# TOCQUEVILLE SECURITIES L.P. X-17A-5/A (2023-05-09) — Broker-dealer annual report
- Company: TOCQUEVILLE SECURITIES L.P.
- Form: X-17A-5/A
- Filed: 2023-05-09
- Period: 2022-12-31
- Accession: 0000859899-23-000011
- CIK: 859899
- File #: 8-42223
- Type: Broker-dealer
- Material weakness: No
- Auditor: Citrin Cooperman & Company, LLP
- Auditor location: White Plains, NY
- Contact: Helen Balk
- Phone: 212-698-0814
- Email: hbalk@tocqueville.com
- Website: tocqueville.com
- Signed by: Scott Schlesinger (President & COO)
Original filing: https://www.sec.gov/Archives/edgar/data/859899/000085989923000011/Public.pdf
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## TOCQUEVILLE SECURITIES L.P. STATEMENTS OF FLNANCIAL CONDITION
DECEMBER 31, 2022 AND 2021
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-5 PART Ill FACING PAGE OMS APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden !\ours per response: 12 SEC FILE NUMBER 8-42223 Information Required Pursuant to Rules 17a·5, 17a·12, and 18a·7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 01/01 /22 MM/00/YY AND ENDING 12/31 /22 MM/00/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Tocqueville Securities L.P. TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer 0 Security-based swap dealer 0 Check here if respondent is also an OTC derivatives dealer 0 Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.) 40 W 57th Street 19th Floor (No. and Street) New York NY 10019 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Helen Balk 212-698-0814 hbalk@tocqueville.com (Name) (Area Code - Telephone Null!lber) {Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Citrin Cooperman & Co1 mpany. LLP {Name - if individual, state last, first, and middle name) 709 Westchester Avenue White Plains NY 10604 (Address) (City) (State) (Zip Code) 11/02/2005 2468 rt< of''''"'"''" with PCAOB)(lf •Pl>lk•bl•J FOR OFFICIAL USE ONLY (PCAOB R•~•1"tloo N"mb•<. If •Pl>li"bl•I I • Claims for exemption from the requirement that the annual reports be covered by the repolits 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-S(e){l)(ii), if applicable.
Persons who are to respond to the collection of information contained in this form are not re,quired to respond unless the form displays a currently valid OMB control number.
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#### OATH OR AFFIRMATION
I, Seoll Schlesinger swear (or affirm) that, to the ben of my knowledge and belief, the financial report pertaining to the firm of Tocqueville Securities LP. as of
12/31 2~ is true and correct. I further 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.
> HEATHER J PERLMUTTER Notary Public - Slate of New York No. 01PE6361865 Qualified in New York County ( Commission Expires July 17, 201-
Title: *7* President & COO
No~
This flllng\*\* contains (check all applicable boxes):
- (a) Statement of financial condition.
- 91 (b) Notes to consolidated statement of financial condition.
- 0 (c) Statement of income (loss) or, if there is other comprehensive inco.me 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.
- 0 (e) Statement of changes. In stockholders' or partners' or sole proprietor's equity.
- 0 (f) Statement of changes In Ila bllitles suboridinated to claims of credlto rs.
- 0 (g) Notes to consolidated financial statements.
- 0 (hi computation of net capita I under 17 CFR 240.15c3•1 or 17 CFR 240.lBa·l, as applicable.
- 0 (i) Computation of tangible net worth under 17 CFR 240. lSa-2.
- 0 (J) Computation for determlnatlon of customer teser'Ve requirements pursuant to E>chlbit A to 17 CFR 240.15c3-3.
- 0 (k) Computation for determination of security-based swap reserve requirements pursuan t to Exhibit B to l.7 CFR 240.l5c3-3 or Exhibit A to 17 CFR 240.18a·4, as applicable.
- 0 (I) Computation for Determination of PAB !Requirements under Exhibit A to§ 240.1Sc3·3.
- 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- 0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3·3(p}(2) or 17 CFR 240.18a·4, as applicable.
