# MID-CONTINENT SECURITIES ADVISORS, LTD. X-17A-5/A (2019-03-18) — Broker-dealer annual report - Company: MID-CONTINENT SECURITIES ADVISORS, LTD. - Form: X-17A-5/A - Filed: 2019-03-18 - Period: 2018-12-31 - Accession: 0001171134-19-000003 - CIK: 1171134 - File #: 8-65298 - Material weakness: No - Auditor: Bauer & Company, LLC - Auditor location: Austin, TX - Contact: Kristy Johnson - Phone: 2813670380 - Signed by: William H. Van Pelt, IV (President, FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1171134/000117113419000003/midcontltd.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 2()549 ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill | OMB Number: | | 3235-0123 | |--------------------------|--|---------------------------| | Expires: | | August 31, 2020 | | Estimated average burden | | | | | | hours per response 12.00 | OMB APPROVAL | SEC FILE NUMBER | | |-----------------|--| | 8- | | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | AND ENDING 12/31/2018
A. REGISTRANT IDENTIFICATION | ----------------------
MM/00/YY | | |-------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | | | | | | | | | OFFJCJAL USE ONLY
FlAM J.D. NO. | | | | | | | | | | | | 77002 | | | | (Zip Code) | | | | 713·289-6200 | | | | (Area Code- Telephone Number) | | | | | | | | | | | | | | | | | | | TX | 78731 | | | (State) | (Zip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NAME oF BROKER-DEALER: Mid-Continent Securities Advisors, Ltd.
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNT ANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•
(Name- if individual, state last, first, middle name)
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 Se·ction 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 Uflless the form displays" currently valid OM B control n 1.1mb er. SEC 1410 (06-02) {1}------------------------------------------------ # **OATH OR AFFIRMATION** | I, William H. Van Pelt, IV | | , sw ear (or affirm) that, to the best of
_ | |-------------------------------------------------------------|---|----------------------------------------------------------------------------------------------------------------------------| | Mid-Continent Securities Advisors, Ltd. | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
, as | | ----
of December 31
- | _ | . 20_1_8 _ __, are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | **NELDAJ. HESERr My Notlly I)'** 12~ **Elqlhs September .24, 2022** President, FINOP Title This report '\*contains (checlk all applicable boxes): - **0** (a) Facing Page . - *.,t* (b) Statement of Financial Condition . - *.,t* (c) Statement of Income (Loss). - (d) Statement of Changes in Financial Condition. - ~(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) 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 . - *.,t* (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - **0** (j) A Reconciliation, including appropriate explanation·ofthe Computation ofNet Capital Under Rule I 5c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - **0** (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. • • *For conditions of confidential treatment of certain port ions of this filing, see sect ion 2 4 0. 17 a-5 (e) (3 ).* {2}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31,2018 {3}------------------------------------------------ ## MID-CONTINENT SECURITIES ADVISORS, LTD. ## INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES ## DECEMBER 31, 2018 | Report of Independent Registered Public Accounting Firm I | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | . Ill! I II t " t ,,
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, . | .• II , ., , . | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Partners of Mid-Continent Securities Advisors, Ltd. # OJ)inion on the Financial Statements We have audited the accompanying statement of financial condition of Mid-Continent Securities Advisors, Ltd. as of December 31, 2018, the related statements of operations, changes in partners' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Mid-Continent Securities Advisors, Ltd. as of December 3 1, 2018, and the results of its operations and its cash flows for the year then ended in confonnit y with accounting principles generally accepted in the United States of America. # Basis for Opinion These financial statements are the responsibility of Mid-Continent Securities Advisors, Ltd.'s management. Our responsibility is to express an opinion on Mid-Continent Securities Advisors, Ltd.'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 Mid-Continent Securities Advisors, Ltd. 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 perfom1 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to enor or fraud. Our audit included performing procedures to assess the tisks 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. # Auditor's Report on SUJ)plemental Information The Computation of Net Capital and Aggregate Indebtedness Under Rule l 5c3-l (Schedule I), the Computation for Determination of Reserve Requirements Under Rule 15c3-3 (Schedule 11) and the Infom1ation Relating to the Possession or Control Requirements Under Rule 15c3-3 (Schedule III) (collectively, the "Supplemental Infontlation") has been subjected to audit procedures performed in co~junct on with the audit of Mid-Continent Securities Advisors, Ltd.'s financial statements. The Supplemental Information is the responsibility of Mid-Continent Securities Advisors, Ltd.'s management. Our audit procedures included determining whether the Supplemental Infonnation reconciles to the financial 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 Information, including its form and content, is presented in confonnity with 17 C.F.R. §240.17a-5. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the financial statements as a whole. BAUER & COMPANY, LLC We have served as Mid-Continent Securities Advisors, Ltd.'s auditor since 2018. Austin, Texas February 28, 2019 Bauer & Company, LLC 5910 Courtyard Drive #230 Austin, TX 78731 Tel 512.731.3518 I www.bouerandcompony.com {5}------------------------------------------------ ## MID-CONTINENT SECURITIES ADVISORS, LTD. STATEMENT OF FINANCIAL CONDITION DECEMBER 31,2018 #### ASSETS | ASSETS: | | | |-----------------------------------------|-----------------------------------|------------------------------| | Cash and Cash Equivalents | | \$
235,890 | | Commissions Receivable | | 204,921 | | TOTAL ASSETS | | \$
440,811
======== | | | LIABILITIES AND PARTNERS' CAPITAL | | | LIABILITIES: | | | | Commissions Payable | | \$
__
2_9;3>:;.1:;68'- | | TOTAL LIABILITIES | | 293,168 | | PARTNERS' CAPITAL | | 147,643 | | TOTAL LIABILITIES AND PARTNERS' CAPITAL | | \$
440,811
====== | | | | | The accompanying notes nre nn integra I pnrt of these financial statements. {6}------------------------------------------------ ## MID-CONTINENT SECURITIES ADVISORS, LTD. STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,2018 | REVENUES: | | |-------------------------------------------|---------------| | 401k Commissions | 315,512
\$ | | Other Commissions | 7,504 | | Total Commissions | 323,016 | | Placement Fee Revenues | 1,443,662 | | Total Revenues | 1,766,678 | | GENERAL AND ADMINISTRATIVE EXPENSES: | | | Commission Expense | 1,034,621 | | Office Rent | 19,500 | | Oftlce Rent - Related Party | 6,000 | | Office Supplies | 388 | | Professional Fees | 14,116 | | License and Registration Fees | 15,779 | | Meals and Entertainment | 7,000 | | Subscriptions and Membership Dues | 3,277 | | Other Expenses | I 005 | | Total General and Administrative Expenses | 1,10 I ,686 | | INCOME FROM OPERATIONS | 664,992 | | OTHER INCOME: | | | Interest Income | 16 | | NET INCOME | 665.008
\$ | The accompanying notes arc an integral part of these financial statements. {7}------------------------------------------------ ## MID-CONTINENT SECURITIES ADVISORS, LTD. STATEMENT OF CHANGES IN PARTNERS' CAPITAL FOR THE YEAR ENDED DECEMBER31, 2018 | | General
Partner | Limited
Partner | Total | |------------------------------|--------------------|--------------------|---------------| | Balance, December 31, 20 I 7 | \$
1,247 | \$
136,641 | \$
137,888 | | Net Income | 6,650 | 658,358 | 665,008 | | Distributions | (6,553) | (648,700) | (655,253) | | Balance, December 31, 2018 | \$
1.344 | \$
146,299 | \$
147,643 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ## MID-CONTINENT SECURITIES ADVISORS, LTD. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31,2018 | CASH FLOWS FROM OPERATING ACTIVITIES:
Net income | \$
665,008 | |-----------------------------------------------------|---------------| | Adjustments to reconcile net income to net cash | | | provided by operating activities | | | Net change in: | | | (Increase) decrease in commission receivable | 211,079 | | (Increase) decrease in prepaid expense | 12,721 | | Increase (decrease) in commissions payable | (468,23 1) | | Increase (decrease) in accmed expenses | (6,227) | | Net cash provided by operating activities | 414,350 | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | Proceeds on Related Party Note Receivable | 1,354 | | Net cash provided by investing activities | 1,354 | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | Distributions to Partners | (655,253) | | Net cash used in financing activities | (655,253) | | NET CHANGE IN CASH AND CASH EQUIVALENTS | (239,549) | | CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 475,439 | | CASH AND CASH EQUIVALENTS, END OF YEAR | \$
235,890 | The accompanying notes are an integral part of these fimmcial statements. {9}------------------------------------------------ # MID~CONTINENT SECURITIES ADVISORS, LTD. NOTES TO THE FINANCIAL STATEMENTS ## NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIF ICANT ACCOUNTING POLICIES ## Organization and Nature of Business Activity Mid-Continent Securities Advisors, Ltd. (the Partnership) was organized on April 2, 2002 under the Jaws of the State of Texas to engage solely in the business as a registered broker-dealer. As of December 31. 