# ADVANCED ADVISOR GROUP, LLC X-17A-5 (2021-03-26) — Broker-dealer annual report - Company: ADVANCED ADVISOR GROUP, LLC - Form: X-17A-5 - Filed: 2021-03-26 - Period: 2020-12-31 - Accession: 0001358918-21-000003 - CIK: 1358918 - File #: 8-67313 - Material weakness: No - Auditor: Baker Tilly US - Auditor location: Minneapolis, MN - Contact: Dorothy Fuller - Phone: 763-552-6048 - Website: advancedadvisor.net - Signed by: Dorothy Fuller (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1358918/000135891821000003/aagsecfiling.pdf --- {0}------------------------------------------------ (A Limited Liability Company) Cambridge, Minnesota FINANCIAL STATEMENTS Including Report of Independent Registered Public Accounting Firm As of and for the Year Ended December 31, 2020 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** SEC FILE NUMBER **B-67313** **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | -----------
01/01/2020
MM/DD/YY | AND ENDING | -----------
12/31/2020
MM/DD/YY | |--------------------------------------------------------------------------|--------------------------------------------------------|---------------|---------------------------------------| | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Advanced Advisor Group, LLC | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | | | 1995 E Rum River Dr S | | | | | | (No. and Street) | | | | Cambridge | MN | | 55008 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | (Area Code - Telephone Number) | | | B. ACCOUNT ANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Baker Tilly Virchow Krause, LLP | | | | | | (Name - if individual, state last, first, middle name) | | | | 225 South Sixth St, Ste 2300 | Minneapolis | MN | 55402 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | ✓ I Certified Public Accountant | | | | | Public Accountant | | | | | B
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 Section 240.17 a-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.** SEC 1410 (11-05) {2}------------------------------------------------ ### **OATH OR AFFIRMATION** | | I, Dorothy Fuller | , swear ( or affirm) that, to the best of | |----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | -- | Advanced Advisor Group, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
----------------------------------------- | | - | of December 31 | '
2020
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 | | | | CFO | | | | | | | This report** contains (check all applicable boxes):
0 (a) Facing Page.
0 (b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
IZ] ✓ (d) Statement of Changes in Financial Condition.
D (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
§ (g) Computation of Net Capital.
consolidation.
✓ (I) An Oath or Affirmation.
0 (m) A copy of the SIPC Supplemental Report. | 1Z] (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
0 (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule l 5c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule l 5c3-3.
D U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-
l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3
0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
D (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 portions of this filing, see section 240.17a-5(e)(3). | {3}------------------------------------------------ (A Limited Liability Company) ### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |----------------------------------------------------------------------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Statement of Operations | 3 | | Statement of Member's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6-7 | | Supplemental Information | | | Computation of Net Capital and Aggregate Indebtedness Under Rule 15c3-1 of the
Securities and Exchange Commission | 8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Sole Member of Advanced Advisor Group, LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Advanced Advisor Group, LLC (the Company) as of December 31, 2020, the related statements of operations, member's equity, and cash flows 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 the Company 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 the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Supplemental Information** The supplemental information has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial 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. § 240.1 ?a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. *~>~{"* ·1" ~-\ U. ~ i L *cP* We have served as the Company's auditor since 2006. Minneapolis, Minnesota March 3, 2021 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. {5}------------------------------------------------ (A Limited Liability Company) #### STATEMENT OF FINANCIAL CONDITION As of December 31, 2020 #### **ASSETS** | CASH AND CASH EQUIVALENTS | \$
571,715 | |-------------------------------------------------------------------|--------------------------------| | COMMISSIONS RECEIVABLE | 275,469 | | ACCOUNTS RECEIVABLE | 6,126 | | PREPAID INSURANCE | 2,336 | | TOTAL ASSETS | \$
855 6~6 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accounts payable
Accrued commissions
Related party payables | \$
420
187,146
95,307 | | TOTAL LIABILITIES | 282,873 | | MEMBER'S EQUITY | 572,773 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
