# SECURIAN FINANCIAL SERVICES, INC. X-17A-5 (2021-03-15) — Broker-dealer annual report - Company: SECURIAN FINANCIAL SERVICES, INC. - Form: X-17A-5 - Filed: 2021-03-15 - Period: 2020-12-31 - Accession: 0000746670-21-000001 - CIK: 746670 - File #: 8-31955 - Material weakness: No - Auditor: Crowe LLP - Auditor location: New York, NY - Contact: Laurie Engle - Phone: 651-665-5397 - Signed by: George I. Connolly (Chair, CEO & President) Original filing: https://www.sec.gov/Archives/edgar/data/746670/000074667021000001/SFS2020CombinedSubmitted.pdf --- {0}------------------------------------------------ **Financial Statements and Supplementary Schedules (with report of independent registered public accounting firm thereon)** **December 31, 20:20** {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ... .. . . 12.00 8- SEC FILE NUMBER # ANNUAL AUDITED REPORT FORM X-17A-5 PART III ## 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 01/01/20 | | AND ENDING 12/31/20 | | | | |---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------------------|--------------------------------|--|--| | | MM/DD/YY | | MM/DD/Y Y | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: Securian Financial Services, Inc. | | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
400 Robert Street North | | | FIRM I.D. NO. | | | | | (No. and Street) | | | | | | Saint Paul | MN | | 55101 | | | | (City) | (State) | (Zip Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Laurie Engle | | 651-665-5397 | | | | | | | | (Area Code - Telephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Crowe LLP | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | 485 Lexington Ave, Floor 11 | New York | NY | 10017-2619 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE:
Certified Public Accountant
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 he covered by the opinion of an independent public accountant must he supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240. 17a-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 OMB control number. {2}------------------------------------------------ # OATH OR AFFIRMATION | George I. Connolly | and a should and swear (or affirm) that, to the best of | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Securian Financi & Servi es, Inc. | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | of December 31 | , 20 20 are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | | | | Sighature
Title | | Notary Public
This report ** contains (check all applicable boxes):
(a) Facing Page. | BLAINE D WESTBERG
NOTARY PUBLIC - MINNESOTA
MY COMMISSION EXPIRES 01/31/25 | | (b) Statement of Financial Condition.
of Comprehensive Income (as defined in \$210.1-02 of Regulation S-X). | (c) (c) Statement of Income (Loss) or, if there is ofter comprehensive in the period(s) presented, a Statement | | (d) Statement of Changes in Financial Condition.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital. | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | consolidation. | (k) A Reconciliation between the and unaudited Statements of Financial Condition with respect to methods of | | (1) An Oath or Affirmation. | | | (m) A copy of the SIPC Supplemental Report. | (1) A report describing any material in 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 240.170-5(e){3}. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ![](_page_3_Picture_1.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Board of Directors of Securian Financial Services, Inc. In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the Securities Investor Protection Corporation (SIPC) Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Securian Financial Services, Inc. (the "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, 2020. The Company's management is responsible for the Company's Form SIPC-7 and compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by 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 which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1. Compared assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries noting no differences; - 2. For all or any portion of a fiscal year, compared amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC-7 noting no differences; - 3. Compared adjustments reported in the Form SIPC-7 with supporting schedules and working papers supporting the adjustments noting no differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in the schedules and working papers supporting any adjustments noting no differences; and - 5. Compared the amount of any overpayment applied with the Form SIPC-7 on which it was computed noting no differences. 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, 2020. 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. This report is intended solely for the information and use of the specified above and is not intended to be and should not be used by anyone other than these specified parties, New York, New York March 12, 2021 {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Crowe LLP Independent Member Crowe Global ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholder of Securian Financial Services, Inc. St. Paul, Minnesota ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Securian Financial Services, Inc. (the "Company") as of December 31, 2020, the related statements of operations, changes in stockholder's equity, and cash flows for the year ended December 31, 2020, 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 December 31, 2020, and the results of its operations and its cash flows for the year ended December 31, 2020, 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 oblain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error of 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 Schedule I Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission, Schedule II Computation for Determination of Customer Reserve Requirements and PAB Accounts Reserve Requirements for Broker Dealers Pursuant to Rule 15c3-3 under the Securities and Exchange Act of 1934, and Schedule III Information Relating to Possession or Control Requirements Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (Collectively the "Supplemental Information") have been subjected to audit procedures performed in conjunction with the audit of Securian Financial Services, Inc.'s financial statements. 