20 I 8, the general partner has a I% partnership interest and the I imited partner a 99% partnership interest. The Partnership terminates on Decem be!' 31, 2102, unless tcrmit1ated at atl earlier date as provided for in the Partnership Agreement. The Partnership became a n:gistered broker/dealer with the Securities and Exchange Commission ("SEC") in April 2002 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Partnership operates under the provisions of Paragraph K(2)(ii) of Rule 15e3-3 of the SEC, and accordingly is exempt from the remaining provisions of that Rule. The Pnrtnership's customers consist primnrily of individuals located throughout the United States of America. This summary of signi1icant accounting policies of the Partnership is presented to assist in understanding the Jinancial statements. The financial stnlcmcnts and notes are representations of management, who arc responsible for their integrity and objectivity. These accmmting policies reflect industry practices, conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. The following items comprise the significant accounting policies of the Partnership. ## Basis of Accounting The Partnership maintains its accounts on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America, which is required by the SEC and FINRA whereby revenues arc recognized in the period earned and expenses when incurred. Accounting principles followed by the ParU1ership and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows arc summarized below. #### Revenue Recognition The Partnership receives commissions for directing its customers to invest in hedge funds, mutual funds and variable life insurance products. The Partnership does not can)' any securities tor its customers. Significant judgement is required to determine whether pertonnance obligatiQns are satistied at a point in lime or over time; how to allocate transaction prices where multiple performance obligations arc identified; when to recognize revenue based on the appropriate measure of the Partnership's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### Commissions and Placement Fee Income Investment advisory fees arc received quarterly but are n.:cognizcd as earned on a pro rata basis over the tcnu or the contract. The Partnership provides investment advisory services on a daily basis. The Partnership believes the pertonnance obi igation for providing auvisory services is satisfied over time because the client is receiving and consuming the benefits as they are provided by the Partnership. Fee arrangements are based on a percentage applied to the client's assets under management. Revenue is recognized at the point that perfonnance under the arrangement is completed and 40lk/other commissions are received by the Partnership. For certain contracts, revenues arc recognized over time in which the performance obligation are simultaneously provided by tJ1e Partnership and consumed by the customer and commissions an: received by the Partnership. #### Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in tht: United States of America. Those estimates and assumptions aftcct the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. {10}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. NOTES TO THE FINANCIAL STATEMENTS ## NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Continued #### Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in banks and all short-term, highly liquid investments which are readily convertible into cash and have an originaU maturity of three months or less. ## fair Value Measurements The carrying amounts of the Partnership's financial instruments, which include cash and cash equivalents, commissions receivable, and commissions payable, approximate their fair values due to their short maturities. #### Income Tax The Partnership has elected to be taxed as a partnership. As such, the Partnership docs not pay federal corporate income taxes on its taxable income. Instead, the partners are liable for individual federal income taxes on their respective shares of taxable net income. The Partnership is liable for Texas margin tax which is based on taxable margin, as dcfin.ed under the law, rather than being based on federal taxable income. As of and for the year ended December 31, 2018, the Partnership's Texas margin tax expense was not significant. The Partnership has no uncertain tax positions as of December 31, 2018. #### Management Review The Partnership !1as evaluated subsequent events through the date of the Report of Independent Registered Public Accounting Finn, the date the 1inancial statements were available to be issued. #### Recent Accounting Pronouncements In May 2014, the tlnancial Accounting Standards Board ("f ASB") issued Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). The new accounting standard, along with its related amcndmcnts, replaces the current rules-based U.S. GAAP governing revenue recognition wiU1 a principles-based approach. The Partnership adopted the new standard on January I, 2018 using the modified retrospective approach, which requires the Pannership ro apply the new revenue standard to (i) all new revenue contracts entered into aHcr January I, 2018 and (ii) all existing revenue contracts as of January I, 2018 through n cum\•lntive adj ustmcnt to equity. In accordance with this approach, our revenues for periods prior to January 1, 2018 will not be revised. 1 he core principle in the new guidance is that a Pnrtncrship shottld recognize revenue in a manner that fairly depicts the transter of goods or services to customers in amounts that reflect the considerati{m the Partnership exp ects to receive for those goods or services. In order to apply this core principle, companies will apply the following five steps in determining tl1c amount of revenues to recognize: (i) identify the contract; (ii) identify the performance obligations in the contrac t: (iii) determine the transaction price; (iv) allocate the transaction prices to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. Each of these steps involves management's judgment and an analysis of the material terms and conditions of the contract. We do not anticipate that there will be material differences in