires
February 21, 2028 | Title: | | | | Financial & Operations Principal | | | 2/2/3096 | | ## This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - (d) Statement of cash flows. lotary Public - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - O (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [i) Computation of tangible net worth under 17 CFR 240.18a-2. - (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - = (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (t) Independent public accountant's report based on an examination of the statement of financial condition. - @ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - | (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | {w} |ndependent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [] (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - O (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - O (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ **Financial Statements and Supplemental Schedules** **December 31, 2024** **(With Report of Independent Registered Public Accounting Firm)** {3}------------------------------------------------ ## **Table of Contents** | | Page | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | Report of Independent Registered Public Accounting Firm | 1-2 | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Changes in Stockholder's Equity | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7-15 | | Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange
Commission | 16 | | Schedule II - Computation for Determination of Reserve Requirements and Information Relating to
Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange | | | Commission | 17 | | Report of Independent Registered Public Accounting Firm | 18-19 | | Rule 15c3-3 Exemption Report | 20 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder and Board of Directors BCG Securities, Inc. ## Opinion on the Financial Statements We have audited the accompanying statement of financial condition of BCG Securities, Inc. as of December 31, 2024, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of BCG Securities, Inc. as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ## Basis for Opinion These financial statements are the responsibility of BCG Securities, Inc.'s management. Our responsibility is to express an opinion on BCG Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to BCG Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ## Auditor's Report on Supplemental Information The supplemental information contained in Schedules I and II has been subjected to audit procedures performed in conjunction with the audit of BCG Securities, Inc.'s financial statements. The supplemental information is the responsibility of BCG Securities, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. (240.17a-5. In our opinion, the supplemental information contained in Schedules I and II is fairly stated, in all material respects, in relation to the financial statements as a whole. Citin Cooperman's Coupany, LAP We have served as BCG Securities, Inc.'s buditor since 2018. Florham Park, New Jersey March 3, 2025 "Citin Cooperman" is the brand under which Citin Cooperman & Company, L.P, a licensed independent CPA firm, and Citin Cooperman Advisors LLC serve dients' business needs. The two firms operate as separate in an alternative practies of Citin Cooperman & Company, LLP and Citin Cooperman Advisors LLC are independent member firms of the More North America, Inc. (MN) Association, which is itself a regional member of More Global Nework Limited (NGN). All the frims associated with MNA are index. There membership in, or association with, MNA should not be construct as constituting or implying any partnership between them. {6}------------------------------------------------ ## **BCG SECURITIES, INC. Statement of Financial Condition December 31, 2024** #### **Assets** | Cash and cash equivalents
Due from clearing broker, including clearing deposit of \$100,000
Commissions receivable
Dividend receivable
Indefinite lived intangible assets
Other intangible assets, net of accumulated amortization of \$965,488
Income tax receivable
Deferred tax asset | \$
1,941,255
652,751
464,363
7,916
823,966
428,801
98,260
1,261,334 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------| | Total assets | \$
5,678,646 | | Liabilities and Stockholder's Equity | | | Liabilities | | | Commissions payable | \$
666,259 | | Accrued expenses | 4,400 | | Due to related party | 299,942 | | Deferred tax liability | 3,615 | | Total liabilities | 974,216 | | Stockholder's equity | | | Common stock, \$.25 par value; authorized 200,000 shares; issued 110,000 shares; | | | outstanding 18,000 shares | 27,500 | | Additional paid-in capital | 12,880,400 | | Accumulated deficit | (7,936,570) | | 92,000 shares of treasury stock at cost | (266,900) | | Total stockholder's equity | 4,704,430 | | Total liabilities and stockholder's equity | \$
5,678,646 | {7}------------------------------------------------ ## **BCG SECURITIES, INC. Statement of Operations For the year ended December 31, 2024** #### **Revenues** | Commissions | \$
867,388 | |------------------------------------------|---------------| | Selling and distribution fees | 9,827,036 | | Other | 136,304 | | | | | | 10,830,728 | | Costs and expenses | | | Commissions | 7,961,081 | | Compensation and benefits | 1,415,972 | | Clearing firm | 260,535 | | Communications and IT | 114,604 | | Regulatory | 74,600 | | Professional fees | 209,777 | | Occupancy | 169,494 | | Travel | 50,881 | | Amortization | 45,928 | | Other expenses | 224,571 | | | 10,527,443 | | Income before provision for income taxes | 303,285 | | Provision for income taxes | 65,508 | | Net income | \$