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 completeress and accuracy of the information 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 is fairly stated, in ali material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2019. New York, New York March 12, 2021 {5}------------------------------------------------ ## Statement of Financial Condition ## December 31, 2020 (in thousands) ## Assets 202 10- 17: | Cash and cash equivalents | S | 24,052 | |-------------------------------------------------------------|------|----------| | Securities owned, at fair value | | 20,611 | | Commissions receivable | | 6,242 | | Due from affiliates | | 133 | | Other receivables | | 2,552 | | Software, net of accumulated amortization of \$6,208 | | 1,488 | | Prepaid expenses | | 1,251 | | Deposit with clearing organizations | | 120 | | Total assets | ക | 56,449 | | Liabilities and Stockholder's Equity | | | | Liabilities: | | | | Commissions payable | ક્તિ | 6,501 | | Accrued expenses | | 1,704 | | Income tax liability: | | | | Deferred | | 391 | | Due to affiliates | | 7,034 | | Unearned fees | | 1,306 | | Total liabilities | | 16,936 | | Stockholder's equity: | | | | Paid-in capital; 25,000 shares of common stock | | | | authorized, no par value; 100 shares issued and outstanding | | 53,216 | | Accumulated deficit | | (13,703) | | Total stockholder's equity | | 39,513 | | Total liabilities and stockholder's equity | S | 56,449 | {6}------------------------------------------------ # Statement of Operations # For the year ended December 31, 2020 (in thousands) Revenues: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | Investment advisory and financial planning fees | S | 158,420 | |--------------------------------------------------------------------|------|---------| | Commissions and distribution and service fee income: | | | | Affiliated variable life, variable annuities and other products | | 73,793 | | Variable life, variable annuities, mutual funds and other products | | 87,322 | | 12b-1 fees from insurance products | | 16,339 | | Compliance fee income received from affiliates | | 1,423 | | Other income | | 13,168 | | Net investment income | | 339 | | Net trading investment gains | | 590 | | Total revenues | | 351,394 | | Expenses: | | | | Commissions on investment advisory and financial planning fees | | 126,191 | | Commissions and distribution and service fee expense: | | | | Affiliated variable life, variable annuities and other products | | 73,793 | | Variable life, variable annuities, mutual funds and other products | | 75,893 | | 12b-1 fees from insurance products | | 16,339 | | Salaries and benefits | | 22,450 | | Registration fees | | 1,766 | | Clearing fees | | 384 | | General and administrative expenses | | 17,971 | | Total expenses | | 334,787 | | Income before income taxes | | 16,607 | | Income tax expense: | | | | Current | | 4,867 | | Deferred | | 135 | | Total income tax expense | | 5,002 | | Net income | ક્તિ | 11.605 | {7}------------------------------------------------ # Statement of Changes in Stockholder's Equity # For the year ended December 31, 2020 (in thousands) | | | Paid-in
capital | | Accumulated
deficit | | Total | |-------------------------------|----|--------------------|----|------------------------|---|---------| | Balances at January 1, 2020 | ಳು | 53,216 | S | (20,308) | | 32,908 | | Net income | | | | 11,605 | | I 1,605 | | Dividend to stockholder | | - | | (5,000) | | (5,000) | | Balances at December 31, 2020 | S | 53,216 | ಕಾ | (13,703) | S | 39,513 | {8}------------------------------------------------ ## Statement of Cash Flows ## For the year ended December 31, 2020 (in thousands) # Cash flows provided by operating activities | S
Net income | 11,605 | |-------------------------------------------------|---------| | Adjustments to reconcile net income to net cash | | | provided by operating activities: | | | Software amortization | 450 | | Deferred tax provision | । 35 | | Change in operating assets and liabilities: | | | Increase in commissions receivable | (154) | | Increase in securities owned | (590) | | Change in income tax recoverable - current | 1,221 | | Decrease in due from affiliates | 338 | | Increase in other receivables | (523) | | Increase in prepaid expenses | (ਰੇਤ) | | Decrease in commissions payable | (355) | | Decrease in accrued expenses | (રેકેટ) | | Increase in due to affiliates | 1,937 | | Increase in unearned fees | 44 | | Net cash provided by operating activities | 13,416 | | Cash flows used for investing activity | | | Additions to capitalized software | (18) | | Net cash used for investing activity | (18) | | Cash flows used for financing activity | | | Dividend to stockholder | (5,000) | | Net cash used for financing activities | (5,000) | | Increase in cash and cash equivalents | 8,398 | | Cash and cash equivalents at beginning of year | 15,654 | | S
Cash and cash equivalents at end of year | 24,052 | {9}------------------------------------------------ ### Notes to Financial Statements December 31, 2020 (in thousands) #### (1) Basis of Presentation and Nature of Business The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The financial statements include the accounts of Securian Financial Services, Inc. (the Company), a wholly-owned subsidiary of Securian Financial Group, Inc. (SFG). The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported assess and liabilities, including disclosure of contingent assets and liabilities, as of the statement of financial condition date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company is a registered broker in securities under the Securities Exchange Act of 1934. The Company is also a registered investment adviser under the Investment. Advisers Act of 1940. The Company is the distributor of Minnesta Life Insurance Company's (Minnesota Life), a subsidiary of SFG, variable and fixed annuity contracts, variable life insurance policies and certain equity indexed annuity contracts and life insurance policies. The Company is also the distributor of Securian Life Insurance Company's (Securian Life), a subsidiary of Minnesota Life, variable life insurance policies and certain equity indexed life insurance policies. Additionally, the Company also sells multy contracts and insurance policies sponsored by third parties. The Company does not hold or carry securities for customer accounts. The Company clears all customer transactions on a fully disclosed basis with clearing broker/dealers. The Company's results of operations may not be indicalive of the results that might be obtained had it operated independently. ## (2) Summary of Significant Accounting Policies #### Revenue from Contracts with Customers Revenue from contracts with customers is recognized when promised goods or services are delivered to the customers in an amount that reflects consideration the Company expects to receive in exchange for those goods or services (transaction price). Contracts with customers may include multiple services, which as separate performance obligations if determined to be distinct. The Company's performance obligations are generally satisfied when the Company transfers the promised good or service to the cata point in time or over time. Revenue from a performance obligation transferred at a point in time is recognized at the time the customer obtains control over the good or service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in salisying the performance obligation in a manner that depicts performance transferring control of the good or service. In delermining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is only included in revenue when are not subject to significant reversal, which is generally when uncertainly around the amount of revenue to be received is resolved. The following describes the nature and timing of revenue and cash flows arising from the Company's contracts with customers. #### Investment advisory and financial planning fees The Company