# SNC CAPITAL MANAGEMENT CORP. X-17A-5 (2022-03-16) — Broker-dealer annual report - Company: SNC CAPITAL MANAGEMENT CORP. - Form: X-17A-5 - Filed: 2022-03-16 - Period: 2021-12-31 - Accession: 0000766087-22-000002 - CIK: 766087 - File #: 8-33866 - Type: Broker-dealer - Material weakness: No - Auditor: Ryan and Juraska LP - Auditor location: Chicago, IL - Contact: Edmund Sweeney - Phone: 312 870 1530 - Email: compliance@rcmsecurities.com - Website: rcmsecurities.com - Signed by: Edmund Sweeney (President) Original filing: https://www.sec.gov/Archives/edgar/data/766087/000076608722000002/sncauditreport.pdf --- {0}------------------------------------------------ #### **SNC Capital Management Corporation Dba RCM Securities** #### **FINANCIAL STATEMENTS** **December 31, 2021** **(Together with Report of Independent Auditors)** **This report is deemed confidential in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 and Regulation 1.10(g) under the Commodity Exchange Act.** {1}------------------------------------------------ # **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** **Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/2021 | | 12/31/2021 | | | |---------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------|--------------------------------------------|--|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF FIRM: _______________________________________________________________________ | S1& Capital Management Corp. DBA RCM Securities | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
܆
܆
Broker-dealer
܆ Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | ܆ | Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 318 W Adams 10th Floor, Chicago IL 60606
_____________________________________________________________________________________ | | | | | | | | (No. and Street) | | | | | | Chicago IL 60606 | | | | | | | _____________________________________________________________________________________
(City)
(State) | | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Edmund Sweeney
_____________________________________________________________________________________ | 312-870-1530 | | Compliance@rcmsecurities.com | | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Ryan and Juraska LP | | | | | | | _____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name) | | | | | | 141 West Jackson Suite
_____________________________________________________________________________________ | Chicago IL
60604 | | | | | | (Address) | (City) | | (State)
(Zip Code) | | | | 03/24/2009
_____________________________________________________________________________________ | | 3407 | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFICIAL USE ONLY | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.** {2}------------------------------------------------ #### **OATI-1 OR AFFIRMATION** ,Edmund Sweeney I, ------------------~ swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of SNC Capital Management Corp. dba RCM Securities , as of December 31 2~ is true and correct. Ifurther swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_5.jpeg) s;gnatu·· 0/ **/,,k** Title: ~,,, "Y/ - President Notary Public #### **This filing•• contains (check all applicable boxes):** - 0 {a) Statement of financial condition. - c\_\_\_: (bl Notes to consolidated statement of financial condition. - 0- (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation **S-X).** - 0 **(d)** Statement of cash flows. - ~ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - - 0 (g) Notes to consolidated financial statements. if' (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240. lBa-2. - 0 (j) Computation for determ in ati on of customer reserve requirements pursuant to Exhibit A to 17 CF R 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lBa-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p){2) or 17 CFR 240.lBa-4, as applicable. - *rsJ'* (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.lBa-1, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no mate.rial differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 0 (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lBa-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicab!e. - 0 (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240. lBa-7, as applicable. - D {t) Independent public accountant's report based on an examination of the statement of financial condition. - 0 {u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D {v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 { w) Independent pub lie ac:cou ntant' s report based on a review of the exemption report under 17 CF R 240.17a-5 or 17 CFR 240.lBa-7, as applicable. - □ (x} Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have e1\*\*To request confidential treatment af certain portions of this filing, see 17 CFR 240.17a-5{e)(3) or 17 CFR 240.18a-l{d)(2}, as opplicable.* {3}------------------------------------------------ **RYAN&JURASKA LLP** Certified Public Accountants 141 West Jackson Boulevard Chicago, Illinois 60604 Tel: 312.922.0062 Fax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¶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¶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¶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{4}------------------------------------------------ ## **SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES** #### **Statement of Financial Condition** #### **December 31, 2021** #### **Assets** | Cash
Receivable from broker dealer
