FOCUS Report Mufg Americas Corporate Advisory, Inc.

X-17A-5 - FOCUS Report


Filed: 2018-05-30 13:00:48
Dated: 2018-05-30
Period of Report: 2018-03-31
Company [CIK]Party Type
MUFG AMERICAS CORPORATE ADVISORY, INC. [0000352018](Filer)
primary_doc.html

X-17A-5: Filer Information

X-17A-5: Submission Information

X-17A-5: A. Registrant Identification

Address of Principal Place of Business (Do not use P.O. Box No.)

Address 1
1221 AVENUE OF THE AMERICAS
Address 2
8TH FLOOR
City
NEW YORK
State/Country
NEW YORK
Mailing Zip/ Portal Code
10020

Name and Telephone Number of Person to Contact in Regard to this Report

Name
Keith McDermott
Telephone Number
2124057036

X-17A-5: B. Accountant Identification

Independent Public Accountant

X-17A-5: Signature

Oath or Affirmation

I, Keith McDermott, swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of MUFG AMERICAS CORPORATE ADVISORY, INC., as of 03-31-2018, are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows:

Notary Public

MACA3312018FS.pdf MUFG AMERICAS CORPORATE ADVISORY, INC. FINANCIAL STATEMENTS

         MUFG AMERICAS CORPORATE ADVISORY, INC.
            (Formerly known as BTMU SECURITIES, INC.)
  (A wholly-owned subsidiary of MUFG Americas Holdings Corporation)
                        (SEC I.D. No. 8-26042)




                  FINANCIAL STATEMENTS
              AND SUPPLEMENTAL SCHEDULES
       AS OF AND FOR THE YEAR ENDED MARCH 31, 2018
                          AND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


                           * * * * * * *




      Filed pursuant to Rule 17a-5(e)(3) as a PUBLIC DOCUMENT
                under the Securities Exchange Act of 1934.


                                                                                                   OMB APPROVAL
                                               UNITED STATES                                  OMB Number: 3235-0123
                                   SECURITIES AND EXCHANGE COMMISSION                         Expires: August 31, 2020
                                            Washington, D.C. 20549                            Estimated average burden
                                                                                              hours per response . . . 12.00


                                          ANNUAL AUDITED REPORT                                      SEC FILE NUMBER
                                               FORM X-17A-5                                          8-26042
                                                 PART III
                                                    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 04/01/2017                           AND ENDING 03/31/2018
                                                     MM/DD/YY                                     MM/DD/YY

                                         A. REGISTRANT IDENTIFICATION

NAME OF BROKER - DEALER: MUFG Americas Corporate Advisory, Inc.
                                                                                                        OFFICIAL USE ONLY
                                                                                                        __________________
                                                                                                         FIRM ID. NO. 10151
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
1221 Avenue of the Americas
                                                  (No. and Street)
                   New York                         New York                                                 10020_____________
                     (City)                           (State)                                             (Zip Code)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Keith McDermott                                                                              (212) 405-7036
                                                                                   (Area Code - Telephone Number.)

                                         B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Deloitte & Touche LLP
                                     (Name - if individual, state last, first, middle name)
      30 Rockefeller Plaza                  New York                                   New York                     10112
            (Address)                          (City)                                  (State)                       (Zip Code)
         CHECK ONE:
         x 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 respond unless the form displays a current valid OMB control number.
SEC 1410 (06-02)


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

TABLE OF CONTENTS


                                                                                                           Page

This report ** contains (check all applicable boxes):

(x)         An Oath or Affirmation.
(x)         Report of Independent Registered Public Accounting Firm.                                       1-2
(x)   (a)   Facing Page.
(x)   (b)   Statement of Financial Condition.                                                               3
(x)   (c)   Statement of Operations.                                                                        4
(x)   (d)   Statement of Cash Flows.                                                                        5
(x)   (e)   Statement of Changes in Stockholder’s Equity.                                                   6
( )   (f)   Statement of Changes in Liabilities Subordinated
            to Claims of General Creditors (Not Applicable).
(x)         Notes to Financial Statements.                                                                 7-12
(x) (g)     Computation of Net Capital and Aggregate Indebtedness
            Pursuant to Rule 15c3-1 Under the Securities Exchange Act of 1934.                             13
(x) (h)     Computation for Determination of Reserve Requirements
            Pursuant to Rule 15c3-3 Under the Securities Exchange Act of 1934.                             14
(x ) (i)    Information Relating to the Possession or Control Requirements
            Pursuant to Rule 15c3-3 Under the Securities Exchange Act of 1934.                             15
( ) (j)     A Reconciliation, Including Appropriate Explanation of
            the Computation of Net Capital Pursuant to Rule 15c3-1
            and the Computation for Determination of the Reserve
            Requirements Under Rule 15c3-3 (Not Applicable).
( ) (k)     A Reconciliation between the audited and unaudited
            Statements of Financial Condition with Respect to
            Methods of Consolidation (Not Applicable).
(x) (l)     Management’s Exemption Report and Review Report of Independent Registered
            Public Accounting Firm (Filed Separately).
(x) (m)     A Copy of the SIPC Supplemental Report (Filed Separately).