earns revenue for performing investment advisory services for certain brokerage customer accounts. The revenue is earned based on a contractual fixed rate applied in arrears, as a percentage, to the market value of assess held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are generally considered to be variably constrained due to factors outside the Company's control including market volatility and dient behavior (such as how long clients hold their investment, insurance policy or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur, and are accrued daily and invoiced on a monthly or quarterly basis. {10}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (2) Summary of Significant Accounting Policies (Continued) #### Revenue from Contracts with Customers (Continued) #### Investment advisory and financial planning fees (Continued) The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is a fixed tee (received monthly, quarterly, semi-annually). The financial planning fee is based on the complexity of a client's financial and life situation and the respective advisor's experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer is recognized at that time. Within the terms of the financial plan contract, the parties of the contract may terminate the contract at any time with proper notification. If the contract is terminated by the company is entitled to a transaction price in a pro-rata amount based upon the degree of completion of the financial plan. This pro-rata calculation can result in either amounts due to the Company or amounts refundable to the client. The Company records a contract liability for the unearned fee when cash is received before the financial plan is delivered and the performance obligations have been satisfied. The financial with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when is delivered, which ocurs within the annual period. The following table provides a summary of changes in the unearned fee liability for the year ended December 31, 2020: | Balance at beginning of year | ,262 | |------------------------------------------|---------| | Fee revenue recognized during the year | (1.262) | | Fees received during year not recognized | 306 | | Balance at end of year | .306 | The difference between the beginning of year and end of year balances of the Company's unearned fee liability primarily results from the timing of Completion of the performance obligation and the receipt of payment for the plan by the client. As allowed in termination provisions of the contract, a client may cancel their financial plan after the Gompany has delivered the plan and completed its performance obligation. The Company has historically refunded certain financial planning fees after the performance obligation has been satisfied and revenue has been recognized. The Company calculates a refund based on historical information and includes this liability within accrued expenses on the statement of financial condition. Related to this refund, the Company also calculates the estimate commission paid to the advisor that would be recaptured and includes this within other receivables on the statement of financial condition. The following table provides a summary of changes in the refund liability for the year ended December 31, 2020: | 12 | 410
(296) | |----|--------------| | | 286 | | | 410 | | | | The following table provides a summary of changes in the commission recapture asset for the year ended December 31, 2020: | Balance at beginning of year | 358 | |------------------------------------------------------------------|-------| | Commissions recaptured during the year | (262) | | Commissions recognized during the year expected to be recaptured | 262 | | Balance at end of year | 358 | The difference between the beginning of year and end of year balances of the Company's refund liability and related commission recapture asset primarily results from the timing of Company's performance and the ultimate acceptance by the client of the plan. {11}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (2) Summary of Significant Accounting Policies (Continued) #### Revenue from Contracts with Customers (Continued) ## Commissions and Distribution and Service Fee Income #### Variable life, variable annuities, mutual funds and other products The Company earns commissions, distribution income and service for selling affiliated and unaffiliated variable life, fixed and variable annuity products and certain other products. The Company also earns revenue from selling unaffiliated mutual funds. There are multiple performance obligations related to the initial performance obligation is satisfied at the time of each individual sale. The portion of the revenue recognized at time of sale (commission revenue) is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale, These revenues are accrued daily and received weekly, monthly, or quarterly. The second portion of revenue, trailing distribution income, is recognized over the time the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the fund, or the fund, or the value of the insurance policy or annuity contract. Trailing distribution income is not recognized at the time of sale because it is variably constrained due to factors outside the Company's control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). The revenue is not to be recognized until it is probable that a significant reversal will not occur. These received weekly, monthly, or quarterly. The additional performance obligation is related to the client contract, including but not limited to, answering client inquiries and providing fund /contract performation to clients. The service performance obligation is satisfied over time. This service fee is based on a fixed rate applied, as a percentage, to amounts invested after the date of the initial sale of the contract. The revenue is not to be recognized until it is probable that a significant reversal will not occur. These revenues are received weekly, monthly, or quarterly. Relative to the sale of affiliated variable life, fixed and variable annuity products and certain other products, the Company acts as a principal and receives revenue from the affiliate that is paid out directly to the advisor. The Company provides compliance services for these products and, acting as the principal to the Company recognizes these revenue dollars in a gross manner. #### 12b-1 fees from insurance products The Company, as the principal party in the related customer contract, receives 12b-1 fees from the affiliated Securian Funds Trust funds' porticlios and Waddell and Reed Target Portfolios, and under an assignment with Minnesota Life, transfers the 12b-1 fees received in total to Minnesota Life. 12b-1 fee revenue is earned for providing certain services to customers, but not limited to responding to phone inquiries, providing information to distributors and shareholders regarding fund performance and training advisors. These services to customers represent the performance obligation and are considered a series of distinct services that are substantially the same. The revenue is recognized over the time the Company's client owns