# PARITER SECURITIES, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: PARITER SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001254218-22-000004 - CIK: 1254218 - File #: 8-66064 - Type: Broker-dealer - Material weakness: No - Auditor: TPS THAYER - Auditor location: Sugar Land, TX - Contact: Eduardo Sotomayor - Phone: 7877812555 - Email: frivera@pariterwmg.com - Website: pariterwmg.com - Signed by: Eduardo Sotomayor (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1254218/000125421822000004/audit21fix.pdf --- {0}------------------------------------------------ ## UNITED STATES **SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. **20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill | 0MB Number: 3235-0123 | | |----------------------------------------------------|--| | Expires: Oct. 31, 2023
Estimated average burden | | | hours per response: 12 | | | | | SEC FILE NUMBER 8-66064 FACING **PAGE** Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING **01 /01 /21** MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: PARITER SECURITIES, LLC TYPE OF REGISTRANT (check all applicable boxes): **1B** Broker-dealer □ Security-based swap dealer 0 Check here if respondent is also an OTC derivatives dealer D Major security-based swap participant AND ENDING **12/31/21** ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | B. ACCOUNTANT IDENTIFICATION | | | | | | |----------------------------------------------|--------------------------------------------|-------------------------------|------------------------|--|--| | (Name) | | (Area Code -Telephone Number) | (Email Address) | | | | | 787-781-2555
Francisco Rivera Fernandez | | frivera@pariterwmg.com | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | (City) | | (State) | (Zip Code) | | | | | GUAYNABO | PR | 00966 | | | | | | (No. and Street) | | | | | 243 CARRETERA #2 | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing• | | (Name - if individual, state last, first, and middle name) | | | |---------------------------------------------------|------------------------------------------------------------|---------|---------------------------------------------| | 1600 Hwy. 6 Suite 100 | Sugar Land | TX | 77478 | | (Address) | (City) | (State) | (Zip Code) | | 07/14/2020 | | 6706 | | | (Date of Re11istration with PCAOB)(if aoplicable) | | | (PCAOB Re11istration Number, if aoplicablel | | | FOR OFFICIAL USE ONLY | | | • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis or the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. Persons who are to respond to the collection of Information contained In this form are not required to respond unless the form displays a currently valid 0MB control number. {1}------------------------------------------------ #### OATH **OR AFFIRMATION** | I, Francisco Rivera Fernandez | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------------|--------------------------------------------------------------------------------------| | financial report pertaining to the firm of PARITER SECURITIES, LLC | as of | | December 31 | ct. I further swear (or affirm) that neither the company nor any
• true an
021 | | partner, officer, director, or equivalent
as that of a customer. | e, has any proprietary interest in any account classified solely | | | "-
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« | Title: - \_ President # **This filing .. contains (check all appllcab** - Ii (a) Statement of financial condition. - D (bl Notes to consolidated statement of financial condition. - **iii** (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - Iii (dl Statement of cash flows. - Iii (el Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - **iii (g)** Notes to consolidated financial statements. - **iii** (hl Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.lSa-l, as applicable. - □ (il Computation of tangible net worth under 17 CFR 240.lSa-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - **ii** (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2l or 17 CFR 240.lSa-4, as applicable. - **iii** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial **data** for subsidiaries not consolidated in the statement of financial condition. - Iii (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - **iii** (sl Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - □ (t) Independent public accountant's report based on an examination of the statement of financial condition. - Iii (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - Iii (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(kl. □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e){3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) I ·20ll·CJIJO!l~- {3}------------------------------------------------ #### **PARITER** SECURITIES, LLC Financial Statements and Supplemental Schedules Required by the U.S. Securities and Exchange Commission Including Independent Auditor's Report Thereon For the Year-Ended December 31, 2021 {4}------------------------------------------------ # Contents | Independent Auditors Report | 3 | |-----------------------------------------------------------------------------------|--------| | Financial Statements | | | Statement of Financial Condition | 4 | | Statement of Operations | 5 | | Statement of Changes in Stockholder's Equity | 6 | | Statement of Cash Flows | 7 | | Notes to Financial Statement | 8 - 13 | | Supplementary Reports Pursuant to SEA Rule 17a-5 | 14-15 | | Exemption Review Report | 16 | | Exemption Letter Pursuant to SEA Rule 17a-S(d)(l)(i)(B)(2) | 18 | | Agreed Upon Procedures Report and Reconciliation Pursuant to SEA Rule 17a-S(e)(4) | 19 | | SIPC Reconciliation | 20 | {5}------------------------------------------------ # *:,* Certified Publ,c Accountants ## REPORT OF INDEPENDENT REGISTERED P BLIC ACCOUNTING FIRM Director and Stockholder Pariter **Securities,** LLC 243 Carretera 112 Guaynabo, **PR 966** #### Opinion on The Financial Statements We have audited the accompanying statement of linancial condition Pariter Securities, LLC (the "Company'') as of December 31, 2021 , and the related statements of opcrutions, changes in stockholder· s cquit), and cash flows for the year then ended and the related notes (collectively referred to as "financial statements"). In our opinion, the financial stalemenls present fairl}, in all material respects, lhe financial position of the Company as of December 31, 2021, and the resulls of its operations and its cash flows for the )'Car ended December 31. 2021, in accordance\\ ith accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibilil) of the Comp,111) ·s mmmge111cn1. Our responsibility is 10 expres an opinion on the Company·s financial s1atemen1s based on our audit. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) ("PCAOB'') and arc required to be independent with respect to the Company in accordance with 1he U.S. federal securities la\\S and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOU. We conducted our audit in accordance with standards oflhe PCAOB. l ho!,e standards require that \\e plan and perform the audit 10 obtain reasonable assurance about \\hether 1he linancial st,llements nre free from material misstatement, whether due to error or fraud. Our audit included perfonn ing procedures to assess the risl,. of material misstatement of lhe financial stalemenls, whether due 10 error or fraud, ilnd perfonning procedures Ihm respond 10 those risks. Such procedures included examining, on a lest basis. e,·idencc regarding the amounts and disclosures in 1he financial statements. Our audit also included evaluating the 11ccou111ing principles and !>ignificanl estimates made b) management, as well as evaluating the overall presc111a1ion of the linancial s1a1c111cnl!,. We believe that our audil provides a reasonable basis for our opinion. #### lnfonnalion The supplemental schedule has been subjected lo 1he auditing procedures performed in conjunction with the audit of Pariter Securities, LLC financial statements. ·1 he supplemental information is the responsibility of Paritcr Securities, LLC's management. Our audil procedures included delcnnining whether the supplemental infonna1ion reconciles to the financial statements or the underlying accounting and olher records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in lhe supplemenlal schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplcmcn111I schedule. including its form and content, is presented in confonnily with 17 C.f".R. §240. I 7a-5 . In our opinion. the supplemental schedule is fairly stated, in all material respects, in relation to the linancial statcmcms 11s u \\hole. \_\_\_.-;: r**\61~ ,I.JL** TPS Thayer LLC We have served as Pariter Securities. LI.C's auditor since 2020 Sugar Land, TX March 30, 2022 {6}------------------------------------------------ ## **Parlter Securities, LLC Financial Statements Statement of Financial Condition As of December 31, 2021** | | December | |----------------------------------------------------------------------------------------------|-----------------| | | 31,2021 | | Assets | | | Current Assets | | | Cash | \$
