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Moreton Jeff M. Taylor Managing Director 101 South 200 East, Suite 300 Salt Lake City, UT 84111 Jeff.Taylor@moretoncm.com 530.224.0919 Jeff has over 24 years career experience as an Institutional Broker. Jeff’s professional experience includes managing Institutional client relationships for liquidity investments from municipalities, corporations, asset managers and financial intermediaries. Jeff joined Moreton Capital Markets LLC in August 2017. Prior to joining Moreton, Jeff’s professional experience includes previous employment with US Bancorp Investments Inc., JPMorgan Asset Management, Dreyfus and Franklin Templeton. Finally, Jeff has a Bachelor of Arts degree from Pacific Lutheran University, Tacoma, WA. Jeff is registered with FINRA, licenses Series 7, 66, 63 and 6. 101 South 200 East, Suite 300 Salt Lake City, UT 84111 801-535-3650 Team@MoretonCM.com www.MoretonCM.com Moreton Capital Markets, LLC is member of FINRA and SIPC City of La Quinta Broker/Dealer Questionnaire responses 1. Moreton Capital Markets, LLC 2. Address of Trading office & Corporate Headquarters: 101 South 200 East, Suite 300 Salt Lake City, UT 84111 3. Trading Office: 530-224-0919, Corporate Headquarters: 801-535-3650 4. Jeff Taylor, Managing Director, 530-224-0919 5. Eric Vos, President, 952-777-2626 6. Management: 6, Trading: 1, Sales: 8, Operations/Clearing: 1 7. Eric Vos- Management, Jeff Taylor- Sales, Ben Byington- Operations/Clearing 8. U.S. Treasuries- 5%, Commercial Paper- 5%, CD’s- 25%, Mutual Funds- 25%, Agencies- 25%, Other (Corporates)- 15% 9. Reference 1: Square Inc., Tim Murphy, 925-997-5282, client since November 2017. Reference 2: Wedbush Securities Inc., Matthew Marine, 213-688-6685, client since November 2018 10. No 11. No 12. No 13. Trades and be conducted DVP, or safekeeping can be provided through our contractual relationship with RBC or US Bank. 14. Trading limits are established on a case by case basis. Portfolio size, type of investment, and how active you are in a particular market all factor into our decision. 15. Yes, SIPC coverage is up to $500,000 per client including up to $250,000 in cash. RBC Capital Markets has purchased an insurance policy through Lloyd’s of London that provides coverage in excess of SIPC coverage up to $99.5 million per SIPC-qualified account of which $900,000 may be cash. This is subject to a total maximum aggregate for RBC Capital Markets of $400 million that would be distributed on a pro-rata basis. 16. No 17. No 18. Yes 19. Yes 20. Yes, we have a fidelity bond with Chubb. The policy limit is 500,000 and expiration date is July 2019. 21. Yes, CRD# 132643 22. No 23. Yes 24. No 25. See attachments 7 SECTION V: ACKNOWLEDGEMENT and CERTIFICATION My firm will notify the City immediately, by telephone, and, in writing, in the event of a material adverse change in its financial condition, or of any violation of Municipal Securities Rulemaking Board Rule G-37. ***CERTIFICATION*** I hereby certify that I have personally read the Investment Policy of the City of La Quinta and the California Government Codes pertaining to the investments of the City. We have implemented reasonable procedures and a system of controls designed to prevent imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document, we authorize the City of La Quinta to conduct any and all background checks. Under penalties of perjury, I Certify that the responses to this questionnaire are true and accurate to the best of my knowledge and that I am authorized to execute this request for information. Firm Name:________________________ Broker Representative Signature: _______________________ Print Name: _________________ Date: ________________________________________________________ Title: ________________________________________________________ Sales Manager and/or Managing Partner Signature: ________________________ Print Name:_________________ Date: ________________________________________________________ Title: ________________________________________________________ *This form must be signed by a registered principal or an individual with signing authority on behalf of the firm. BrokerCheck ReportJEFFREY MATTHEW TAYLORSection TitleReport SummaryBroker QualificationsRegistration and Employment HistoryCRD# 245037912 - 34 - 5Page(s) About BrokerCheck®BrokerCheck offers information on all current, and many former, registered securities brokers, and all current and formerregistered securities firms. FINRA strongly encourages investors to use BrokerCheck to check the background ofsecurities brokers and brokerage firms before deciding to conduct, or continue to conduct, business with them.āWhat is included in a BrokerCheck report?āBrokerCheck reports for individual brokers include information such as employment history, professionalqualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. BrokerCheckreports for brokerage firms include information on a firm’s profile, history, and operations, as well as many of thesame disclosure events mentioned above.āPlease note that the information contained in a BrokerCheck report may include pending actions orallegations that may be contested, unresolved or unproven. In the end, these actions or allegations may beresolved in favor of the broker or brokerage firm, or concluded through a negotiated settlement with no admissionor finding of wrongdoing.āWhere did this information come from?āThe information contained in BrokerCheck comes from FINRA’s Central Registration Depository, orCRD® and is a combination of:Rinformation FINRA and/or the Securities and Exchange Commission (SEC) require brokers andbrokerage firms to submit as part of the registration and licensing process, andRinformation that regulators report regarding disciplinary actions or allegations against firms or brokers.āHow current is this information?āGenerally, active brokerage firms and brokers are required to update their professional and disciplinaryinformation in CRD within 30 days. Under most circumstances, information reported by brokerage firms, brokersand regulators is available in BrokerCheck the next business day.