# MERCER ALLIED COMPANY, L.P. X-17A-5 (2022-03-01) — Broker-dealer annual report - Company: MERCER ALLIED COMPANY, L.P. - Form: X-17A-5 - Filed: 2022-03-01 - Period: 2021-12-31 - Accession: 0000932517-22-000003 - CIK: 932517 - File #: 8-47739 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers - Auditor location: New York, NY - Contact: Richard Bertani - Phone: 518-886-4309 - Email: richard.bertani@gs.com - Website: gs.com - Signed by: Shelley Luks (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/932517/000093251722000003/merceralliedfs2021.pdf --- {0}------------------------------------------------ # Mercer AI I ied Company, L.P. Financial Statements and Supplemental Schedules Pursuant to Rule 17a-5 of the Securities and Exchange Commission As of December 31, 2021 and for the year then ended {1}------------------------------------------------ ### UNITED STATES OMB APPROVAL SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Estimated average burden | ANNUAL REPORTS | SEC FILE NUMBER | |----------------|-----------------| | FORM X-17A-5 | 8-47739 | | PART III | | | SEC FILE NUMBER | | |-----------------|--| | 8-47739 | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under | FACING PAGE | | the Securities Exchange Act of 1934 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------|--------------------------------------------|--|--|--|--| | FILING FOR THE PERIOD BEGINNING | 01/01/21 | AND ENDING | 12/31/21 | | | | | | | MM/DD/YY | | M M/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | NAME OF FIRM: Mercer Allied Company, L.P. | | | | | | | | | 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.) | | | | | | | 100 Coliseum Drive | | | | | | | | | | (No. and Street) | | | | | | | | Cohoes | New York | | 12047 | | | | | | (City) | (State) | | (Zip Code) | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | Richard Bertani | 518-886-4309 | richard.bertani@gs.com | | | | | | | (Name) | (Area Code —Telephone Number) | | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | I NDEPENDENT PUBLIC ACCOUNTANT whose reports are contained
PricewaterhouseCoopers | | in this filing* | | | | | | | | (Name — if individual, state last, first, and middle name) | | | | | | | | 300 Madison Avenue | New York | New York | 10017 | | | | | | (Address) | (City) | | (State)
(Zip Code) | | | | | | October 20, 2003 | | 238 | | | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | ~iauiia iii cnciuNu~n n~in Inc icyuucinen~ uia~ uic aniwai icNviu ue ~weicu uy uie iepuru of an inaepenaent puonc 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}------------------------------------------------ #### OATH OR AFFIRMATION Shelley Luks ~ ~ financial report swear (or affirm) that, to the best of my knowledge and belief, the pertaining to the firm of Mercer Allied Company, L.P. December 31 as of partner, , 2 021 , is true and correct. I further swear (or affirm) that neither the company nor any as that officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely of a customer. ~ ~~~~~ Title: ('~mmission Expires 5J3U1~ Signature: ~\_ NotarrPubiic-NYq Chief Financial Officer °~e~~ga Co• ~lSH467592" N tart' u lic #### This filing\*\*contains (check all applicable boxes): - ~{a) Statement of financial condition. - ❑ (b) Notes to consolidated statement of financial condition. - ~ (c) comprehensive Statement of income (loss) or, if there is other comprehensive income in the periods) presented, a statement of income (as defined in § 210.1-02 of Regulation S-X}. - ~(d) Statement of cash flows. - ~(e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - LXI (g) Notes to consolidated financial statements. - ~(h}Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. ❑ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - - [~ {j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. ( - E k) xhibit Computation A to 17 CFR for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or 240.18a-4, as applicable. - ❑ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - ~ ❑ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. (n) - 2 Information relating to possession or control requirements for security-based swap customers under 17 CFR 40.15c3-3{p)(2) or 17 CFR 240.18a-4, as applicable. - [BI (o) worth Reconciliations, under 17 CFR including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net CFR 240.15c3-3 or 17 240.15c3-1, CFR 17CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 exist. 