- 0 (o) Reconciliations, including appropriate e:xplanatlons, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3·1, 17 CFR 240.lSa·l, or 17 CFR 240.18a·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 stat ement that no material differences exist.
- 0 (p) Summary of financial data for subsidiarfes not consolidated In the statement of financial condition.
- (q) Oath or affirmation In accordance with 17 CFR 240.l 7a-S, 17 CFR 240.17a-12, or 17 C.FR 240.18a-7, as applicable.
- 0 (r) Compliance report In accordance with 17 CFR 240.17a-5or17 CFR 240.18a-7, as applicable.
- 0 (s) Exemption report in ac:cordance with 17 CFR 240.17a-S or 17 CFR 240.lBa-7, as applicable.
- {t) Independent public accountant's report based on an examination <>f the statement off financial condition.
- 0 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 24C>.17a-S, 17 CFR 24.0.18a-7, or 17 CFR 240.17a-12, as applicable.
- 0 (v) Independent public accountant's report based on an examination of certain statements In the compllarnce report under 17 CFR 240.17a-5 or 17 CFR 240.l Sa-7, as applicable.
- 0 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable.
- 0 (x) SVpjDlemental reports on applying agreed-upon procedures, In accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-1Z, as applicable.
- 0 (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). 0 (z) Other=---------------- -------------------
-
- 0ro request confidential treatment of certa/11 portions of this //ling, see 17 CFR 240.lla-S(e){3) or 17 CF:R 240.18o-7(d){2), as applicable.
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#### DECEMBER 31, 2022 AND 2021
#### CONTENTS
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
#### FINANCIAL STATEMENTS
| Statements of Financial Condition | 2 | | |
|--------------------------------------------|-------------|--|--|
| Notes to Statements of Financial Condition | 3
-
8 | | |
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# TOCQUEVILLE SECURITIES L.P. STATEMENTS OF FINANCIAL CONDITION DECEMBER 31, 2022 AND 2021
#### ASSETS
| 2022 | | 2021 | | |
|------------------------------|----|---------------|----|------------|
| Cash and cash equivalents | \$ | 1,901
,258 | \$ | 1,711,420 |
| Commissions receivable | | 221,389 | | 95,095 |
| Distribution fees receivable | | 93,327 | | 125, 179 |
| Due from clearing broker | | 21,135 | | 36,547 |
| Due from limited partner | | | | 8,835 |
| Prepaid expenses and otber | | 60,126 | | 70,164 |
| Cl earing deposit | | 100 000 | | 100 000 |
| Total Assets | \$ | 2,397,235 | \$ | 2, 147,240 |
#### LIABILITIES AND PARTNERS' CAPITAL
| LIABILITIES | | |
|-----------------------------------------|-----------------|---------------------|
| Accounts payable and accrued expenses | \$
147,197 | \$
137,335 |
| Accrued distribu
tion fees | 57,795 | 72,937 |
| Due to limited partner | I 15,334 | |
| Total Liabilities | 320,326 | 210,272 |
| Commitments and contingencies (Note 4) | | |
| PARTNERS' CAPITAL | | |
| General partner | 20,769 | 19,370 |
| Limjted partner | 2,0
56,140 | 1,917,598 |
| Total Partners' Capital | 2,076,909 | 1,936,968 |
| Total Liabilities and Partners' Capital | \$
2,397,235 | \$
2,
147,240 |
See accompanying notes to statements of financial condition.
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### NOTES TO STATEMENTS OF FINANCIAL CONDITION
#### DECEMBER 31, 2022 AND 2021
#### 1. ORGANIZATION
Tocqueville Securities L.P. (the "Partnershjp") was formed as a limited partnership under the laws of the State of Delaware on January 4, 1990. The Partnership is a broker-dealer in securities registered with the Securities and Excb ange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The general partner is Tocqueville Management Corp. ("TMC"), which owns a l % interest in the Partnership, and the limited partner is Tocqueville Asset Management L.P. ("TAMLP"), whicll owns a 99% interest in the Partnership. As a limited pa1tnership, the limited partner is not responsible for the debts of the Partnership unless the limited partner bas specifically guaranteed the debts of the Partnersh ip. Profits aud losses are allocated 1 % to TMC and 99% to T AMLP. Distributions are made to the partners in the same manner in which profits and losses are allocated.