237,777 | | | | {8}------------------------------------------------ **BCG SECURITIES, INC. Statement of Changes in Stockholder's Equity For the year ended December 31, 2024** | | | | Additional | | | | | |------------------------------|------------------|-----------------|--------------------|------------------------|--------------------|-------------------|-----------------| | | Common
Shares | Common
Stock | Paid-in
Capital | Accumulated
Deficit | Treasury
Shares | Treasury
Stock | Total | | Balance at January 1, 2024 | 18,000 | 27,500
\$ | \$
12,880,400 | (8,174,347)
\$ | 92,000 | \$
(266,900) | \$
4,466,653 | | Net income | - | - | - | 237,777 | - | - | 237,777 | | Balance at December 31, 2024 | 18,000 | 27,500
\$ | \$
12,880,400 | (7,936,570)
\$ | 92,000 | \$
(266,900) | \$
4,704,430 | | | | | | | | | | {9}------------------------------------------------ # **BCG SECURITIES, INC. Statement of Cash Flows For the year ended December 31, 2024** | Cash flows from operating activities | | | |-----------------------------------------------------------------------------------|----|-------------------------------| | Net income | \$ | 237,777 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Deferred income taxes | | 187,987
45,928
(72,101) | | Amortization of other intangible assets | | | | Changes in assets and liabilities: | | | | Increase in due from clearing broker | | | | Increase in commissions receivable | | (53,928) | | Decrease in dividend receivable | | 1,173 | | Increase in income tax receivable | | (114,120) | | Increase in commissions payable | | 273,500 | | Increase in accrued expenses
Increase in due to related party | | 391 | | | | 243,984 | | Net cash provided by operating activities | | 750,591 | | Net increase in cash and cash equivalents | | 750,591 | | Cash and cash equivalents, beginning of year | | 1,190,664 | | Cash and cash equivalents, end of year | \$ | 1,941,255 | | Supplementary disclosure of cash flow information: | | | | Income tax refund | \$ | (8,358) | {10}------------------------------------------------ ## **BCG SECURITIES, INC.** Notes to the Financial Statements December 31, 2024 ## **(1) Description of Business** BCG Securities, Inc. (the "Company") was incorporated in September 1965, organized under the Laws of the Commonwealth of Pennsylvania and is registered as a broker-dealer under the Securities Exchange Act of 1934 and files financial statements pursuant to Rule 17a-5 under the Securities Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). On January 2, 2019, 100 percent of the Company's stock was acquired by Horace Mann Educators Corporation (the "Parent") from Benefits Consultants Group, Inc. ("BCG"). The Company brokers securities transactions for investment mutual funds, customer 401(k) plans and individuals. The Company's customer base is mainly comprised of companies and individuals located in the Northeastern United States. The Company has a required net capital of \$5,000 to support these activities. The Company operates under Securities and Exchange Commission (SEC) Rule 15c3-3(k)(2)(ii) exemption, clearing all transactions on a fully disclosed basis, and relies upon Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. § 240.17a-5 effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company. The Company does not carry customer accounts, hold customer funds or safekeep customer securities. ## **(2) Significant Accounting Policies** ### *(a) Use of Estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period. Actual results could differ from those estimates. ## *(b) Revenue Recognition* The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company recognizes revenue from contracts with customers for investment advisory fees and commission income and fees from sales of mutual funds and insurance products. Other sources of revenue are commissions from sales of equities, municipal bonds, and other securities. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The Company recognizes revenue from contracts as follows: i. **Commission Revenues and Execution and Clearing Costs** – The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell {11}------------------------------------------------ Notes to the Financial Statements December 31, 2024 transaction, the Company charges a commission. Commission and related clearing expenses are recorded on the trade date. The Company has determined that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument, counterparties are identified, the pricing is agreed upon and the risks and rewards of ownership have transferred to/from the customer. In its relationship with Pershing LLC, the clearing broker, the Company acts in an agent capacity, and therefore, commission revenue is recorded net of the commission expenses paid to registered representatives. In its relationship with other fund companies or product sponsors of the mutual fund products, the Company acts in a principal capacity, and therefore, commission revenue is recorded gross on the statement of operations. For other types of contracts, such as fixed and variable annuities and life products, the Company acts in an agent capacity, and therefore, commission revenue