the investment and is generally earned based on a fixed rate applied, as a percentage to the net asset value of the fund. The passage of time reflects the satisfaction of the Company's performance obligation. The 12b-1 fee revenue variably constrained due to factors outside the Company's control including market volatility and client behavior (such as how long dients hold their investment). The revenue is not recognized until it is probable that a significant reversal will not occur. #### Compliance Fee income received from affiliates The Company earns revenue from its affiliated insurance partners for providing advertising compliance services as well as compliance services related to selling of variable annuily and certain other insurance products. The performance obligation related to compliance series of distinct services that are substantially the same and are satisfied over time and recognized each day over the contract term at a fixed rate. These fees are invoiced and collected on a quarterly basis. {12}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (2) Summary of Significant Accounting Policies (Continued) #### Revenue from Contracts with Customers (Continued) #### Other income Other income includes fees received from strategic partners for placing and maintaining fund partners and insurance companies' products on the Company's sales platform (subject to the Company's due diligence standards) along with marketing support and sales force education and training. Revenue for these performance obligations is generally calculated as a fixed fee, or as a percentage of the assets. This performance obligation is considered a series of distinct services that are substantially the same and are salisfied over time and recognized each day over the contract term. These fees are invoiced and collected on quarterly basis. Under a contract with the Company's clearing agent, the Company related to money market sweep fees generated on clients' money market cash sweep accounts held at the Company's clearing agent. The performance obligation is the client administration services provided. These administrative services are performed daily and as succh, the performance obligation is satisfied daily and revenue is recognized daily based on a fixed rate applied, as a percentage, to the deposits held in the money market cash sweep accounts. These amounts are settled with the Company's clearing agent monthly. Other income includes fees charged to advisors for providing various services the advisors need to support and grow their practices. These fees include, but are not limited to, training education, insurance coverage, compliance supervision, technology services and support, licensing fees and other services to advisors represent single performance obligations that are satisfied at the service. The Company recognizes revenues for the gross amount of the fees charged to advisors based on actual services provided. Fees are primarily collected semimonthly as a reduction of commission payments. Other income includes fixed transactional fees the Company charges to advisors for executing certain transactions in brokerage and fee-based advisory accounts. Transactional fee revenue is recognized at the point-in-time that a transaction is executed and the performance obligation is completed, which is trade-date. The fee is collected by the clearing broker dealer at time of trade and settled with the Company on a monthly basis. The following table presents our total revenue disaggregated by category for the year ending December 31, 2020: | Investment advisory | સ્ત્ર | 144,344 | |------------------------------------------------|-------|---------| | Financial planning fees | | 14.076 | | Sales based commissions | | 113.613 | | Trailing distribution income | | 46,013 | | Service fee income | | 1.489 | | 12b-1 fees | | 16,339 | | Compliance fee income received from affiliates | | 1.423 | | Strategic partner income | | 2,346 | | Money market sweep fee income | | 2.239 | | Advisor fee income | | 2,970 | | Transaction fee income. | | 1.246 | | Other revenues | | 4.367 | | Total revenue from contracts with customers | | 350.465 | | Revenue from other sources | | 929 | | Balance at end of year | | 351.394 | #### Practical expedients The Company has applied an allowed practical expedient that permits for the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company has also applied an allowed practical expedient that allows for no adjustment to consideration due to a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. {13}------------------------------------------------ # Notes to Financial Statements (Continued) (in thousands) ## (2) Summary of Significant Accounting Policies (Continued) #### Commissions Receivable As of December 31, 2020, the Company has certain commissions and distribution and service fee income that has been recognized but not received by the Company. These amounts are included in commissions receivable on the statement of financial condition. At December 31, 2020, the Company had no allowance for doubtful receivables. Commissions receivable are written off when deemed uncollectible. The following table provides a summary of changes in the commissions receivable for the year ended December 31, 2020: | Balance at beginning of year | ಕ್ಕಾ | 6.088 | |------------------------------------------------------|------|---------| | Commissions and distribution and service fees income | | | | related to prior year received during the year | | (6.088) | | Commissions and distribution and service fees income | | | | recognized but not received during the year | | 6.242 | | Balance at end of year | | 6.242 | The difference between the beginning of year balances of the changes in the Company's commissions receivable primarily results from the timing of Completion of the performance obligation and the receipt of payment by the customer. #### Commissions and Distribution and Service Fee Expenses and Related Commissions Payable Commissions and distribution and service fee expenses are recognized on a trade date basis and paid to advisors semmonthly. Unpaid commission amounts due to advisors are included in commissions payable on the statement of financial condition. #### Securities Owned and Related Net Investment Income and Net Trading Investment Gains Securities owned are comprised of equities and are recorded on a trade date basis af fair value on the statement of financial condition. Changes in fair value of equity securities are included in net trading investment of operations. The Company recognizes dividend income upon the dividend. Dividend income is included in net investment income on the statement of operations. #### Cash and Cash Equivalents Cash is carried at cost, which approximates fair value. Cash equivalents of sufficient credit quality are carried at fair market value. The Company considers all money market funds to be cash equivalents. #### Other Receivables Other receivables are carried at original amount, less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. At December 31, 2020, the Company had no allowance for doubtful receivables. Other receivables are written off