āWhat if I want to check the background of an investment adviser firm or investment adviserrepresentative?āTo check the background of an investment adviser firm or representative, you can search for the firm orindividual in BrokerCheck. If your search is successful, click on the link provided to view the available licensingand registration information in the SEC's Investment Adviser Public Disclosure (IAPD) website athttps://www.adviserinfo.sec.gov. In the alternative, you may search the IAPD website directly or contact your statesecurities regulator at http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/P455414.āAre there other resources I can use to check the background of investment professionals?āFINRA recommends that you learn as much as possible about an investment professional before decidingto work with them. Your state securities regulator can help you research brokers and investment adviserrepresentatives doing business in your state.āThank you for using FINRA BrokerCheck.For more information aboutFINRA, visit www.finra.org.Using this site/information meansthat you accept the FINRABrokerCheck Terms andConditions. A complete list ofTerms and Conditions can befound atFor additional information aboutthe contents of this report, pleaserefer to the User Guidance orwww.finra.org/brokercheck. Itprovides a glossary of terms and alist of frequently asked questions,as well as additional resources.brokercheck.finra.org JEFFREY M. TAYLORCRD# 2450379Currently employed by and registered with thefollowing Firm(s):MORETON CAPITAL MARKETS, LLC101 S. 200 E. SUITE 300SALT LAKE CITY, UT 84111CRD# 132643Registered with this firm since: 08/04/2017Report Summary for this BrokerThis report summary provides an overview of the broker's professional background and conduct. Additionalinformation can be found in the detailed report.Disclosure EventsAll individuals registered to sell securities or provideinvestment advice are required to disclose customercomplaints and arbitrations, regulatory actions,employment terminations, bankruptcy filings, andcriminal or civil judicial proceedings.Are there events disclosed about this broker?NoInvestment Adviser RepresentativeInformationhttps://www.adviserinfo.sec.govThe information below represents the individual'srecord as a broker. For details on this individual'srecord as an investment adviser representative,visit the SEC's Investment Adviser PublicDisclosure website atBroker QualificationsThis broker is registered with:1 Self-Regulatory Organization7 U.S. states and territoriesThis broker has passed:0 Principal/Supervisory Exams3 General Industry/Product Exams2 State Securities Law ExamsRegistration HistoryThis broker was previously registered with thefollowing securities firm(s):U.S. BANCORP INVESTMENTS, INC.CRD# 17868BURNEY, CA02/2017 - 08/2017J.P. MORGAN SECURITIES LLCCRD# 79REDDING,, CA03/2016 - 03/2017J.P. MORGAN INSTITUTIONAL INVESTMENTSINC.CRD# 102920SAN FRANCISCO, CA01/2011 - 03/2016www.finra.org/brokercheckUser Guidance1©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. www.finra.org/brokercheckUser GuidanceBroker QualificationsRegistrationsThis section provides the self-regulatory organizations (SROs) and U.S. states/territories the broker is currentlyregistered and licensed with, the category of each license, and the date on which it became effective. This section alsoprovides, for every brokerage firm with which the broker is currently employed, the address of each branch where thebroker works.This individual is currently registered with 1 SRO and is licensed in 7 U.S. states and territories through his orher employer.Employment 1 of 1Firm Name:Main Office Address:Firm CRD#:MORETON CAPITAL MARKETS, LLC132643101 S. 200 E. SUITE 300SALT LAKE CITY, UT 84111SRO Category Status DateFINRAGeneral Securities RepresentativeAPPROVED08/04/2017FINRAInvest. Co and Variable ContractsAPPROVED08/04/2017U.S. State/TerritoryCategory Status DateCalifornia AgentAPPROVED08/15/2017Colorado AgentAPPROVED08/04/2017Idaho AgentAPPROVED08/04/2017Missouri AgentAPPROVED09/11/2018Nevada AgentAPPROVED08/31/2017Texas AgentAPPROVED08/04/2017Washington AgentAPPROVED08/04/2017Branch Office LocationsThis individual does not have any registered Branch Office where the individual is located.2©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. www.finra.org/brokercheckUser GuidanceBroker QualificationsIndustry Exams this Broker has PassedThis individual has passed 0 principal/supervisory exams, 3 general industry/product exams, and 2 statesecurities law exams.This section includes all securities industry exams that the broker has passed. Under limited circumstances, a brokermay attain a registration after receiving an exam waiver based on exams the broker has passed and/or qualifying workexperience. Any exam waivers that the broker has received are not included below.Exam Category DatePrincipal/Supervisory ExamsNo information reported.Exam Category DateGeneral Industry/Product ExamsSecurities Industry Essentials Examination10/01/2018SIEGeneral Securities Representative Examination01/31/1997Series 7Investment Company Products/Variable Contracts Representative Examination06/27/1994Series 6Exam Category DateState Securities Law ExamsUniform Combined State Law Examination05/04/2016Series 66Uniform Securities Agent State Law Examination08/09/1996Series 63Additional information about the above exams or other exams FINRA administers to brokers and other securitiesprofessionals can be found at www.finra.org/brokerqualifications/registeredrep/.3©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. www.finra.org/brokercheckUser GuidanceRegistration and Employment HistoryRegistration HistoryRegistration Dates Firm Name CRD# Branch LocationThe broker previously was registered with the following firms:02/2017 - 08/2017 U.S. BANCORP INVESTMENTS, INC. 17868 BURNEY, CA03/2016 - 03/2017 J.P. MORGAN SECURITIES LLC 79 REDDING,, CA01/2011 - 03/2016J.P. MORGAN