** For conditions of confidential treatment of certain portions of this filing, see section SEC 240.17a-
5(e)(3).


                                          AFFIRMATION



I, Keith McDermott, affirm that, to the best of my knowledge and belief, the accompanying financial
statements and supplemental schedules pertaining to MUFG Americas Corporate Advisory, Inc.
(formerly known as BTMU Securities, Inc.), a wholly—owned subsidiary of MUFG Americas
Holdings Corporation, as of and for the year ended March 31, 2018, are true and correct. I further
affirm that neither the Company nor any partner, proprietor, principal officer or director has any
proprietary interest in any account classified solely as that of a customer.




                                                                          )
                                                     A/;-Z )Z/gi’:—-{_”                     29. )
                                                       Signature ~                               Date



                                                       Chief Financial Officer
                                                       Title




WM
    Notary Public



      SANDRA TREUSDELL
 Notary Public — State of New York
  Registration No. 02TR6227938


                                                                            Deloitte & Touche LLP
                                                                            30 Rockefeller Plaza
                                                                            New York, NY 10112-0015
                                                                            USA


                                                                            Tel: +1 212 492 4000
                                                                            Fax: +1 212 489 1687
                                                                            www.deloitte.com



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholder and the Board of Directors of
MUFG Americas Corporate Advisory, Inc.
1221 Avenue of the Americas
New York, NY 10020-1104

Opinion on the Financial Statements

We have audited the accompanying statement of financial condition of MUFG Americas Corporate
Advisory, Inc. (the "Company", f/k/a BTMU Securities, Inc.) as of March 31, 2018, and the related
statements of operations, cash flows, changes in stockholder's equity for the year then ended, and the
related notes (collectively referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of March
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 the Company's management. Our responsibility is
to express an opinion on the Company's financial statements based on our audit. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audit also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.

Emphasis of Matter

As disclosed in Notes 2 and 4, the accompanying financial statements include significant transactions
with affiliates and may not necessarily be indicative of the conditions that would have existed or the
results of operations if the Company had been operated as an unaffiliated business.

Report on Supplemental Schedules

The supplemental schedules g, h, and i listed in the accompanying table of contents have been
subjected to audit procedures performed in conjunction with the audit of the Company's financial
statements. The supplemental schedules are the responsibility of the Company's management. Our
audit procedures included determining whether the supplemental schedules reconcile 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 schedules. In
forming our opinion on the supplemental schedules, we evaluated whether the supplemental


schedules, including their form and content, are presented in compliance with Rule 17a-5 under the
Securities Exchange Act of 1934. In our opinion, such schedules are fairly stated, in all material
respects, in relation to the financial statements as a whole.




May 29, 2018
We have served as the Company's auditor since 2006.


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Statement of Financial Condition
As of March 31, 2018
(In thousands of dollars, except share data or unless otherwise noted)

Assets
 Cash                                                                    $    73,425
 Fee receivable from affiliate                                                   210
 Prepaid fees                                                                      9
 Current tax assets                                                            1,063
 Deferred tax assets                                                              55
Total assets                                                             $   74,762



Liabilities and stockholder's equity
Liabilities:
  Accrued expenses                                                       $     1,119
Total liabilities                                                              1,119

Commitments and contingencies (see Note 7)

Stockholder's equity:
  Common stock $1 par value: 250,000 shares                                       1
    authorized, 1,000 shares issued and outstanding
  Additional paid-in capital                                                  8,183
  Retained earnings                                                          65,459
Total stockholder's equity                                                   73,643

Total liabilities and stockholder's equity                               $   74,762



See notes to financial statements.