is recorded net of the commission expenses paid to registered representatives. ii. **Selling and Distribution Fees** – The Company has entered into selling agreements with investment companies, mutual funds and insurance companies to offer the sale of their shares or products. The Company's compensation is established by the contract between the Company and the fund for which the Company is selling shares. Contracts may be structured with distribution fees that become determinative at different times, including upfront, over time, upon an investor's redemption, or a combination thereof. Upfront distribution fees are generally a fixed percentage of the share price. Compensation from ongoing 12b-1 fees is generally variable as the fees are contingent upon the net asset value (NAV). Historically, the Company receives an agreed-upon quarterly fee based on assets under management and a performance incentive fee. The ultimate amount of 12b-1 fees is dependent upon the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company's influence. The Company does not believe it can overcome these constraints until the market value of the fund and the investor activity are known, usually monthly or quarterly. Therefore 12b-1 fees are recognized as revenue only when determinable. The Company agrees to provide ongoing customer monitoring and maintain customer relationships. As such, the Company acts in a principal capacity, and therefore, fees are recorded gross on the statement of operations. The following table presents the disaggregated revenue from contracts with customers reported for the year ended December 31, 2024: | Commissions revenue and execution and clearing costs: | | |-------------------------------------------------------|------------------| | Mutual funds | \$
454,545 | | Variable annuities and life products | 267,612 | | Stock, bonds, and other securities | 145,231 | | Total commissions | 867,388 | | Selling and distribution fees | 9,827,036 | | Total | \$
10,694,424 | The following table presents the opening and closing balances of receivables from contracts with customers: {12}------------------------------------------------ Notes to the Financial Statements December 31, 2024 | Commissions receivable as of January 1, 2024 | \$
410,435 | |------------------------------------------------|----------------| | Commissions receivable as of December 31, 2024 | 464,363 | | Change | \$
(53,928) | #### *(c) Cash and Cash Equivalents* Cash and cash equivalents are comprised of cash and money market demand accounts with original or remaining maturities of three months or less at the time of purchase. ### *(d) Commissions Receivable* Commissions receivable represent amounts due from the Company's clearing firm and other mutual fund companies for securities transactions that were traded prior to the year end. Commissions receivable are stated at the full amount of the commissions and other servicing fees charged to its customers to broker securities transactions. The Company considers commissions receivable to be substantially all collectible. Accordingly, no allowance for credit losses is required at December 31, 2024. ### *(e) Income Taxes* The Company is included in the Parent's consolidated federal income tax return. In accordance with the tax-sharing agreement, its income tax expense or benefit is generally computed as if the Company was filing a separate federal income tax return. For state income tax purposes, the Company is included in unitary filings with other affiliated entities and may receive a tax expense or benefit as the unitary group's income or losses are apportioned amongst the entities. Federal and state income tax balances receivable or payable are due from or to the Parent. Deferred tax assets and liabilities are recognized for all future tax consequences attributable to "temporary differences" between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company evaluates deferred tax assets periodically to determine if they are realizable. Factors in the determination include the performance of the business including the ability to generate capital gains from a variety of sources and tax planning strategies. If, based on available information, it is more likely than not that deferred income tax assets will not be realized, then a valuation allowance must be established with a corresponding charge to net income. Charges to establish a valuation allowance could have an adverse effect on the Company's results of operations and financial position. The Company records liabilities for uncertain tax filing positions in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740, *Income Taxes*, where it is more-likely-than-not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based upon changes in facts or law. The Company has no unrecorded liabilities from uncertain tax filing positions. The Company's effective tax rate would be affected to the extent there were unrecognized tax benefits that could be recognized. There are no positions for which it is reasonably possible that the total amount of unrecognized tax benefit will significantly increase within the next 12 months. {13}------------------------------------------------ Notes to the Financial Statements December 31, 2024 ### *(f) Intangible Assets* Other intangible assets (value of distribution acquired or "VODA") associated with the acquisition of the Company represent management's estimate of the present value of future