INSTITUTIONAL INVESTMENTSINC.102920 SAN FRANCISCO, CA09/2005 - 01/2011 JPMORGAN DISTRIBUTION SERVICES, INC. 104234 DALLAS, TX10/1997 - 09/2005 DREYFUS SERVICE CORPORATION 231 NEW YORK, NY06/1995 - 09/1997TEMPLETON/FRANKLIN INVESTMENTSERVICES,INC.27884 SAN MATEO, CA06/1994 - 05/1995 FRANKLIN/TEMPLETON DISTRIBUTORS, INC. 332 SAN MATEO, CAEmployment HistoryEmployment Dates Employer Name Employer LocationThis section provides up to 10 years of an individual broker's employment history as reported by the individual broker onthe most recently filed Form U4.Please note that the broker is required to provide this information only while registered with FINRA or a nationalsecurities exchange and the information is not updated via Form U4 after the broker ceases to be registered.Therefore, an employment end date of "Present" may not reflect the broker's current employment status.08/2017 - Present Moreton Capital Markets Salt Lake City, UT02/2017 - 08/2017 U.S. BANCORP INVESTMENTS, INC. Redding, CA03/2016 - 02/2017 JPMorgan Securities LLC REDDING, CA05/2011 - 02/2016 J.P. MORGAN INSTITUTIONAL INVESTMENTS INC. SAN FRANCISCO, CA05/2011 - 02/2016 JPMORGAN INVESTMENT MANAGEMENT INC. SAN FRANCISCO, CA01/2011 - 05/2011 JPMORGAN INVESTMENT MANAGEMENT INC. DALLAS, TX09/2008 - 01/2011 JPMORGAN DISTRIBUTION SERVICES, INC DALLAS, TX4©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. www.finra.org/brokercheckUser GuidanceRegistration and Employment HistoryOther Business ActivitiesThis section includes information, if any, as provided by the broker regarding other business activities the broker iscurrently engaged in either as a proprietor, partner, officer, director, employee, trustee, agent or otherwise. This sectiondoes not include non-investment related activity that is exclusively charitable, civic, religious or fraternal and isrecognized as tax exempt.No information reported.5©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. www.finra.org/brokercheckUser GuidanceEnd of ReportThis page is intentionally left blank.6©2019 FINRA. All rights reserved. Report about JEFFREY M. TAYLOR. BrokerCheck ReportMORETON CAPITAL MARKETS, LLCSection TitleReport SummaryFirm HistoryCRD# 13264317Firm Profile 2 - 6Page(s)Firm Operations 8 - 13 About BrokerCheck®BrokerCheck offers information on all current, and many former, registered securities brokers, and all current and formerregistered securities firms. FINRA strongly encourages investors to use BrokerCheck to check the background ofsecurities brokers and brokerage firms before deciding to conduct, or continue to conduct, business with them.āWhat is included in a BrokerCheck report?āBrokerCheck reports for individual brokers include information such as employment history, professionalqualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. BrokerCheckreports for brokerage firms include information on a firm’s profile, history, and operations, as well as many of thesame disclosure events mentioned above.āPlease note that the information contained in a BrokerCheck report may include pending actions orallegations that may be contested, unresolved or unproven. In the end, these actions or allegations may beresolved in favor of the broker or brokerage firm, or concluded through a negotiated settlement with noadmission or finding of wrongdoing.āWhere did this information come from?āThe information contained in BrokerCheck comes from FINRA’s Central Registration Depository, orCRD® and is a combination of:Rinformation FINRA and/or the Securities and Exchange Commission (SEC) require brokers andbrokerage firms to submit as part of the registration and licensing process, andRinformation that regulators report regarding disciplinary actions or allegations against firms or brokers.āHow current is this information?āGenerally, active brokerage firms and brokers are required to update their professional and disciplinaryinformation in CRD within 30 days. Under most circumstances, information reported by brokerage firms, brokersand regulators is available in BrokerCheck the next business day.āWhat if I want to check the background of an investment adviser firm or investment adviserrepresentative?āTo check the background of an investment adviser firm or representative, you can search for the firm orindividual in BrokerCheck. If your search is successful, click on the link provided to view the available licensingand registration information in the SEC's Investment Adviser Public Disclosure (IAPD) website athttps://www.adviserinfo.sec.gov. In the alternative, you may search the IAPD website directly or contact yourstate securities regulator at http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/P455414.āAre there other resources I can use to check the background of investment professionals?āFINRA recommends that you learn as much as possible about an investment professional beforedeciding to work with them. Your state securities regulator can help you research brokers and investment adviserrepresentatives doing business in your state.āThank you for using FINRA BrokerCheck.For more information aboutFINRA, visit www.finra.org.Using this site/information meansthat you accept the FINRABrokerCheck Terms andConditions. A complete list ofTerms and Conditions can befound atFor additional information aboutthe contents of this report, pleaserefer to the User Guidance orwww.finra.org/brokercheck. Itprovides a glossary of terms and alist of frequently asked questions,as well as additional resources.brokercheck.finra.org MORETON CAPITAL MARKETS, LLCCRD# 132643SEC# 8-66620Main Office Location101 S. 200 E. SUITE 300SALT LAKE CITY, UT 84111Regulated by FINRA Denver OfficeMailing Address101 S 200 E. SUITE 300SALT LAKE CITY, UT 84111Business Telephone Number801-535-3650Report Summary for this FirmThis report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.Disclosure EventsBrokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.Are there events disclosed about this firm?NoFirm ProfileThis firm is classified as a limited liability company.This firm was formed