# UOB KAY HIAN (U.S.) INC. X-17A-5 (2021-02-25) — Broker-dealer annual report - Company: UOB KAY HIAN (U.S.) INC. - Form: X-17A-5 - Filed: 2021-02-25 - Period: 2020-12-31 - Accession: 0001235887-21-000001 - CIK: 1235887 - File #: 8-65981 - Material weakness: No - Auditor: Friedman LLP - Auditor location: East Hanover, NJ - Contact: Athena Kwai - Phone: 973-313-2400 - Website: uobkayhian.com - Signed by: Athena Kwai (President) Original filing: https://www.sec.gov/Archives/edgar/data/1235887/000123588721000001/UOBKH2020annualaudit.pdf --- {0}------------------------------------------------ ## ANNUAL AUDITED REPORT FORM X-17A-5 PART III #### SEC FILE NO. 8-65981 # YEAR ENDED DECEMBER 31, 2020 AND ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {1}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | | REPORT
AUDITED
ANNUAL
FORM
X-17
A-5 | | |----------------------------------------------------|--| | PART
Ill | | | 0MB APPROVAL | | | | | | |----------------------------|-----------|-----------------|--|--|--| | 0MB Nurrber: | | 3235-0123 | | | | | Expires: October 31 , 2023 | | | | | | | Estimated average burden | | | | | | | hours oRT FOR THE PERIOD BEGINNING | __ cl;:/lc.:./_20'-2;.0 ______ AND ENDING _____ 12 /_31 /_20_2_0_ | | | |---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------|----------------------------| | | MMIDDIYY | | MMIDDIYY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | | | UON Kay Hian (U.S.) Inc | | | OFFICIAL USE ONLY | | | | | FIRM ID. NO. | | ADDRESS OF PRINCIPAL A_ACE OF BUSI NESS: (Do not use P.O. Box No.)
111 Dunnell Road, Suite 201 | | | | | | (No. a-d Street) | | | | Maplewood | NJ | | 7040 | | (Oty) | (Stlie) | | (Zip Code) | | NAME AND TELEA-lONE NUMBER OF PEROON TO CONTACT IN REGARD TO THIS RER::>RT | | | | | Athena Kwai | | | 973-313-2400 | | | | | (Ar<11Code -- TeeproneNo.) | | | 8. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whore opinion isrontana:J in this Report* | | | | | | | | | | Friedman LLP | | | | | | (NPclblicAcx:x:x.mta,t | | | | | D
Accx:xmta,t not resdelt in Unitro Staesor En/ r:J itspoosessiOflS | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | • Claims for ex.€nlJ[ion from the requirement that the annual report *be* covered by the opinion *of* an independent public accountant rrwt *be* rupported by a statement off acts and ci rcumstanres raied on as the bass for the ex.€nlJ(ion. 9le Sfdion 240. 17a-5(e)(2). > Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number. SIEC 1410 (06-02) {2}------------------------------------------------ #### OATH OR AFFIRMATION | | , SNfH (or afirm) tha, to the
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Coo1put.tion for Deta-rni n.tion of the Resa-ve R~i rarets Unda- Exhibit A of Rue 15c3-3. | | D | (k) A Ra::oncili.tion between thea.JCite:J a,c1 unaudite:J St.taretsri Finaicia Condition with re;pa::t to methods of con-
!did.tion. | | | ~ (I) An 0.th or Affirm.ti on. | | | □ (m) A a:Jp'/ ri the s FC \$Jppl811Ef'lta R~. | | D | (n) Ar~ deuibing a,y m.ta-ia ina:lEqt.Ja:iesfound toecist or found to haveeciste:J sncethed.teri thepreviousa.ldit. | | D | ~ Auditor on lnta-na Caitrol Pursua,t to Canmodity Futures Tra:ling CorrmiS1iion Re;iul.tion 1.16
(o) R~ ri I | | D | (p) R~ ri Re;iista-e:J PublicAccx:Jur1ting Firm on theExsnp:ion R~ R~L.ire:J by Rule 17a-5 Unda-theSenirities&
ExchaigeAd of 1934. | | | ~ (q) Exsnp:ion R~ | \*\*For conditions of confidential treatment of CS"tain portions of this filing, seesedion 240.17a-5(e)(3). {3}------------------------------------------------ #### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |-----------------------------------------------------------------------------------------------------------|----| | Financial Statements | | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Changes in Stockholder's Equity | 5 | | Statement of Cash Flows | 6 | | Statement of Changes in Liabilities Subordinated to Claims
of General Creditors | 7 | | Notes to Financial Statements | 8 | | Supplemental Information | | | Computation of Net Capital Under Rule 15c3-1 of the
Schedule I -
Securities and Exchange Commission | 13 | | Information regarding compliance with Rule 15c3-3 | | | Report of Independent Registered Public Accounting Firm | 14 | | Statement of Exemption from SEC Rule 15c3-3 | 15 | {4}------------------------------------------------ # **FRIEDMAN LLP®** ACCOUNTANTS AND ADVISORS ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholder ofUOB Kay Hian (U.S.) Inc. #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of UOB Kay Hian (U.S.) Inc. as of December 31, 2020, the related statements of operations, changes in stockholder's equity, cash flows, and changes in liabilities subordinated to claims of general creditors for the year then ended, and 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 UOB Kay Hian (U.S.) Inc. as of December 31, 2020, 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** These financial statements are the responsibility of UOB Kay Hian (U.S.) Inc.'s management. Our responsibility is to express an opinion on UOB Kay Hian (U.S.) Inc. '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 UOB Kay Hian (U.S.) Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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. 100 Eagle Rock Avenue, Suite 200, East Hanover, NJ 07936 p 973.929.3500 f 973.929.3501 friedmanllp.com {5}------------------------------------------------ ## **Auditor's Report on Supplemental Information** The supplementary information contained in Schedule I ("Computation of Net Capital under Rule 15c3-**l** of the Securities and Exchange Commission") has been subjected to audit procedures performed in conjunction with the audit of UOB Kay Hian (U.S.) Inc.'s financial statements. The supplemental information is the responsibility of UOB Kay Hian (U.S.) Inc.'s management. Our audit procedures included determining whether the supplemental information 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 conformity with 17 C.F.R. §240.17a-5. In our opinion, Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. **uP** We have served as UOB Kay Hian (U.S.) Inc.'s auditor since 2009. East Hanover, New Jersey February 25, 2021 {6}------------------------------------------------ #### **STATEMENT OF FINANCIAL CONDITION** ### **DECEMBER 31, 2020** #### **ASSETS** | Cash and cash equivalents | \$
809,889 | |--------------------------------------------------------------------|---------------| | Accounts receivable | 66,802 | | Receivable from affiliate | 53,176 | | Due from clearing broker | 240 | | Deposit with clearing broker | 50,000 | | Operating lease right-of-use asset | 30,071 | | Property and equipment -
at cost, less accumulated depreciation | 509 | | Other assets | 36,981 | | | \$ 1,047,668 | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities | | | Accounts payable and accrued expenses | \$
127,392 | | Payable to affiliate | 6,747 | | Operating lease liability | 31,177 | | | 165,316 | | Commitments and Contingencies | | | Liabilities subordinated to claims of general creditors | 150,000 | | Stockholder's equity | | | Common stock, \$1.00 par value; 550,000 shares authorized, | | | issued and outstanding | 550,000 | | Retained earnings | 182,352 | | | 732,352 | | | \$ 1,047,668 | {7}------------------------------------------------ #### **STATEMENT OF OPERATIONS** #### **YEAR ENDED DECEMBER 31, 2020** | Revenues | | |------------------------------------|---------------| | Commissions | \$ 1,361,914 | | Research services | 921,889 | | Interest income | 638 | | | 2,284,441 | | | | | Expenses | | | Employee compensation and benefits | 1,047,299 | | Clearance charges | 459,915 | | Professional fees | 98,828 | | Occupancy | 75,068 | | Communications | 182,637 | | Regulatory fees | 13,327 | | Research fees | 252,302 | | Travel and entertainment | 1,850 | | Depreciation and amortization | 1,086 | | Interest expense | 3,050 | | Other operating expenses | 36,616 | | | 2,171,978 | | Income before income taxes | 112,463 | | | | | Income taxes | 2,042 | | Net income | 110,421
\$ | {8}------------------------------------------------ #### **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY** #### **YEAR ENDED DECEMBER 31, 2020** | | | | | Total | |--------------------------------|--------------|---------------|---------------|-------------------| | | Common Stock | | Retained | Stockholder's | | | Shares | Amount | Earnings | Equity | | Balance, January 1, 2020 | 550,000 | \$
550,000 | \$
71,931 | \$
,931
621 | | Net income | | | 110,421 | 110,421 | | Balance, December 31
, 2020 | 550,000 | \$
550,000 | \$
182,352 | \$
732,352 | {9}------------------------------------------------ #### **STATEMENT OF CASH FLOWS** #### **YEAR ENDED DECEMBER 31, 2020** | Cash flows from operating activities | | |-------------------------------------------------|---------------| | Net income | \$
110,421 | | Adjustments to reconcile net income to net cash | | | provided by operating activities | | | Depreciation and amortization | 1,086 | | Amortization for right-of-use asset | 26,951 | | Changes in assets and liabilities | | | Accounts receivable | (50,636) | | Receivable from affiliate | 9,384 | | Other assets | (246) | | Accounts payable and accrued expenses | (737) | | Payable to affiliate | (39,591) | | Operating lease liability | (26,364) | | Income taxes payable | (460) | | Net cash provided by operating activities | 29,808 | | Net increase in cash and cash equivalents | 29,808 | | Cash and cash eguivalents, beginning of year | 780,081 | | Cash and cash equivalents, end of year | \$
809,889 | | Supplemental cash flow disclosures | | | Interest paid | \$
3,050 | | Income taxes paid | \$
