# COORDINATED CAPITAL SECURITIES, INC. X-17A-5 (2021-05-27) — Broker-dealer annual report - Company: COORDINATED CAPITAL SECURITIES, INC. - Form: X-17A-5 - Filed: 2021-05-27 - Period: 2021-03-31 - Accession: 0000737844-21-000001 - CIK: 737844 - File #: 8-31173 - Material weakness: No - Auditor: Baker Tilly US LLP - Auditor location: Milwaukee, WI - Contact: Tracy Williams - Phone: 6082214545 - Signed by: Mari J Buechner (President) Original filing: https://www.sec.gov/Archives/edgar/data/737844/000073784421000001/coordinatedcapital1.pdf --- {0}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Madison, Wisconsin FINANCIAL STATEMENTS Including Report of Independent Registered Public Accounting Firm As of and for the Year Ended March 31, 2021 {1}------------------------------------------------ # **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 SEC FILE NUMBER 8-31173 # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** | FACING PAGE | | |-------------|--| **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | | -----------
REPORT FOR THE PERIOD BEGINNING 04/01/2020
AND ENDING 03/31/2021 | | | |-------------------------------------------------------------------|------------------------------------------------------------------------------------|---------|--------------------------------| | | MM/DD/ Y Y | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Coordinated Capital Securities, Inc. | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | 704 River Place | | | | | | (No. and Street) | | | | Madison | WI | | 53716 | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | Baker Tilly US, LLP | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | (Name - if individual, state last, first, middle name) | | | | | 777 E Wisconsin Ave, 32nd Floor Milwaukee | WI | 53202 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | I
✓
Certified Public Accountant | | | | | Public Accountant | | | | | D | 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 facts and circumstances relied on as the basis for the exemption. See Section 240.l 7a-5(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.** {2}------------------------------------------------ # **OATH OR AFFIRMATION** I, Mari J Buechner , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Coordinated Capital Securities, Inc. ----------------------------------------------, as of March 31 , 20\_2\_ 1 \_\_ , 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: President Signature Title This report\*\* contains (check all applicable boxes): **0** (a) Facing Page. - **0** (b) Statement of Financial Condition. - 1Z] (c) Statement oflncome (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 (d)** Statement of Changes in Financial Condition. - **0** (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - **D** (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - **0** (g) Computation of Net Capital. - **0 (h)** Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - **0** (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - **D** (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - **D** (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. - **0** (1) An Oath or Affirmation. - **0** (m) A copy of the SIPC Supplemental Report. - **D** (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240. l 7a-5(e)(3).* {3}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) ### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | Financial Statements | | | Statement of Financial Condition | 2 | | Statement of Income | 3 | | Statement of Stockholder's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6 - 11 | | Supplemental Information | | | Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and
Exchange Commission Capital Rule | 12 | | Schedule II - Computation for Determination of Reserve Requirements Under Rule
15c3-3 (Exemption) and Information for Possession or Control Requirements Under
Rule 15c3-3 (Exemption) of the Securities and Exchange Commission | 13 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Board of Directors of Coordinated Capital Securities, Inc. # **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Coordinated Capital Securities, Inc. (a wholly-owned subsidiary of Coordinated Capital Holdings, Inc.) (the Company) as of March 31, 2021, and the related statements of income, stockholders' 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 the Company as of March 31, 2021, 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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. ### **Supplemental Information** The supplemental information has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company'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. § 240.17a5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2000. Milwaukee, Wisconsin May 26, 2021 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Lid., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP {5}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) #### STATEMENT OF FINANCIAL CONDITION As of March 31, 2021 **ASSETS** | Cash and cash equivalents
Commissions receivable
Deposit with clearing broker dealer
SEC Fair Fund account with clearing broker dealer | \$
640,655
322,147
29,406
55,218 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------| | TOTAL ASSETS | \$ 1 047 426 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES
Commissions payable
Accrued expenses
Total liabilities | \$
176,135
137 065
313,201 | | STOCKHOLDER'S EQUITY
Common stock, \$1 par value; 56,000 shares authorized;
6,000 shares issued and outstanding
Additional paid-in capital
Retained earnings