when deemed uncollectible. Recoveries receivable previously written off are recorded as income when received. Interest is not accrued on past-due other receivables balances. #### Income Taxes The Company files a life/non-life consolidated federal income tax return with Minnesota Mutual Companies, Inc., the Company's ultimate parent. The Company utilizes a consolidated approach to the allocation of current taxes, whereby, the tax benefits resulting from any losses by the Company, which would be realized by Minnesota Mutual Companies, Inc. on a consolidated return, go to the company. The Company is included in the federal tax sharing agreement with Winnesota Mutual Company tax balances are settled annually when the tax return is filed with the Internal Revenue Service (IRS). {14}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (2) Summary of Significant Accounting Policies (Continued) #### Income Taxes (Continued) Inherent in the provision for federal income taxes are estimates regarding the realization of certain tax credits. In the event the ultimate deductibility of certain tems or the realization of certain tax credits differs from estimates, the Company may be required to significantly change the provision for federal income taxes recorded on the financial statements. Any such change could significantly affect the amounts reported on the statement of operations. Management has used best estimates to establish reserves based on current facts and circumstances regarding tax exposure items where the ultimate deductibility is open to interpretation. Management evaluates the appropriateness of such reserves based on any new developments specific to their fact patterns. Information considered includes results of completed tax examinations, Technical Advice Memorandums and other rulings issued by the IRS or the tax courts, The Company utilizes the asset and liability method of accounting for income tax. Uncer this method, deferred tax assets and liabilities are recognized for the fax consequences attributable to differences between the financial stalement, carrying amounts of existing assets and their respective lax bases and operating loss and tax credit carrylorwards. Deferred tax assets and liabilities are measured tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enacments dates. Valuation allowances are established when it is determined that it is more likely than not that the deferred tax asset will not be fully realized. Current income taxes are charged to operations based upon amounts estimated to be payable or receivable as a result of taxable operations for the current year. Interest and penalties, if any related to income (ax matters are accrued in the income tax expense line item in the period they are incurred or such changes are enacted. #### Software Capitalization Computer software costs incurred for internal use are capitalized and amortized over a three or five-year period. Computer software costs include application software, purchased software packages and significant upgrades to software. ATDecember 31, 2020, the Company had unamortized software costs of \$1,488. #### (3) Risks The Company's financial statements are based on estimates and assumptions that are subject to significant business, economic and compettive risks and uncertainties, many of which are beyond the Company's control or are subject to change. As such, actual results could differ from the estimates used in the financial statements and the Company's investments, its financial condition and its liquidity could be adversely affected. The following risks and uncertainles, among others, may have such an effect: - · Economic environment and capital markets-related to interest rates and equity markets. - Business and operational related risks such as those related to liquidity, competition, cyber or other information security, fraud, and overall risk management. - Catastrophic and pandemic event-related risks such as COVID-19 that may impact policyholder behavior and claims . experience, volatility in financial markets and economic activity, and operations. - Acquisition, disposition, or other structural change related risks. - · Regulatory and legal risks such as those related to changes in fiscal, tax and other legislation, broker-dealer regulation, and accounting standards. The Company actively monitors and manages risks and uncertainties through a variety of policies and procedures in an effort to mitigate or minimize the adverse impact of any exposures impacting the financial statements. {15}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) #### (4) New Accounting Pronouncements ### Adoption of New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairmentmethodology with an expected loss model. The revised guidance removes recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument of amortized cost that an entity expects to collect over the instrument's contractual life along with enhanced disclosures. ASU 2016-13 is effective for the annual reporting period beginning on January 1, 2020 and is required to be applied on a modified retrospective basis with early adoption permitted. The adoption of ASU 2016-13 did not have an impact on the Company's financial statements. ## (5) Investments #### Fair Value of Financial Instruments The fair value of the Company's financial assets has been determined using available market information as of December 31, 2020. Although the Company is not aware of any factors that would significantly affect the fair value of financial assets, such amounts have not been comprehensively revalued since that date. Therefore, estimates of fair value subsequent to the valuation date may differ significantly from the amounts presented judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair value is defined as the price that would be received to sell an asset (exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company primatily uses the market approach which utilizes prices and other relevant information generated by market transactions involving identical or comparable assets. The Company is required to categorize its financial assets recorded on the balance sheet according to a three-level hierarchy A level is assigned to each financial asset based on the lowest level input that is significant to the fair value measurement in its entirety. The levels of fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices for identical assets in an active market. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable in active markets for identical or similar assets. Level 3 - Fair value is based on at least one or more significant unobservable inputs. The Company's assumptions about the inputs market participants would use in picing the assets. The Company uses prices and inputs that are current as of the measurement date. In periods of market disruption, the ability to observe prices and inputs may be reduced, which could cause an asset to be reclassified to a lower level. Inputs used to measure fair value of an asset may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon that is significant to the determination of the fair value {16}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) #### (5) Investments (Continued) #### Fair Value of Financial Instruments (Continued) The following table summarizes the Company's financial assets measured at fair value on a recurring basis as of December 31, 2020: | | December 31, 2020 | | | | | | | | |------------------------|-------------------|--------|---------|--|---------|---|-------|-----------| | | Level 1 | | Level 2 | | Level 3 | | Total | | | Securities owned | | | | | | | | | | Equities | તેમ | 20,611 | | | દિ | | | \$ 20,611 | | Total investments | | 20,611 | | | | 0 | | 20,611 | | Cash equivalents | | 1.142 | | | | | | 1.142 | | Total financial assets | S | 21,753 | | | | | | 21.753 | The Company did not have any financial liabilities that would be required to be measured at fair value as of December 31, 2020. The methods and assumptions used to estimate the fair value of financial assets are summarized as follows: #### Equity securities The Company's equity securities consist of investment in exchange-traded fund investments. The fair value of equity securities are based on quoted market prices of the funds' net asset value and are classified within Level 1. #### Cash equivalents Cash equivalents include money market funds are generally valued using unadjusted quoted pices in active markets and are reflected in Level 1. The Company did not have any assets or liabilities reported at fair value on a nonrecurring basis, The portion of net trading investment gains that relates to securities still held at December 31, 2020 was \$590. #### Net Investment Income | Securities owned | ക | 348 | |-------------------------|-----|------| | Cash equivalents | | . - | | Gross investment income | | 351 | | Investment expenses | | (12) | | Total | સ્ત | 339 | | | | | #### (6) Related Party Transactions The Company is the distributor of Minnesota Life's fixed and variable life and certain life and annuity indexed products and is also the distributor of Securian Life's fixed annuity, variable life insurance products. The Company received compliance fees of \$1,423 during 2020, which is included in compliance fee income received from affiliates in the statement of operations, from Minnesota Life for performing compliance functions for these products. The Company also recognized commission income, which is included in commissions and distribution and service fee income: affiliated variable annuities and other products in the statement of operations of \$73,733 in 2020 related to distribution activities, of which \$2,371 was included in the statement of financial condition at December 31, 2020. {17}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (6) Related Party Transactions (Continued) The Company also has agreements with an affiliate, Securian Trust Company, N.A. (STC), an affiliated national bank. Under these agreements, the Company provides investment advisory services to STC clients and receives referral fees for clients of the Company who name STC trustee of a trust. The Company received fees of \$1,424 for the year ended December 31, 2020, of which is \$1,262 is included in investment advisory and financial planning fees and \$162 is included in commissions and distribution and service fee income ife, variable annuities, mutual funds and other products in the statement of operations Under management services agreements with Minnesta Life, Securian Life and STC, the Company charges of is charged expenses including allocations for occupancy costs, data procession, advertising and promotion and other administrative expenses. The Company either incurs these expenses on behalf of Minnesota Life, Securian Life or STC or these expenses are incurred on behalf of the Company by Minnesota Life, Securian Life or STC. For the year ended December 31, 2020, the Company was charged net expenses totaling \$14,420 primarily included in general and administrative expenses on the statement of operations, of which \$7,297 was included in due to affiliates in the statement of financial condition and \$133 was included in due from affiliates in the statement of financial condition at December 31, 2020, Under a consulting services agreement with Minnesta Life, the company is charged an annual fee for services rendered to oversee certain mutual funds, including qualitative review, isk metrics, systems operations, and portfolio management practices. Consulting service fees incurred by the Company during 2020 were \$10 included in general and administrative expenses on the statement of operations. At December 31, 2020, \$10 was due to Minnesota Life under this agreement. Under an assignment agreement with Minnesota Life, 12b-1 fees from affiliated Securian Funds Trust, the Waddel and Reed Target portfolios and other mutual funds, are transferred to Minnesota Life. During 2020, \$16,339 was received and \$16,334 was transferred. \$16,339 was included in 12b-1 fees from insurance products revenues and 12b-1 fees from insurance products expenses in the statement of operations. At December 31, 2020, \$298 was due from Minnesota Life and included in due to affiliates in the statement of financial condition. For the year ended December 31, 2020, included in the \$16,339 12b-1 fees from insurance products in the statement of operations is \$9, 103 of distribution and service fee income related to agreements with certain investment managed by an affiliate, Securian Asset Management, Inc. Such fees are used to pay certain expenses incurred in the distribution of shares of associated mutual funds which have adopted Plans of Distribution pursuant to Rule 12b-1 under the Investment, Company Act of 1940 (as amended). The Company has an agreement with CRI Securities, LLC (CR). Under this agreement, the Company assists CRI in compliance, training and marketing and provides services such as accounting and auditing. The Company charges expenses related to these activities to the affiliated party and receives reimbursement. For the year ended December 31, 2020, the Company charged expenses totaling \$1.365 included in general and administrative expenses on the stations and \$35 was included in due to affiliates in the statement of financial condition. Under a marketing services agreement with CRI, the Company pays commissions for the sale of certain insurance products. For the year ended December 31, 2020, the Commissions of \$6,114 included in commissions and distribution and service fee expense, variable annuties, mutual funds and other products on the statement of operations. The Company has an investment advisory agreement with an affiliate, Securian Asset Management, Inc. Under this agreement, the Company pays quarterly investment management fees based on total assets managed. Investment management fees incurred by the Company during 2020 were \$12 included in net investment of operations: At December 31, 2020, there was no amount due to Securian Asset Management, Inc. under this agreement. ### (7) Transactions with Clearing Agents The agreements with the Company's clearing agents provides for clearing charges at a fixed rate multiplied by the number of trades processed by the Company. The clearing agreements also require the Company to maintain a minimum deposit of \$120. {18}------------------------------------------------ ## Notes to Financial Statements (Continued) (in thousands) ## (8) Income Taxes The income tax expense for the year ended December 31, 2020 consists of the following: | | Current | Deferred | Total | |------------------|----------------|-------------|----------------| | Federal
