# ADVANCED ADVISOR GROUP, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: ADVANCED ADVISOR GROUP, LLC - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001358918-22-000002 - CIK: 1358918 - File #: 8-67313 - Type: Broker-dealer - Material weakness: Yes - Auditor: Maner Costerisan - Auditor location: Lansing, MI - Contact: Dorothy Fuller - Phone: 763-552-6048 - Email: dorothyf@efsadvisors.com - Website: efsadvisors.com - Signed by: Dorothy Fuller (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1358918/000135891822000002/aagfinalpacketa.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, 2021 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-S PART** Ill **FACING PAGE** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-67313 **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **0 1/01 /21** MM/DD/YY AND ENDING **12/31 /21** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Advanced Advisor Group, LLC TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1995 E Rum River Dr S (No. and Street) Cambridge MN (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 55008 (Zip Code) Dorothy Fuller 763-552-6048 Dorothyf@efsadvisors.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Maner Costerisan (Name - if individual, state last, first, and middle name) 2425 E Grand River Ave Ste 1 Lansing Ml (Address) (City) (State) 48912 (Zip Code) Ii of Re~strat">" with PCAOB)(;f appHcable) **FOR OFFICIAL USE ONLY** (PCAOB R•~""""" N,mbe,, • ,,,.;cable) I • 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 of 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. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** financial report pertaining to the firm of Advanced Advisor Group, LLC as of **12/31** 2~ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_4.jpeg) **Signatu~~~** Title: CFO #### **This filing\*\* contains (check all applicable boxes):** - **ii (a)** Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - **ii** (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). - **ii** (d) Statement of cash flows. - **ii** (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - **ii** (g) Notes to consolidated financial statements. - **ii** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - **ii** (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-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. - **ii** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **i!!!il** (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-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-5 or 17 CFR 240.18a-7, as applicable. - **i!!!il (w)** Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **i!!!il (x)** Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - D (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(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e)(3} or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ (A Limited Liability Company) ### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | 1 | |----------------------------------------------------------------------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Member's Equity | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7-8 | | Supplemental Information | | | Computation of Net Capital and Aggregate Indebtedness Under Rule 15c3-1 of the
Securities and Exchange Commission | 9 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 2425 E. Grand River Ave., Suite 1, Lansing, Ml 48912 **2** 517.323.7500 @ 517.323.6346 ### **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 as of December 31, 2021, the related statements of operations, changes in 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 Advanced Advisor Group, LLC as of December 31, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** These financial statements are the responsibility of Advanced Advisor Group, LLC's management Our responsibility is to express an opinion on Advanced Advisor Group, LLC'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 Advanced Advisor Group, LLC 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. {5}------------------------------------------------ ### **Auditor's Report on Supplemental Information** The supplemental information, Computation of Net Capital and Aggregate Indebtedness Under SEC Rule 15c3-1 of the Securities and Exchange Commission, has been subjected to audit procedures performed in conjunction with the audit of Advanced Advisor Group, LLC's financial statements. The supplemental information is the responsibility of Advanced Advisor Group, LLC'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, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Advanced Advisor Group, LLC's auditor since 2021. March 30, 2022 {6}------------------------------------------------ (A Limited Liability Company) #### STATEMENT OF FINANCIAL CONDITION As of December 31, 2021 ### **ASSETS** | CASH AND CASH EQUIVALENTS | \$
575,443 | |---------------------------|---------------| | COMMISSIONS RECEIVABLE | 275,328 | | ACCOUNTS RECEIVABLE | 10,138 | | PREPAID INSURANCE | 2,512 | | TOTAL ASSETS | s
863,421 | ### **LIABILITIES AND MEMBER'S EQUITY** ### **LIABILITIES** | Accounts payable
Accrued commissions
Related party payables | \$
88
185,293
87,886 | |-------------------------------------------------------------------|-------------------------------| | TOTAL LIABILITIES | 273,267 | | MEMBER'S EQUITY | 590,154 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | s
863,421 | {7}------------------------------------------------ (A Limited Liability Company) #### STATEMENT OF OPERATIONS For the Year Ended December 31, 2021 | REVENUES
Commissions
Asset management fees
TOTAL REVENUES | \$3,241,170
105,417
3,346,587 | |----------------------------------------------------------------------------------|-------------------------------------| | EXPENSES
Agent commissions
Other administrative expenses
TOTAL EXPENSES | 3,005,114
324,771
3,329,885 | | INCOME FROM OPERATIONS | 16,702 | | OTHER INCOME | 679 | | NET INCOME | 17 381
\$ | {8}------------------------------------------------ (A Limited Liability Company} ### STATEMENT OF MEMBER'S EQUITY For the Year Ended December 31, 2021 | BALANCE, December 31, 2020 | \$