Total Stockholder's Equity | 6,000
244,476
483 750
734,226 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$ 1,047,426 | {6}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) #### STATEMENT OF INCOME For the Year Ended March 31, 2021 | REVENUES
Revenues
Total revenues | \$ 9,735,292
9,735,292 | |-------------------------------------------------------|---------------------------| | OPERATING EXPENSES | | | Commissions, other compensation and related benefits | 7,650,501 | | Management fees and incentive bonuses - related party | 1,155,000 | | Clearing and execution costs | 272,564 | | SEC disgorgement expense | 581,961 | | Other operating expenses | 312,100 | | Total operating expenses | 9,972,126 | | LOSS BEFORE INCOME TAXES | \$ (236,834) | | Income tax expense | 125,552 | | NET LOSS | \$
(362,386} | {7}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) ### STATEMENT OF STOCKHOLDER'S EQUITY For the Year Ended March 31, 2021 | | Common
Stock | | Additional
Paid-in
Capital | | Retained
Earnings | | Total
Stockholder's
Equity | | |--------------------------|-----------------|-------|----------------------------------|---------|----------------------|------------|----------------------------------|--------------| | BALANCES, April 1, 2020 | \$ | 6,000 | \$ | 244,476 | \$ | 846,136 | | \$ 1,096,612 | | Net Loss | | | | | | (362,386) | | (362,386) | | BALANCES, March 31, 2021 | \$ | 6 000 | \$ | 244 476 | | \$ 483 750 | \$ | 734 226 | {8}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) # STATEMENT OF CASH FLOWS For the Year Ended March 31, 2021 | CASH FLOWS FROM OPERATING ACTIVITIES | | |----------------------------------------------------------------------------------|-----------------| | Net Loss | \$
(362,386) | | Adjustments to reconcile net loss to net cash flows used in operating activities | | | SEC fair fund contribution | (581,961) | | SEC fair fund distributions | 526,743 | | Changes in operating assets and liabilities | | | Commissions receivable and deposit with clearing broker dealer | (68,914) | | Commissions payable | (106,531) | | Accounts payable | 83,499 | | Net cash flows used in operating activities | (296,488) | | | | | Net Change in Cash and Cash Equivalents | (296,488) | | CASH AND CASH EQUIVALENTS - Beginning of Year | 937 143 | | CASH AND CASH EQUIVALENTS - END OF YEAR | \$
640 655 | | SUPPLEMENTAL CASH FLOW ACTIVITY | | | Income taxes paid to parent | \$
19 556 | {9}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 # **NOTE 1 - Summary of Significant Accounting Policies** #### Nature of Operations Coordinated Capital Securities, Inc. (the "Company") is a Wisconsin corporation formed on December 8, 1982 for the purpose of conducting business in financial services. The Company offers mutual funds, variable insurance products, college savings plans and alternative investments with investment companies and sponsors throughout the United States. The Company also offers securities on a fully disclosed basis through its clearing broker dealer. The Company is a federally-registered investment advisor and also provides discount brokerage services through its division, Coltrane Securities. The Company is a wholly-owned subsidiary of Coordinated Capital Holdings, Inc. (the "Parent"). ### Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. At times, these accounts may exceed federally insured limits. As a result, the Company is exposed to custodial credit risk. # Commissions Receivable The Company uses the allowance method to account for uncollectible commissions receivable. The Company estimates the allowance based on historical collection experience and a review of the current status of commissions receivable. As of March 31, 2021, no allowance for doubtful accounts is provided as all receivables are considered collectible. ### Revenue Recognition ### Performance Obligations Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring promised goods or services to customers. **A** good or service is transferred to a customer when, or as, the customer obtains control of that good or service. **A** performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good service and compensation for that good or service is received. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. # Investment advisory fees The performance obligation is defined as providing advisory services to clients. Advisory fees are generally computed as a percentage of assets under management and are recognized as revenue over time. Fees for providing investment advisory services are computed and billed in accordance with the provision of the applicable investment management agreements, which is typically quarterly at the beginning of the quarter based on the previous quarter-end market value of assets under management. {10}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 # **NOTE 1 - Summary of Significant Accounting Policies (cont.)** #### Commission Revenue The Company earns commissions from mutual fund and insurance companies when the Company's clients purchase securities. The commission earned varies on the type of security, the amount of the purchase, and the client's existing balance at that custodian. Commission from securities transactions are recognized on either a trade date or commission received basis. In addition, the Company earns commission on securities sold through their Clearing Firm in brokerage accounts. The commission earned varies on the type of security sold. Revenue is recognized when the commission is received from the Clearing Firm. #### Mutual Fund and Variable Insurance 12b-1 fees Mutual fund and Variable Insurance companies earn 12b-1 fees to compensate the Company for its marketing and distribution efforts. These fees are asset-based fees that are determined by the amount of the client assets invested. Revenue is recognized over time as they are received by the Company. The performance obligation is defined as providing on-going service to these client accounts. | | Disaggregated Revenue | | |-------------------|--------------------------|-----------------| | | Commission Revenue | \$
