# INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0000832747-21-000003 - CIK: 832747 - File #: 8-39706 - Material weakness: No - Auditor: Moss Adams LLP - Auditor location: Dallas, TX - Contact: Marissa Oyervides - Phone: 2102717947 - Signed by: John L. Kauth (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/832747/000083274721000003/IAMGPublic2020.pdf --- {0}------------------------------------------------ #### **INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD.** Report Pursuant to Rule 17a-5(d) December 31, 2020 {1}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | | 0MB APPROVAL | | | | | | | |-----------------|---------------------------------------------------------------------------|----------------------------------------|--|--|--|--|--| | | 0MB Number.
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12.00 | | | | | | | SEC FILE NUMBER | | | | | | | | | | 8-39706 | | | | | | | ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** ## **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING _____ ,_Ou1 /.,,_01 /2,0L-___ AND ENDING ___ __._.12 /3.,,1/2,0.__ __ | | | | | | | |---------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------|-----------------------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | A. | REGISTRANT IDENTIFICATION | | | | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | | | Intercontinental Asset Management Group, Ltd. | | | FIRMID. NO. | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 112 East Pecan Street, Suite 525 | | | | | | | | | (No. and Street) | | | | | | | San Antonio | Texas | | 78205 | | | | | (City) | (State) | | (Zip Code) | | | | | | | | (Area Code - Telephone No.) | | | | | B. | ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Moss Adams LLP | | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | | 14555 Dallas Parkway, Suite 300 | Dallas | TX | 75254 | | | | | {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 be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption.* See *section 240.17a-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 0MB control number. {2}------------------------------------------------ ## **OATH OR AFFIRMATION** I, John L. Kauth Ill , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statements and supporting schedules pertaining to the firm of Intercontinental Asset Management Group, Ltd. , as of December 31 , 2020, are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: This report\*\* contains (check all applicable boxes): (a) Facing Page. (b) Statement of Financial Condition. (c) Statement of Income (Loss). (d) Statement of Cash Flows. (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. (0 Statement of Changes in Liabilities Subordinated to Claims of Creditors. (g) Computation of Net 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. Chief Executive Officer Title (j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. � (k) A Reconciliation between the Audited and Unaudited Statements of Financial Condition with respect to methods of Consolidation. (I) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (n) A report describing any Material Inadequacies found to exist or found to have existed since the date of the previous Audit. - (o) Report of Independent Registered Public Accounting Firm on Management's Exemption Report. °For conditions of confidential treatment of certain portions of this filing, see Section 240.17a-5(e)(3). {3}------------------------------------------------ # INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. CONTENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STATEMENT OF FINANCIAL CONDITION NOTES TO THE FINANCIAL STATEMENT {4}------------------------------------------------ # Report of Independent Registered Public Accounting Firm To the Partners Intercontinental Asset Management Group, Ltd. #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Intercontinental Asset Management Group, Ltd. (the Partnership) as of December 31, 2020 that is filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934, and the related notes (the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Partnership as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion MOSSADAMS This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statement 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 Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. Dallas, Texas March 30, 2021 We have served as the Partnership's auditor since 2016. {5}------------------------------------------------ # INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. Statement of Financial Condition December 31, 2020 ## ASSETS | Cash and cash equivalents | ಿತ | 384,545 | |-----------------------------------------------------------------------------|------|--------------------| | Receivable from broker-dealer | | 400,386 | | Non-allowable assets other receivable | | 422,098 | | Other receivables | | 17,057 | | | ಿ | 1,224,086 | | LIABILITIES AND PARTNERS' CAPITAL | | | | Liabilities:
Accounts payable and accrued expenses
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Notes payable | ಲ್ಲಾ | 160,747
100,000 | | Total Liabilities | | 260,747 | | Partners' capital | | 963,339 | | Total Liabilities and Partners' Capital | ಿಕಾ | 1,224,086 | | | | | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ## INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. Notes to Financial Statement December 31, 2020 ## Note 1 - Summary of Significant Accounting Policies Intercontinental Asset Management Group, Ltd. (the "Partnership") is a Texas limited partnership in which Intercontinental Asset Management Corporation (the "Company") is the general partner and has a 5% interest. The two shareholders of the Company are the limited partners and have 66.5% and 28.5% interests in the Partnership, respectively. The Partnership agreement provides for certain contributions of capital by the partners. Profits and losses of the Partnership will be allocated in proportion to the partnership percentages of the partners. The general partner will determine the aggregate amounts and the times any distributions will be made. The limited partners are not personally liable for any obligations of the Partnership. Offices of the Partnership are located in San Antonio, Texas. The Partnership is a broker-dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Partnership operates under SEC Rule 15c3-3(k)(2)(ii). The Partnership is engaged in the buying and selling of listed and over-the-counter stocks, retailing of mutual funds, buying and selling corporate, municipal, and government debt instruments, as well as options and futures. The Partnership's business is conducted with customers located worldwide. The Partnership operates under a clearing