State | 3,185
1.682 | 316
181) | 3.501
1,501 | | | 4.867 | 135 | 5,002 | The difference between the income and income taxes computed using the U.S. federal income tax rate of 21% is as follows: | Amount computed using the statutory rate | 3.488 | |------------------------------------------|-------| | State taxes, net of federal benefit | 1.501 | | Other | 13 | | | 5,002 | The tax effects of temporary differences that gave rise to the Company's net deferred tax liability at December 31, 2020 are as follows: | Deferred tax assets: | | |--------------------------------|------------| | Net operating losses | ક
115 | | Unearned income | 315 | | Bonus accrual | 307 | | Payroll tax deferral | 107 | | Other | 13 | | Gross deferred tax assets | 857 | | Deferred tax liabilities: | | | Prepaid expenses | 307 | | Deferred gain on investment | 582 | | Capitalized software | ਤੇਵਰ | | Gross deferred tax liabilities | 1,248 | | Net deferred tax liability | સ્ક
381 | The gross net operating loss carryforwards, which were generated in various states, amount to \$6,101 at December 31, 2020, with the majority expiring beginning in 2027. As of December 31, 2020, management determined that no valuation allowance was needed related to the benefits of certain state operating loss carryforwards or for other deferred tax items based on management's assessment that it is more likely than not that these deferred tax assets will be realized. Income taxes paid for the year ended December 31, 2020 were \$3,646. The balance of unrecognized tax benefits was zero as of January 1, 2020 and December 31, 2020. As of December 31, 2020, the Company did not have any amounts accrued for interest and penalties. At December 31, 2020, there are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. All tax years through 2014 are closed. A limited scope audit of Minnesota Mutual Companies, Inc.'s (MMC) 2015-2017 tax vears was completed in 2020 and approved by the Joint Committee on Taxation with the Statute of Limitations for expiring tax years was extended to March 31, 2021, MMC was notfied that its 2018 consolidated federal income tax return was selected for audit. The Company believes that any additional taxes assessed or refunded as a result of examination will not have a material impact on its financial position. The IRS has not stated an intention to audit MMC's 2019 consolidated tax return. {19}------------------------------------------------ ## Notes to Financial Statements (in thousands) ## (9) Net Capital Requirements Pursuant to the net capital provisions of Rule 15c3-1 of the Securities and Exchange Commission, the Company is required to maintain minimum net capital as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2020, the Company had het capital of \$30,729, which was \$29,574 in excess of its required net capital of \$1,155. The Company's net capital ratio of aggregate indebtedness to net capital) was 0,56 to 1 at December 31, 2020. The Company's minimum capital, as defined to be greater than 6 2/3% of aggregate indebtedness and the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1. ## (10) Rule 15c3-3 The Company clears all customer transactions on a fully disclosed basis with clearing broker/dealers. The Company does not hold customer funds or safekeep customer securities and therefore claims exemptions from Rule 16c3-3 of the Securities and Exchange Commission under subsections (k)(1) and (k)(2)(i). Under these exemptions, the "Computation for Determination of Reserve Requirements" and "Information Relating to the Possession or Control Requirements" are not required. #### (11) Stock Dividends During the year ended December 31, 2020, the Company declared and paid a cash dividend to SFG in the amount of \$5,000, #### (12) Contingencies The Company is involved in various pending or threatened legal proceedings arising out of the normal course of business. In the opinion of management, the ultimate resolution of such litigation will not have a material adverse effect on operations or the financial position of the Company. #### (13) Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to December 31, 2020, through the date the financial statements were issued. {20}------------------------------------------------ ## Schedule I # SECURIAN FINANCIAL SERVICES, INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission as of December 31, 2020 (in thousands) | Stockholder's equity | સ્ત્રે | 39,513 | |-----------------------------------------------------------------------------------------------------------------------|--------|-----------| | Deductions - nonallowable assets: | | | | State income tax recoverable | | 397 | | Other receivables | | 2,552 | | Software, net | | 1,488 | | Prepaid expenses and other assets | | 1,107 | | Total nonallowable assets | | 5,544 | | Net capital before haircuts on securities | | 33,969 | | Haircuts on securities | | 3,244 | | Net capital | સ્ક | 30,725 | | Total aggregate indebtedness | ea | 17,330 | | Net capital | S | 30.725 | | Minimum capital required to be maintained (the greater
of \$50 or 6-2/3% of aggregate indebtedness of
\$17,330) | | 1,155 | | | | | | Net capital in excess of requirements | S | 29,570 | | | | | | Ratio of aggregate indebtedness to net capital | | 0.56 to 1 | There were no material differences in the computation of net capital or aggregate indebtedness between the amounts included in the Company's unaudited December 31, 2020 Part IIA of FOCUS Form X-17A-5 (as amended on March 12, 2021) and the above computations. See accompanying report of independent registered public accounting firm. {21}------------------------------------------------ Schedule II # SECURIAN FINANCIAL SERVICES, INC. Computation for Determination of Customer Reserve Requirements and PAB Accounts Reserve Requirements for Broker Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 December 31, 2020 The Company does not carry customer accounts. For the period January 1, 2020 to December 31, 2020, the Company was exempt from Securities and Exchange Rule 15c3-3 under paragraphs (k)(1) and (k)(2)(i) for the Company's approved business activities. All customer transactions are cleared through other broker-dealers on a fully disclosed basis. See accompanying report of independent registered public accounting firm. {22}------------------------------------------------ ## Schedule III # SECURIAN FINANCIAL SERVICES, INC. Information Relating to Possession or Control Requirements Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 December 31, 2020 The Company does not carry customer accounts. For the period January 1, 2020 to December 31, 2020, the Company was exempt from Securities and Exchange Rule 15c3-3 under paragraphs (k)(1) and (k)(2)(i)) for the Company's approved business