572,773 | |----------------------------|---------------| | 2021 Net income | 17 381 | | BALANCE, December 31, 2021 | \$
590.154 | {9}------------------------------------------------ (A Limited Liability Company) # STATEMENT OF CASH FLOWS For the Year Ended December 31, 2021 | CASH FLOWS FROM OPERA TING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash flows from operating activities: | \$ | 17,381 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|-----------------------------------------------------------------| | 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 | | 141
(4,012)
(176)
(332)
(1,852)
(7,421}
3.729 | | Net Change In Cash and Cash Equivalents | | 3,729 | | CASH AND CASH EQUIVALENTS - Beginning of Year | | 571 714 | | CASH AND CASH EQUIVALENTS -
END OF YEAR | s | 5Z5.~~3 | {10}------------------------------------------------ (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, 2021. #### 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. {11}------------------------------------------------ (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, shalt not exceed fifteen to one. Net capital and the related net capital ratio fluctuate on a daily basis. As of December 31, 2021, the net capital ratio was .47 to 1.0 and net capital was \$577,503, per calculation below, which was \$559,285 in excess of its minimum requirement of \$18,218. No material differences exist between the net capital calculated above and the net capital computed and reported in the Company's December 31, 2021 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 software, postage and a percentage of salaries. Shared expenses incurred by the Company were \$219,710 for the year ended December 31, 2021. Shared expenses due to EFS were \$167 as of December 31, 2021 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, 2021 was \$1,098,300. Commissions due to EFS were \$87,719 as of December 31, 2021 and were included in related party payables. ### **NOTE 4 - Subsequent Events** The Company has evaluated subsequent events occurring through March 30, 2022, the date that the financial statements were available to be issued, for events requiring recording or disclosure in the Company's financial statements. {12}------------------------------------------------ ### SUPPLEMENTAL **INFORMATION** {13}------------------------------------------------ (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, 2021 | COMPUTATION OF NET CAPITAL | | |-------------------------------------------------------------------------------------------------|---------------| | Total member's equity | \$
590,154 | | Deductions and/or charges: | | | Total non-allowable assets | 12.651 | | Net capital before haircuts on securities positions | 577,503 | | Haircuts on securities positions | | | Net capital | \$
577 503 | | COMPUTATION OF AGGREGATE INDEBTEDNESS | | | Total liabilities from statement of financial condition | \$
273.267 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum net capital requirement (greater of \$5,000 or aggregated
indebtedness times 6 2/3%) | \$
18.218 | | Excess net capital | \$
559,285 | | Net capital less 10% of aggregate indebtedness | \$
550 176 | | Ratio:
Aggregate indebtedness to net capital | ~7 to 1 | {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) 2425 E. Grand River Ave., Suite 1, Lansing, MI 48912 **3** 517.323.7500 ~ 517.323.6346 March 30, 2022 To the Sole Member of Advanced Advisor Group, LLC In connection with our audit of the financial statements and supplemental information of Advanced Advisor Group, LLC for the year ended December 31, 2021, we have issued our report thereon dated March 30, 2022. Professional standards require that we provide you with the following information related to our audit ### Significant and Critical Accounting Policies and Practices Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The Company's significant accounting policies are disclosed in the notes to the financial statements as required by generally accepted accounting principles pursuant to Rule 17a-5 under the Securities and Exchange Act of 1934. No new accounting policies were adopted and the application of existing accounting policies was not changed during 2021. We noted no transactions entered into by the Company during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. Critical accounting policies and practices are those that are both most important to the portrayal of the Company's financial condition and results and require management's most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The critical accounting policies used by Advanced Advisor Group, LLC in its 2021 financial statements are described in Note 1 to the financial statements and relate to the policies the Company uses to account for commissions (revenue recognition). ### Critical Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Critical accounting estimates are estimates for which (1) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (2) the impact of the estimate on financial condition or operating performance is material. The Company's critical accounting estimates affecting the financial statement was: Management's estimate of the payout of commissions receivable at year-end was based on an average of the payout scale multiplied by commissions receivable, including management's process for developing the estimate and the significant assumptions underlying the estimate. We evaluated the key factors and assumptions used to develop the estimated amount in determining that it is reasonable in relation to the financial statements taken as a whole. {15}------------------------------------------------ ### Significant Unusual Transactions For purposes of this letter, professional standards define *significant unusual transactions* as transactions that are outside the normal course of business for the Company or that otherwise appear to be unusual due to their timing, size, or nature. We noted no significant unusual transactions during our audit ### Related-party Relationships and Transactions As part of our audit, we evaluated the Company's identification