240.18a-4, as applicable, if material differences exist, or a statement that no material differences - ❑ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ❑ (q) (r} Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240,17a-12, or 17 CFR 240.18a-7, as applicable. Compliance report in accordance with 17 CFR 240.17a-5 or 17 CfR 240.18a-7, as applicable. - ~ - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ~❑ (t) Independent public accountant's report based on an examination of the statement of financial condition. (u) Independent - CFR 240.17a-5, 17 public CFR accountant's report based on an examination of the financial report or financial statements under 17 240.18a-7, or 17 CFR 240.17a-12, as applicable. ❑ (v) - CFR Independent 240.17a-5 or public 17 accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.18a-7, as applicable. - fXl (wJ CFR Independent 24d.18a-7, public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 as applicable. - ( a x} sapplicable. Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, - ❑ (y} a statement Report describing that any material inadequacies found to exist or found to have existed since the date of the previous audit, or no material inadequacies exist, under 17 CFR 240.17x-12(k}. ❑ (z) Other: \*\*To applicable. requesT confidential treatment of certain portions of this filing, see 17 CFR 240.17x-5(e)(3) or 17 CFR 240.18x-7(d)(2), as {3}------------------------------------------------ | Pages) | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | Report of Independent Registered
Public Accounting Firrn
1-2 | | | Financial Statements | | | Statement of Financial Condition
3 | | | Statement of Earnings
4 | | | Statement of Changes in Partners'
Capital
5 | | | Statement of Cash Flows
6 | | | Notes to Financial Statements
7-10 | | | Supplemental Schedules | | | Computation of Net Capital under
Rule 17 CFR 240.15c3-1 of
the Securities and Exchange
Commission (Schedule I)
11 | | | I nformation for Determination
of Reserve Requirements
under Rule 17
CFR 240.15c3-3 of the Securities
and Exchange Commission (Schedule
II) 12 | | | I nformation Relating to Possession
or Control Requirements under Rule
17
CFR 240.15c3-3 of the Securities
and Exchange Commission
(Schedule III)
13 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Report of Independent Registered Public Accounting Firm To the Partners of Mercer Allied Company, L.P.: ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Mercer Allied Company, L.P. (the "Company") as of December 31, 2021, and the related statements of earnings, changes in partners' capital and cash flows for the year then ended, including 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, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion e These financial statements are the responsibility of the Company's management. Our responsibility is to xpress 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 of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Supplemental Information The accompanying Computation of Net Capital under Rule 17 CFR 240.15c3-1 of the Securities and Exchange Commission (Schedule I), Information for Determination of Reserve Requirements under Rule 17 CFR 240.15c3-3 of the Securities and Exchange Commission (Schedule II) and Information Relating to Possession or Control Requirements under Rule 17 CFR 240.15c3-3 of the Securities and Exchange Commission (Schedule III) as of December 31, 2021 (collectively, the "supplemental information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial PricewaterhouseCoopers LLP, PricewaterhouseCoopers Center, 30o Madison Avenue, New York, NY iooi~ T: (646) 47i 3000, F: (8i3) 286 6000, www.pwc.com/us {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental i nformation, including its form and content, is presented in conformity with Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. ~ ut~c,,a~~~,,n.c.~Cc~, G~ February 28, 2022 We have served as the Company's auditor since 1994. {6}------------------------------------------------ # Mercer Allied Company, L.P. Statement of Financial Condition As of December 31, 2021 | Assets | | |-----------------------------------------|------------------| | Cash | \$ 15,483,473 | | Commissions receivable | 6,443,658 | | Due from affiliates | 6 | | Prepaid expenses | 141,084 | | Total assets | \$
22,068,221 | | | | | Liabilities and partners'
capital | | | Other liabilities and accrued expenses | \$
80,072 | | Due to affiliates | 8, 550,446 | | I ncome tax payable | 1,162, 520 | | Total liabilities | \$
9,793,038 | | | | | Partners' capital | 12,275,183 | | Total liabilities and partners' capital | \$
22,068,221 | | | | {7}------------------------------------------------ # Mercer Allied Company, L.P. Statement of Earnings For the Year Ended December 31, 2021 | Revenue | | |---------------------------------------|-------------------| | Brokerage commissions | | | I nterest income | \$ 67,897,107 | | Total revenue | 18,227 | | | 67,915,334 | | Operating expenses | | | Administrative charges