business to be written by the existing distribution channel. VODA is being amortized over 16 years based on the present value of future profits to be received. Indefinite lived intangible assets (tradename) represent the present value of future savings accruing to the Company by virtue of not having to pay royalties for the use of the trade names, valued using the relief from royalty method. Indefinite-lived intangible assets are not subject to amortization. Amortizing intangible assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount of an amortizing intangible asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable from undiscounted cash flows, the impairment is measured as the difference between the carrying amount and fair value. Intangible assets that are not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of an intangible asset that is not subject to amortization exceeds its fair value, an impairment loss is recognized in an amount equal to the excess. The Company has selected October 1, 2024 as the date to perform the annual impairment test. ## *(g) Long-Lived Assets* The Company assesses long-lived assets for impairment in accordance with the provisions of FASB ASC Topic 360, *Property, Plant and Equipment.* Long-lived assets (asset group), such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. The amount of impairment loss, if any, is measured as the difference between the carrying value of the asset and its estimated fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. ## *(h) Advertising* The Company follows the policy of charging the costs of advertising to expense as incurred. The advertising expense was \$9,866 for the year ended December 31, 2024 and is included in other expenses in the statement of operations. ## *(i) Fair Value Measurements* FASB ASC 820-10, *Fair Value Measurements* which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820-10 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value is a market-based measurement, not an entityspecific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820-10 establishes a fair value hierarchy. The three levels of the fair value hierarchy are described below: {14}------------------------------------------------ ## Notes to the Financial Statements December 31, 2024 - Level 1 Quoted prices in active markets for identical securities. - Level 2 Other significant observable inputs other than quoted prices in active markets (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). - Level 3 Significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments). The following is a description of the valuation methodologies used for investments measured at fair value, based on the statement of financial condition classification. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Company's investment positions as of December 31, 2024 were as follows: Money market funds – Based on quoted market prices in active markets. ## *(j) Business Concentrations* The Company maintains its cash balances at financial institutions, which may at times exceed amounts insured by the Federal Deposit Insurance Corporation. Since these are high quality financial institutions, management does not believe that Company is exposed to any significant credit risk on its cash balances. ## *(k) Allowance for Credit Losses* For financial assets measured at amortized cost (e.g., cash equivalents and due from clearing broker), the Company has concluded that there are de minimis expected credit losses based on the nature and contractual or expected life of the financial assets and immaterial historic and expected losses. ## *(l) Improvements to Reportable Segment Disclosures* The Company adopted FASB ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure*s. ASU 2023-07 includes: 1) a requirement to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, 2) a requirement to disclose an amount for other segment items by reportable segment and a description of its composition, 3) a requirement to disclose a reportable segments profit or loss and assets 4) clarifies that in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment's profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources, and 5) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance has no net impact on the Company's financial position, results of operations, or cash flows. ## *(m) Future Adoption of New Accounting Standards* In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvement to Income Tax Disclosures*. This update will improve the transparency of income tax disclosures by requiring 1) consistent categories and greater disaggregation of information in the rate reconciliation and 2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the Company for the annual period beginning after December 15, 2024. Early adoption is permitted. The guidance will have no net impact on the Company's financial position, results of operations, or cash flows. {15}------------------------------------------------ Notes to the Financial Statements December 31, 2024 ## **(3) Fair Value of Investments** The following are the Company's investments owned by level within the fair value hierarchy at December 31, 2024: | | Level 1 | Level 2 | Level 3 | |-----------------------------------------|--------------|---------|---------| | Money market funds | \$ 1,690,896 | \$ | \$ | | (included in cash and cash equivalents) | | - | - | There was no transfer of assets between Level 2 and Level 3 during the year ended December 31, 2024. ## **(4) Intangible Assets** On January 2, 2019, 100 percent of the Company's stock was acquired by Horace Mann Educators Corporation from BCG. The Company elected ASU 2014-17, *Business Combinations (Topic 805): Pushdown Accounting,* and recognized tradename and VODA assets as a result of the purchase accounting. The gross carrying amount and accumulated amortization of VODA were \$1,394,289 and \$965,488, respectively, at December 31, 2024. The Company recognized amortization expense of \$45,928 for the year ended December 31, 2024. Estimated amortization expense for each of the next five years is as follows: | 2025 | \$