28,723 | | Commission receivable | 1,065,901 | | Clearing Deposit | 100,000 | | Deposit | 57 | | Due from related parties | 44,186 | | Total Current Assets | 1,238,867 | | Total Assets | 1,238,867 | | Liabilities and Stockholder's Equity | | | Liabilities | | | Accounts payable | 46,388 | | Commission payable - related party | 56,62S | | Commission payable | 1,045 | | Taxes payable | 13,573 | | Total Liabilities-all current | 117,631 | | Commitments and Contingencies | | | Stockholder's Equity | | | Common stock, \$100 par value, 10,000 shares authorized,
11 shares issued and outstanding | 1,100 | | Paid-in capital | 1,193,292 | | Accumulated deficit | (73,156) | | Total Equity | 1,121,236 | | | | | Liabilities an Stockholder's Equity | \$
1,238,867 | {7}------------------------------------------------ ## **Parlter Securities, LLC Financial Statements Statement of Operations For the Year-Ended December 31, 2021** | Revenue | | |--------------------------------|-----------------| | Commissions and fees | \$
3,993,744 | | Total Revenue | 3,993,744 | | | | | Operating Expenses | | | Commissions | 3,318,762 | | Registration Fees and licenses | 11,761 | | Professional fees | 154,547 | | Management fees | 62,304 | | Repairs & maintenance | 95,526 | | Compliance Services | 21,250 | | General and administrative | 485,160 | | Total Net Operating Expenses | 4,149,310 | | | | | | | | Net Operating (Loss) | (155,566) | | | | | Other Income | 804,211 | | Net Income | \$
648,644 | {8}------------------------------------------------ ## **Parlter Securities, LLC Financial Statements Statement of Changes** in **Stockholder's Equity For the Year-Ended December 31, 2021** | | Shares | Common Stock | Amount | Contributed
Capital | Accumulated
Deficit | Total | |------------------------------|--------|--------------|--------|------------------------|------------------------|-----------------| | Balance at December 31, 2020 | 11 | \$ | 1,100 | \$
1,193,292 | \$
(721,800) | \$
472,592 | | Net Income | | | | | 648,644 | 648,644 | | Balance at December 31, 2021 | 11 | \$ | 1,100 | \$
1,193,292 | \$
(73,156) | \$
1,121,236 | {9}------------------------------------------------ ## **Pariter Securities, LLC Financial Statements Statement of Cash Flows For the Year-Ended December 31, 2021** | Net Income | \$
648,644 | |--------------------------------------------------------------------------------------|---------------| | Adjustments to reconcile net income to net cash provided by
operating activities: | | | Changes in operating assets and liabilities (increase)/decrease in: | | | Commissions receivable | (132,972) | | Clearing deposit | (100,000) | | Prepaid expenses | 5,155 | | Due from related parties | 12,433 | | Accounts payable and accrued expenses | 40,139 | | Commission Payable | (681,033) | | Texas Payable | 12,223 | | Net Cash used in Operating Activities | (195,411) | | Net decrease in cash | (195,411) | | Cash at beginning of Year | 224,134 | | Cash at end of Vear | \$
28,723 | ## **Supplemental disclosures of cash flow Information:** The supplemental disclosures of cash flow information for the years ended December 31, 2021 is as follows: Cash paid during the year for: -Interest expense \$ -0- •lncome Taxes \$ 23,000 {10}------------------------------------------------ ## **Parlter Securities, LLC Notes to Financial Statements As of and for the Year-Ended December 31, 2021** ## **Note 1** : **Organization and summary of significant accounting policies:** ## **Organlzatlon-** Pariter Securities LLC ("The Company") is a company organized under the laws of the Commonwealth of Puerto Rico on March 11, 2008 and is primarily engaged in private placement services, and rendering brokerage services as an introducing broker. The Company does not carry securities accounts nor customers, nor does it render custodial functions of customer securities. The Company is a broker-dealer registered with the Financial Industry Regulatory ("FINRA") and the Securities Exchange Commission. The Company, as a non-clearing broker, does not handle customers' funds or securities. There were no liabilities subordinated to claim of general creditors as of December 31, 2021. ## Description of Business The Company, located in Guaynabo Puerto Rico, is a broker and dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of FINRA. The Company operates under SEC Rule 15c-3-3(k)(2)(ii), which provides that all funds and securities belonging to the Company's customers are held by a clearing company and by providing private placement services. ## New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years beginning after 15 December 