# ALLIANT SECURITIES, INC. TURNER, NORD, KIENBAUM X-17A-5 (2020-02-26) — Broker-dealer annual report - Company: ALLIANT SECURITIES, INC. TURNER, NORD, KIENBAUM - Form: X-17A-5 - Filed: 2020-02-26 - Period: 2019-12-31 - Accession: 0000277570-20-000001 - CIK: 277570 - File #: 8-23305 - Material weakness: No - Auditor: Eide Bailly LLP - Auditor location: Spkane, WA - Contact: sally mann - Phone: 5097479144 - Signed by: Michael O Nord (President) Original filing: https://www.sec.gov/Archives/edgar/data/277570/000027757020000001/x17a51.pdf --- {0}------------------------------------------------ FINANCIAL STATEMENTS *for the year ending December 31, 2019* {1}------------------------------------------------ UNITED STATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden horns oer resnonse ...... 12.00 | SE
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: | | | | I certified Public Accountant Accountant not resident in United States or any of its possessions. #### **FOR OFFICIAL USE ONLY** *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of/acts and circumstances relied on as the basis/or the exemption. See Section 240. /7aw5(e}(2)* > Potential 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 0MB control number. SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** 1, MICHAEL O NORD , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of ALLIANT SECURITIES INC. --~~==~~--------------~~-------------------~, as of DECEMBER 31 2019 are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: | | S
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on | 17 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) CPA, & BUSINESS ADVISORS #### Report of Independent Registered Public Accounting Firm To the Board of Directors Alliant Securities, Inc. Turner, Nord, Kienbaum Liberty Lake, Washington #### Opinion on the Financial Statements We have audited the accompanying statement offinancial condition of Alliant Securities, Inc. Turner, Nord, Kienbaum as of December 31, 2019, and the related statements of income, changes in stockholders' equity, and cash flows, for the year ended December 31, 2019, 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 Alliant Securities, Inc. Turner, Nord, Kienbaum as of December 31, 2019, and the results of its operations and its cash flows for the year ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Alliant Securities, Inc. Turner, Nord, Kienbaum's management. Our responsibility is to express an opinion on these 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 Alliant Securities, Inc. Turner, Nord, Kienbaum 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 risk 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}------------------------------------------------ #### **Supplemental Information** The supplemental information included in Schedules 1, 2, 3, and 4 has been subjected to audit procedures performed in conjunction with the audit of Alliant Securities, Inc. Turner, Nord, Kienbaum's financial statements. The supplemental information is the responsibility of Alliant Securities, Inc. Turner, Nord, Kienbaum'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 included in the schedules 1, 2, 3, and 4 is fairly stated, in all material respects, **in** relation to the financial statements as a whole. We have served as Alliant Securities, Inc. Turner, Nord, Kienbaum's auditor since 2014. Spokane, Washington February 25, 2020 {6}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION *December 31, 2019* | A
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25 | | | *The accompanying notes are an intergral part of the finanica/ statements* {10}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS # **1. The Company and Significant Accounting Policies:** The Company was incorporated under the laws of the State of Washington on October 10, 1978 to operate as a broker/dealer in investment securities. The Company is a member of the Securities and Exchange Commission (SEC) and also a member of the Financial Industry Regulatory Authority (FINRA). The Company's office is located in Liberty Lake, Washington. The Company is engaged in various trading and brokerage activities with counterparties that primarily include broker/dealers, banks, and other financial institutions. In the event 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 all counterparties. In the normal course of business, the Company's customer activities involve the execution of various customer securities transactions. These activities may expose the Company to offbalance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss. *Use of Estimates in the Preparation of Financial Statements* -The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. *Trade Settlement-Customer's* securities transactions are recorded on a trade date basis and the related commission revenues and expenses arc also recorded on a trade date basis. *Co11centN1tion of Credit Risk-* The Company maintains its cash and cash equivalents with high quality financial institutions. At times, the amount may be in excess of the FDIC insured limits, however the Company does not consider this to be a significant credit risk. *Receivableji·om Clearing Broker-* The Company's accounts receivable consist of commissions due from our clearing broker/dealer, Wells Fargo, under contractual agreement. The Company has not experienced any losses related to this receivable and does not consider these amounts to be a significant risk. **Page** 7 {11}------------------------------------------------ # NOTES TO FINANCIAL ST A TEMENTS *Deposits* - The Company has an agreement with First Clearing Corporation (FCC), whereby FCC clears all security transactions, carries all customer accounts, finances and holds the Company's trading inventory, and performs certain other services. The Company is subject to a termination fee if termination is within a specified time frame stated in the agreement. As pat1 of this agreement, the Company is required to, and does maintain a deposit in the amount of\$250,000 held at FCC as of December 31, 