2,487 | | | | {10}------------------------------------------------ ## **STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS** | Balance, January 1, 2020 | \$
150,000 | |----------------------------------|---------------| | Proceeds from subordinated notes | | | Repayment of subordinated notes | | | Balance, December 31, 2020 | \$
150,000 | {11}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ## **1** - **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## **Description of Business** UOB Kay Hian (U.S.) Inc. (the "Company") is a broker-dealer organized as a Corporation under the laws of the State of New Jersey. The Company became registered on November 4, 2003 with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. The Company acts exclusively on behalf of institutional customers in the buying and selling of Asian securities through a related company, UOB Kay Hian Private Limited, located in Singapore. The Company engages in the distribution of research to institutional clients. The parent of both companies is UOB-Kay Hian Holdings Limited (the "Parent"), located in Singapore. The Company has a branch office in Toronto. ## **Use of Estimates** Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates. ## **Cash and Equivalents** Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less and all money market accounts. ## **Concentrations of Credit Risk for Cash** The Company's cash balances in banks are insured by the Federal Deposit Insurance Corporation subject to certain limitations. #### **Accounts Receivable** Accounts receivable are stated at the amounts management expects to collect. An allowance for doubtful accounts is recorded based on a combination of historical experience, aging analysis and information on specific accounts. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Management has determined that no allowance is required at December 31, 2020. ## **Depreciation and Amortization** Depreciation is computed on a straight-line basis over the estimated useful lives of the respective assets for a term of three years. Leasehold improvements are amortized on a straight-line basis over the life of the related lease, which approximates three years. {12}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ## **1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Continued) #### **Revenue Recognition** Securities transactions and the related revenues and expenses are recorded on a trade date basis. Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, ( d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. #### Brokerage commissions: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. ## Research services: The Company engages in the distribution of research to institutional clients. Research services meets the requirements of a contract. Although there is no formal contract, the customer and Company agree via word of mouth and through performance of the obligations (step 1). The contract contains only one revenue obligation, which is the agreed upon research to be performed (step 2). The revenue price for research services is variable and the amount of consideration is highly susceptible to factors outside of the Company's influence. There is uncertainty about the amount of consideration and when it will be resolved. Historically, there are research services contracts that are consistent period over period and are readily estimable while other research services contracts are not estimable. These contracts have a large number and broad range of possible consideration amounts (step 3). Contracts that are readily estimable are recognizable over the period of time in which the services were performed. These research contracts are generally performed in short periods of time (i.e. by month or quarterly - the Company does not historically have any contract periods over a year). For contracts that are not estimable, the revenue 1s recognizable at a specific point in time when the price becomes available (step 4 and 5). {13}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENTS** ## **1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (Continued) #### **Lease Accounting** The Company recognizes and measures its leases in accordance with F ASB ASC 842, Leases, which was adopted January 1, 2019. The Company is a lessee in a noncancellable operating lease for office space. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. The discount rate is the implicit rate. If the implicit rate is not readily determinable, the Company uses its incremental borrowing rate. The implicit rate of our lease is not readily determinable and accordingly, the Company used its incremental borrowing rate based on the information available at the commencement date for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The right-of-use ("ROU") asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease cost for lease payments is recognized on a straight-line basis over the lease term. The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes the lease cost associated with its shortterm leases on a straight-line basis over the lease term. #### **Income Taxes** Deferred income taxes are recognized for temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Temporary differences result primarily from the Company's net operating loss carryforwards. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. #### **2 - PROPERTY AND EQUIPMENT** Property and equipment consist of the following: | Furniture and fixtures | \$