agreement with Pershing LLC ("Pershing"), a Bank of New York Securities Group company, whereby Pershing clears transactions for the customers of the Partnership and carries the accounts of such customers on a fully-disclosed basis. The Partnership does not hold customer cash or securities in connection with such transactions. The Partnership has an introducing broker agreement with Rosenthal Collins Group, whereby Rosenthal Collins Group will clear all commodities related transactions and carry accounts of such customers on a fully-disclosed basis. The Partnership does not hold customer cash or securities in connection with such transactions The timing of the Partnership's revenue recognition may differ from the timing of payment by the Partnership's customers. The Partnership records a receivable when revenue is recognized prior to payment and have an unconditional right to payment. The Partnership had a receivables related to revenues from contracts with customers of \$9,382 at December 31, 2019 and \$17,057 at December 31, 2020 all of which were subsequently collected. The Partnership's federal and state income tax returns are subject to examination over various statutes of limitations generally ranging from three to five years. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. {7}------------------------------------------------ ## INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. Notes to Financial Statement December 31, 2020 # Note 1 - Summary of Significant Accounting Policies, continued ### Fair Value Measurements The Partnership uses various methods including market, income and cost approaches. Based on these approaches, the Partnership often utilizes certain assumptions that market participants would use in pricing of the research and including assumptions about risk and or the risks inherent in the inputs to the valuation technique. These in puts an be readily observable, market corroborated, or generally unobservable inputs. The Partnership univers verklation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques the Partnership is required to provide that following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock econdition which also includes U.S. Treasury and federal agency securities and Federal agency mortgage-baced securities, which are traded by dealers or brokers in active markets. Valuations are obtained from readily wailable pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3 - Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determing the fair value assigned to such assets or liabilities. For the year ended December 31, 2020, the application of valuation techniques applied to similar assets and liabilities has been consistent. The fair value of securities owned is deemed to be Level 1 investments. There were no transfers into or out of the Level 1, 2 and 3 categories in the fair value measurement hierarchy for the year ended December 31, 2020. The Partnership held no securities owned as of December 31, 2020. In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments-Credit Losses (Topic 326), which requires an organization to measure all expected credit losses for financial assets held at the reporting ate based on historical experience, current conditions, and reasonable and supportable forecasts. The standard requires an entity to estimate its lifetime expected credit loss and record an allowance, that when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the innancial asset. This forwardlooking expected loss model generally will result in the earlier recognition of allowances for losses. This Oripany adopted this ASU effective January 1, 2020 with no material impact on its financial stateonents. {8}------------------------------------------------ ## INTERCONTINENTAL ASSET MANAGEMENT GROUP, LTD. Notes to Financial Statement December 31, 2020 #### Note 2 - Net Capital Requirements Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Partnership is required to maintain a 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 Partnership has net capital of approximately \$523,825 and net capital requirements of \$250,000. The Partnership's ratio of aggregated indebtedness to net capital was .50 to 1. The Securities and Exchange Commission permits a ratio of no greater than 15 to 1. Capital distributions to partners can be made under a capital distribution policy approved by the Partnership's general partner. Periodic distributions approved by the Partner are made to enable partners to pay federal income taxes on partnership profits, among other purposes. ## Note 3 - Related Party Transactions The Partnership is a member of a group of affiliated companies under common control and has extensive transactions and relationships with members of the existence of that control could create operating results and financial position significantly different than if the companies were autonomous. The Company, and other entities that are under common ownership share office space, certain employees, and fixed assets. Officers' salaries and other overhead expenses of approximately \$300,000 for the year ended December 31, 2020 were allocated by an affiliate under common ownership to the Partnership. The Partnership has unsecured notes payable to partners for \$100,000 at 5%. The notes, including principal and accrued but unpaid interest shall be due and payable on or before November 26, 2028. Interest only on the unpaid principal balance of the Notes shall be due and payable as of November 25, 2020, and annually thereafter, until all amounts owed are paid in full. During the year ended December 31, 2020, the Partnership paid \$5,000 in interest to related parties. The Partnership serves as a conduit for fee payments from Pershing to an affiliated investment advisor. Funds are received from Pershing and remitted to the affiliate monthly. For the year ended December 31, 2020, the Partnership received, and subsequently remitted \$2,825,730. Note 4 - Concentration Risk At December 31, 2020, and at various other times throughout 2020, the Partnership had cash balances in excess of federally insured limits. #### Note 5 - Commitments and Contingencies Included in the Partnership's clearing agreement with its clearing broker-dealers, are indemnification clauses. These clauses relates to instances where the Partners fail to settle security and commodities transactions. In the event this occurs, the Partnership will indemnify the clearers to the extent of the net loss on the unsettled trade. At December 31, 2020, management of the Partnership had not been notified by the clearing brokerdealers, nor were they otherwise aware, of any potential losses relating to this indemnification. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.