2019. *Concession Receivable/Payable* - *Concessions* receivable consists of an average of 12B-l fees due over a three-month period to the Company from various Mutual Fund Families. The Company's concession receivable as of December 31, 2019 was \$24,681. The concession is then payable upon receipt to the Company's Registered Representatives. The Company's concession payable as of December 31, 2019 was \$24,681. *Advertising- The* Company's policy is to expense advertising costs when incurred. Advertising expense as of December 31, 2019 was \$1,915. *Property and Equipment* - Property and equipment are recorded at cost. Depreciation is computed using straight-line methods over estimated useful lives for equipment and the term of the related lease for leasehold improvements, which range from five to ten years. *Adoption of New Accounting Stmulards* - On Janumy I, 2019, the Company adopted the new lease accounting guidance in Accounting Standards Update No. 2016-2 Leases (Topic 842). Under the standard, for lease arrangements exceeding a 12-month term, a lessee is required to recognize in the statement of financial condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company elected to apply the guidance as of Januaty I, 2019, the beginning of the adoption period. The standard requires the Operating lease costs are recognized in the income statement as a single lease costs and finance lease costs are recognized in two components, interest expense and amortization expense. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing leases as either finance or operating lease under the new guidance, without reassessing (a) whether the contract contains a lease under ASC 842, (b) whether classification of the operating lease would be different in accordance with ASC Topic 842, or ( c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. This adoption had a material impact on current year financial condition, there was no material cumulative effect of the adoption. {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS #### **2. Revenue from Contracts with Customers** #### **Commissions** *Brokerage commissions.* The Company facilitates the execution of buy and sell transactions on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. #### **Concessions** *Concessions.* Concessions consist of! 2b-1 fees managed by the Company. 12b-l fees are earned on the Company's client assets under management. The fees are based on contractual rates applied to the average daily net asset value of eligible shares of a respective mutual fund held by the Company's clients. 12b-l fees are earned over time and collected from the funds on a monthly or quarterly basis. #### **Asset Management** *Premier Fees.* The Company provides investment adviso1y services on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Fees are received quarterly and are recognized as revenue at that time as they related specifically to the services provided in that period, which arc distinct from the services provided in other periods. #### **Miscellaneous and Interest** *Miscellaneous.* The Company charges miscellaneous fees, including postage fees, special handling fees, and others each time a customer enters into a buy or sell transaction. Miscellaneous fees are recorded on the trade date (the date the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer of which the miscellaneous fees are related. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS *Interest.* The Company charges interest on a daily basis on customer assets under management. The Company believes the performance obligation for asset management services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to the customer's assets under management. Interest fees are received monthly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. Interest income is outside of the scope of ASC 606. ## **Disaggregated Revenue from Contracts with Customers** The following table presents revenue by major source. | R
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0 | ## **4. Net Capital Requirements:** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-l ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. Net capital and the related net capital ratio will fluctuate on a daily basis. At December 31, 2019 the Company had net capital of \$321,797 ,which was \$221,797 in excess of its required net capital of\$100,000. The Company's net capital ratio was 0.59 to I. {14}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS # **5. Operating Linc of Credit:** The Company has a \$250,000 unsecured line of credit with U.S. Bank of Washington guaranteed by the stockholders due on demand. Interest is due monthly at the bank's prime rate plus 0.5%. There were no balances due under the line of credit agreement at December 31, 2019. ## **6. Profit Sharing Plan:** The Company has established a profit-sharing plan with 40 I (k) features available to all eligible employees. Contributions to the plan are determined annually by the Company. Profit sharing plan contributions for the years ended December 31, 2019 were \$90,603. ## **7. Lease Commitments:** The Company leases its offices in a building which is owned 27% by two of the stockholders of the Company and the lease expires September 2023 and the Company classifies this lease as an operating lease and included with that is two renewal options. Because the Company is reasonably certain to exercise the renewal options, the optional periods are included in determining the lease term. The Company's leases do not include termination options for either party to the lease or restrictive financial or other covenants. Total rent to related parties was \$95,122 for the year ended December 31, 2019. The components of lease costs for the year ended December 31, 2019 are as follows: Operating lease cost \$95,122 Amounts reported in the statement of financial position as of December 31, 2019 were as follows: Operating Leases: | O