the amount or timing of revenues recognized following the new standard's adoption date. Although total revenues may not be materially impacted by the new guidance, we do anticipate significant changes to our disclosures based on the additional requirements prescribed by ASC 606. These new disclosures include information regarding the significant judgments used in evaluating when and who revenue *is* (or will be) recognized and l.iata related to contact assets and liabilities. In Fcbntary 2016, the f-ASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its statement of Jinancial position. The standard also expands the required quantitative and qualitative disclosures surrounding leases. This standard is effective for annual periods bcgimting after December 15, 2019. Early adoption is permitted. This standard will be applied using a modified retrospective transition approach for leases existing at, or entered into aller, the beginning of the earliest comparative period presented in the linuncial statements. Munagemeut is currently evaluating the effect llf these provision on the Company's financial position and results of operattoas. ## NOTE 2: PARTNERSHIP AGREEMENT {11}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. NOTES TO THE FINANCIAL STATEMENTS The following are some of the significant terms of the ParU1ership Agreement: #### Management The general partner, MCSALGP, LLC, except as otherwise expressly stated or provided in the Partnership Agreement and subject to the approval of the limited partner to the extent required by the Partm:rship Agreement, shall have the sole and exclusive right to manage the business of the Partnership. ## Liability of Limited Partner The liability of the limited partner to the Partnership shall be limited to the diJTcreuce between the limited partner's capital contributions as actually made and that stated in the initial offering certificate as having been made; provided, however, that when the limited partner has received the return in whole or in part of his capital contribution, he shall nevertheless be liable to the Partnership to the extent required by law tor any sum, not in excess of such return with interest at the legal rate thereon, necessary to discharge the Partnership's mabilities to all creditors who extend credit or whose claims arose before such return, and wino have not waived this provision in whole or in part. ## General Allocation of Income and Expenses Net income and losses shall be allocated one percent to the general partner and ninety-nine percent to the limited partner. #### Special Allocation oflncome and Expenses To the extent thnt an nllocalion of losses would cause a limited partner to have an adjusted capital account detlcit at the end of any fiscal year, then, those losses shall be allocated 100% to the general partner. If losses have hcen allocated pursuant to the terms of the agreement, then profits shall be allocated I 00% to the general partner until the aggregate profits allocated to the general partner for the fiscal year end and all previous years is equal to the aggregate losses allocated to the general partner for all fiscal years. ## Payment of Distributions The general partner shall make distributions from time to time, by majority vote of the general parU1er, to cause the Partnership to distribute cash or property to the partners as a retum of capital. Distributions need not to be made in accordance with the partners' units or capital accounts. Rather, distributions can be made to any partner, in the genet·al partner's discretion, including itsclC as long as that distribution is designated as a reMn of capital, provided, however. that the distributions may be made only to a partner to the extent of the positive balance in that partner's capital account. ## NOTE3: RELATED PARTY TRANSACTIONS Under terms of a formal agreement, the Partnership pays \$500 monthly to the limited partner for rent and certain administrative services. The monthly payment is not necessarily indicative of the costs that woull.l have been incurred J1ad the Partnership been a separate and independent partnership. During the year ended December 31, 2018. the Partnership paid \$6,000 to the limited partner. In January 2018, the Partnership collected \$1 ,354 on an outstanding related party note receivable. {12}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. NOTES TO THE FINANCIAL STATEMENTS ## NOTE4: CONCENTRATIONS OF CREDIT RISK financial instruments that potentially subject the Partnership to concentrations of credit risk consist of cash and cash equivalents and conunission receivable. At various times during the year, the Partnership may have bank deposit in excess of federal Deposit Insurance Corporation insurance limits. Management believes any credit risk is low due to the overall financial strength of the financial institutions. For the year ended December 31, 2018, one customer accounted for 45% of total revenues. At December 31, 2018, one customer comprised 83% of commissions receivable. ### NOTES: NET CAPITAL REQUIREMENTS The Partnership is subject to the Securities and Exchange Commission Uniionn Net Capital Rule (SEC Rule 1Sc3-l), 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 (and the rule of the "applicable" exchange also provides that et1uity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 31 , 2018, the Partnership had net capital of \$116,725 which was \$91,725 in excess of its required net capital of \$25,000. Additionally, the ParU1ersbip's ratio of aggregate indebtedness to net capital was 251%. ## NOTE6: COMMITMENTS AND CONTINGENCIES ## I .ease Commitment The Partnership leases office space under an operating lease that expires in May 2031 from a related party. The Partnership recognizes rent expense on a straight-line basis over the lease term. For the year ended December 3 1, 2018, rent expense totaled \$6,000. Future minimum lease payments under the agreement as of December 31,2018 arc as follows: | Year Ending | | |---------------|-------------| | December 3 I. | | | 2019 | \$