of, accounting for, and disclosure of the Company's relationships and transactions with related parties as required by professional standards. We noted no related parties or related-party relationships or transactions that were previously undisclosed to us; significant related-party transactions that have not been approved in accordance with the Company's policies or procedures or for which exceptions to the Company's policies or procedures were granted; or significant related-party transactions that appeared to lack a business purpose. ### Quality of the Company's Financial Reporting Management is responsible not only for the appropriateness of the accounting policies and practices, but also for the quality of such policies and practices. Our responsibility under professional standards is to evaluate the qualitative aspects of the Company's accounting practices, including potential bias in management's judgments about the amounts and disclosures in the financial statements, and to communicate the results of our evaluation and our conclusions to you. No biases were noted in our evaluation of the qualitative aspects of management's judgment in applying significant accounting policies and practices in the financial statements and related disclosures. Presentation of the financial statements and the related disclosures are in conformity with accounting principles generally accepted in the United States of America. ### Uncorrected and Corrected Misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial, and to communicate accumulated misstatements to management The attached schedule summarizes the uncorrected misstatements that we presented to management and the corrected misstatements, other than those that are clearly trivial, that, in our judgment, may not have been detected except through our auditing procedures. In our judgment, none of the misstatements that management has corrected, either individually or in the aggregate, indicate matters that could have a significant effect on the Company's financial reporting process. Management has determined that the effects of the uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit ### Auditor's Report In connection with the audit of the financial statements, we have provided you a draft of our auditor's report and have discussed with you. ### Exceptions to Exemption Provisions In connection with our review of the Company's Exemption Report, we did not identify any exceptions to the exemption provisions that would cause the Company's assertions not to be fairly stated, in all material respects. {16}------------------------------------------------ ## Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report We are pleased to report that no disagreements with management arose during the course of our audit ### Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. ### Supplemental Information Based on the regulatory requirements of SEC Rule 17a-5, the Company presents Computation of Net Capital and Aggregate Indebtedness under Rule 15c3-1 of the Securities and Exchange Commission that accompanies the financial statements. We subjected that supplemental information to audit procedures in accordance with *AS 2701, Auditing Supplemental Information Accompanying Audited Financial Statements.* Based on our audit procedures performed, the supplemental information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. This information is intended solely for the use of the Sole Member and management of Advanced Advisor Group, LLC and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) 2425 E. Grand River Ave., Suite t, Lansing, MI 48912 **a** s11.323.15oo igi 517.323.6346 #### **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 Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) Advanced Advisor Group, LLC (the Company) did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company. In addition, the Company 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 15c2-4 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 or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3- 3) throughout the most recent fiscal year without exception. Advanced Advisor Group, LLC's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about 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 upon the Company's business activities contemplated by Footnote 7 4 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. March 30, 2022 {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) January 26, 2022 Securities and Exchange Commission 100 F **Street NE** Washington DC 20549 RE: Advanced Advisor Group's Exemption Report To Whom It May Concern: Advanced Advisor Group, LLC, is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-S(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and - (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and the Company (1) 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 15c2-4 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 or its 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 15c3-3) throughout the most recent fiscal year, except as described below. 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. {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) 2425 E. Grand River Ave., Suite t, Lansing, MI 48912 **2** 517.323.7500 IC;! 517.323.6346 #### **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 on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2021. Management of Advanced Advisor Group, LLC (Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. 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: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2. Compared the Total Revenue amount reported on the Annual Audited Report Form X-17 A-5 Part III for the year ended December 31, 2021 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2021, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. {20}------------------------------------------------ We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. 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. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. March 30, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.