Full text of ALLIANCEBERNSTEIN INVESTMENTS, INC.'s X-17A-5 filed 2021-02-26 (period 2020-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ # ALLIANCEBERNSTEIN INVESTMENTS, INC. (an indirect wholly-owned subsidiary of AllianceBernstein L.P.) Notes to the Statement of Financial Condition December 31, 2020 ### **1. Organization and Summary of Operations** AllianceBernstein Investments, Inc. ("**AllianceBernstein Investments**" or the "**Company**") is a wholly-owned subsidiary of AllianceBernstein Corporation of Delaware, which is a wholly-owned subsidiary of AllianceBernstein L.P. ("**AB**" or the "**Parent**"), which is majority-owned by Equitable Holdings, Inc. ("**EQH**"), the holding company for a diversified financial services organization. The Company serves as a distributor and/or underwriter for certain registered investment companies and other investment vehicles managed by AB ("**AB Mutual Funds**"). The Company is registered as a broker-dealer under the Securities and Exchange Act of 1934, as amended ("**Exchange Act**"). ### **2. Summary of Significant Accounting Policies** ### *Basis of Presentation* The statement of financial position has been prepared in accordance with accounting principles generally accepted in the United States of America ("**US GAAP**"). The preparation of the statement of financial position requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial position. Actual results could differ materially from those estimates. ## *Cash and Cash Equivalents* Cash and cash equivalents include cash on hand, demand deposits, money market accounts, and highly liquid investments with original maturities of three months or less. Due to the short-term nature of these instruments, the recorded value has been determined to approximate fair value and is considered Level 1 in the fair value hierarchy. Cash equivalents at December 31, 2020 include \$55.3 million invested in a third-party money market fund that is registered under the Investment Company Act of 1940. ## *Deferred Sales Commissions, Net* The Company pays commissions to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge ("**back-end load shares**"). These commissions are capitalized as deferred sales commissions and amortized over periods not exceeding one year for U.S. fund shares and four years for Non-U.S. fund shares, the…Read the full text as markdown