855,6~6 | {6}------------------------------------------------ (A Limited Liability Company) #### STATEMENT OF OPERATIONS For the Year Ended December 31, 2020 | REVENUES
Commissions
Asset management fees
TOTAL REVENUES | \$ 3,142,816
83,930
3,226,746 | |----------------------------------------------------------------------------------|-------------------------------------| | EXPENSES
Agent commissions
Other administrative expenses
TOTAL EXPENSES | 2,848,918
327,446
3,176,364 | | INCOME FROM OPERATIONS | 50,382 | | OTHER INCOME | 945 | | NET INCOME | \$
51,327 | {7}------------------------------------------------ (A Limited Liability Company) #### STATEMENT OF MEMBER'S EQUITY For the Year Ended December 31, 2020 | BALANCE, December 31, 2019 | \$
521,446 | |----------------------------|---------------| | 2020 Net income | 51,327 | | BALANCE, December 31, 2020 | \$
572.773 | {8}------------------------------------------------ (A Limited Liability Company) # STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020 | CASH FLOWS FROM OPERA TING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash flows from operating activities: | \$
51,327 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------| | Changes in operating assets and liabilities:
Commissions receivable
Accounts receivable
Prepaid insurance
Accounts payable
Accrued commissions
Related party payables
Net Cash Flows from Operating Activities | (8,949)
682
(109)
315
(9,101)
(6,469)
27,696 | | Net Change in Cash and Cash Equivalents | 27,696 | | CASH AND CASH EQUIVALENTS - Beginning of Year | 544 019 | | CASH AND CASH EQUIVALENTS - END OF YEAR | \$
5Z1 ,715 | {9}------------------------------------------------ (A Limited Liability Company) #### **NOTE 1 - Summary of Significant Accounting Policies** #### Nature of Business Advanced Advisor Group, LLC (the Company), is a Minnesota-based LLC with an infinite life that conducts business using a k(1) exemption as a securities broker-dealer and is a member firm of the Financial Industry Regulatory Authority (FINRA). The Company received permission to operate as a member firm with restrictions as outlined in its membership agreement in October 2006. The Company does not and may not acquire, hold or trade securities inventory. It acts solely as a broker of mainly variable annuities, mutual funds and 529 accounts. #### Cash and Cash Equivalents The Company defines cash and cash equivalents as highly liquid, short-term investments with a maturity at the date of acquisition of three months or less. The Company maintains its cash in financial institutions and money market mutual funds. The balances, at times, may exceed federally insured limits. #### Commissions Receivable Commissions receivable are unsecured and no allowance for doubtful accounts is considered necessary as of December 31, 2020. #### Revenue Recognition and Related Expenses Commission income is generated each time a customer enters into a buying transaction. Revenue generated from those transactions are recorded at a point in time and recognized on a trade-date basis. The Company recognizes revenue when the performance obligation is identified and completed, the pricing is agreed upon and the risk and reward of ownership have been transferred to the customer at that time. Asset Management fees are charged quarterly and are based on a percentage of customer's assets under management. Revenue is recognized over time which is usually quarterly. Fee revenue is recognized at a point in time as services provided and performance obligations in that period are completed, which is distinct from the other services. #### Income Taxes The Company is a single member limited liability company classified as a "disregarded entity" for income tax purposes. Accordingly, these financial statements do not include any provision or liability for income taxes since the income and expenses are reported on the individual income tax returns of the sole member and the applicable income taxes, if any, are paid by the member. The Company is not currently under examination by any taxing jurisdiction. In the event of any future tax assessments, the Company has elected to record the income taxes and any related interest and penalties as income tax expense on the Company's statement of operations. #### Management's Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. {10}------------------------------------------------ (A Limited Liability Company) #### **NOTE 2 - Net Capital Requirements** The Company is subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1 ), which requires the maintenance of minimum net capital and requires the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed fifteen to one. Net capital and the related net capital ratio fluctuate on a daily basis. As of December 31, 2020, the net capital ratio was .50 to 1.0 and net capital was \$564,311, per calculation below, which was \$545,453 in excess of its minimum requirement of \$18,858. No material differences exist between the net capital calculated above and the net capital computed and reported in the Company's December 31, 2020 FOCUS filing. Per Rule 15c3-3 of the SEC Uniform Net Capital Rule, the Company is exempt under the k(1) exemption. #### **NOTE 3 - Related Parties** The Company has an agreement with Educators Financial Services (EFS), which is not a registered company, to