in Utah on 07/19/2004.Its fiscal year ends in December.Firm HistoryInformation relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.Firm OperationsIs this brokerage firm currently suspended with anyregulator?NoThis firm conducts 6 types of businesses.This firm is affiliated with financial or investmentinstitutions.This firm has referral or financial arrangements withother brokers or dealers.This firm is registered with:• the SEC• 1 Self-Regulatory Organization• 18 U.S. states and territorieswww.finra.org/brokercheckUser Guidance1©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceThis firm is classified as a limited liability company.This firm was formed in Utah on 07/19/2004.CRD#This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.Firm ProfileFirm Names and LocationsIts fiscal year ends in December.MORETON CAPITAL MARKETS, LLCSEC#1326438-66620Main Office LocationMailing AddressBusiness Telephone NumberDoing business as MORETON CAPITAL MARKETS, LLC801-535-3650Regulated by FINRA Denver Office101 S. 200 E. SUITE 300SALT LAKE CITY, UT 84111101 S 200 E. SUITE 300SALT LAKE CITY, UT 841112©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceThis section provides information relating to all direct owners and executive officers of the brokerage firm.Direct Owners and Executive OfficersFirm ProfilePositionPercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?MORETON, WILLIAM R.MEMBER/CHAIRMAN50% but less than 75%NoIndividual07/2004Yes4475006Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):PositionPercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?HANSEN, JORDAN CMEMBER10% but less than 25%NoIndividual07/2014Yes5216490Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):PositionROBBINS, ANDREW JAMESMEMBER/COOIndividual4488010Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):3©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceDirect Owners and Executive Officers (continued)Firm ProfilePercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?10% but less than 25%No07/2014YesPositionPercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?WILLIAMS, JASON MARKMEMBER10% but less than 25%NoIndividual07/2014Yes4046477Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):PositionPercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?HYMAS, STEVEN RAY MR.FINOPLess than 5%NoIndividual01/2008Yes5148120Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):4©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceDirect Owners and Executive Officers (continued)Firm ProfilePositionPercentage of OwnershipIs this a public reportingcompany?Position Start DateDoes this owner direct themanagement or policies ofthe firm?VOS, ERIC LEECEO/CCOLess than 5%NoIndividual07/2017Yes2836821Is this a domestic or foreignentity or an individual?Legal Name & CRD# (if any):5©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceThis section provides information relating to any indirect owners of the brokerage firm.Indirect OwnersFirm ProfileNo information reported.6©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm HistoryThis section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.No information reported.7©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsRegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.This firm is currently registered with the SEC, 1 SRO and 18 U.S. states and territories.SEC Registration QuestionsThis firm is registered with the SEC as:A broker-dealer:A broker-dealer and government securities broker or dealer:A government securities broker or dealer only:This firm has ceased activity as a government securities broker or dealer:YesYesNoNoFederal Regulator Status Date EffectiveSEC Approved 01/07/2005Self-Regulatory Organization Status Date EffectiveFINRA Approved 01/07/20058©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsRegistrations (continued)U.S. States &TerritoriesStatus Date EffectiveArizona Approved 08/10/2006California Approved 08/15/2017Colorado Approved 11/21/2005Idaho Approved 02/02/2005Iowa Approved 08/11/2017Minnesota Approved 02/16/2016Missouri Approved 09/07/2018Montana Approved 01/29/2015Nebraska Approved 08/17/2017Nevada Approved 08/31/2017New Mexico Approved 01/14/2016Oregon Approved 06/05/2017South Dakota Approved 04/06/2018Texas Approved 03/08/2016Utah Approved 01/10/2005Washington Approved 01/22/2016Wisconsin Approved 04/11/2018Wyoming Approved 03/28/20169©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsTypes of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.Other Types of BusinessThis firm does not effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.Non-Securities Business Description:MORETON CAPITAL MARKETS, LLC IS INSURANCED AGENCY LICENSEDIN THE STATE OF UTAH AND IDAHO FOR THE PURPOSE OF SHARINGCOMMISSIONS IN INSURANCE PRODUCTS.This firm currently conducts 6 types of businesses.Types of BusinessBroker or dealer selling corporate debt securitiesMutual fund retailerU S. government securities brokerMunicipal securities brokerBroker or dealer selling variable life insurance or annuitiesOther - MORETON CAPITAL MARKETS, LLC ("MORETON CAPITAL MARKETS" OR THE "COMPANY") SHARES INCOMMISSION FOR REFERRING CLIENTS OF AN AFFILIATED ENTITY TO OTHER FINRA MEMBER FIRMS WITHWHOM THE COMPANY HAS STRATEGIC ALLIANCES TO CONDUCT SECURITIES ACTIVITIES.10©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsClearing ArrangementsThis firm does not hold or maintain funds or securities or provide clearing services for other broker-dealer(s).Introducing ArrangementsThis firm does refer or introduce customers to other brokers and dealers.Name:RBC CAPITAL MARKETS, LLCBusiness Address:60 SOUTH SIXTH STREET - P07MINNEAPOLIS, MN 55402CRD #:31194Effective Date:10/09/2015Description:CLEARING FIRM FOR MCMName:LPL FINANCIAL LLCBusiness Address:ONE BEACON ST, 22ND FLOORBOSTON, MA 02108CRD #:6413Effective Date:12/08/2011Description:REFERRAL AND COMMISSION SHARING ARRANGEMENTName:CAMBRIDGE INVESTMENT RESEARCH, INC.Business Address:1776 PLEASANT PLAIN RDFAIRFIELD, IA 52556-8757CRD #:39543Effective