                                                      -3-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Statement of Operations
For the year ended March 31, 2018
(In thousands of dollars)

Revenue:
 Service fee from affiliate                                         $    3,732
 Referral fees                                                              55
 Interest income                                                             6
Total revenue                                                           3,793

Expenses:
 Employee compensation and benefits                                      1,448
 Occupancy                                                                 859
 Service charges                                                           563
 Professional fees                                                         150
 Association dues                                                           76
 Service contracts                                                          71
 Other                                                                     220
Total expenses                                                          3,387

Income before income tax provision                                        406

Income tax provision                                                     2,062

Net loss                                                            $   (1,656)



See notes to financial statements.




                                           -4-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Statement of Cash Flows
For the year ended March 31, 2018
(In thousands of dollars)

Cash flows from operating activities:
Net loss                                                                      $    (1,656)
Adjustments to reconcile net loss to net cash used in operating activities:
 Deferred income tax provision                                                       658
 Decrease in operating assets:
   Fee receivable from affiliate                                                   2,421
   Prepaid fees                                                                       14
   Current tax assets                                                                595
 Decrease in operating liabilities:
   Accrued expenses                                                                (2,215)
Net cash used in operating activities                                               (183)

Net decrease in cash                                                                (183)

Cash - beginning of year                                                          73,608

Cash - end of year                                                            $   73,425

Supplemental cash flow information:
Income taxes paid                                                             $      809


See notes to financial statements.




                                                     -5-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Statement of Changes in Stockholder's Equity
For the year ended March 31, 2018
(In thousands of dollars)


                                             Additional             Retained
                              Common Stock Paid-in Capital          Earnings          Total



Balance, April 1, 2017         $         1    $         8,183   $       67,115    $      75,299

Net loss                                  -                 -           (1,656)          (1,656)

Balance, March 31, 2018         $        1    $         8,183   $      65,459     $     73,643



See notes to financial statements.




                                                  -6-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

1. ORGANIZATION AND NATURE OF OPERATIONS

   MUFG Americas Corporate Advisory, Inc. (formerly known as BTMU Securities, Inc.) (the “Company”),
   is a wholly-owned subsidiary of MUFG Americas Holdings Corporation (“MUAH”), a U.S. Intermediate
   Holding Company. MUAH is a wholly-owned subsidiary of MUFG Bank, Ltd. (formerly known as the
   Bank of Tokyo-Mitsubishi UFJ, Ltd.) (“MUFG Bank”) and Mitsubishi UFJ Financial Group, Inc.
   (“MUFG”). MUFG Bank’s ultimate parent company and controlling party is MUFG, incorporated in
   Japan.

   The Company is registered as a limited corporate financing broker with the Securities and Exchange
   Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”). The
   Company holds registered licenses for dual-hatted MUFG Union Bank, N.A. (“MUB”) employees for
   which it receives a reimbursement of expenses from MUB with a mark-up.


2. SIGNIFICANT ACCOUNTING POLICIES

   Basis of presentation. The preparation of the financial statements in conformity with accounting
   principles generally accepted in the United States of America (“U.S. GAAP”) requires the Company to
   make certain estimates that affect the reported amounts of assets and liabilities and disclosures of
   contingent liabilities at the date of the financial statements and the reported amounts of revenues and
   expenses during the reporting period. Significant estimates and assumptions generally include bonuses
   and employee benefits, and the determination of deferred tax assets. Although these and other estimates
   are based on the best available information, actual results could be materially different.

   Cash. Cash is comprised of unrestricted interest-bearing and non-interest bearing deposits with banks.
   The interest-bearing deposit is at MUB. See Note 4 for more details.

   Fee receivable from affiliate. The Company receives a service fee from MUB. The service fee covers all
   expenses incurred by the Company, as reported in the Statement of Operations. The Company expects
   that the outstanding fee receivable at March 31, 2018 will be collected and as a result, no reserves are
   required.

   Income taxes. Income tax provision is calculated and determined using the asset and liability method
   under which deferred tax assets and liabilities are determined based upon temporary differences between
   the financial statement and income tax bases of assets and liabilities, using currently enacted tax rates.
   Deferred tax assets are required to be reduced by a valuation allowance to the extent that, based on the
   weight of available evidence, it is more likely than not that the deferred tax assets will not be realized.
   The Company files its federal taxes as part of a consolidated return filed by MUAH; its state and local
   filings include both separate and group filings depending on the state. A formal tax sharing agreement is
   in place, as discussed in Note 6. The Company believes the method for allocating income tax expense is
   systematic, rational, and consistent with the principles of ASC 740, Income Taxes.