25,719 | |-----------------------------------------------------|--------------| | Computer equipment | 38,666 | | Office equipment | 48,559 | | Leasehold improvements | 45,560 | | | 158,504 | | Less -
Accumulated depreciation and amortization | 157,995 | | | 509
\$ | {14}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ## **3-INCOME TAXES** The Company has federal net operating loss carryforwards of approximately \$328,175 as of December 31, 2020, that may be applied against future taxable income which expire in various years through 2032. A valuation allowance has been established equal to 100% of the deferred tax asset totaling \$70,391 at December 31, 2020. ## **4-RELATED PARTY TRANSACTIONS** UOB Kay Rian Private Limited provides clearing services for the Company in accordance with a clearing agreement. During the year ended December 31, 2020, the Company paid \$423,065 in clearing charges. UOB Kay Rian Private Limited also provides research services. During the year ended December 31, 2020, the Company paid \$252,302 in research fees to UOB Kay Hian Private Limited. Receivable from affiliate represents commissions earned in December 2020 totaling \$53,176. Payable to affiliate totaling \$6,747 as of December 31, 2020 consists primarily of research fees owed to UOB Kay Hian Private Limited. ## **5 - LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS** The Company entered into a subordinated loan agreement for \$150,000 effective June 14, 2012 with its parent UOB-Kay Hian Holdings Limited. This renews every year unless on or before the thirteen months preceding the Scheduled Maturity Date, the lender notifies the broker-dealer that the maturity date is not extended. The loan has an interest rate of 2%, which is paid annually. The loan was automatically extended per the agreement and will mature on June 30, 2022. The subordinated borrowing is covered by an agreement approved by the Financial Industry Regulatory Authority, Inc. and is thus available in computing net capital under the Securities and Exchange Commission's net capital rule. To the extent that such borrowings are required for the Company's continued compliance with minimum net capital requirements, it may not be eligible for repayment. #### **6 - LEASE COMMITMENTS** The Company leases office space in New Jersey for its main office at an annual rental of \$25,500 from The Ridge Group, LLC. The current lease is expiring on February 28, 2021 and has been renewed for another six months through August 31, 2021 . The Company's Toronto branch leases office space under a tenancy agreement at an annual rental of \$31,106 through December 2021. The Company has identified the Toronto lease as an operating {15}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** #### **6 - LEASE COMMITMENTS** (Continued) lease. The discount rate used to present value the monthly lease expense is 6%, which has been determined as the Company's incremental borrowing rate. The present value of future minimum rental payment are as follows: | Year Ending December 31
, 2021 | \$
32,212 | |-----------------------------------|--------------| | Total undiscounted lease payments | \$
32,212 | | Less imputed interest | \$ (1,035) | | | \$
31,177 | Rent expense, including real estate taxes and related costs, was approximately \$73,000 for the year ended December 31 , 2020. #### 7 - **RETIREMENT PLAN** The Company has a 40l(k) plan, which covers substantially all of its full-time employees. The plan provides for employee contributions and matching contributions by the Company subject to certain limitations. Company contributions to the plan for the year ended December 31, 2020 total \$7,270. #### **8 - REGULATORY REQUIREMENTS** As a registered broker-dealer, the Company is subject to the net capital provisions of Rule **l** 5c3-l of the Securities Exchange Act of 1934, which requires that the Company's aggregate indebtedness shall not exceed fifteen times net capital, as defined, under such provision. At December 31 , 2019, the Company had net capital of \$722,546 which exceeded requirements by \$472,546. The ratio of aggregate indebtedness to net capital was 0.19 to 1. The Company operates its securities transactions under the provisions of (K)(2)(ii) of Rule l 5c3- 3 of the Securities