-affiliates | | | Licenses | 45,267,551 | | Professional fees | 1,208,795 | | Total operating expenses | 98,059 | | | 46, 574,405 | | Pre-tax earnings | 21, 340, 929 | | Provision for taxes | | | | 5,169,129 | | Net earnings | | | | \$
16,171, 800 | | | | {8}------------------------------------------------ # Mercer Allied Company, L.P. Statement of Changes in Partners' Capital For the Year Ended December 31, 2021 | | General
Partner | Limited
Partner | Total | |-------------------------------|--------------------|--------------------|---------------| | Balance, December 31,
2020 | \$
121,033 | | | | Net earnings | | \$ 11,982,350 | \$ 12,103,383 | | | 161,718 | 16,010,082 | 16,171,800 | | Distributions to Partners | (160,000) | (15,840,000) | (16,000,000) | | Balance, December 31,
2021 | \$
122,751 | \$ 12,152,432 | \$ 12,275,183 | {9}------------------------------------------------ # Mercer Allied Company, L.P. Statement of Cash Flows For the Year Ended December 31, 2021 | Cash flows from
operating activities | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------| | Net earnings | | | Changes in operating assets
and liabilities | \$ 16,171,800 | | Commissions receivable
Prepaid expenses
Other liabilities and accrued
expenses
Due to affiliates
Due from affiliates
I ncome tax payable
Net cash provided by operating
activities | (510,456)
809,870
7,905
2,702,610
1,790
160,299
19,343,818 | | Cash flows from
financing
activities
Distributions to Partners
Net cash used for financing activities | (16,000,000)
(16,000,000) | | Net increase in cash | 3,343,818 | | Cash, beginning of year | 12,139,655 | | Cash, end of year | \$ 15,483,473 | | | | SUPPLEMENTAL DISCLOSURE Cash payments for income taxes, net of refunds, were \$5,008,830. {10}------------------------------------------------ #### 1. Description of Business o M f ercer Limited Allied Company, L.P. (the Partnership) is a limited partnership which executed its Certificate commenced Partnership operations in the State of Delaware as of October 5, 1994. The Partnership, which Financial Industry on December 10, 1994, is a securities broker-dealer registered with the December 31, 2044. Regulatory Authority (FINRA). The Partnership is scheduled to expire life insurance The Partnership, through employees of affiliated companies, places variable policies and variable annuities with insurance carriers and earns a commission. s G ubsidiary SAyco Holding LLC (Parent) is the general partner of the Partnership and awholly-owned partner of the of The Partnership Goldman Sachs Group, Inc. (Group Inc). The Ayco Company, L.P. is the limited and is also an affiliate of the Partnership. # 2. Basis of Presentation and Significant Accounting Policies T i n hese the United financial States statements are prepared in accordance with accounting principles generally accepted (U.S. GAAP). #### Use of Estimates a P ssumptions. reparation of These these financial statements requires management to make certain estimates and actual results could be estimates and assumptions are based on the best available information but materially different. #### Cash C I nsurance ash balances Corporation are maintained at two institutions, each of which is insured by Federal Deposit accounts. The (FDIC) up to \$250,000. These cash balances are held in interest bearing \$14,983,473 at December aggregate bank balances in excess of FDIC limits at these institutions were 31, 2021. #### Revenue Recognition T policies he Partnership with earns brokerage commissions for placing variable annuity and variable life insurance residual commissions. insurance carriers. Brokerage commissions consist of new business commissions and a New percentage business of commissions premiums are recognized at the time of the sale or purchase (trade date basis) as performance obligation paid based on the rate specified within the effective policy agreement. The effective (insurance is satisfied on the trade date as that is when the insurance policy becomes New business commissions binder in place), and the premium has been collected by the insurance carrier. totaled \$61,656,453 for the year ended December 31, 2021. R have esidual been commissions in place are earned on active variable life insurance and variable annuity policies that time that an active for longer than one year. The performance obligation is satisfied at the point in based on the policy holder renews their existing policy, and is earned for active policy holders applied to the trailing rate and payment frequency noted within the insurance carrier fee schedule