2,739,234 | | | Investment Advisory Fees | 3,575,398 | | | 12b-1 Fees | 2,365,801 | | | CCS Income | 1,054,859 | | | | \$
9,735,292 | | Contract Balances | | | | | Commission Revenue | \$
302,336 | | | 12b-1 Fees | 19 811 | | | | \$
322,147 | | | | | #### Income Taxes The Company accounts for income taxes under the asset and liability method. Under the asset and liability method deferred taxes are determined based on the differences between the financial statement and the tax basis of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance, when in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. No valuation allowance has been recorded as of March 31, 2021. {11}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 # **NOTE 1 - Summary of Significant Accounting Policies (cont.)** The Company is included in the consolidated return of the Parent. The Company pays the income tax for which they are liable. Income taxes are separately stated on the statement of income. The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. There were no such positions as of March 31, 2021. The Company accrues interest and penalties related to unrecognized tax positions. As of March 31, 2021, the Company had no accrued interest and penalties related to unrecognized tax positions. # Exemptive Provision With respect to all securities transactions, the Company operates under the provisions of paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission. Essentially, the requirements of paragraph (k)(2)(ii) provide that the Company clear all transactions on behalf of customers on a fully-disclosed basis with a clearing broker dealer and promptly transmit all customer funds and securities to the clearing broker dealer. The clearing broker dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker dealer. As a result of the provisions disclosed in the preceding paragraph, the Company is exempt from the remaining provisions of Rule 15c3-3. ### Guarantees and Indemnifications In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including subcustodians and third-party brokers, improperly executed transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. The Company is dependent on its clearing broker dealer, Wells Fargo Clearing Services **LLC** for the everyday processing of customer transactions as required under the provisions of paragraph (k)(2)(ii) of Rule 15c3-3. Wells Fargo Clearing Services **LLC** requires that the Company maintain a minimum deposit of \$25,000. {12}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 # **NOTE 1 - Summary of Significant Accounting Policies (cont.)** # Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. # **NOTE 2 - Net Capital Requirements** The Company is subject to the Securities and Exchange Commission uniform net capital rule (Rule 15c3-1 ), which requires the maintenance of a minimum amount of net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. As of March 31, 2021, the Company had net capital of \$712,660 which was \$662,660 in excess of its net capital requirement of \$50,000. The Company's net capital ratio as of March 31, 2021 was .35 to 1. # **NOTE 3** - **Off Balance Sheet Risk** As discussed in Note 1, the Company offers securities that are introduced on a fully disclosed basis with its clearing broker dealer. For these transactions, the clearing broker dealer is responsible for the execution, collection and payment of funds and, receipt and delivery of securities relative to customer transactions. Off-balance sheet risk exists with respect to these transactions due to the possibility that the customers may be unable to fulfill their contractual commitments, wherein the clearing broker dealer may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers. # **NOTE 4 - Related Party Transactions** The Company is wholly-owned by the Parent. Through common ownership/management, the Company is also affiliated with Coordinated Capital Consultants of Wisconsin, Inc. During the year ended March 31, 2021, the Company paid management fees of \$1,080,000 to the Parent. Included in these fees were reimbursements for office space, administrative assistance, and other miscellaneous operating expenses. This expense is included in management fees on the Statement of Income. {13}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 ### **NOTE 5 - Income Taxes** The Company is included in a consolidated federal income tax return and various consolidated or combined state returns. The consolidated current and deferred federal and state income tax expense of the group is allocated among the members in a systematic and consistent manner based on each member's share of the consolidated tax expense. Income tax expense includes the following components: | | Year Ended
March 31, 2021 | | |---------------------------|------------------------------|--| | Current: | | | | Federal: | \$
66,751 | | | State: | 27 265 | | | Total current tax expense | \$
94,016 | | Income tax expense Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. As of March 31, 2021, the Company has no deferred tax assets or liabilities. The provision for income taxes differs from that computed at the federal statutory corporate tax rate for the year ended March 31, 2021 as follows: | Income before income tax expense | \$