46,763 | |------|---------------| | 2026 | 46,763 | | 2027 | 46,137 | | 2028 | 45,511 | | 2029 | 45,093 | | | \$
230,267 | The Company conducts intangible asset impairment testing at least annually, or more often if events, changes or circumstances indicate that the carrying amounts may not be recoverable. At October 1, 2024, the Company performed a qualitative impairment assessment. Based on the results of the analysis, management concluded intangible assets were not impaired. Management performed an assessment of qualitative factors through December 31, 2024. There were no events or changes in circumstances indicating that the asset might be impaired. #### **(5) Transactions with Related Parties** The Company has common management with the Parent and receives administrative services from other subsidiaries of the Parent, and is a party to several intercompany service agreements, including one with Horace Mann Service Corporation (HMSC). The Company also pays commission to its registered representatives via HMSC, an employer service affiliate of the Company. The Company paid \$2,520,434 for the management, administrative and professional services in 2024. Of this total, \$1,415,972 is included in compensation and benefits expenses, \$260,535 in clearing firm expenses, \$114,604 in communications and IT expenses, \$74,600 in regulatory fees, \$209,777 in professional fees, \$169,494 in occupancy, \$50,881 in travel, and \$224,571 in other expenses on the statement of operations. Intercompany balances are settled monthly. At December 31, 2024, the Company had a net payable of \$299,942 to this related party. {16}------------------------------------------------ Notes to the Financial Statements December 31, 2024 ### **(6) Income Taxes** The Company received federal income tax refund of \$12,867 from the Parent and paid net state income tax of \$4,509 to various states in 2024. The following represents the components of the net income tax asset at December 31, 2024: | Current federal tax asset | \$
95,467 | |------------------------------|--------------| | Current state tax asset | 2,793 | | Deferred tax asset | 1,261,334 | | Deferred state tax liability | (3,615) | | Net income tax asset | \$ 1,355,979 | The "temporary differences" that gave rise to the deferred tax balances at December 31, 2024 were as follows: | Deferred tax assets: | | |---------------------------------------|-----------------| | Goodwill and intangibles amortization | \$ 1,182,234 | | Pension and employee benefits | 40,940 | | Operating loss carryforward | 16,516 | | Non-deductible accruals | 25,778 | | Total gross deferred tax assets | 1,265,468 | | Deferred tax liabilities: | | | Fixed assets | 4,893 | | State income tax, net | 2,856 | | Total gross deferred tax liabilities | 7,749 | | Net deferred tax asset | \$
1,257,719 | Based on the Company's historical earnings, future expectations of adjusted taxable income, as well as reversing gross deferred tax liabilities, the Company believes it is more likely than not that gross deferred tax assets will be fully realized and that a valuation allowance with respect to the realization of the total gross deferred tax assets is not necessary. At December 31, 2024, the Company had an operating loss carryforward in the amount of \$78,649 which can be carried forward indefinitely. The components of the income tax expense for 2024 were as follows: | Current | \$ (122,479) | |--------------------------|--------------| | Deferred | 187,987 | | Total income tax expense | \$
65,508 | Income tax expense differed from the expected tax computed by applying the federal corporate rate of 21% to income before income taxes as follows: | Expected federal tax on income | \$
63,690 | |-----------------------------------|--------------| | Add tax effects of: | | | Allocated non-deductible expenses | (2,048) | | Provision to return adjustment | 9 | | State tax expense, net | 3,857 | | Total income tax expense | \$
65,508 | The Company's federal income tax returns for years prior to 2021 are no longer subject to examination by the Internal Revenue Service (IRS). {17}------------------------------------------------ Notes to the Financial Statements December 31, 2024 The Company classifies all interest and penalties as income tax expense. As of December 31, 2024, the Company has recorded \$0 in liabilities for tax related interest and penalties on its statement of financial condition. ## **(7) Employee Pension and Postretirement Benefits** All of the Company's personnel are employees of HMSC. Salaries, pension and related benefits are allocated by HMSC to the Company for these services. Employees participate, to the extent they meet the minimum eligibility requirements, in various benefit plans sponsored by the Parent. The Parent sponsors