December 31, current premium balance. Residual commissions totaled \$6,240,654 for the year ended 2021. #### Commissions Receivable C be ommissions paid by the receivable insurance relate to brokerage commissions that have been earned but have yet to subsequently carrier. These receivables are initially collected by an affiliate and amount of credit remitted to the Partnership. Due to the short term nature of these receivables, the time, generally exposure is limited to the amount owed to the Partnership for a short period of receivables. less than 30 days. As such, no allowance for credit losses is held against these {11}------------------------------------------------ # 3. Amended and Restated Limited Partnership Agreement A limited llocations partner of income and 1% and to losses the are generally pro rata according to ownership interest (99% to the amended and restated limited general partner), except in certain circumstances as outlined in the on a prescribed formula. partnership agreement whereby income and loss allocations are based #### 4. Related-Party Transactions s T ignificant he Partnership impact has on the significant Partnership's transactions with affiliated companies. These transactions have a financial condition, earnings and cash flows. w The ith Partnership, insurance carriers through relationships of affiliated companies, places insurance policies for clients through relationships of and earns brokerage commissions. Total brokerage commissions earned \$67, 897,107. affiliated companies for the year ended December 31, 2021 amounted to P T arent he Partnership, and other affiliates, which has no employees, is provided operational and administrative support by its related to commissions for which the Partnership was charged \$45,267,551, ofwhich \$20,824,593 amounted to \$8,550,446. expense. At December 31, 2021, amounts due to Parent for such services #### 5. Net Capital Requirements T Exchange he Partnership Commission is a registered (SEC), U.S. broker-dealer subject to Rule 15c3-1 of the Securities and that the ratio of aggregate which requires the maintenance of minimum net capital and requires There are restrictions on indebtedness to net capital, both as defined, shall not exceed 15 to 1. operations if aggregate indebtedness exceeds ten times net capital. e A xcess t December of its minimum 31, 2021, required the Partnership had net capital of \$5,690,435, which was \$5,037,565 in net capital of \$652,870. T received he Partnership in connection is exempt with from SEA Rule 15c3-3 as the Partnership promptly transmits all funds securities for, or owe money its activities as abroker-dealer, and does not otherwise hold funds or provisions of SEA Rule 15c3-3 or securities to, customers. The Partnership claims exemption from the activities are limited under the Securities Exchange Act of 1934 in that the Partnership's Rule 15c3-3. to those set forth in the conditions for exemption appearing in section (k)(1) of #### 6. Income Taxes #### Provision for Income Taxes a The corporation Partnership for tax has purposes, elected to be taxed as a corporation for U.S. Federal income tax purposes. As i ncome taxes on its earnings. the Partnership is subject to U.S. Federal and various state and local consolidated corporate federal The Partnership is included with Group InC. and subsidiaries in the tax return as well as the consolidated/combined returns. state and local tax T l iabilities he Partnership with Group computes its tax liability on a modified separate company basis and settles such generates tax Inc. pursuant to the tax sharing arrangement. To the extent the Partnership arrangement. The benefits from losses it will be reimbursed by Group Inc. pursuant to the tax sharing consolidated/combined Partnership's state and local tax liabilities are allocated to reflect its share of the state and local income tax liability. {12}------------------------------------------------ a I ncome nd liabilities taxes are are recognized provided for for using temporary the asset and liability method under which deferred tax assets of assets and liabilities. The Partnership differences between the financial reporting and tax bases provision for taxes and income tax reports interest expense related to income tax matters in penalties under operating expenses. The table below presents the components of the provision for taxes. | Current taxes: | | |------------------------|---------------| | U.S. Federal | | | State and local | \$4, 298, 842 | | Provision