The principal business of the Partnership is to act as a broker and dealer in securities and to engage in other businesses as the general partner may determi.ne. The Partnership, as an agent for the funds of the Tocqueville Trust (the "Trust1'), sells the shares of the funds in the Trust. The Trust is a Massachusetts business trust organized in 1986 consisting of three separate investment company funds comprised of The Tocqueville Fund, The Tocqueville Opportunity Fund, and The Tocqueville Phoenix Fund (collectively, the "Funds"). In November 2022, The Tocqueville Opportunity Fund, and The Tocqueville Phoenix Fund were merged into The Tocqueville Fund.
### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
#### Basis of Accounting
The Partnership's statements of financial condition were prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
#### Use of Estimates
The preparation of statements of financial condition in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amo,unts of assets and liabilities and the disclosure of contingent assets and I iabil ities at the date of the financial statements. Actual results could differ from those estimates.
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### NOTES TO STATEMENTS OF FIN AN CI AL CONDITION
### DECEMBER 31, 2022 AND 2021
### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
### Brokerage Commissions
The Partnership buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Partnersltip charges a commission. The commissions receivable balance at December 31, 2020 was \$216, 194. The commissions receivable balances as of December 3 I, 2022 and 2021 , were \$22 1,389 amd \$95,095, respectively.
### Distribution Fees
The Partnersl1ip has entered into contracts with the Funds whereby the Partnership is paid monthly fees ("12b-1 fees") for providing certain services to customers and distributing shares of the Funds. The 12b-I fees are generally equal to a fixed percentage of tbe average daily net assets of the funds for which the PartneTship is a distributor and are recognized as revenue at a point in time monthly. Payments are generally collected when due. The passage of time reflects the satisfaction of the Partnership's performance obligations to the Funds. The distribution fees receivable balance at December 31, 2020, was \$U4,755. The distribution fee receivable balances as of December 31 , 2022 and 202 1, were \$93,327 and \$125,179, respectively.
#### Cash and Cash Equivalents
At December 31, 2022 and 2021, cash and cash equivalents include demand deposits and a Dreyfus Government Money Market Fund. The Partnership considers temporary cash investments with an original maturity of three months or less to be cash equivalents.
#### Credit Risk
The Partnersbjp maintains its cash with various financial institutions in amounts that at times may exceed the federal insurance limit. The Partnership monitors the credit quality of the financial institutions and did not believe there is. any significant credit risk with respect to cash.
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### NOTES TO STATEMENTS OF FINANCIAL CONDITION
## DECEMBER 31, 2022 AND 2021
### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
#### Credit Risk (continued)
Concentrations of credit risk with respect to commissions and fees receivable are with affiliated and unrelated companies. The Partnership reviews tl1eir backgrounds and credit history before entering into agreements with them. Allowances for possible Josses, if any, are provided based on factors surrounding the credit risk of the receivables, historical trends, and other information. Management does not bdieve an allowance for possible losses was necessary as of December 31, 2022 and 202 l.
### Income Taxes
As a partners hip for federal and state tax purposes, the Partnership's taxable income or loss is allocated to its partners in accordance with their respective percentage ownership. Therefore, no provision or liability for federal or state income taxes has been included in the accompanying financial statements. The Partnership remains subject to the New York City unincorporated business tax.
The Partnership recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board ("F ASB") Accounting Standards Codification ("ASC") 74C>, *Income Taxes.* Under that guidance, the Partnership assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new infonnation is available or when an event occurs that requires a change.
The Partnership is subject to tax examinations by taxing authorities.