pay a percentage of shared expenses. EFS is related by common ownership. Shared expenses include items such as office rent {paid to a different entity as of 12/1/2020 on a month to month lease), office supplies, postage and a percentage of salaries. Shared expenses incurred by the Company were \$241,897 for the year ended December 31, 2020. Shared expenses due to EFS were \$139 as of December 31, 2020 and included in related party payables. The Company has an agreement to pay commissions to EFS based on commissions earned. Commissions paid to EFS for the year ended December 31, 2020 was \$1,071,868. Commissions due to EFS were \$95,168 as of December 31, 2020 and were included in related party payables. #### **NOTE 4 - Subsequent Events** The Company has evaluated subsequent events occurring through March 3, 2021, the date that the financial statements were available to be issued, for events requiring recording or disclosure in the Company's financial statements. {11}------------------------------------------------ SUPPLEMENTAL INFORMATION {12}------------------------------------------------ (A Limited Liability Company) #### COMPUTATION OF NET CAPITAL AND AGGREGATE INDEBTEDNESS UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION As of December 31, 2020 | COMPUTATION OF NET CAPITAL | | |-------------------------------------------------------------------------------------------------|---------------| | Total member's equity | \$
572,773 | | Deductions and/or charges: | | | Total non-allowable assets | 8,462 | | Net capital before haircuts on securities positions | 564,311 | | Haircuts on securities positions | | | Net capital | \$
564,311 | | COMPUTATION OF AGGREGATE INDEBTEDNESS | | | Total liabilities from statement of financial condition | 282,873
\$ | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum net capital requirement (greater of \$5,000 or aggregated
indebtedness times 6 2/3%) | \$
18,858 | | Excess net capital | \$
545 453 | | Net capital less 10% of aggregate indebtedness | \$
536,024 | | Ratio:
Aggregate indebtedness to net capital | ,50 to :l | {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) Sole Member Advanced Advisor Group, LLC 440 Emerson St. N., Suite 4 Cambridge, Minnesota 55008 We have substantially completed our audit of the financial statements of Advanced Advisor Group, LLC (the Company) as of December 31, 2020 and for the year then ended, in accordance with standards of the Public Company Accounting Oversight Board (United States). In planning and performing our audit, we considered the Company's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a significant deficiency. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In this context, a "reasonable possibility" exists when the likelihood of the event occurring is either "reasonably possible" or "probable." These terms are defined as follows: - > Reasonably possible: The chance of the future event or events occurring is more than remote but less than likely. - > Probable: The future event or events are likely to occur. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the Company's financial reporting. We consider the following deficiency to be a significant deficiency: > There is a lack of segregation of duties in the accounting department. Additionally, there are no controls in place to compensate for the lack of segregation of duties. Without appropriate segregation of duties, or compensating controls within the accounting department, it is possible the Company may not be able to successfully prevent an error or misstatement from occurring. {14}------------------------------------------------ This communication is intended solely for the information and use of management, the Sole Member, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. Minneapolis, Minnesota March 3, 2021 {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) # **Advanced Advisor Group, LLC** Exemption Report Including Report of Independent Registered Public Accounting Firm Year Ended December 31, 2020 {16}------------------------------------------------ # **Advanced Advisor Group, LLC** Table of Contents Report of Independent Registered Public Accounting Firm Exemption Report 1 2 {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Sole Member of Advanced Advisor Group, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Advanced Advisor Group, LLC identified the following provision of 17 C.F .R. § 15c3-3(k) under which Advanced Advisor Group, LLC claimed an exemption from 17 C.F.R. § 240.15c3-3: (1) (the "exemption provisions") and (2) Advanced Advisor Group, LLC stated that Advanced Advisor Group, LLC met the identified exemption provisions throughout the year ended December 31, 2020 without exception. Advanced Advisor Group, LLC 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 Advanced Advisor Group, LLC'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 conditions set forth in paragraph (k)(1) of Rule 15c3-3 under the Securities Exchange Act of 1934. ~ct.b ~-&~\ \t\\_ *)t* L *Lf* Minneapolis, Minnesota March 3, 2021 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) January 29, 2021 Securities and Exchange Commission 100 F Street NE Washington DC 20549 RE: Exemption from SEC Rule 15c3-3 To Whom It May Concern: Advanced Advisor Group, LLC, claims exemption from SEC Rule 15c3-3 under paragraph (k)(l) for the period from January 1, 2020 through December 31, 2020 because our business is limited to the purchase, sale, or redemption of redeemable securities of registered investment companies and we do not hold customer funds or safe keep securities. Paragraph (k)(l) states: The provisions of this rule shall not be applicable to a broker or dealer meeting all of the following conditions: (i) The broker's or dealer's transactions as dealer (as principal for its own account) are limited to the purchase, sale and redemption of redeemable securities of registered investment companies or of interests or participations in an insurance company separate account, whether or not registered as an investment company; except that a broker or dealer transacting business as a sole> proprietor may also effect occasional transactions In other securities for its own account with or through another registered broker or dealer; (ii) The broker's or dealer's transactions as broker (agent) are limited to: (a) the sale and redemption of redeemable securities of registered investment companies or of interests or participations in an insurance company separate account, whether or not registered as an investment company; (b) the solicitation of share accounts for savings and loan associations insured by an instrumentality of the United States; and (c) the sale of securities for the account of a customer to obtain funds for immediate reinvestment in redeemable securities of registered investment companies; and (iii) The broker or dealer promptly transmits all funds and delivers all securities received in connection with its activities as **a** broker or dealer, and does not otherwise hold funds or securities for, or owe money or securities to, customers. Advanced Advisor Group, LLC, has met the identified exemption provisions above throughout this period without exception. Advanced Advisor Group, LLC I, Dorothy Fuller, swear ( or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. CFO 440 Emerson St. N., Suite 4 Cambridge, MN 55008 Advancing Your Success Member FINRA and SIPC A Registered Investment Advisor 763.689.9023 877.403.23 74 Fax 763.689.3742 www.advancedadvisor.net {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) # **Advanced Advisor Group, LLC** Agreed Upon Procedures Including Form SIPC-7 December 31, 2020 {20}------------------------------------------------ Table of Contents ## Report of Independent Registered Public Accounting Firm on Applying Agreed Upon Procedures #### Accompanying Schedule Form SIPC-7 1-2 {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm on Applying Agreed Upon Procedures** To the Sole Member of Advanced Advisor Group, LLC We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below, and were agreed to by Advanced Advisor Group, LLC (the Company) and the SIPC, solely to assist you and the SIPC in evaluating the Company's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC 7) for the year ended December 31, 2020. Management of the Company is responsible for its Form SIPC-7 and for its compliance with those requirements. This agreed upon procedures engagement was conducted in accordance with standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - > Compared listed assessment payments in Form SIPC-7 with respective cash disbursement records, noting no differences; - > Compared the total revenue amounts reflected in the Annual Audited Report Fann X 17A 5 Part Ill for the year ended December 31, 2020 with total revenue amounts reported in the Form SIPC-7 for the year ended December 31, 2020, noting no differences; - > Compared any adjustments reported in Form SIPC-7 with supporting schedules and workpapers, noting no differences; and - > Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related supporting schedules and workpapers supporting the adjustments, noting no differences. We were not engaged to, and did not conduct an examination or a review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's compliance with applicable instructions of the Form SIPC-7 for the year ended December 31, 2020. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Company and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. Minneapolis, Minnesota March 3, 2021 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. {22}------------------------------------------------ | SIPC-7
(36-REV 12/ 18) | SECURITIES INVESTOR PROTECTION CORPORATION
P.O. Box 92185 Washington, D.C. 20090-2185
202-371-8300
General Assessment Reconciliation | | SIPC-7
(36-REV 12118) | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|--------------------------|--| | For the fiscal year ended 12/31/2020
(Read carefully the instructions in your Working Copy before completing this Form)
TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS
1. Name ol Member, address, Designated Examining Authority, 1934 Act registration no . and month in which fiscal year ends for
purposes of the audit requirement of SEC Rule 1 ?a-5:
7
Note: If any of the information shown on the
mailing label requires correction, please e-mail
r---:.30**•• ·2osa· •••• MIXED AADC 220
any corrections to form@sipc.org and so
67313
FINRA
DEC
indicate on the form liled. | | | | | | L | ADVANCED ADVISOR GROUP LLC
1995 E RUM RIVER DR S
CAMBRIDGE, MN 55008-2656 | Name and telephone number of person to
contact respecting this form.