for taxes | 870,287 | | | \$5,169,129 | T pretax he difference earnings between by the federal the reported provision for taxes and the amount computed by multiplying true up for prior years was a net statutory tax rate is primarily attributable to state and local taxes. The tax benefit of \$43,927. R I n escue March Plan 2021, is a the \$1.9 American trillion Rescue Plan Act of 2021 (Rescue Plan) was signed into law. The i mpacts of the COVID-19 stimulus package enacted to help address the economic and health Partnership's annual effective pandemic. The legislation did not have a material impact on the tax rate. i I ncreased nApril 2021, the the NYS New York State (NYS) FY 2022 budget was enacted. The legislation temporarily 2023. The legislation corporate income tax rate from 6.5% to 7.25% for calendar years 2021 through did not have a material impact on the Partnership's annual effective tax rate. #### Deferred Income Taxes r D eporting eferred and income tax taxes bases reflect of assets the net tax effects of temporary differences between the financial deductible amounts in future years and liabilities. These temporary differences result in taxable or effect when such differences are and are measured using the tax rates and laws that will be in reduce deferred tax assets to the amount expected to reverse. Valuation allowances are established to 2021, no deferred tax liabilities or that more likely than not will be realized. At December 31, was required. deferred tax assets were recognized and no valuation allowance #### Unrecognized Tax Benefits T not he that Partnership the position recognizes will be sustained tax positions in the financial statements only when it is more likely than technical merits of the position. A position on examination by the relevant taxing authority based on the of benefit that will more likely than that meets this standard is measured at the largest amount differences between positions taken not be realized on settlement. A liability is established for statements. As of December 31, in a tax return and amounts recognized in the financial for uncertainty in income 2021, the Partnership did not record a liability related to accounting taxes. #### Regulatory Tax Examinations t T axing he Partnership authorities is in subject jurisdictions to examination by the U.S. Internal Revenue Service (IRS) and other New York State and City. The where the Partnership has significant business operations such as tax years under examination vary by jurisdiction. {13}------------------------------------------------ # Mercer Allied Company, L.P. Notes to Financial Statements December 31, 2021 o G f roup the Inc. has been accepted into the Compliance Assurance Process program by the IRS for each identify tax and years resolve from 2013 through 2022. This program allows Group Inc. to work with the IRS to for potential U.S. Federal tax issues before the filing of tax returns. The fieldwork a material tax years 2011 through 2018 has been completed and the final resolution is not expected to have review. New impact on the effective tax rate. The 2019 and 2020 tax years remain subject to post-filing York State and City examinations of 2015 through 2018 commenced during 2021. ### 7. Subsequent Events o T f he the Partnership statement has evaluated whether any events or transactions occurred subsequent to the date statements of financial condition and through February 28, 2022, the date the financial require recognition were issued, and determined that there are no material events or transactions that would or disclosure in these financial statements. {14}------------------------------------------------ ## Net capital | Total partners' capital | | |-----------------------------------------------------------------------------------------------------------------------------------|------------------| | Deductions | \$
12,275,183 | | Non-allowable assets
—commissions receivable,
due from affiliates
and
prepaid expenses
Net capital | (6,584,748) | | | \$
5,690,435 | | Aggregate indebtedness | | | Total aggregate indebtedness
liabilities (included
in the Statement
of
Financial Condition) | \$
9,793,038 | | Total aggregate indebtedness
Percentage of aggregate | \$
9,793,038 | | indebtedness
to net capital
Percentage of debt to
debt-equity total
computed in accordance
with
Rule 15c3-1 (d) | 172.10%
- | | Computation
of basic
net capital | | | Minimum net capital
required (6-2/3% of
aggregate indebtedness)
Minimum dollar net | \$
652,870 | | capital requirement
of reporting broker
or dealer
Net capital requirement | \$
5,000 | | | \$
652,870 | | Excess net capital | \$
5,037,565 | | Excess net capital at 1000%
(net capital less 10%
of aggregate indebtedness) | \$