                                                    -7-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

   Accrued expenses. Accrued expenses are predominantly comprised of occupancy, professional fees,
   service charges payable to affiliates, employee compensation and benefits expenses and regulatory
   assessments.

   Service fee from affiliate. The Company receives a service fee via a cost-plus arrangement with MUB.
   Under the cost-plus arrangement, the Company receives reimbursements related to the expenses that the
   Company incurs, plus a markup. The expenses subject to reimbursement include employee compensation
   and benefits, occupancy, service charges, professional fees, association dues, service contracts and other.
   The revenue is accrued monthly and cash settled in the subsequent month.

   Employee compensation and benefits. Certain employees of MUB are also employees of the Company.
   The expense apportionment for these employees is based on a systematic, rational and consistent
   approach, which identifies the employees’ business commitment and support provided to the Company.
   The apportionment is based on the employees’ total annual remuneration (including salaries, bonuses, and
   allocated cost of benefits) and is recorded on a monthly basis. Employee compensation and benefits
   expenses also include the allocated costs of deferred compensation, as referred to in Note 5.

   Service charges. The Company receives services from various affiliates, including management and
   professional services, computer operations and administrative support, financial reporting, compliance
   monitoring, infrastructure and other support functions. The charges for the services are determined based
   on the direct costs incurred, plus a markup. The direct costs include, but are not limited to, the salaries,
   bonuses, and employee benefits relating to the services provided to the Company.


3. RECENT ACCOUNTING DEVELOPMENTS

   Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued
   Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-
   09”), which clarifies the principles for recognizing revenue and develops a common revenue standard for
   GAAP and International Financial Reporting Standards (“IFRS”), as well as creates the new FASB ASC
   606, Revenue from Contracts with Customers. In August 2015, ASU 2015-14, Revenue from Contracts
   with Customers – Deferral of the Effective Date (“ASU 2015-14”) deferred the effective date of ASU
   2014-09 to annual reporting periods beginning after December 15, 2017. In March 2016, the FASB
   issued ASU 2016-08, Revenue from Contracts with Customers – Principal Versus Agent Considerations
   (“ASU 2016-08”), which clarifies certain principal versus agent considerations specific to reporting
   revenue gross versus net. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with
   Customers – Identifying Performance Obligations and Licensing (“ASU 2016-10”), which provides
   clarification on an entity’s identification of certain performance obligations and on licensing. In May
   2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers – Narrow-Scope
   Improvements and Practical Expedients (“ASU 2016-12”), which clarifies guidance on assessing
   collectability to support the existence of a contract, clarifies how to account for noncash consideration at
   the inception and throughout the contract, establishes a practical expedient for the presentation of sales
   taxes on a net basis in revenue and a practical expedient to address contract modifications upon transition.
   The Company has completed the impact assessment and has evaluated the required changes to processes



                                                    -8-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

   and controls. The changes from all ASUs mentioned above will not have a material impact on the
   Company’s financial statements and related disclosures.

   Leases. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The amendments
   in this update create Topic 842, Leases, and supersede the lease requirements currently set out in Topic
   840, Leases. Topic 842 requires the recognition of lease assets and lease liabilities for those leases
   classified as operating leases under previous GAAP, and allows for more effective reporting of useful
   information relating to leases. The amendments in this update are effective for public business entities for
   fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The
   Company is currently evaluating the effect that ASU 2016-02 will have on its financial statements and
   related disclosures.


4. RELATED PARTY ACTIVITIES

   The Company receives service fees from MUB. Total service fees earned were $3.7 million for the year
   ended March 31, 2018 and is reported in Service fee from affiliate in the Statement of Operations. As of
   March 31, 2018, the total receivable from MUB was $0.2 million and is reported in Fee receivable from
   affiliate in the Statement of Financial Condition.

   During the year ended March 31, 2018, the Company recognized referral fees on referrals to MUFG
   Securities Americas Inc. (“MUSA”) for specified customers that had been outstanding as of March 31,
   2017. Referral fees were $0.1 million and are included in Referral fees in the Statement of Operations.
   As of March 31, 2018, there was no outstanding referral fees receivable.

   The Company has $56.0 million of its cash held at MUB, which is the only interest bearing account.
   Total interest income earned was $6 thousand for the year ended March 31, 2018.