Date:10/04/2011Description:REFERRAL AND COMMISSION SHARING ARRANGEMENTS11©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsIndustry ArrangementsThis firm does not have books or records maintained by a third party.This firm does not have accounts, funds, or securities maintained by a third party.This firm does not have customer accounts, funds, or securities maintained by a third party.This firm does not have individuals who control its management or policies through agreement.This firm does not have individuals who wholly or partly finance the firm's business.Control Persons/Financing12©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceFirm OperationsOrganization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.This firm is, directly or indirectly:· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.YesNoNo10/20/2004101 SO 2ND E, SUITE 300SALT LAKE CITY, UT 84111133417MORETON ASSET MANAGEMENT, LLC is under common control with the firm.MORETON ASSET MANAGEMENT AND MORETON CAPITAL MARKETS BOTHHAVE OWNERSHIP INTEREST FROM THE FOLLOWING INDIVIDUALS:JORDAN HANSEN, ANDY ROBBINS, JASON WILLIAMS, AND WILLIAMMORETON.Description:Investment AdvisoryActivities:Securities Activities:Country:Foreign Entity:Effective Date:Business Address:CRD #:This firm is not directly or indirectly, controlled by the following:· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank13©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC www.finra.org/brokercheckUser GuidanceEnd of ReportThis page is intentionally left blank.14©2019 FINRA. All rights reserved. Report about MORETON CAPITAL MARKETS, LLC _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ ANNUAL AUDITED REPORT FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: "VHVTU  Estimated average burden hours per response.. . . . . 12.00 UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549 SEC FILE NUMBER 8- FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder REPORT FOR THE PERIOD BEGINNING______________________________ AN D ENDING______________________________ MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF BROKER-DEALER: ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) OFFICIAL USE ONLY FIRM I.D. NO. ___________________________________________________________________________________________________________________ (No. and Street) (City) (State) (Zip Code) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT (Area Code – Telephone Number) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* (Name – if individual, state last, first, middle name) (Address) (City) (State) (Zip Code) CHECK ONE: …Certified Public Accountant …Public Accountant …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 240.17a-5(e)(2) Potential persons who are to respond to the collection of information contained in this form are not required to respondSEC 1410 () unless the form displays a currently valid OMB control number. 66620 01/01/2018 12/31/2018 Moreton Capital Markets, LLC 101 South 200 East, Suite 300 Salt Lake City UT 84111 Eric Vos 952-777-2626 Haynie & Company 50 West Broadway Salt Lake City UT 84101 ✔ MORETON CAPITAL MARKETS, LLC FORM X-17A-5 WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE YEAR ENDED DECEMBER 31, 2018 MORETON CAPITAL MARKETS, LLC TABLE OF CONTENTS Page Report of Independent Registered Public Accounting Firm 1 Oath or Affirmation to Financial Statements 2 Statement of Financial Condition 3 Statement of Operations 4 Statement of Cash Flows 5 Statement of Changes in Members' Equity 6 Notes to Financial Statements 7-9 Supplementary Information Schedule I - Computation of Net Capital and Reconciliation to Respondent’s Unaudited Computation 10 Schedule II - Computation of Aggregate Indebtedness 11 Schedule III - Exemptive Provision Under Rule 15c3-3 12 Report of Independent Registered Public Accounting Firm Exemption Review Report 13 Management Exemption Report 14 Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures 15 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members Moreton Capital Markets, LLC Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Moreton Capital Markets, LLC as of December 31, 2018, the related statements of operations, changes in members’ 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 Moreton Capital Markets, LLC of December 31, 2018, 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 Moreton Capital Markets, LLC’s management. Our responsibility is to express an opinion on Moreton Capital Markets, 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 Moreton Capital Markets, 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. Supplemental Information The supplementary information has been subjected to audit procedures performed in conjunction with the audit of Moreton Capital Markets, LLC’s financial statements. The supplemental information is the responsibility of Moreton Capital Markets, 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. Haynie & Company Salt Lake City, Utah February 19, 2019 We have served as Moreton Capital Markets, LLC’s auditor since 2014. Certified Public Accountants (a professional corporation) 50 West Broadway, Suite 600 Salt Lake City, UT 84101 (801) 532-7800 Fax (801) 328-4461 An Association of Independent Accounting Firms MORETON CAPITAL MARKETS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018 ASSETS Current assets: Cash $ 536,490 Commissions receivable 152,091 Deposits & prepaid expenses 16,323 Total current assets 704,904 Restricted Cash Deposit 50,000 Total long term assets 50,000 Total Assets $ 754,904 LIABILITIES AND MEMBERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 109,305 Total current liabilities 109,305 Members’ equity 645,599 Total Liabilities and Members’ Equity $ 754,904 The accompanying notes are an integral part of these financial statements. 