4,711,131 | # Statement pursuant to paragraph (d)(4) of Rule 17a-5 T prepared here are by no the differences Partnership between included this computation of net capital and the corresponding computation onJanuary 22, 2022. in its unaudited Part IIA FOCUS Report as of December 31, 2021 filed {15}------------------------------------------------ T under he Partnership paragraph has claimed exemption from Rule 15c3-3 of the Securities and Exchange Commission (k)(1) of that rule. t T he here information are no differences reported between the above Information for Determination of Reserve Requirements and 2021 filed on January 22, by the Partnership in its unaudited Part IIA FOCUS Report as of December 31, 2022. {16}------------------------------------------------ T under he Partnership paragraph has claimed exemption from Rule 15c3-3 of the Securities and Exchange Commission (k)(1) of that rule. a T nd here are no differences between the above Information Relating to Possession or Control Requirements 31, 2021 the information reported by the Partnership in its unaudited Part IIA FOCUS Report as of December filed on January 22, 2022. {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Management and the General Partner of Mercer Allied Company, L.P.: a W ccompanying ehave reviewed Mercer Mercer Allied Allied Company, Company, L.P.'s (the "Partnership") assertions, included in the 17 C.F.R. § 240.15c3-3(k)(1), as the L.P.'s exemption report, in which (1) the Partnership identified provision under which the Partnership claimed an exemption from i 1 dentified 7 C.F.R. exemption § 240.15c3-3 provision (the "exemption throughout provision") and (2) the Partnership stated that it met the the year ended December 31, 2021 without exception. The e P xemption artnership's provision management throughout is responsible for the assertions and for compliance with the identified the year ended December 31, 2021. O O versight ur review Board was conducted (United States) in accordance with the standards of the Public Company Accounting and, accordingly, included inquiries and other required procedures to s o ubstantially btain evidence less about in scope the than Partnership's an examination, compliance with the exemption provision. A review is the objective of which is the expression of an opinion on managements assertions. Accordingly, we do not express such an opinion. B m ased anagements on our review, assertions we are referred not aware to of any material modifications that should be made to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(1) of 17 C.F.R. § 240.15c3-3. ~~:cc~,a~~c~,,c.~Cc,~, G~ February 28, 2022 {18}------------------------------------------------ # Mercer Allied Company, L.P.'s Exemption Report p M romulgated ercer Allied by Company, the Securities L.P. and (the Exchange "Partnership") is a registered broker-dealer subject to Rule i~a-5 Commission (i~ C.F.R. §24o.i~a-5, "Reports to be made by 5(d)(i) certain and brokers (4). and Tv the dealers"). best of its This Exemption Report was prepared as required by 1~ C.F.R. § 24o.i~a- knowledge and belief, the Partnership states the following: (1} The Partnership claimed an exemption from i~ C.F.R. § 24o.15c3-3 under the following provision of 1~ C.F.R. § z4o.i5c3-3 (k}:(i). (2) The Partnership met the identified exemption provision in ~~ C.F.R. § 24o.15c3-3(k) throughout the most recent fiscal year ended December 31, 2o2i without exception. Mercer Allied Company, L.P. 1, Shelley Luks, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. Shelley Luks Chief Financial Officer, Treasurer February 28, 2022 An Affiliate of The Ayeo Company, L.P. Ayco mar pro: ide tax advice to clients in accordancewith its cliznt agreement.Any advice contained in this communication, including attachments and enclosures, is ir~ter,~ec! fur tl7e sole u,e Uf the addressee and is limited to the facts ar~ci circumstances actually known to the author at ti,e time of this ~nnUng. Certain tart matters may requireyou to cansultwith your tax counsel. Yrw should consult with your tax prep~rer regarding impienuntation of L-ax advice. I nswance services are pro~iiecl by ~nsuranc~ a~erxies affiliated vrf[h Ntet~ert~ll~ed Compary. LP. Mailing Address/ PO Box 15073, lxlbany, t~Y 12212-5073 Street Address! 100 Coliseum Drive, Cohoes, NY 120347-38A6 Telephone! 