   The Company’s employees are dual-hat employees who provide services for both the Company and
   MUB. Employee compensation and benefits expenses for these dual-hat employees allocated to the
   Company, which includes salaries, bonuses, pension, and benefits, were $1.4 million for the year ended
   March 31, 2018. See Note 5 for additional information.

   The Company receives services from various affiliates, including management and professional services,
   computer operations and administrative support, financial reporting, compliance monitoring,
   infrastructure and other support functions. Service charges totaled $0.6 million for the year ended March
   31, 2018 and are included in Service charges expenses in the Statement of Operations. As of March 31,
   2018, service charges payable to affiliates was $0.1 million and are included in Accrued expenses in the
   Statement of Financial Condition.

   MUB has an operating lease for office space, and allocates all direct costs incurred on the lease to other
   affiliates occupying the space, including the Company. The expense apportionment for these affiliates is
   based on a systematic, rational and consistent approach, which identifies the square footage occupied by
   each individual employee. The costs allocated to the Company were $0.9 million for the year ended
   March 31, 2018 and are included in Occupancy in the Statement of Operations. As of March 31, 2018,


                                                    -9-


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

   included in Accrued expenses in the Statement of Financial Condition is $0.8 million related to
   occupancy.


5. COMPENSATION COSTS

   Personnel expenses, as discussed in Note 4, were $1.4 million and are reflected as Employee
   compensation and benefits expenses in the accompanying Statement of Operations. This total includes
   the Company’s allocated match of employee contributions under the MUFG Union Bank, N.A., 401(k)
   Plan (“MUB 401(k) Plan”) and allocated pension expense from the BTMU Cash Balance Pension Plan
   (“BTMU Pension Plan”) and the MUFG Union Bank, N.A., Retirement Plan (“MUB Pension Plan”)
   (collectively the “Pension Plans”). The BTMU Pension Plan is frozen to participation.

   Certain of the Company’s employees are eligible to participate in the MUB Annual Discretionary Bonus
   Plan and MUAH Stock Bonus Plan (“MUAH Plan”). Under the MUAH Plan, the Company employees
   are granted restricted stock units settled in ADRs representing shares of common stock of the Company's
   ultimate parent company, MUFG. These awards generally vest pro-rata on each anniversary of the grant
   date and generally become fully vested three years from the grant date, provided that the employee has
   completed the specified continuous service requirement. The Company’s allocated expense related to
   these plans was approximately $0.3 million for the fiscal year ended March 31, 2018.


6. INCOME TAXES

   The Company prepares a standalone provision but is included in MUAH’s consolidated calendar year tax
   return. Additionally, its state and local filings include both separate and group filings depending on the
   state. Certain states assess income tax on a company-specific basis, while others assess income tax on a
   unitary or combined basis. Each entity included in the unitary returns consisting of affiliated MUFG
   entities within the U.S. (collectively the “Group”) pays the tax on its share of the Group’s income
   apportioned to the state based on a formal tax sharing agreement which defines the method to allocate
   unitary income tax liabilities systematically and rationally.

   The current and deferred income tax provision is summarized in the following table.




                                                   - 10 -


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

                                                                              Year Ended
   (In thousands of dollars)                                                 March 31, 2018
   Current income tax (benefit) provision:
   Federal                                                                  $              (493)
   State and local                                                                        1,897
     Total                                                                                1,404

   Deferred income tax provision:
   Federal                                                                                  543
   State and local                                                                          115
    Total                                                                                   658

   Income tax provision                                                     $            2,062

   The federal statutory tax is reconciled to the effective income tax as follows:

                                                                              Year Ended
   (In thousands of dollars)                                                March 31, 2018
   Statutory federal income tax                                             $             85
   State tax true-ups and other adjustments, net                                       1,952
   Tax reform rate change - revaluation of deferred tax balance                           25
   Total effective income tax                                               $         2,062

   On December 22, 2017, the Tax Cuts & Jobs Act was signed into law reducing the federal corporate income
   tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax
   rate, the Company revalued its net deferred tax asset at December 31, 2017, resulting in a one-time tax
   expense of $25 thousand. For the year ended March 31, 2018, there is no apportionment allocated to the
   Company, resulting in a state tax true-up expense of $1.9 million. The true-up was due to returns filed
   during the year ended March 31, 2018.