two qualified and three non-qualified retirement plans. Expense allocated by HMSC to the Company in 2024 for the plans total \$39,374, and is located in compensation and benefits expenses in the statement of operations. Substantially all employees participate in the Horace Mann 401(k) plan. The Parent matches each dollar of employee contributions in the 401(k) plan up to a 5% maximum – in addition to providing an automatic 3% "safe harbor" contribution. The Company's contribution vests after 5 years of service. ### **(8) Net Capital Requirement** The Company, as a broker-dealer, is subject to the SEC's net capital requirements. Those requirements prohibit a broker-dealer from engaging in any securities transaction at a time when (a) its "aggregate indebtedness" exceeds 15 times its "net capital," as those terms are defined in Rule 15c3-1; or (b) its net capital is less than the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At December 31, 2024 the Company's net capital was \$1,973,168, which was \$1,908,461 in excess of minimum requirement of \$64,707. The Company's ratio of aggregate indebtedness to net capital was 0.49 to 1. #### **(9) Segment Information** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including agency transactions and investment advisory. The Company has identified its Chief Executive Officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 8), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the significant accounting policies. The Company's product and services and geographic areas are described in description of business. The following table presents the segment revenue and significant expenses that are regularly provided to the CODM. | Revenue produced by independent agents | \$
8,296,615 | |------------------------------------------|-----------------| | Revenue produced by employee agents | 2,397,809 | | Other revenue | 136,304 | | Total revenue | 10,830,728 | | Less: | | | Commission expense to independent agents | 6,982,216 | | Commission expense to employee agents | 978,865 | | Compensation and benefits | 1,415,972 | {18}------------------------------------------------ ## Notes to the Financial Statements December 31, 2024 | Clearing firm | 260,535 | |----------------------------|---------------| | Communications and IT | 114,604 | | Regulatory | 74,600 | | Professional fees | 209,777 | | Occupancy | 169,494 | | Travel | 50,881 | | Amortization | 45,928 | | Other expenses | 224,571 | | Provision for income taxes | 65,508 | | Net income | \$
237,777 | Other expenses include depreciation, office expenses, insurance, and other service and administrative fees. The following are the other segment disclosures for the year ended December 31, 2024: | Revenue from external customers (see Note 2(b))
Interest revenue | \$
10,694,424
106,110 | |---------------------------------------------------------------------|-----------------------------| | Miscellaneous revenue | 30,194 | | Total revenue | \$
10,830,728 | | Depreciation and amortization | \$
63,606 | The segment assets are presented in the statement of financial condition. There were no expenditures for segment assets during the year ended December 31, 2024. #### **(10) Concentration of Credit Risk** Concentration of credit risk with respect to commissions receivable is limited due to the large number of customers comprising the Company's customer base and their dispersion across different geographic regions. As of December 31, 2024, the Company had no significant concentration of credit risk. The Company is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event that counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. #### **(11) Contingent Liabilities** In the ordinary course of business, the Company is subject to litigation, arbitration and regulatory matters. The Company, after consultation with outside legal counsel, believes that the amount for which it could be liable, if any, will not have a material adverse effect on the statement of financial condition or statement of operations. #### **(12) Subsequent Events** The Company evaluated its December 31, 2024 financial statements for subsequent events through March 3, 2025, the date the financial statements were available to be issued. The Company is not aware of any material subsequent events which would require recognition or disclosure in the financial statements. {19}------------------------------------------------ ## **Schedule I BCG SECURITIES, INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission December 31, 2024** | Total Stockholder's equity | \$
4,704,430 | | |--------------------------------------------------------------|-----------------|----------| | Less nonallowable assets | | | | Commissions receivable | | 85,083 | | Indefinite lived intangible assets | | 823,966 | | Other intangible assets, net | | 428,801 | | Income tax receivable | | 98,260 | | Deferred tax asset, net | 1,261,334 | | | Total deductions | 2,697,444 | | | Haircut on securities - Money Market Funds | | (33,818) | | Net capital | \$
1,973,168 | | | Aggregate indebtedness - total liabilities | \$ | 970,601 | | Required net capital | | | | (the greater of \$5,000 or 6 2/3% of aggregate indebtedness) | \$ | 64,707 | | Excess net capital | \$