3 MORETON CAPITAL MARKETS, LLC STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2018 Revenues: Commissions and fees $ 1,433,605 Interest income 3,120 Total revenues 1,436,725 Expenses: Salaries, commissions and benefit expense 935,228 Brokerage expense 100,050 Trading platform systems 110,224 Office rent 36,852 Office equipment and supplies 48,157 Professional fees 32,653 Travel and entertainment 30,148 Insurance 6,600 Regulatory fees 17,859 Education and training 6,816 Service charges 3,384 Miscellaneous expense 1,025 Total expenses 1,328,996 Net Income $ 107,729 The accompanying notes are an integral part of these financial statements. 4 MORETON CAPITAL MARKETS, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2018 Cash flows from operating activities: Net Income $ 107,729 Adjustments to reconcile net loss to net cash used in operating activities: (Increase) decrease in assets: Commissions receivable (85,108) Deposits and prepaid expenses (3,816) Increase (decrease) in liabilities: Accounts payable and accrued expenses 18,259 Net cash provided by operating activities 37,064 Cash flows from investing activities: Increase (decrease) in restricted cash: (20) Net cash used in investing activities (20) Cash flows from financing activities -- Net increase in cash 37,044 Cash, beginning of year 499,446 Cash, end of year $ 536,490 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the year for: Income taxes $ -- Interest $ -- The accompanying notes are an integral part of these financial statements. 5 MORETON CAPITAL MARKETS, LLC STATEMENT OF CHANGES IN MEMBERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2018 Members’ equity, December 31, 2017 $ 537,870 Net income 107,729 Members’ equity, December 31, 2018 $ 645,599 The accompanying notes are an integral part of these financial statements. 6 MORETON CAPITAL MARKETS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 1. SUMMARY OF SIGNIFICANT ACCOUNT POLICIES a. Business Moreton Capital Markets, LLC (a Utah Limited Liability Company) was formed in 2004 under the laws of the state of Utah. The Company is governed by the Operating Agreement of Moreton Capital Markets, LLC dated March 1, 2016. The Operating Agreement provides that the Company is to terminate on December 31, 2054 unless terminated earlier in accordance with the terms of the Operating Agreement. According to the terms of the Operating Agreement, after the initial contributions are made, members have no further obligation to contribute additional amounts of capital to the Company, unless otherwise approved by the members. In addition, the liability of the members of the Company is limited to the members' equity. The Company began operations as a securities broker dealer in 2004. The Company is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company's business is principally focused on the purchase and sale of investment grade fixed income securities to institutional cli ents, the company also has a limited sharing of commissions with two other FINRA member firms for the referral of customers for mutual funds and variable annuity insurance products. In December of 2015 the Company filed a new continuing member application with FINRA and was approved to be a trading broker dealer clearing through RBC correspondent services. The company holds no securities inventory. The Company operates in the state of Utah and has securities transactions with customers within Utah and numerous other states where the Company is registered. b. Revenue Recognition Commission revenue is recorded in the accounts on a settle date basis, which is the day the transaction is executed. Commission revenue is transferred by RBC to the company operating account every 30 days usually on the third business day of the new month. Fees are recorded when earned and transactions have been fully consummated. c. Customer Security Transactions The Company does not handle customer funds or securities and is exempt from the provisions of the Customer Protection Rule (Rule 15c3-3). d. Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all highly liquid cash investments with an original maturity of three months or less to be cash equivalents. The Company has entered into an agreement with RBC Correspondent Services as a clearing firm for future trading activity. The agreement requires a minimum clearing deposit balance of $50,000. As of December 31, 2018 a balance of $50,000 was classified as restricted cash. e. Management Estimates The preparation of financial statements in conformity with generally accepted accounting 7 principles and prevailing industry practices requires management to make estimates and assumptions that affect certain reported amounts and disclosures in the financial statements. Accordingly, actual results could differ from those estimates. f. Income Taxes The Company is taxed as a partnership for federal and state income tax purposes, and therefore no provision for income taxes has been recognized in the financial statements. Income of the Company is allocated to the members based upon the terms and conditions of the Operating Agreement (and/or determination of majority ownership) and reported on the respective individual tax returns. Management has evaluated the tax positions by the Company and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of ASC 740. With few exceptions, the Company is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for the tax years prior to 2012. g. Fair Value of Financial Instruments The carrying amount reflected in the statement of financial condition for cash and cash equivalents approximate fair value due to the short maturities of those instruments. 2. COMMISSIONS RECEIVABLE Commissions receivable represent amounts due from our clearing agent, RBC, for commissions and revenue earned through December 31, 2018. Amounts received after year end, for services of the prior year were classified as commissions receivable. Amounts classified as commissions receivable were received in the subsequent month, therefore, an allowance for doubtful accounts was not considered necessary. 