Commissions receivable
Due from others
Prepaid expenses
Other asset | \$
267,602
32,183
6,998
12,742
11,924
393 | |-----------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------| | Total assets | \$
331,842 | | Liabilities and Stockholders' Equity | | | Liabilities:
Accounts payable & accrued expenses | \$
23,266 | | Stockholders' equity
Common Stock, \$.10 par value, 1,000 shares issued and outstanding
Additional Paid In Capital
Retained Earnings | 100
296,790
11,686 | | Total equity | 308,576 | | Total liabilities and stockholders' equity | \$
331,842 | {5}------------------------------------------------ #### SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES CORP #### Statement of Operations #### Year Ended December 31, 2021 | Income | | |----------------------------------------|---------------| | Commissions | \$
291,672 | | Referral fees | 99,123 | | M&A Advisory Fees | 102,000 | | Total Income | 492,795 | | Expenses | | | Registered Representative Compensation | 190,221 | | Clearing/brokerage fees | 106,362 | | Regulatory and other fees | 13,427 | | Professional fees | 123,084 | | Other expenses | 24,026 | | Total Expenses | 457,120 | | Net income before taxes | 35,675 | | Provision for state income taxes | 535 | | Net income | \$
35,140 | | | | {6}------------------------------------------------ #### SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES CORP #### Statement of Changes in Stockholders' Equity Year Ended December 31, 2021 | | Common Stock
No. of Shares | Amount | Retained
Earnings (Deficit) | APIC | Total | |-------------------------------|-------------------------------|-----------|--------------------------------|---------|---------------| | Balance at January 1, 2021 | 1,000 | \$
100 | \$
(11,680) | 296,790 | \$
285,210 | | Stockholders' Paid-In Capital | — | — | — | — | — | | Capital Distribution | | | (11,774) | | (11,774) | | Net income | | | 35,140 | | 35,140 | | Balance at December 31, 2021 | 1,000 | \$
100 | \$
11,686
\$ | 296,790 | \$
308,576 | {7}------------------------------------------------ ## **SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES** #### **Statement of Cash Flows** #### **Year Ended December 31, 2021** | Cash flows from operating activities | | |---------------------------------------------------|---------------| | Net income | \$
35,140 | | Adjustments to reconcile net income to net cash | | | provided by operating activities: | | | Receivable from broker dealer | 11,647 | | Commissions receivable | (3,710) | | Due from others | 17,036 | | Prepaid expense | (3,006) | | Other asset | (127) | | Increase (decrease) in operating liabilities: | | | Accounts payable & accured expenses | 6,430 | | Net cash provided by operating activities | 63,410 | | Cash flows from financing activities | | | Capital Distribution | (11,774) | | Net cash used in financing activities | (11,774) | | Net increase in cash | 51,636 | | Cash at beginning of year | 215,966 | | Cash at end of year | \$
267,602 | | | | | Supplemental disclosure of cash flow information: | | | Cash paid during the year for taxes | \$
1,958 | {8}------------------------------------------------ #### **1. Organization and Business** SNC Capital Management Corporation dba RCM Securities (the "Company"), is an Illinois corporation registered as a broker-dealer with the Securities and Exchange Commission (SEC). The Company's revenue consists primarily of fees and commissions from trading and securities, referral fees from other broker dealers, and investment banking advisory fees, but the Company does not carry customer accounts. The Company is a member of the Financial Industry Regulatory Authority (FINRA). During 2019 the Company assumed the dba as RCM Securities. The Company was approved on February 7, 2019 as a registered independent introducing broker with the National Futures Association. #### **2. Summary of Significant Accounting Policies** #### Basis of Presentation and Accounting The Company follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (the FASB), to ensure consistent reporting of financial condition, results of operations, and cash flows. #### Revenue Recognition The Company earns commission revenue consistent with the terms of its contract with its clearing broker. The earned commissions are calculated, reported and recorded monthly, as earned. The Company recognizes revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Topic 606, *Revenue from Contracts with Customers.