1,908,461 | | | Ratio of aggregate indebtedness to net capital | 0.49 : 1 | | There are no material differences between the computation presented above and the computation of net capital under Rule 15c3-1 as of December 31, 2024 filed by the Company in its Form X-17A-5 on January 22, 2025. {20}------------------------------------------------ ## **Schedule II BCG SECURITIES, INC.** Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission December 31, 2024 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 in that the Company's activities are limited to those set forth in the conditions for exemption appearing in paragraph (k)(2)(ii) and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F. R §240.17a-5 are limited to (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company and the Company did not (a) directly or indirectly receive, hold or otherwise owe funds or securities to customers, (b) carry accounts of or for customers and (c) carry PAB accounts throughout the most recent fiscal year. See Report of Independent Registered Public Accounting Firm {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder and Board of Directors BCG Securities, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) BCG Securities, Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which BCG Securities, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: (k(2)(ii)) (the "exemption provisions") and (2) BCG Securities, Inc. stated that BCG Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. BCG Securities, Inc. is also filing this Exemption Report because BCG Securities, Inc.'s other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to BCG Securities, Inc. In addition, BCG Securities, Inc. did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to BCG Securities, Inc.; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. BCG Securities, Inc.'s management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about BCG Securities, Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k(2)(ti)) of Rule 15c3-3 under the Securities Exchange Act of 1934 and BCG Securities, Inc.'s other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Citam Coopermance Company, La March 3, 2025 "Citin Cooperman" is the brand under which Citin Cooperman & Company, LLP, a licensed independent CPA firm, and Citin Cooperman Advisors LLC cerve dients' business needs. The two firms opente as separate stracture. The entities of Citin Cooperman & Company, LLP and Citin Cooperman Advisors LLC are independent nember firms of the More North America, Inc. (MN.) Association, which is itself a regional member of More Global Nework Limited (MGN).) All the firms associated with MNA are intries. There membership in, or association with, MNA should not be construct as constituting or implying any partnership between them. {23}------------------------------------------------ ## Rule 15c3-3 Exemption Report For the Year Ended December 31, 2024 BCG Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company claimed an exemption from 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k)(2): 17 C.F.R. §240.15c3-3 (k)(2)(ii) - (2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 (k) throughout the most recent fiscal year without exception. - (3) The Company is also filing the Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. \$240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. BCG Securities, Inc. I, Phyllis Tsai, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. By: Financial and Operations Principal March 3, 2025 {24}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-12680 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/24 | 12/31/24 | | |-----------------------------------------------------------------------------------------|----------|----------|--| | | MM/DD/YY | MM/DD/YY | | A. REGISTRANT IDENTIFICATION ## NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ BCG Securities, Inc. TYPE OF REGISTRANT (check all applicable boxes): ! Broker-dealer ! Security-based swap dealer ! Major security-based swap participant ! Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 51 Haddonfield Road, Suite 210 | (No. and Street) | | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------------------------------|-----------------|--------------------------------------------|--|--| | Cherry Hill
_____________________________________________________________________________________ | | NJ | | 08002 | | | | (City) | | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Phyllis Tsai
_____________________________________________________________________________________ | | (856) 393-1939 | | ptsai@bcgsecurities.com | | | | (Name) | | (Area Code – Telephone Number) | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Citrin Cooperman & Company, LLP
_____________________________________________________________________________________ | | | | | | | | (Name – if individual, state last, first, and middle name) | | | | | | | | 180 Park Avenue, Suite 200
_____________________________________________________________________________________ | | Florham Park | NJ | 07932 | | | | (Address) | | (City) | (State) | (Zip Code) | | | | 11/02/2005
_____________________________________________________________________________________ | | | 2468 | | | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {25}------------------------------------------------ #### OATH OR AFFIRMATION | Phyllis Tsai | swear (or affirm) that, to the best of my knowledge and belief, the | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-------|--|--|--|--| | | timancial report pertaining to the firm of BCG Securities, inc. | as of | | | | | | 12/31 | 2 024 is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | | | | as that of a customer. | | | | | | | | | SYLVIA M. KING
Signature:
Commission # 2370045
JNotary Public, State of New Jersey) | | | | | | February 21, 2028 Title: Financial & Operations Principal (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1 ## This filing\*\* contains (check all applicable boxes): - [ {a} Statement of financial condition. - [] (b) Notes to consolidated statement of financial condition. - [] {c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). My Commission Expires - O (d) Statement of cash flows. - [] (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - O (f) Statement of changes in liabilities subordinated to claims of creditors. - [ {g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [] {i} Computation of tangible net worth under 17 CFR 240.18a-2. - □ {}} Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [] {k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [] {|) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [] (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ി (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [] {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - @ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. - [ {r} Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [] {s) Exemption report in accordance with 17 CFR 240.18a-7, as applicable. - [] (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - | (v) Independent public accountant's report based on an examination of certain statements in the 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [] {w} Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | as applicable. - ් (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - (z) Other: A copy of the SIPC Supplemental Report - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(d)(2), as applicable. {26}------------------------------------------------ **SIPC Assessment Reconciliation** **December 31, 2024** **(With Report of Independent Registered Public Accounting Firm)** {27}------------------------------------------------ ![](_page_27_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Stockholder and Board of Directors BCG Securities, Inc. We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation ("SIPC") Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2024. Management of BCG Securities, Inc. (the "Company") is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2024. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and the associated findings are as follows: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2. Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2024, with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2024, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; {28}------------------------------------------------ ![](_page_28_Picture_1.jpeg) - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be, and should not be, used by anyone other than these specified parties. Citin Coopermane Company, LAP Florham Park, New Jersey March 3, 2025 {29}------------------------------------------------ ## !"#"\$%&'%(("(()"#\*'+,\$)' 345(the 9:;><=(?8<5(8@ded CCCCCCCCCC( 12/31/2024 | | | D8685E:@<6:4@ 49 F!"#\$ 0*/ 1G85<6:@B )8H8@I8;J <@A K8@85<= 2;;8;;E8@6 945L(
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37 REV 0722 | | SECURITIES INVESTOR PROTECTION CORPORATION | | | SIPC-7
37 REV 0722 | |-----------------------|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------------|-----------------------| | | | | GENERAL ASSESSMENT FORM | | | | | | | For the fiscal year ended 12/31/2024 | | | | 7 | | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | \$ 6,058,535.00 | | 8 | | Multiply line 7 by .0015. This is your General Assessment. | | | \$ 9,087.00 | | ு | | Current overpayment/credit balance, if any | | | \$ 0.00 | | 10 | | General assessment from last filed 2024 SIPC-6 or 6A | | \$ 4,419.00 | | | | b Any other overpayments applied
d Add lines 11a through 11c | 11 a Overpayment(s) applied on all 2024 SIPC-6 and 6A(s)
c All payments applied for 2024 SIPC-6 and 6A(s) | \$ 0.00
\$ 0.00
\$ 4,419.00 | \$ 4,419.00 | | | 12 | LESSER of line 10 or 11d. | | | | \$ 4,419.00 | | 13 | a Amount from line 8 | | | \$ 9,087.00 | | | | b Amount from line 9 | | | \$ 0.00 | | | | c Amount from line 12 | d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | \$ 4,419.00 | \$ 4,668.00 | | 14 | | Interest (see instructions) for | | | \$ 0.00 | | 15 | | Amount you owe SIPC. Add lines 13d and 14. | | | \$ 4,668.00 | | 16 | | Overpayment/credit carried forward (if applicable) | | | \$ 0.00 | | SEC No.
8-12680 | | Designated Examining Authority
DEA: FINRA | FYE
2024 | Month
Dec | | | | MEMBER NAME | BCG SECURITIES INC
MAILING ADDRESS 51 HADDONFIELD ROAD STE 210
CHERRY HILL, NJ 08002 | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) T By checking this box, you certify that you have the authority of the SIPC member to sign this member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy | BCG SECURITIES INC | Phyllis Tsai | | | |-----------------------|-------------------------|--|--| | (Name of SIPC Member) | (Authorized Signatory) | | | | 2/27/2025 | ptsai@bcgsecurities.com | | | | (Date) | (e-mail address) | | | Completion of the "Authorized Signatory" line will be deemed a signature. This form and the assessment payment are due 60 days after the end of the fiscal year. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.