(236,834) | |------------------------------------------------------------------------------------------------|-------------------------------| | Tax expense at statutory rate
State income tax, net of federal effect
Penalties
Other | (49,735)
21,539
122,212 | | Total income tax expense | \$
94 016 | | Effective tax rate | 39.70% | # **NOTE 6 - SEC Fair Fund** On September 17, 2020, the Company settled with the Securities Exchange Commission (SEC) related to the Matter of Certain Class Selection Practices. The Company consented to the entry of the order without admitting or denying the SEC's findings. As part of the settlement terms of the order, the Company was instructed to pay disgorgement and prejudgement interest totaling \$581,961. As a result, the Company has complied with all of the undertakings specified in the order which includes establishing an SEC Fair Fund. The balance of the SEC Fair fund as of March 31, 2021 is \$55,218. The Company anticipates that all of the undertakings and distribution of the Fair Fund will be completed by September 30, 2021. {14}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Notes to Financial Statements As of and for the year ended March 31, 2021 ### **NOTE 7 - Subsequent Events** The Company has evaluated subsequent events through May 26, 2021, which is the date that the financial statements were approved and available to be issued. No subsequent events were noted. {15}------------------------------------------------ SU PP LEM ENT AL IN FORMATION {16}------------------------------------------------ # SCHEDULE I - COMPUTATION OF NET CAPITAL RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION CAPITAL RULE As of March 31, 2021 | AGGREGATE INDEBTEDNESS
Commission payable
Accrued expenses | \$
176,135
87,238 | |----------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------| | Total Aggregate Indebtedness | \$
263,373 | | Minimum required net capital (based on aggregate indebtedness) | \$
17,567 | | NET CAPITAL
Stockholder's equity
Deductions:
Non-allowable commissions receivable
Haircut on deposit with clearing broker dealer | \$
734,226
20,978
588 | | Net Capital | 712,660 | | Net capital requirement (Minimum) | 50 000 | | Capital in excess of minimum requirement | \$
662,660 | | Ratio of aggregate indebtedness to net capital | .35 to 1 | There were no material differences between the above calculation and the Company's calculation of net capital as reflected on the unaudited Form 1 ?a-5, Part I IA. {17}------------------------------------------------ # SCHEDULE II - COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION) AND INFORMATION FOR POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION) OF THE SECURITIES AND EXCHANGE COMMISSION As of March 31, 2021 # **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3** Coordinated Capital Securities, Inc. is exempt from Rule 15c3-3 under the provision of Rule 15c3- 3(k)(2)(ii). # **INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3** Coordinated Capital Securities, Inc. is exempt from Rule 15c3-3 under the provision of Rule 15c3- 3(k)(2)(ii). {18}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) Madison, Wisconsin EXEMPTION REPORT Including Report of Independent Registered Public Accounting Firm As of and for the Year Ended March 31, 2021 {19}------------------------------------------------ (A Wholly-Owned Subsidiary of Coordinated Capital Holdings, Inc.) # TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|---| | Exemption Report | 2 | {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** Board of Directors of Coordinated Capital Securities, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Coordinated Capital Securities, Inc. identified the following provision of 17 C.F.R. § 15c3-3(k) under which Coordinated Capital Securities, Inc. claimed an exemption from 17 C.F.R. § 240.1 Sc3-3: (2)(ii) (the exemption provisions) and (2) Coordinated Capital Securities, Inc. stated that Coordinated Capital Securities, Inc. met the identified exemption provisions throughout the year ended March 31, 2021 without exception. Coordinated Capital Securities, Inc. 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 Coordinated Capital Securities, lnc.'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 conditions set forth in paragraph (k)(2)(ii) of Rule 1 Sc3-3 under the Securities Exchange Act of 1934. Milwaukee, Wisconsin May 26, 2021 {21}------------------------------------------------ **Member FINRAISIPC** ![](_page_21_Picture_1.jpeg) April 12, 2021 Securities & Exchange Commission 100 F Street, NE Washington, DC 20549 To Whom It May Concern, Coordinated Capital Securities, Inc. claims exemption from SEA Rule 15c3-3 under paragraph (k)(2)(ii) for the period of April 1, 2020 through March 31, 2021 because we do not hold customer funds or safe keep securities. Paragraph (k)(2)(ii) states that the Firm clear all transactions on behalf of customers on a fully disclosed basis with a clearing broker dealer and promptly transmit all customer funds and securities to the clearing broker dealer. The clearing broker dealer carries all of the accounts of the customers and maintains and preserves all relatedbooks and records as are customarily kept by the clearing broker dealer. Coordinated Capital Securities, Inc. met the exemption provisions under SEA Rule 15c3-3 paragraph (k)(2)(ii) for the period of April 1, 2020 through March 31, 2021, without exemption. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.