2021, and interim periods within those fiscal years, beginning after December 15, 2022 on a prospective basis, with early adoption permitted. We will adopt the new standard effective January 1, 2022 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. ## **Summary of significant accounting policies:** **(a) Basis of presentation-** The Company's fiscal year ends on December 31 of each year. All references to years in these notes to the financial statements represent the calendar year then ended, unless otherwise noted. {11}------------------------------------------------ ## **Parlter Securities,** LLC **Notes to Financial Statements As of and for the Year-Ended December 31, 2021** ## **(b) Revenue Recognition-** The Company receives commissions on the purchase and sales of securities. Securities include equities, corporate fixed-income, municipal fixed-income, equity options and mutual funds. Additionally, the Company receives revenue from customers in the form of advisory and administrative fees for placements. Commissions and fees represent income generated from brokerage services and from commission trails derived from commission earned mutual funds, 12B1 fees custodian, 401Ks and annuities, that are generally recognized over a period of time, irrespective of the date received. Private placement commissions and due diligence fees and are generally recognized when realized or realizable, and earned when services are rendered, as specified in each contract's terms. ## **(c) Commission receivable and Bad Debt expense-** Account receivables include commission due in cash. Management closely monitors outstanding accounts receivable and charges off to expense any balances that are determined to be uncollectible. Account receivables over thirty days old are considered as non-allowable for net capital computation, except for those receivables that are due from another licensed brokerdealer, that for capital computation purposes, are considered up to the corresponding commission payable amount. Accounts are charged off as uncollectible when the account receivables are over 120 days old and when management determines that collection is unlikely. As of December 31, 2021 the Company considered that all \$1,065,901 accounts receivables to be fully collectible. ## **(d) Related party transactions-** During the year ended on December 31, 2021, the Company engaged in transactions with related companies in which its member has a substantial investment. The transactions are mostly related to management fees. Amount due (to) from related parties at year-end are non-interest bearing and have no specific repayment terms. In addition, please refer to Commission Expense footnote (Note 3) for additional related party transactions. | Due from related party | \$44,186 | |-------------------------|----------| | Management fees expense | \$62,304 | {12}------------------------------------------------ ## **Pariter Securities, LLC Notes to Financial Statements (Continued) As of and for the Year-Ended December 31, 2021** #### **Commissions expense (Related Party):** The commission expense represents comm1ss1on recorded to the company's registered representative, specifically to its sole member and President Francisco J. Rivera Fernandez, whose commissions in the amount of \$3,318,762 represents 98% of total commission expense. On certain contracts the Company receives payment through warrants, these warrants are valued on the date that the service obligations have been completed and the revenue is recognized, they are assigned directly to Francisco J. Rivera Fernandez, who receives 100% of these revenue transactions as commission. #### **(e) Income Taxes-** Income taxes are accounted for using the assets and liability method under which deferred income taxes, if any, are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities and operating loss carry forwards. The effect of deferred tax assets for a change in tax rates is recognized in income in the period that include the enactment date. Management provides a valuation allowance against deferred tax assets for amounts which are not considered "more likely than not" to be realized. The Company follows the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expect to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Company may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from such a position, if any, are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in oncome taxes also addresses de-recognition, classification, interest and penalties on income taxes and accounting in interim periods. Deferred