### Current Expected Credit Losses
The Company accounts for estimated credit losses on financial assets in accordance with F ASB ASC 326, *Financial Instruments* - *Credit Losses.* Current Expected Credit Losses ("CECL") requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL method ology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for loans, cash and cash equivalents, and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses.
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## NOTES TO STATEMENTS OF FINANCIAL CONDITION
### DECEMBER 31, 2022 AND 2021
### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
#### Current Expected Credit Losses (continued)
For financial assets measured at amortized cost (e.g., cash and cash equivalents, commission receivables, and due from clearing broker), the Partnership has. concluded that there are de minimis expected credit los.ses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected losses.
#### Subsequent Events
The Partnership has perfom1ed an evaluation of events that have occurred subsequent to December 3ll, 2022, and tllrough March l, 2023 , the date ofth.e filing oftbjs report.
There have b-een no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be Tecognized in the financial statements as of December 3 I, 2022.
#### 3. NET CAPITAL REQUIREMENTS
The Partnership is subject to the SEC's Uniform Net Capital Rule ("Rule I 5c3-l "), which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to l (Rule I 5c3-I also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to I). At December 31, 2022, the Partnership had regulatory net capital of \$1 ,880,423, which was \$1 ,855,423 in excess of its required net capital of \$25,000. At December 3 I , 2022, the Partnership's ratio of aggregate indebtedness to net ca]pital was 0.17 to I. The Partnership operates under the exemptive provisions of paragraph (k)(2)(ii) of SEC Rule l 5c3-3 and other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to I 7 C.F.R §240. I 7a-5, and did not maintain possession or control of any customer funds or securities as of December 3 1 ~ 2022.
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### NOTES TO STATEMENTS OF FINANCIAL CONDITION
### DECEMBER 31, 2022 AND 2021
### 4. INDEMNIFICATION
The Partnership functions as an introducing broker that places and executes customer orders. The orders are then settled by an unrelated clearing organization that maintains custody of customers' securities and provides financing to customers\_ Through indemnification provisions itt agreements with the Partnership's clearing broker, customer activities may expose the Partnership to off-balance-sheet credit risk. Financial instruments may have to be purchased or sold at prevailing market prices in the event a customer fails to settle a trade on its original terms or in the event cash and securities in a customer's margin accounts are not sufficient to fully cover that customer's obligations.
The Partnership seeks to control the risks asso ciated with customer activities through customer screening and selection procedures, as well as through requirements on customers to maintain margin collateral in compliance with various regulations and clearing organization policies.
### 5. DISTRIBUTION FEES
The Partnership is the distributor of the Funds' shares. The Partnership has entered into distribution agreements with the Funds pursuant to which the Partnership receives a monthly fee at an annual rate not to exceed 0.25 percent of average daily net assets of the Funds. The distribution fees receivable at December 31, 2020, were \$114,754. As of December 3 1, 2022 and 2021, the Partnership had distribution fees receivable of \$93,327 and \$125,179, respectively. Arn accrual has been established for fees that are due to unrelated brokers in the amount of \$57,795 and \$72, 937 at December 31, 2022 and 2021, respectively.
### 6. TAX DEFERRED SA VIN GS PLAN
TMC maintains a tax deferred savings plan (the «Plan").
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#### **NOTES TO STATEMENTS OF FIN AN CI AL CONDITION**
#### **DECEMBER 31, 2022 AND 2021**
#### **7. RELATED PARTY TRANSACTIONS**
*Expense Sharing Arrangement*
The Partnership is party to an expense sharing arrangement with its general partner, TMC, and TAMLP (the "ESA"). The ESA provides for the allocation of certain expenses (salaries, payroll taxes, rent, management services and general administrative expenses) between the Partnership and T AMLP based on each entity's estimated contribution to gross income. The Partnership reimburses T AMLP for its portion of the expenses paid. At December 31 , 2021 , the Partnership was owed \$8,835 from T AMLP. At December 31 , 2022, the Partnership owed \$115,334 to TAMLP for the advance payment of services.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.