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,6 | #### **8, Federal Income Taxes:** Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between financial and income tax reporting. The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. At the end of the year management reviews the Company's income and accrues bonuses in order to minimize taxable income. Deferred tax expenses or benefits, if material, are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. As of December 31, 2019, \$0 was accrued for the provision for current or deferred federal taxes. The provision for tax expense was \$1,025 for December 31, 2019. The Company has no operating loss carry forward at December 31,2019. The Company's effective income tax rate differed from the actual federal statutory tax rate of21% in 2019. As discussed in the previous paragraph, management reviews taxable income to minimize tax expense. As a result, income tax expense is related to permanent differences between items included as an expense for financial statement purposes that are not deductible for income tax purposes. Those items include meals and entertainment and other expenses. A reconciliation of income taxes computed at the federal statuto1y rate of21% is as follows: | ed
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25 | {16}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS The Company evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of December 31, 2019 the unrecognized tax benefit accrual was zero. The Company will recognize future accrned interest and penalties related to unrecognized tax benefits in income tax expense if incurred. # **9. Related Party Transactions** The financial statements of the Company includes a receivable for advances made to an officer. This receivable was paid in full by taking a deduction out of the officer's paycheck during January 2020. # **10. Stock Redemption Agreement:** In accordance with the Company's stock control agreement, the Company shall purchase all the shares of stock held by a stockholder in accordance with the terms and conditions as set forth in the agreement if any of the following events have occurred: (a) death of the stockholder; (b) long term disability; or (c) voluntary or involuntary termination of an employed stockholder. These events listed are conditions and no liability is required to be recorded until these conditions are met. The purchase price is determined as the lesser of \$415 per share or the book value of the stock as of the effective date of the termination. Underlying life insurance on the lives of key stockholders is owned by the Company to assist in funding any required buy back. # **11. Subsequent Events:** The Company evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through Fcbrumy 25th, 2020, the date the financial statements were available to be issued, and has determined there are not subsequent events that require disclosure. {17}------------------------------------------------ # SCHEDULE 1 COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION *December 31, 2019* | N
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ap | | | {18}------------------------------------------------ # SCHEDULE2 COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE l 5c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION *December 31, 2019* Alliant Securities, Inc. Turner Nord Kienbaum acts strictly as an introducing brokerdealer, clearing all transactions with and for customers on a fully disclosed basis with the clearing broker, which carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto. Therefore, Alliant Securities, Inc. Turner Nord Kienbaum is not required to carry a "Special Reserve Bank Account for the Exclusive Benefit of Customers", as stated under Exemption Rule **l** 5c3-3. {19}------------------------------------------------ # SCHEDULE 3 RECONCILIATION WITH COMPANY'S COMPUTATION OF NET CAPITAL INCLUDED IN PART II OF FORM X-17A-5 *December 31, 2019* | N
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60 | Page 16 {20}------------------------------------------------ # **ALLIANT SECURITIES, INC. TURNER NORD KIENBAUM** # SCHEDULE4 INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION *December 31, 2019* Alliant Securities, Inc. Turner Nord Kienbaum acts strictly as an introducing brokerdealer, clearing all transaction with and for customers on a fully disclosed basis with the clearing broker, which carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto. Therefore, Alliant Securities, Inc. Nord Kienbaum is exempt under Rule 15c3-3(k)(2)(ii). {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) CPA, & BUSINESS ADVISORS **Report of Independent Registered Public Accounting** Firm on **Applying Agreed-Upon Procedures** Board of Directors Alliant Securities, Inc. Turner, Nord, Kienbaum Liberty Lake, Washington We have performed the procedures included in Rule 17a-S(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below, and were agreed to by Alliant Securities, Inc. Turner, Nord, Kienbaum (Company) and the SIPC, solely to assist you and the SIPC in evaluating the Company's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2019. Management of the Company is responsible for its Form SIPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. 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 our findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences greater than \$1; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part Ill for the year ended December 31, 2019, with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31, 2019 noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 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 greater than \$1. We were not engaged to, and did not conduct an examination or a review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's compliance with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2019. 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. #### What inspires you, inspires us. I eidebailly.,0111 {22}------------------------------------------------ This report is intended solely for the information and use of the Company and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. Spokane, Washington February 25, 2020 {23}------------------------------------------------ | S