518.464.20dQ {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) # Report of Independent Accountants To the Management and the General Partner of Mercer Allied Company, L.P.: We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of e 1934 numerated and in the below, Securities on the accompanying Investor Protection Corporation ("SIPC") Series 600 Rules, which are General Assessment Reconciliation (Form SIPC-7) of Mercer Allied Company, L.P. (the "Partnership") for the year ended December 31, 2021. Management of the Partnership is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. I nan agreed-upon procedures engagement, we perform specific procedures that the Company has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and we report on findings based on the procedures performed. Management of the Partnership has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Partnership's compliance with the applicable instructions on a F cknowledged orm SIPC-7 for that the the year procedures ended December 31, 2021. Additionally, SIPC has agreed to and performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users T are he responsible sufficiency of for these determining procedures whether is solely the procedures performed are appropriate for their purposes. the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and the associated findings are as follows: - 1. t Compared he respective the cash listed disbursement assessment payments records on page 1, items 26 and 2G of Form SIPC-7 with entries, as follows: a. Payment on item 2B was made by wire reference, B1QGC03C003395, \$16 on August 6, 2021. There was no - - in the amount of - 2. Compared difference observed. the Total Revenue amount reported on page 2 of the Annual Audited Report Form X- \$ 17A 67,915,334 -5 Part III reported for the year on page ended December 31, 2021 to the Total revenue amount of 2021, noting no differences. 2, item 2a of Form SIPC-7 for the year ended December 31, - 3. s Compared upporting schedules any adjustments and working reported on page 2, items 2b and 2c of Form SIPC-7 with the papers, as follows: - a. o Compared pen end investment deductions company on line 1, Revenues from the distribution of shares of a registered annuities, from the or unit investment trust, from the sale of variable to registered investment business of insurance, from investment advisory services rendered transactions in security future companies or insurance company separate accounts, and from differences. products, of \$67,897,107 to the general ledger, noting no {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) - - b. Compared deductions on line 8, Other revenue not related either directly or indirectly to the securities business, of \$18,277 to the general ledger, noting no differences. 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers obtained in procedure 3, as follows: - a. Recalculated the mathematical accuracy of the SIPC Net Operating Revenues on page 2, line 2d and the General Assessment @ .0015 on page 2, line 2e of \$0 and \$0, respectively of the Form SIPC-7, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American A I nstitute of Certified Public Accountants and in accordance with the standards of the Public Company ccounting Oversight Board (United States). We were not engaged to, and did not conduct an c e onclusion, xamination or review engagement, the objective of which would be the expression of an opinion or respectively, on the Partnership's Form SIPC-7 and on its compliance with the applicable s i nstructions uch an on Form SIPC-7 for the year ended December 31, 2021. Accordingly, we do not express to our attention opinion or conclusion. Had we performed additional procedures, other matters might have come that would have been reported to you. a W ccordance eare required to be independent of the Partnership and to meet our other ethical responsibilities in with the relevant ethical requirements related to our agreed-upon procedures engagement. P T artnership his report is and intended solely for the information and use of management and the general partner of the be, used by anyone the Securities Investor Protection Corporation and is not intended to be, and should not other than these specified parties. ~ urcua~~c,~,,~,,co~Cc,~,~,ti, G~ February 28, 2022 {21}------------------------------------------------ | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | # SECURITIES INVESTOR PROTECTION CORPORATION S~(~C-7 Maii Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 S~PC-7 (36-REV 12/18) General Assessment Reconciliation (36-REV 12t18~ For the fiscal year 12/31/2021 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 no, and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | M
ercer Allied
Company
LP
100 Coliseum
Drive
Cohoes, NY 12047 | | Note: if any of the information
shown an the
mailing label requires correction,
please e-mail
any corrections to form@sipc.org and
so
indicate on the form flied. | d.
O
V
C:3
z | |--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------| | L~ | | Name and telephone number of person
to
contact respecting this form.