income tax results from the future tax consequences of temporary differences between the amounts of certain assets and liabilities recorded for tax and financial statements purposes. To the extend it is more-likely-than-not that a deferred income tax asset will not be realized, a valuation allowance is recognized. There are no deferred tax assets for the current year. {13}------------------------------------------------ ## **Parlter Securities,** LLC **Notes to Financial Statements (Continued) As of and for the Year-Ended December 31, 2021** The Company files income tax returns only in the Commonwealth of Puerto Rico. With few exemptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2011. Tax audits, by their nature, are often complex and can require several years to complete. The following table represents the amount and type of taxes owed by the Company as of December 31, 2021: | 7% Tax withheld | \$
2,884 | |-------------------|--------------| | Municipal License | 10,689 | | Income tax | | | TOTAL | 13.573
\$ | As of the date of this audit report, the Company has paid off all of its taxes owed. #### **(f) Use of Estimates-** In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the recorded amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### **Note 2: Deposit with Clearing house:** Company currently has a clearing agreement with AXOS Clearing with a clearing deposit of \$100,000. #### **Note 3: Commission and fees:** Commissions and fees represent income generated from brokerage services and from commission trails derived from 1281 fees, custodian, 401Ks, annuities and incentive commission and are generally recognized when realized or realizable, and when earned (usually when services rendered), irrespective of the date received. A significant amount of the commissions and fees earned for the year 2021 were from private placement commissions and due diligence fees which accounts for 98% of the total commissions and fees received of \$3,993,744. The Company's major providers are Romark Global Pharma, Carter, Mil Green and The Phoenix Fund LLC. | Revenue type | amount | | |----------------------|--------|-----------| | Due diligence fees | \$ | 3,921,133 | | Incentive commission | | 52,171 | | 401K fees | | 8,253 | | 128-1 fees | | 6,269 | | Annuities | | 5,918 | | | \$ | 3,993,744 | {14}------------------------------------------------ ## **Pariter Securities, LLC Notes to Financial Statements (Continued) As of and for the Year-Ended December 31, 2021** ## **Note 4: Commitments and Contingencies:** The Company is involved in a FINRA enforcement investigation with regards to the Company's offer and sale of GPB securities via private placement, the investigation is ongoing and the Company is fully cooperating with FINRA enforcement. The Company's last placement of GPB securities was in June 2018. Management does not anticipate an unfavorable outcome. ## **Note 5: General and Administrative:** | Auto/Gas | 12,158 | |------------------------------|---------| | Dues and Subscription | 12,896 | | Insurance | 16,073 | | Bank Charges | 2,221 | | Data Storage | 49,518 | | Office, Postage and Delivery | 2,495 | | Advertising | 10,000 | | Education and Training | 5,047 | | Municipal Tax | 22,565 | | Property Tax | 435 | | Other Taxes | 4,107 | | Incentive Fee | 54,000 | | Rent/Lease | 71,064 | | Utilities | 92,107 | | Travel | 40,319 | | Meals and Entertainment | 90,155 | | | 485,160 | ## **Note 6: Accounts Payable** Accounts payable as of December 31, 2021 were \$46,388. ## **Note** 7: Commission **Payable** Commission payable as of December 31, 2021 was \$57,670; of which \$56,625 is payable to related party Francisco Rivera. ## **Note 8: Rent Expense** The Company lease its office space from a non related party on a month to month basis. Total rent expenses for the year ended December 31, 2021 were \$71,064. {15}------------------------------------------------ ## **Parlter Securities, LLC Notes to Financial Statements (Continued) As of and for the Year-Ended December 31, 2021** #### **Note 9: Subsequent Events** Company has evaluated events from December 31, 2021 through March 30, 2022, the date the financial statements were issued. The Company is still under FINRA requirement to prepare and submit a monthly net capital computation, which are prepared and submitted by its primary Financial and Operations Principal (FINOP) and reviewed by its secondary FINOP and shall file monthly Focus Reports until FINRA notifies the Company that monthly filings are no longer necessary. As of the date of these audited financial