_J | Q_ | | | 2. A.
8.
C. | General Assessment (item 2e from page 2)
Less payment made with SIPC-6 filed (exclude interest)
-~ -::a ·-
1-D
bate Paid
Less prior overpayment applied | \$_l--{_i | L.f _____
13:-0?:: | | | E.
F.
PAYMENT:
G. | D. Assessment balance due or (overpayment}
Interest computed on late payment (see instruction E) for ___
Total assessment balance and interest due (or overpayment carried forward)
✓ the box
Check mailed to P .0. Box V
Funds Wired .:::J
ACH CJ \$_Z2,,_._0"-';}.,_;2)=---
Total (must be same as ~Abbve) | days at 20% per annum | | | | _________
_
\$(
Overpayment carried forward
H.
3. Subsidiaries (S) and predecessors (P} included in this form (give name and 1934 Act registration number): | | | | | | The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true, correct
001
""''" """ """ "'
'" ";~
aad complete.
~
---
Dated the \~day ol "f Q,b-i~a~
20 1J .
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• T I e | | | | | | This form and the assessment paymen is due 60 days after the end of the fiscal year. Retain the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accessible place. | | | | | | 3: | ffi Dates
: | Postmarked | Received | Reviewed | | |-----|-------------------|-------------------------------|----------|--------------------------|--------------------------| | LU | | LU > Calculations ___ _ | | __
Documentation
_ | ___
Forward Copy
_ | | cc: | c.:, Exceptions : | | | | | | CL. | | en Disposition ol exceptions: | | | | {23}------------------------------------------------ # **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** Amounts for the liscal period beginning **1/1/2020** and ending **12/31/2020** | Item No.
2a . Total revenue (FOCUS Line 12/Part IIA Line 9. Code 4030) | Eliminate cents
\$---'-_;---'-, _z.:--'---~~-+-) __,_(Q__,_C,__/ | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------| | 2b. Additions:
{ 1) Total revenues lrom the securities business of subsidiaries (except lo reign subsidiaries) and
predecessors not included above. | | | (2) Net loss from principal transactions 1n securities 1n trading accounts. | | | (3) Net loss lrom principal transactions in commodities in trading accounts. | | | (4) Interest and dividend expense deducted in determining item 2a. | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than adve~sing, printing, registration fees and legal fees deducted in determining net
profit lrom management of or participation in underwriting or distribution of securities . | | | (7) Net loss from securities 1n investment accounts. | | | Tolal additions | | | 2c. Deductions:
( 1) Revenues trom the distribution of shares of a registered open end investment company or unit
investment trust, lrom the sale of variable annuities, from the business ol insurance, from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products . | | | (2) Revenues lrom commodity transactions. | | | (3) Commissions. lloor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | | | (4) Reimbursements for postage in connection with proxy solicilation. | | | (5) Net gain from securities in investment accounts . | | | (6) 100% of commissions and markups earned from transactions in (i) cerlil1cates ol deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
lrom issuance date. | | | (7) Direct expenses of printing advertising and legal lees incurred in connection 1·11th other revenue
related to the securities business (revenue delined by Section 16(9)(L) ol the Act) . | | | (8) Other revenue not related either directly or indirectly to the securities business
(See Instruction CJ : | | | (Deductions in excess ol \$100,000 require documentation) | | | (9) (i) Total interest and dividend expense (FOCUS Line 22 PART IIA Line 13.
Code 4075 plus line 2b(4} above) but not in excess
__________
ol total interest and dividend income.
\$
_ | | | __________
(11) 40% of margin interest earned on customers securities
accounts (40% ol FOCUS line 5. Code 3960) .
\$
_ | | | Enter the greater ol line (1) or (ii) | | | Total deductions | | | 2d . SIPC Net Operating Revenues | \$ | | 2e. General Assessment@ .0015 | \$ | {to page 1, line 2.A.} Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.