Richard
Bertani 518-886-4309 | Y
O | | 2. A. General Assessment (item
2e from page 2) | | g0 | | | B. Less payment made with SIPC-6
filed (exclude interest)
08/06/2021 | | X 16 | | | Date Paid
C. Less prior overpayment applied | | | | | D. Assessment balance due or (overpayment] | | ( ~
(16) | | | E. Interest computed on late payment
(see instruction E) for | ______days at 20% per annum | 0 | | | F. Total assessment balance and
interest due (or overpayment | carried forward) | \$(16) | | | G. PAYMENT: ~ the box
heck
C
mailed to P.O. Box❑Funds
Wlred~ AC~
T
otal
(must
be same as F above) | ~~~ | | | | H. Overpayment carried forward | g~ 16 | | | | 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 wham it is executed represent
thereby
t hat all information contained herein
is true, correct
and complete. | Mercer Allied | Company,
L.P. | | | | | iName at Corooretion. Part erahi
or tner o~ anizatwn! | | | Dated the Z~th day | of ~anUafy | , 2D 22 | uthorized Sipnature~
Chief
Financial
Officer | | |--------------------|------------|---------|-------------------------------------------------------|--| This form and the ~~ ~;ie~ assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form for a period of not less than 6 years, the latest 2 years in an easily accessible place. | W Dates:
~
w | | Postmarked | Received | Reviewed | | |--------------------|--------------------------------------------------------------|------------|----------|---------------|--------------| | ~
W
~
a | Calculations
Exceptions:
c~ Disposition of exceptions: | | | Documentation | Forward Copy | {22}------------------------------------------------ DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT I tem No. | 2a. Total revenue (FOCUS
Line 121Part I IA Line
9, Code 4030) | Eliminate cents | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | 2b. Additions: | ~67,915,334 | | (1) Total
from
revenues
the securities
business of subsidiaries
(except foreign subsidiaries)
predecessors
and
included
not
above. | 1~ | | (2) Net loss from principal
transactions in securities
in trading accounts. | ~u | | (3) Net loss from principal
transactions in commodities
in trading accounts. | | | (4) Interest and dividend
expense deducted in determining
item 2a. | ~1 | | (5) Net loss from management
of or participation in the
underwriting or distribution
of securities. | | | (6) Expenses other than
advertising, printing,
registration fees and
legal fees deducted in
p rofit from management
determining net
of or participation in underwriting
or distribution of securities. | | | (7) Net loss from securities
in investment accounts. | .,J | | Total additions | | | 2c. Deductions:
(1) Revenues
from
distribution
the
of
shares of a registered
open end investment company
i nvestment
or unit
trust,
from
the sale
of
variable annuities, from
the business of insurance,
advisory services rendered
from investment
to registered
investment companies
or insurance company separate
accounts, and from transactions
in security futures
products. | | | (2) Revenues from commodity
transactions. | 67,897,107 | | (3) Commissions,
floor brokerage and clearance
paid to other SIPC members
in connection with
securities transactions. | | | (4) Reimbursements for
postage in connection with | | | proxy solicitation.
(5) Net gain from securities
in investment accounts. | | | (6)
100%
of commissions
and markups
earned from transactions in
(i) certificates of
(
ii) Treasury
deposit and
bills, bankers
acceptances
or commercial paper that mature
nine months or less
from issuance date. | 0 | | (7) Direct
of printing
expenses
advertising and legal
fees incurred in connection
with other revenue
r elated
to the securities
business
(revenue defined by Section
16(9)(L) of the Act). | 0 | | (8)
Other
revenue not related either directly or
indirectly to the securities
business.
(
See Instruction
C): | | | I nterest on cash
balances
in firm
bank accounts | | | (Deductions in excess
of \$100,000 require documentation) | 18,227 | | (9) (i) Total
interest
and dividend expense (FOCUS
Line 22/PART I IA Line
13,
Code
4075
plus line 2b(4) above)
but not in excess
of total 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 (i) | | | or (ii) | 0 | | Total deductions
2d. SIPC Net Operating | 67,915,334 | | Revenues
~ | 0 | | 2e. General Assessment
@ .0015
~ | 0 | Amounts for the fiscal period beginning a~ro,noz, and ending ~~~~~ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.