3. RELATED PARTY TRANSACTIONS In August of 2004, the Company entered into an Office and Administrative Services Agreement with another company with common ownership. Under the terms of this agreement, the Company is provided with office space, furnishings, administrative personnel, and access to the equipment and supplies necessary to operate the business. Office rent and administrative services of $36,852 was charged to operations during the year ended December 31, 2018. The future minimum payments required by the Office and Administrative Services Agreement at December 31, 2018 are $36,412 through December 2019. 4. NET CAPITAL REQUIREMENTS As a broker dealer, the Company is subject to the uniform net capital rule adopted and administered by the Securities and Exchange Commission. The rule requires maintenance of minimum net capital and prohibits a broker dealer from engaging in securities transactions at a time when its net capital is less than the required minimum, as those terms are defined by the rule. At December 31, 2018, the Company's net capital was $629,276 which was $621,989 in excess of the $7,287 minimum required. 8 5. RISK MANAGEMENT Transactions involving financial instruments involve varying degrees of market, credit and operating risk. The Company monitors its exposure to risk on a regular basis. Market Risk The Company does not invest in securities for its own account and, therefore is not directly subject to market risk. Credit Risk Concentrations of credit risk that arise from financial instruments exist for groups of counterparties when they have similar economic characteristics that would cause their ability to meet obligations to be similarly affected by economic, industry or geographic factors. Operating Risk Operating risk focuses on the Company’s ability to accumulate, process, and communicate information necessary to conduct its daily operations. Deficiencies in technology, financial systems and controls, and losses attributed to operational problems all pose potential operating risks. In order to mitigate these risks, the Company has established and maintains an internal control environment which incorporates various control mechanisms throughout the organization. In addition, the Company periodically monitors its technological needs and makes changes as deemed appropriate. 6. CONCENTRATION OF CREDIT RISK The Company currently maintains its bank accounts at one financial institution. Accounts at an institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At December 31, 2018, the Company had two accounts that together exceed the FDIC insured amount by $285,839. 7. SIGNIFICANT BUSINESS RELATIONSHIPS As discussed in note 1d, the Company's has entered into a clearing relationship with RBC Correspondent Services. The Company also shares commissions with another FINRA member firm for the referral of customers for mutual funds and variable annuity insurance products. Loss or impairment to any of those business relationships may negatively impact the Company’s results of operations. 8. PREFERRED OWNERSHIP William R. Moreton has contributed $150,000 towards the capital of the firm, which is classified as preferred equity. In liquidation event, Mr. Moreton’s $150K contribution has priority over other owners’ equity, and no dividends are to be paid to other owners until the $150,000 preferred equity has been repurchased by the Company. The Company has the option to repurchase preferred shares at any time. 9. SUBSEQUENT EVENTS Management has evaluated subsequent events through February 19, 2019, the date on which the financial statements were available to be issued, and has determined there are no additional subsequent events to be reported. 9 MORETON CAPITAL MARKETS, LLC SUPPLEMENTARY INFORMATION PURSUANT TO RULE 17a-5 OF THE SECURITIES EXCHANGE ACT OF 1934 AS OF DECEMBER 31, 2018 MORETON CAPITAL MARKETS, LLC SCHEDULE I COMPUTATION OF NET CAPITAL AND RECONCILIATION TO RESPONDENT’S UNAUDITED COMPUTATION DECEMBER 31, 2018 Total members’ equity $ 645,599 Deduct: equity not allowable for net capital -- Total members' equity qualified for net capital 645,599 Liabilities subordinated to claims of general creditors allowable in computation of net capital -- Total capital and allowable subordinated liabilities 645,599 Total non-allowable assets from the Statement of Financial Condition (16,323) Total other deductions -- Total deductions and/or charges (16,323) Net capital before haircuts on securities positions 629,276 Haircuts on securities -- Net capital per audit $ 629,276 RECONCILIATION TO RESPONDENT’S UNAUDITED COMPUTATION Net capital per respondent's unaudited computation $ 629,276 Net increase in members’ equity -- Net (increase) in non-allowable assets -- Net capital per audit $ 629,276 10 MORETON CAPIAL MARKETS, LLC SCHEDULE II COMPUTATION OF AGGREGATE INDEBTEDNESS DECEMBER 31, 2018 Total Aggregate Indebtedness $109,305 Ratio of aggregate indebtedness to net capital .174 : 1 11 MORETON CAPITAL MARKETS, LLC SCHEDULE III EXEMPTIVE PROVISION UNDER RULE 15c3-3 DECEMBER 31, 2018 25. If an exemption from Rule 15c3-3 is claimed, identify below the section upon which such exemption is based (check one only) A. $2,500 capital category; as per Rule 15c3-1 B. “Special Account for the Exclusive Benefit of Customers” maintained C. All customer transactions cleared through another broker-dealer on a fully disclosed basis: Name of clearing firm: RBC Correspondent Services X D. Exempted by order of the Commission 12 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members Moreton Capital Markets, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Moreton Capital Markets, LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which Moreton Capital Markets, LLC claimed an exemption from 17 C.F.R. §240.15c3-3: (2)(ii) (exemption provisions) and (2) Moreton Capital Markets, LLC stated that Moreton Capital Markets, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Moreton Capital Markets, 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 Moreton Capital Markets, 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 provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Haynie & Company Salt Lake City, Utah February 19, 2019 Certified Public Accountants (a professional corporation) 50 West Broadway, Suite 600 Salt Lake City, UT 84101 (801) 532-7800 Fax (801) 328-4461 An Association of Independent Accounting Firms REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Members Moreton Capital Markets, LLC In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Moreton Capital Markets, LLC and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of Moreton Capital Markets, LLC for the year ended December 31, 2018, solely to assist you and SIPC in evaluating Moreton Capital Markets, LLC’s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC - 7). Moreton Capital Markets, LLC’s management is responsible for Moreton Capital Markets, LLC’s compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States). 