   The tax effect of temporary differences that gives rise to deferred tax assets is as follows:

   (In thousands of dollars)                                                 March 31, 2018
   Deferred tax assets:
     Federal benefit of state tax reserves                                  $                55
     Total deferred tax assets                                              $                55




                                                     - 11 -


MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Notes to Financial Statements
As of and for the year ended March 31, 2018

   No valuation allowance was required for the deferred tax assets as of March 31, 2018 as the Company
   believes it is more likely than not that all deferred tax assets will be realized.

   There were no uncertain tax positions as of or during the fiscal year ended March 31, 2018. There were
   no interest and penalties related to income tax as of and during the fiscal year ended March 31, 2018.

   The periods under audit or open to examination in Federal, State and City jurisdictions are the years ended
   March 31, 2014 through 2017.


7. COMMITMENTS AND CONTINGENCIES

   In accordance with ASC 450, Accounting for Contingencies, the Company’s policy regarding legal and
   other contingencies is to accrue a liability when it is probable that a loss has been incurred and the
   amount of the loss can be reasonably estimated. At March 31, 2018, there were no outstanding
   commitments and contingencies, and therefore, no accrual is necessary.


8. REGULATORY REQUIREMENTS

   The Company is a registered broker-dealer with the SEC and is subject to the Uniform Net Capital Rule
   pursuant to Rule 15c3-1 under the Securities Exchange Act of 1934, which requires the maintenance of
   minimum net capital, as defined, equal to the greater of $5,000 or 6-2/3% of total aggregate indebtedness.
   At March 31, 2018, the Company’s net capital was $16.3 million, which was $16.2 million in excess of
   the $0.1 million requirement and its ratio of aggregate indebtedness to net capital was approximately 0.07
   to 1.

   The Company does not carry customer accounts, hold customer funds or clear through other broker-
   dealers and, accordingly, is exempt from the provisions of SEC Rule 15c3-3, pursuant to section k(2)(i).


9. SUBSEQUENT EVENTS

   The Company has evaluated events subsequent to March 31, 2018 through the date the financial
   statements were available to be issued.

   Management did not identify any subsequent events requiring adjustments to or disclosures in the
   financial statements.


                                                ******




                                                   - 12 -


                                                                        SUPPLEMENTAL SCHEDULE (g)
MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Computation of Net Capital and Aggregate Indebtedness
Pursuant to Rule 15c3-1 Under The Securities Exchange Act of 1934
March 31, 2018
(In thousands of dollars, unless otherwise noted)

Computation of net capital:
Total stockholder's equity                                                     $      73,643

Nonallowable assets:
 Fee receivable from affiliate                                                          (210)
 Tax assets                                                                           (1,118)
 Prepaid fees                                                                             (9)
 Total nonallowable assets                                                            (1,337)

Other deductions and/or charges:
 Cash at affiliate                                                                   (55,984)

Net capital                                                                           16,322

Minimum net capital required (the greater of 6-2/3%
of total aggregate indebtedness or $5 thousand)                                          75

Excess net capital                                                             $     16,247


Computation of aggregate indebtedness:

 Total aggregate indebtedness from Statement of Financial Condition            $       1,119

 Ratio of aggregate indebtedness to net capital                                       0.0686


There are no differences between the amounts presented above and the amounts
included in the Company's amended filing on May 23, 2018.




                                                      - 13 -


                                                            SUPPLEMENTAL SCHEDULE (h)
MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Computation for Determination of Reserve Requirements Pursuant to
Rule 15c3-3 Under The Securities Exchange Act Of 1934
As Of And For The Year Ended March 31, 2018


The Company does not carry customer accounts or otherwise hold customer funds and, accordingly, is
exempt from the provisions of SEC Rule 15c3-3, pursuant to section k(2)(i) of that rule.




                                                  - 14 -


                                                             SUPPLEMENTAL SCHEDULE (i)
MUFG AMERICAS CORPORATE ADVISORY, INC.
(Formerly known as BTMU SECURITIES, INC.)
(A wholly-owned subsidiary of MUFG Americas Holdings Corporation)

Information Relating to the Possession or Control Requirements
Pursuant To Rule 15c3-3 Under The Securities Exchange Act Of 1934
As Of And For The Year Ended March 31, 2018


The Company does not have physical possession or control of securities for customer accounts and,
accordingly, is exempt from the provisions of SEC Rule 15c3-3.




                                                   - 15 -



Document Created: 2018-05-30 10:29:55
Document Modified: 2018-05-30 10:29:55
Included Files
FileSequenceDescriptionTypeSize
0000352018-18-000006.txt   Complete submission text file   650912
primary_doc.xml 1 X-17A-5 2297

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