* The guidance was amended to require public business entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The impact of the amendment to Topic FASB ASC 606 has had no material impact on the Company's financial statements. #### Commissions Commission Income. The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership of the securities have been transferred. #### Referral Fees Referral Fees. The Company has Referral Agreements with other broker-dealers. The Company refers potential customers to other broker-dealers and is paid a referral fee based on the net revenue the customer generates to the other broker-dealers. The net revenue is primarily based on exchange traded securities execution fees and commissions that the referred customer generates. In addition the Company refers customers to other brokerdealers that have selling agreements for private placements of non-public offerings of an initial issuance or resale of previously issued securities. The transactions are typically limited to sophisticated and accredited investors, including financial institutions. The Company {9}------------------------------------------------ #### **2. Summary of Significant Accounting Policies, continued** obtains significant documentation and earns a referral fee upon the completion of the subscription, customer payment of the funds to the other broker-dealer, and meeting the terms of the private offering. The Company believes that the performance obligation is satisfied at the all of these conditions are met. #### Investment Banking M&A Advisory fees. The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customer prior to recognizing revenue are reflected as contract liabilities. #### Expenses Expenses are accounted for on the accrual basis. #### Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Management determines that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from these estimates. #### Statement of Cash Flows For the statement of cash flows certain prior year balances have been reclassified to conform to the current year presentations. Valuation of Investments in Securities and Derivatives at Fair Value - Definition and Hierarchy In accordance with GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: *Level 1 Inputs* – Valuation is based on quoted prices in active markets for identical assets or liabilities at the reporting date. {10}------------------------------------------------ #### **2. Summary of Significant Accounting Policies, continued** *Level 2 Inputs* – Valuation is based on other than quoted prices included in Level 1 that are observable for substantially the full term of the asset or liability, either directly or indirectly. *Level 3 Inputs* – Valuation is based on unobservable inputs for the valuation of the asset or liability. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. The availability of valuation techniques and observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, the type of investment, whether the investment is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for investments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. The Company had no level 1, level 2, or level 3 assets and liabilities at December 31, 2021. #### Income Taxes For income tax reporting purposes, the Company has elected to file as a small business corporation under Subchapter S of the Internal Revenue Code. Accordingly, the Company provides no federal income taxes, as the taxable income is includible in the shareholders' individual income tax return. The Company, however, is subject to the Illinois Small Business Corporation Replacement Tax of 1.5% of taxable income, as defined. At December 31, 2021, the Company had income tax payable of \$535, which is included in accounts payable and accrued expenses in the Statement of Financial Condition. FASB ASC Topic 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. FASB ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on derecognition of tax benefit, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transition. The Company continues to evaluate uncertain tax positions, if any, and income tax contingencies under FASB ASC Topic 450, Accounting for Contingences. FASB ASC 450 {11}------------------------------------------------ #### **2. Summary of Significant Accounting Policies, continued** requires the Company to accrue for losses it believes are probable and can be reasonably estimated. Management believes the impact of FASB ASC 740 on its financial position and results of operations will have an immaterial effect on its financial statements. #### Leases The Company recognizes and measures its lease in accordance with FASB ASC 842, Leases. The Company is a lessee in an operating lease, for office space. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The lease liability is initially and subsequently recognized base on the present value of its future lease payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. This discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of our lease are not readily determinable and accordingly, we use our incremental borrow rate based on the information available at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payment under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payment), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease cost for lease payments recognized on a straight-line basis over the lease term. At December 31, 2021 the Company did not have a lease. ## **3. Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 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. Under this Rule, the Company is required to maintain "minimum net capital" equivalent to \$5,000 or 6 2/3% of "aggregate indebtedness," whichever is greater, as these terms are defined. At December 31, 2021, the Company had net capital of \$281,430, which was \$276,430 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital is 8.27% at December 31, 2021. The Company is also subject to the CFTC's minimum capital requirements under Regulation 1.17. Under these rules, the Company is required to maintain "adjusted net capital" equivalent to the greater of \$45,000 or \$3,000 per associated person or \$6,000 per office including the main office. At December 31, 2021, the Company's net capital of \$281,430 which exceeded the required net capital under Regulation 1.17 by \$236,430. The Company's minimum net capital requirement is the greater of the requirement under Regulation 1.17 or Rule 15c3-1. #### **4. Commitments and Contingencies** As of December 31, 2021, management is unaware of any claims or legal proceedings against the Company; however, the nature of the Company's business subjects it to various claims, {12}------------------------------------------------ #### **4. Commitments and Contingencies, continued** regulatory examinations, and other proceedings in the ordinary course of business. The eventual outcome of any such actions against the Company could have an adverse impact on the financial condition, results of operations, or cash flows of the Company. ## **5. Off-Balance Sheet Risk and Concentration of Credit Risk** The Company's financial instruments that are exposed to concentrations of credit risk include cash. The Company maintains its cash accounts with one financial institution. The total cash balances of the Company are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000 per depositor, per bank. The Company monitors such credit risk and has not experienced any losses related to such risks. At December 31, 2021 the Company's cash exceed the FDIC limit \$17,602. Since the Company does not clear its own securities and futures transactions, it has established accounts with clearing brokers for this purpose. This can and often does result in a concentration of credit risk with these firms. Such risk, however, are mitigated by each clearing broker's obligation to comply with rules and regulations of the SEC and the CFTC. At December 31, 2021, a significant credit concentration consisted of 10% of the net equity of the Company with one of the Company's clearing broker. The Company's customers' securities transactions are introduced on a fully disclosed basis with its clearing broker. The clearing brokers carry all the accounts of the customers of the Company and offer the following services: 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 customers may be unable to fulfill their contractual commitments wherein the clearing broker may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the creditworthiness of its customers and that customer transactions are executed properly by the clearing broker. As of December 31, 2021, management believes that the Company has no significant exposure to client debit risk. #### **6. Guarantees** FASB ASC 460, *Guarantees* ("ASC 460"), requires the Company to disclose information about its obligation under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees effective at December 31, 2021 or during the year then ended, except as described in Note 5 above. {13}------------------------------------------------ #### **7. Receivables from Broker** Amounts due from brokers as of December 31, 2021 consist of cash deposits of \$32,183. #### **8. Financial Instruments Credit Loses** In June 2016, the FASB issued ASU 2016-13, *Financial Instruments – Credit Losses (Topic 326)* ("ASU 2016-13"). This ASU amends several aspects of the measurement of credit losses on financial instruments, including replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses model ("CECL"). Under CECL, the allowance for losses reflects management's estimate of credit losses over the remaining expected life of the financial assets and expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, would be recognized in earnings. Expected credit losses will be measured based on historical experience, current conditions, and forecasts that affect the collectability of the reported amount and will be generally recognized earlier than under current standards. Management determined ASU 2016-13 did not have material impact to Company's financial statements. #### **9. Related-Party Transaction** For the year ended December 31, 2021, the Company paid an affiliated entity approximately \$1,950 total for year for rent, office expenses, technology expense, and certain shared expenses. These fees are included in Other expenses on the Statement of Operation. #### **10. Subsequent Events** The Company's management has evaluated events and transactions through February 25, 2022, the date the financial statements were available to be issued, noting no material events requiring disclosure in the Company's financial statements, except for the following: On February 16, 2022, one of the Company's shareholder's voluntarily withdrew their 10% interest of stock. {14}------------------------------------------------ #### **SUPPLEMENTAL SCHEDULES** {15}------------------------------------------------ #### SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES CORP #### Schedule I #### COMPUTATION OF NET CAPITAL UNDER RULE 15C 3-1 OF THE SECURITIES AND EXCHANGE #### DECEMBER 31 2021 #### COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 15C 3-1 | COMMISSION AND REGULATIONS 1.17 OF THE COMMODITIES EXCHANGE ACT | | |-------------------------------------------------------------------------------------------------------------------------|---------------| | Total Stockholders' equity | \$