activities. All customer transactions are cleared through other broker-dealers on a fully disclosed basis. See accompanying report of independent registered public accounting firm. {23}------------------------------------------------ ![](_page_23_Picture_0.jpeg) Crowe LLP Independent Member Crowe Global ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We have reviewed management's statements, included in the accompanying Securian Financial Services, Inc.'s Exemption Report in which (1) Securian Financial Services, Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Securian Financial Services, Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3: (k)(1) and (k)(2)(i) (the "exemption provisions") and (2) Securian Financial Services, Inc. stated that Securian Financial Services, Inc. met the identified exemption provisions throughout the most recent fiscal year ended December 31, 2020 without exception. Securian Financial Services, 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 Securian Financial Services, 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. 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)(1) and (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. New York, New York March 12, 2021 {24}------------------------------------------------ ## Securian Financial Services, Inc.'s Exemption Report Securian Financial Services, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (the "SEC")(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)(1) and (k)(2)(ii). - (2) The Company met the identified exemption provisions in 17 C.F.R. 240.15c3-3 (k)(1) and (k](2)(i) throughout the most recent fiscal year ended December 31, 2020, except as described below. The Company identified 8,665 exceptions, 1,975 of which related to checks transmitted from branch offices to the requisite third parties, and the remaining 6,690 related to checks that were forwarded by the home office to the requisite third parties outside of the timeframes prescribed by 17 C.F.R. 240.15c3-3 (k){1) and (k)(2)(ii). During the most recent fiscal year (Covered Period), 1,511 of the 1,975 checks transmitted from the Company's branch offices to the requisite third parties were forwarded within 2 days following the check's receipt in a branch office. Of the 6,690 checks received by the home office from the branch offices and made payable to the requisite third parties, 6,487 were forwarded by noon after receipt and approval by the Company's Home Office. This delay was primarily due to the quality assurance process. I, George I. Connolly, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. corne ( ( oursely 3/11/2021 George I. Connolly President & Chief Executive Officer Securian Financial Services, Inc. Date {25}------------------------------------------------ | General Assessment Reconciliation
(36-REV 12/18)
12/31/2020
For the fiscal year ended
(Read carefully the instructions in your Working Copy before completing this Form)
TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS
1. Name of Member, address, Designated Examining Authority, 1934 Act registration as and or
purposes of the audit requirement of SEC Rule 17a-5:
Note: If any of the information shown on the
Securian Financial Services, Inc.
mailing label requires correction, please e-mail
400 Robert St N
any corrections to form@sipc.org and so
indicate on the form filed.
St Paul, MN 55101
Name and telephone number of person to
contact respecting this form.
31955 FINRA DEC
(info from previous copy's mailing label)
Julia Larson, 651-665-7619
94,189
2. A. General Assessment (item 2e from page 2)
44,453
B. Less payment made with SIPC-6 filed (exclude interest)
10/27/2020
Date Paid
G. Less prior overpayment applied
D. Assessment balance due or (overpayment)
E. Interest computed on late payment (see instruction E) for _________________________________________________________________________________________________________________
49,736
F. Total assessment balance and interest due (or overpayment carried forward)
G. PAYMENT: V the box
Check mailed to P.O. Box / Funds Wired
Total (must be same as F above)
H. Overpayment carried forward
3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number);
The SIPC member submitting this form and the
person by whom it is executed represent thereby
Securian Financial Services, Inc.
that all information contained herein is true, correct
(Name of Corporation, Partnership or other organization)
andan
(Authorized Signature)
20 21
day of rebruary
Actuarial Manager
(Tille)
This torm and the assessment payment is due 60 days after the end of the fiscal year. Relain the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accessible place.
REVIEWER
Dates:
Reviewed
Received
Postmarked
Forward Copy _
Documentation
Calculations .
د
Exceptions: | | P.O. Box 92185 Washington, D.C. 20090-2185
202-371-8300 | SIPC-7 | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|------------------------------------------------------------|--------|--| | | (36-REV 12/18) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | and complete.
Dated the 23 | | | | | | | | | | | | | | | | and the comments of the comments of the comments of CHE SERIES - In Comments of 1 {26}------------------------------------------------ DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT 41 4-1 10-1 100 1 11 11 11 11 11 | | Amounts for the fiscal period
beginning 1/1/2020
and ending 12/3/1/2020, | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------| | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | Eliminate cents
\$ 351,393,501 | | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | (2) Net loss from principal transactions in securities in trading accounts. | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | (4) Interest and dividend expense deducted in determining item 2a. | 12,796 | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than advertising, printing, registration fees deducted in determining nel
profit from management of or participation in underwriting or distribution of securities. | | | (7) Net loss from securities in investment accounts, | | | Total additions | 12,796 | | 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | (287,640,000) | | (2) Revenues from commodity transactions. | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | (384,235) | | (4) Reimbursements for postage in connection with proxy solicitation. | | | (5) Net gain from securities in investment accounts. | (589,500) | | (6) 100% of commissions and markups sarned from transactions in (1) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months of 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 to the securities business.
(See Instruction C): | | | (Deductions in excess of \$100,000 require documentation) | | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART HA Line 13,
Code 4075 plus line 2b(4) above) but not in excess
of fotal 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 (1) or (n) | | | Total deductions | (288,613,734) | | 2d. SIPC Net Operating Revenues | 62,792,563 | | 2e. General Assessment @ . 0015 | 94,189 | | | Ito nage 1 line 2 A 1 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.