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: | | | | **1** {24}------------------------------------------------ #### **DETERMINATION OF "SIPC l~ET OPERATll~G REVENUES" AND GEl~ERAL ASSESSMEHT** Amounts for the fiscal period beginning 1/1/2019 and ending 12/31/2019 /, S-JS'; // / Eliminate cents \$\_,\_,\_/ =· *o:;'"":s-'"'-f,\_,I\_\_,\_/\_,\_/\_* I*I* #### Item lfo. 2a. Total revenue (FOCUS line 12/Parl IIA line 9, Code 4030) 2b. Additions: - (!) Total revenues lrorn the securities business ol subsidiaries (except loreign subsidiaries) and predecessors no! included above. - (2) Net loss lrorn principal transactions in securities in trading accounts. - (3) Net loss lrorn principal transactions in commodities in trading accounts. - (4) Interest and dividend expense deducted in \_delermining item 2a. - (5) Net loss lrom management ol or participation in the underwriting or distribution of securities. - (6) Expenses other than advertising, printing, registration lees and legal fees deducted in determining net profil from management of or participation in undermiling or dislribu(ion of securities. - (7) Net loss lrom securities in investment accounts. Total additions 2c, Deduc!ions: - (1) Revenues from the distribution of shares of a registered open end investment company or uni/ investment trust, from the sale ol variable annuities, from the business of insurance, from investment advisory services rendered !o registered investmenl companies or insurance company separate accounts, and from lransac!ions in security futures products. - (2) Revenues from commodity transactions. - (3) Commissions, lloor brokerage and clearance paid to other SIPC members in connection with securities transac!ions. - (4) Reimbursements for postage in connection with proxy solicitation. - (5) Net gain from securities in inveslmenl accounts. - (6) i 00% of commissions and markups earned from lransactions in (ii certificates of deposit and (ii) Treasury bills, bankers acceptances or commercial paper Iha! mature nine months or less from issuance date. - (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue related to the securities business (revenue defined by Section 16(9)(l) of the Act). - (8) Other revenue not related either directly or indirectly lo the securities business. (See Instruction C): (Deductions in excess of \$100,000 require documentation) - (9) (ii Total interest and dividend expense (FOCUS line 22/PART IIA Line 13, Code 4075 plus line 2b(4) above) but not in excess of total interest and dividend income. \$, \_\_\_\_\_\_\_\_\_\_ \_ - (ii) 40% of margin interest earned on customers securities accounts (40% of FOCUS line 5, Code 3960). \$, \_\_\_\_\_\_\_\_\_ \_ Enter the greater of line (i) or (ii) Total deductions | SI
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line 2 A. | | {25}------------------------------------------------ ![](_page_25_Picture_0.jpeg) CPAs & BUSINESS ADVISORS #### Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Alliant Securities, Inc, Turner, Nord, Kienbaum We have reviewed management's statements, included in the accompanying Management Statement Regarding Compliance with Exemption Provisions Under Rule 15c3-3 of the Securities Exchange of 1934, in which (1) Alliant Securities, Inc, Turner, Nord, Kienbaum identified the following provisions of 17 C.F.R. §1Sc3-3(k) under which Alliant Securities, Inc, Turner, Nord, Kienbaum claimed an exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) and (2) Alliant Securities, Inc, Turner, Nord, Kienbaum stated that Alliant Securities, Inc, Turner, Nord, Kienbaum met the Identified exemption provisions throughout the most recent fiscal year without exception, Alliant Securities, Inc, Turner, Nord, Kienbaum'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 Alliant Securities, Inc. Turner, Nord, Kienbaum'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. 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)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934, Spokane, Washington February 25, 2020 {26}------------------------------------------------ # MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH EXEMPTION PROVISIONS UNDER RULE 15c3"3 OF THE SECURITIES EXCAHNGE OF 1934 We, as members of management of Alliant Securities Inc. Turner Nord l(lenbaum,(Company) are responsible for complying with the requirements of 17 C,F,R. §240,15c3-3, "The Customer Protection Rule", of the Securities Exchange Act of 1934 (Act), We have performed an evaluation of the Company's compliance with the Customer Protection Rule as of December 31, 2019, and during the period from January 1, 2019, through December 31, 2019, Based on this evaluation we assert that the Company was In compliance with the Act as described below: - 1) The Company Is exempt from the Customer Protection Rule under Paragraph (k)(2)(11) as the Company Is an Introducing broker dealer who clears all transactions with and for customers on a fully disclosed basis with another clearing broker, The Company promptly transmits all customer funds and securities to the clearing broker which carries all of the accounts of such customers. - 2) The Company met the Identified exemption provisions throughout the most recent year without exception, Alliant Securities Inc. Turner Nord l(lenbaum {27}------------------------------------------------ #### Exhibit H customer Protection Rule custody of Customer Assets Exemption Report Rule 15c3-3(k)(2)(11) Alliant Securities Inc, who acts as an Introducing broker or dealer, clears all transactions with and for customers on a fully disclose basis with a clearing broker or dealer, and who promptly transmits all customer funds and securities to the clearing broker or dealer which carries all the of the accounts of such customers and rnalntalns and preserves such books and records pertaining thereto pursuant to the requirements made and kept by a clearing broker or dealer. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.