6.000 | | 2020 | 6,000 | | 2021 | 6,000 | | 2022 | 6,000 | | 2023 | 6,000 | | Thereafter | 44 500 | | | H,500
\$ | The remaining rent expense of \$19,500 was paid on behalf of the Partnership registered representative. #### Litigation The Partnership from time to time may be involved in litigation relating to claims arising out of it's normal course of business. Management believes that there were no claims or actions pending or threatened against the Partnership, the ultimate disposition of which Wl1\lld have a nu1ll:rial impact on the Partnership's financial position, results of ope-rati\1ns or cash flows. ## Risk Management The Partnership maintains variou~ forms of insurance that the Partnership'!; management believes are adequate to redlllcc the exposure to these risks to an acceptable level. {13}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. SCHEDULE I- COMPUTATION OF AGGREGATE INDEBTEDNESS AND NET CAPITAL IN ACCORDANCE WITH RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 3 l, 2018 | Net Capital: | | |---------------------------------------------------------|---------------------------------| | Partners' capital from statement of financial condition | \$
147,643 | | Commission Receivable from Non-Customers | (30,91 R) | | Net capital before haircuts | 116,725 | | Haircuts | | | NET CAPITAL | \$ =====1=1=6,=72=5= | | Computation ofbnsic net capital requirement: | | | Minimum net capital required (greater of \$25,000 or | | | 6-2/3% of aggregate indebtedness.) | \$
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;;;.2;;;;5~00;;;0;_ | | Net capital in excess of minimum requirement | 91,725 | | Net capital less 120% of minimum net capital required | \$ ==8=6=, 7=25= | | Ratio: | | | Aggregate indebtedness to net capital | 251% | | Ratio of subordinated indebtedness to debt/equity total | | Note: There arc no material differences between the above computation and the computation of net capital as of December 31, 2018 as previously filed on January 25,2019 by Mid-Continent Seclllritics Advisors, Ltd. on Fom1 X-17A-5. {14}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. SCHEDULE II- COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANT TO RULE 15c3-3 DECEMBER 31 , 2018 Mid-Continent Securities Advisors, Ltd. docs not effect transactions for anyone defined as a customer under Rule 15cJ-3. Accordingly, there are no items to report w1dcr the requirements of this rule. {15}------------------------------------------------ # MID-CONTINENT SECURITIES ADVISORS, LTD. SCHEDULE III~ INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS PURSUANT TO RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31,2018 The Company is exempt from the provisions of Rule 15c3-3 under 'the Securities Exchange Act of 193 4 pursuant to paragraph (k)(2)( i) of the Rule afterwards. The Company did not maintain possession or contro~ of any customer funds or securities. 11 {16}------------------------------------------------ Mid-Continent Securities Advisors, Ltd. *The Benjamin Bui/d;ng 1218 Webster Street* Houslon, *Texas 77002* William H. Van Pelt, IV *Direct: (713) 289-6202 E-mail: bvp4@mccltd.com* Telephone: (713) 289-6:200 facsimile: (713) 289-6247 February 28, 2019 Exemption Report Mid-Continent Securities Advisors, Ltd. is exempt from the filing requirement of Rule 15c3-3 under the exemption provided under (k)(2)(i)-"Special Account for the Exclusive Benefit of customers" maintained. Our finn does not hold nor receive customer funds nor securities. Mid-Continent Securities Advisors, Ltd. has met this exemption continuously since the firm's inception, including the calendar year 2018. William H. Van Pelt, IV President {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Partners of Mid-Continent Securities Advisors, Ltd. We have reviewed management's statements, included in the accompanying Exemption Report Year Ended December 31, 2018, in which (l) Mid-Continent Securities Advisors, Ltd. identified the following provisions of 17 C.F.R. §15c3-3(k) under which Mid-Continent Securities Advisors, Ltd. claimed an exemption from 17 C.F.R. §240.15c3-3: (2)(i) (the ''exemption provisions") and (2) Mid-Continent Securities Advisors, Ltd. stated that Mid-Continent Securities Advisors, Ltd. met the identified exemption provisions throughout the most recent fiscal year without exception. Mid-Continent Securities Advisors, Ltd.'s management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Mid-Continent Securities Advisors, Ltd.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. BAUER & COMPANY, LLC 8aae~ & *Ooff(/aJr?1 !.!.0* Austin, Texas February 28. 2019 Bauer & Company, LLC 5910 Courtyard Drive #230 Austin, TX 78731 Tel 512.731.3518 I www.bauerandcompany.com Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.