308,576 | | DEDUCTIONS | | | NON-ALLOWABLE ASSETS | | | Prepaid expense | (11,924) | | Other asset | (393) | | Due from others | (12,742) | | Commissions receivable | (2,087) | | NET CAPITAL | 281,430 | | Minimum Capital Requirement Per SEC Rule 15C 3-1 | (5,000) | | EXCESS NET CAPITAL | 276,430 | | EXCESS NET CAPITAL AT 120% | 275,430 | | COMPUTATION OF NET CAPITAL PURSUANT TO CFTC RULE 1.17
Total Stockholders' equity
DEDUCTIONS
NON-CURRENT ASSETS | 308,576 | | Prepaid expense | (11,924) | | Other asset | (393) | | Due from others | (12,742) | | Commissions receivable | (2,087) | | NET CAPITAL | 281,430 | | Minimum Capital Requirement Per CFTC Rule 1.17 | (45,000) | | EXCESS NET CAPITAL | 236,430 | | COMPUTATION OF AGGREGATE INDEBTEDNESS | | | Aggregate Indebtedness | 23,266 | | Ratio:
Aggregate indebtedness to net capital | 8.27% | | | | There are no material differences between the above computation and the Company's corresponding unaudited Part II of Form X-17A-5 as of December 31, 2021 and pursuant to CFTC Rule 1.17. {16}------------------------------------------------ # **SNC CAPITAL MANAGEMENT CORPORATION DBA RCM SECURITIES Schedule II Year Ended December 31, 2021** # COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS AND INFORMATION RELATING TO POSSESSION AND CONTROL REQUIREMENTS UNDER RULE 15c 3-3 OF THE SECURITIES AND EXCHANGE COMMISSION # COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c 3-3 None, the Company is exempt from Rule 15c3-3 pursuant to the provisions of subparagraph (k)(2)(ii) thereof. Other firm activities are excluded under SEC Footnote 74. # INFORMATION RELATING TO POSSESSION AND CONTROL REQUIREMENTS UNDER RULE 15c 3-3 None, the Company is exempt from Rule 15c3-3 pursuant to the provisions of subparagraph (k)(2)(ii) thereof. Other firm activities are excluded under SEC Footnote 74. {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) **RYAN&JURASKA LLP** Certified Public Accountants 141 West Jackson Boulevard Chicago, Illinois 60604 Tel: 312.922.0062 Fax: 312.922.0672 #### **,1'(3(1'(17\$8',725 65(325721,17(51\$/&21752/** 7R0DQDJHPHQWWKH%RDUGRI'LUHFWRUVDQG6WRFNKROGHUVRI 61&&DSLWDO0DQDJHPHQW&RUSRUDWLRQGED5&06HFXULWLHV ,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWRIWKHILQDQFLDOVWDWHPHQWVRI61&&DSLWDO0DQDJHPHQW&RUSRUDWLRQ GED5&06HFXULWLHV WKH ³&RPSDQ\´ DVRIDQGIRUWKH\HDUHQGHG'HFHPEHULQDFFRUGDQFH ZLWKDXGLWLQJVWDQGDUGVRIWKH3XEOLF&RPSDQ\\$FFRXQWLQJ2YHUVLJKW%RDUG8QLWHG6WDWHV 3&\$2% RXU DXGLW LQFOXGHG FRQVLGHUDWLRQ RI LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DV D EDVLV IRU GHVLJQLQJ DXGLW SURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQ WKH HIIHFWLYHQHVV RI WKH &RPSDQ\ V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ \$FFRUGLQJO\ ZH GR QRW 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&RPSDQ\¶VFRPSOLDQFHZLWKWKHH[HPSWLRQSURYLVLRQV\$UHYLHZLVVXEVWDQWLDOO\OHVVLQVFRSHWKDQDQH[DPLQDWLRQ WKHREMHFWLYHRIZKLFKLVWKHH[SUHVVLRQRIDQRSLQLRQRQPDQDJHPHQW VVWDWHPHQWV\$FFRUGLQJO\ZHGRQRWH[SUHVV VXFKDQRSLQLRQ %DVHG RQ RXU UHYLHZ ZH DUH QRW DZDUH RI DQ\ PDWHULDO PRGLILFDWLRQV WKDW VKRXOG EH PDGH WR PDQDJHPHQW V VWDWHPHQWVUHIHUUHGWRDERYHIRUWKHPWREHIDLUO\VWDWHGLQDOOPDWHULDOUHVSHFWVEDVHGRQWKHSURYLVLRQVVHWIRUWK LQSDUDJUDSKFN LL RI5XOHFXQGHUWKH6HFXULWLHV([FKDQJH\$FWRIDQGWKH&RPSDQ\¶V RWKHUEXVLQHVVDFWLYLWLHVFRQWHPSODWHGE\)RRWQRWHRIWKH6(&5HOHDVH1RDGRSWLQJDPHQGPHQWVWR &)5DDQGUHODWHG6(&6WDII)UHTXHQWO\\$VNHG4XHVWLRQV &KLFDJR,OOLQRLV )HEUXDU\ {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) SNC Capital Management Corporation dba RCM Securities Exemption Report RCM Securities {the "Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission (17 C.F ,R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 1 7 C.F .R. § 240. l 7a-5(d)(1) and ( 4). To the best of its knowledge and belief, the Company states the following: - (1) The Company claimed [anJexemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k:)(2)ii - (2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 (k) throughout the most recent fiscal year without exception. - (3) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. l 7a-5 are limited to: receiving transactionbased compensation for referring securities transactions to other broker-dealers; and the Company did not directly or indirectly receive, hold, or otherwiseowe funds or securities for or to customers, the company did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the mostrecentfiscal year without exception. ~~~V?.•·· I, Edmund Sweeney. swear (or affiri6fthat, to my best knowledge and belief, this Exemption Report is true and correct. SNC Capital Management Corporation dba RCM Securities Exemption Report **By:** Title: President **0l/25/1011** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.