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-17A-5 Part III for the year ended December 31, 2018 with the Total Revenue amount reported in Form SIPC- 7 for the year ended December 31, 2018, 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. We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance with the applicable instructions of the Form SIPC-7. Accordingly, we do not express such an opinion. 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 specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. Haynie & Company Salt Lake City, Utah February 19, 2019 Certified Public Accountants (a professional corporation) 50 West Broadway, Suite 600 Salt Lake City, UT 84101 (801) 532-7800 Fax (801) 328-4461 An Association of Independent Accounting Firms This report is being filed pursuant to (Check Applicable Block(s)): ADDRESS OF PRINCIPAL PLACE OF BUSINESS (Do not use P.O. Box No.) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT NAME(S) OF SUBSIDIARIES OR AFFILIATES CONSOLIDATED IN THIS REPORT The registrant/broker or dealer submitting this Form and its attachments and the person(s) by whom it is executed represent hereby that all information contained therein is true, correct and complete. It is understood that all required items, statements, and schedules are considered integral parts of this Form and that the submisson of any amendment represents that all unamended items, statements and schedules remain true, correct and complete as previously submitted. ATTENTION - Intentional misstatements or omissions of facts constitute Federal Criminal Violations. (See 18 U.S.C. 1001 and 15 U.S.C. 78:f (a) ) STATEMENT OF FINANCIAL CONDITION FOR NONCARRYING, NONCLEARING AND A. Liabilities subordinated to claims of general creditors allowable in computation of net capital (A) The minimum net capital requirement should be computed by adding the minimum dollar net capital requirement of the reporting broker dealer and, for each subsidiary to be consolidated, the greater of: (B) Do not deduct the value of securities borrowed under subordination agreements or secured demand notes (C) For reports filed pursuant to paragraph (d) of Rule 17a-5, respondent should provide a list of material 2. 6-2/3% of aggregate indebtedness or 4% of aggregate debits if alternative method is used. exchanges contributed for use of company (contra to item 1740) and partners' securities which were covered by subordination agreements not in satisfactory form and the market values of the memberships in to Rule 15c3-3 prepared as of the date of net capital computation including both 22. 2% of combined aggregate debit items as shown in Formula for Reserve Requirements pursuant 23. Minimum dollar net capital requirement of reporting broker or dealer and minimum net capital requirement of subsidiaries computed in accordance with Note (A) 5% of combined aggregate debit items or 120% of minimum net capital requirement 12. Minimum dollar net capital requirement of reporting broker or dealer and minimum net capital requirement 20. Percentage of aggregate indebtedness to net capital (line 19 divided by line 10) 21. Percentage of debt to debt-equity total computed in accordance with Rule 15c-3-1(d) 15. Net capital less greater of 10% of line 19 or 120% of line 12 16. Total A.I. liabilities from Statement of Financial Condition 23. Income (current month only) before provision for Federal Income taxes and extraordinary items a. Includes interest on accounts subject to subordination agreements a. Commissions on transactions in exchange listed equity securities executed on an exchange a. From market making in options on a national securities exchange 17. Net Income (loss) before Federal income taxes and items below (Item 9 less Item 16) 19. Equity in earnings (losses) of unconsolidated subsidiaries not included above 22. Net income (loss) after Federal income taxes and extraordinary items 10. Salaries and other employment costs for general partners and voting stockholder officers 7. Fees for account supervision, investment advisory and administrative services Ownership Equity and Subordinated Liabilities maturing or proposed to be withdrawn within the next six months and accruals, (as defined below), C. (k) (2) (ii) - All customer transactions cleared through another broker-dealer on a fully disclosed basis. 25. If an exemption from Rule 15c3-3 is claimed, identify below the section upon which such exemption is based : Name(s) of Clearing Firm(s) - Please separate multiple names with a semi-colon A. (k) (1) - Limited business (mutual funds and/or variable annuities only) B. (k) (2) (i) - "Special Account for the Exclusive Benefit of customers" maintained Detail listing must include the total of items maturing during the six month period following the report date, regardless of whether or not the capital contribution is expected to be renewed. The schedule must also include proposed capital withdrawals scheduled within the six month period following the report date including the proposed redemption of stock and payments of liabilities secured by fixed assets (which are considered allowable assets in the capital computation pursuant to Rule 15c3-1(c) (2) (iv)), which could be required by the lender on demand or in less