and Exchange Commission as a fully disclosed broker-dealer and accordingly, customer accounts are carried on the books of the clearing broker. #### **9 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK** The Company utilizes the services of clearing brokers for the settlement of customer transactions. All customers' money balances and security positions (long and short) are carried on the books of the clearing brokers. These activities may expose the Company to off-balance sheet credit risk in the event that the clearing broker or the customer is unable to fulfill their obligations. {16}------------------------------------------------ #### SUPPLEMENTAL INFORMATION Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2020 {17}------------------------------------------------ #### **SCHEDULE** I ## **COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION** #### **DECEMBER 31, 2020** | Computation of net capital | | |---------------------------------------------------------------------------------------|---------------| | Total stockholder's equity | \$
732,352 | | Additions | | | Liabilities subordinated to claims of general creditors allowable | | | in computation of net capital | 150,000 | | Total capital and allowable subordinated liabilities | 882,352 | | Deductions and/or charges | | | Non-allowable assets | 157,708 | | Net capital before haircut on securities positions | 724,644 | | | | | Haircuts on securities positions | | | Canadian obligations | 2,098 | | Net capital | \$
722,546 | | | | | Computation of aggregate indebtedness | | | Accounts payable and accrued expenses | \$
127,392 | | Operating lease liability | 1,106 | | Payable to affiliate | 6,747 | | Aggregate indebtedness | \$
135,245 | | | | | Computation of basic net capital requirement | | | Minimum net capital required (6 2/3% of aggregate indebtedness) | \$
9,016 | | Minimum dollar requirement | 250,000 | | Net capital requirement (greater of minimum net capital | | | or dollar requirement) | \$
250,000 | | | | | Excess net capital | \$
472,546 | | Excess net capital at 120% | \$
422,546 | | | | | Ratio: Aggregate indebtedness to net capital | 0.19 to 1 | | | | | Reconciliation with Company's computation (included in Part II of Form X-17 A-5 as of | | | December 31 , 2020) | | | Net capital, as reported in Company's Part II (unaudited) Focus Report | \$
677,352 | | Increase resulting from December 31, 2020 audit adjustments, net | 45,194 | | Net capital, as included in this report | \$
722,546 | {18}------------------------------------------------ # **FRIEDMAN LLP®** ACCOUNTANTS AND ADVISORS ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholder of UOB Kay Hian (U.S.) Inc. We have reviewed management's statements, included in the accompanying Statement of Exemption From SEC Rule 15c3-3 Report, in which (1) UOB Kay Hian (U.S.) Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which UOB Kay Hian (U.S.) Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: (k)(2)(ii) (the "exemption provision") and (2) UOB Kay Hian (U.S.) Inc. stated that UOB Kay Hian (U.S.) Inc. met the identified exemption provision throughout the most recent fiscal year without exception. UOB Kay Hian (U.S.) Inc. 's management is responsible for compliance with the exemption provision 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 UOB Kay Hian (U.S.) Inc.'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)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. East Hanover, New Jersey February 25, 2021 100 Eagle Rock Avenue, Suite 200, East Hanover, NJ 07936 p 973.929.3500 f 973.929.3501 friedmanllp.com ![](_page_18_Picture_13.jpeg) 14 {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) **UOB Kay Hian (U.S.) Inc.** 111 Dunnell Road, Suite 20 I Maplewood, NJ 07040 Tel: 973-313-2400 Fax: 973-313-2403 www.uobkayhian.com #### **UOB Kay Hian (U.S.) Inc.** Exemption Report We as members of management of UOB Kay Hian (U.S.) Inc., (the Company) are responsible for complying with 17C.F.R. §240. l 7a-5, "Reports to be made by certain brokers and dealers" and complying with 17 C.F.R. §240. I 5c3-3: exemption provision pursuant to Paragraph (k)(2)(ii). We have performed an evaluation of the Company's compliance with the requirements of 17 C.F.R. § 240.17a-5 and the exemption provisions. Based on this evaluation, we assert the following: (I) We identified the following provisions of 17C.F.R. § l 5c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240. l 5c3-3: exemption provision pursuant to Paragraph (k)(2)(ii), and (2) We met the identified exemption provisions throughout the most recent fiscal year December, 31 2020 without exception. #### UOB Kay Hian (U.S.) Inc. I, Athena Kwai, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true **::cordfu r* **7** Title: President **February 24 , 2021** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.