statements the Company has been in compliance with its net capital and reporting requirements. Other than noted below there were no additional subsequent events that need disclosure. In February 2022, the Company verbally agreed on a settlement with an investor in the amount of \$20,000, with regards to a claim of unsuitability, as of the filing date, there has been no written formal agreement signed. {16}------------------------------------------------ # **SUPPLEMENTAL INFORMATION** **Parlter Securities, LLC** # **Computation of Net Capital for Brokers and Dealers Pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934** | Computation of Net Capital | | |------------------------------------------------------------------------|--------------| | Total Stockholder's Equity | \$ 1,121,236 | | Non-Allowable Assets | 1,052,473 | | Haircuts on Securities Positions | | | Securities Haircuts | | | Undue Concentration Charges | | | Net Allowable Capital | 68,763 | | Computation of Basic Net Capital Requirement | | | Minimum Net Capital Requirement as a Percentage of Aggregate | 7,842 | | Indebtedness | | | Minimum Dollar Net Capital Requirement of Reporting Broker/Dealer | 5,000 | | Net Capital Requirement | 7,842 | | Excess Net Capital | 60,921 | | Computation of Agregate Indebtedness | | | Total Aggregated Indebtedness | 117,631 | | Percentage of Aggregated Indebtedness to Net Capital | 171 | | Reconclllatlon of the Computation of the Net Capital Under Rule 15c3-1 | | | Net Capital Computed and Reported on FOCUS IIA as of December 31, | | | 2021 | | | Adjustments: | | | Increase (Decrease) in Equity | 68,763 | | Increase (Decrease) in Non-Allowance Assets | | | Increase (Decrease) in Securities Haircuts | | | Increase (Decrease) in Undue Concentration Charges | | | Net Capital Per Audit | 68,763 | | Reconciliation Difference | \$ | | | | 14 {17}------------------------------------------------ # **SUPPLEMENTAL INFORMATION** ## **Statements Pursuantto 17a-S(d) Statement Related to Uniform Net Capital Rule** The Company is a member of the FINRA and is subject to the SEC Uniform Net Capital Rule 15c3- 1. This rule requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 1500% (15:1), or, during its first year of operations, 800% {8:1). Net capital and the related net capital ratio may fluctuate on a daily basis. As stated above, as of December 31, 2021, the Company had a net capital of sixty-eight thousand seven hundred and sixty-three dollars (\$68,763) which was sixty thousand nine hundred and twenty-one dollars (\$60,921) in excess of its net capital requirement of the net capital requirement of seven thousand eight hundred and forty-two dollars {\$7,842). The Company has elected to use the basic computation method, as is permitted by the rule, which requires that the Company maintain minimum Net Capital pursuant to a fixed dollar amount or 6- 2/3% percent of total **aggregate** indebtedness, as defined, whichever is **greater,** and does not, therefore, calculate its net capital requirement under the alternative reserve requirement method. There were no material differences reported as Net Capital in the audited computation of Net Capital and the broker- dealer's corresponding unaudited Part IIA of the FOCUS report required under Rule 15c3-1. {18}------------------------------------------------ ## ABC Securities, LLC Schedule II Determination of Reserve Requirements Under Rule ISc3-3 ( e ) of the Securities and Exchange Commission December 31, 2020 The Company has no reserve deposit obligations under SEC I Sc3-3( e ) because it is a "non-covered" firm pursuant to footnote 74 to SEC Release 34-70073 and therefore is not subject to the Rule. ABC Securities LLC Schedule 111 Information Relating to Possession or Control Requirements Under Rule 15c3-3 (b) of the Securities and Exchange Commission December 31, 2020 The Company has no possession or control obligations under SEC 1Sc3-3 ( b) because it Is a "non-covered" firm pursuant to footnote 74 to SEC Release 34-70073 and therefore is not subject to the Rule. • {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) ## Report of Independent Registered Public Accountine Firm Exemption Review Report Pursuant to l 5c3-3(k)(2)(ii) and Additional Claim{s) for Exemption Not Provided in l 5c3-3(k) Director and Shareholder Partier Securities, LLC 243 Carretera #2 Guaynabo, PR 966 Dear Francisco Rivera, We have revie,,ed management's statements. included in the accompanying Exemption Report. in ,,hich Pariter Securities, LLC identified the follo,, ing provisions of 17 C.F.R. § I Sc3-3(l,.) under which Pariter Securities, LLC claimed an exemption from 17 C.F.R. § I Sc3-3(k)(2)(ii) and Pariter Securities, LLC stated that Pariler Securities, LLC met the identified exemption pro,·isions throughout the most recent fiscal year without exception. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. I 7a-5 are limited to: participating in distributions of securities (other than linn commitment underwritings) in accordance ,, ith the requirements of paragraphs (a) or (b)(2) of Ruic I 5c2-4: In addition, the Company (I) did not directly or indirect I) recei\'e, hold, or othern ise owe funds or securities for or lo customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Ruic I 5c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription ,,·a) basis where the funds arc payable to the issuer or its agent and not to the Company; (2) did not earl) accounts of or for customers; and (3) did 1101 carry PAB accounts (as de lined in Rule I Sc3-3) throughout the most recent fiscal) ear without exception. Pariter Securities, LLC is responsible for compliance with the e.\emption provisions and its statements. Our review ,,as conducted in accordance with the standards of the Public Compan) Accounting Oversight Board (United Stales) and according!), included inquiries and other required procedures to obtain evidence about Pariter Securities. LLC compliance with the e:\emplion J>rovisions. A revie\\ is substantially less in scope than an examination, the objective of which is the expression of 1111 opinion on management's statements. Accordingly, wc do not express such an opinion. Based on our re\'ie\\, \\Care not aware ofan) material modifications thut should be made to management"s statements referred to above for them lo be fairly stated, in 11II material respects. based on the provisions set forth in (k)(2)(ii) of Rule I 5c3-3 under the Securities fa.change Act of 1934. and the Company·s other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. I 7a-5, and related SEC Staff Frequent!) Asl.ecl Questions. ~"7~, l!C- TPs Thayer. LLC Sugar Land, TX March 30, 2022 , . I J {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) March 25, 2022 TPS Thayer 1600 Hwy. 6, Suite 100 Sugar Land, TX 77478 ## **Parlter** Securities, LLC Exemption **Report** Pariter Securities, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-S promulgated by the Securities and Exchange Commission ( 17 C.F .R. §240.17a-S, "Reports to bemade by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-S(d)(I) and (4). To the best of its knowledge and belief, the Company states thefollowing: - (I) The Company claimed exemption from 17 C.F.R. § 240.1 Sc3-3 under the following provisions of 17 C.F.R. §240.1Sc3-3 (k)(2)(ii) - (2) The Company met the identified exemption provisions in 17 C.F.R. §240.1Sc3-3 throughout the most recent fiscal year without exception. - (l) The Company is also filing this ExemptiGn Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. I 7a-S are limited to: participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 1Sc2-4; and The Company (I) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with **paragraph (a)** or (b)(2) of Rule I Sc2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer orits agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 1Sc3-3) throughout the fiscal year ending December 31, 2021 without exception. The statement above was made to the best knowledge and belief of the undersianed. *<~* Francisco Rivera President Pariter Securities, LLC {21}------------------------------------------------ ## **Statement Related to Exemptlve Provision (Possession and Control)** The Company does not have possession or control of customer's funds or securities. There were no material inadequacies in the procedures followed in adhering to the exemptive provisions of SEA Rule 15c3-3(k)(2)(ii). #### **Statement Related to Material Inadequacies** This audit did not disclose any material inadequacies since the previous audit of the financial statements in the accounting system or in the internal control related to reporting or the practices and procedures required pursuant to Rule 17a-5. The firm is exempt from 15c3-3; it does not maintain customer funds or securities and, therefore, does not maintain customer funds to segregate nor does it maintain separate accounts for customers. The firm is exempt from 15c3-3; it does not maintain customer funds or securities and, therefore, does not maintain customer funds to segregate nor does it maintain separate accounts for customers. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.