Item 1. Business (a) General Development of Business The Quick & Reilly Group, Inc. (the "Company") was originally incorporated in New York on June 25, 1981. The Company was reincorporated in Delaware in 1987. It is a holding company owning all of the capital stock of its primary subsidiaries: Quick & Reilly, Inc., U.S. Clearing Corp., and JJC Specialist Corp. Quick & Reilly, Inc. ("Q&R") was incorporated in New York on March 1, 1974. Q&R became a member organization of The New York Stock Exchange, Inc. ("NYSE") on May 2, 1974, and became the first member organization to offer substantially discounted commission rates to individual investors following the elimination of fixed commission rates by the Securities and Exchange Commission (the "SEC") on May 1, 1975. U.S. Clearing Corp. ("U.S. Clearing") was incorporated in New York on December 22, 1978 as a subsidiary of Q&R and began clearing customer securities transactions in March 1979. JJC Specialist Corp. ("JJC Specialist") was incorporated in New York as a subsidiary of the Company on September 10, 1982, and conducts specialist operations on the floor of the NYSE, along with JJC Specialist Partners, the partnership acquired as a result of the merger of the Stokes, Hoyt & Co. specialist operations with JJC Specialist in December 1992. Q&R, U.S. Clearing, and JJC Specialist (the "primary subsidiaries") as well as JJC Specialist Partners, are member organizations of the NYSE and are registered as broker-dealers with the SEC. Q&R and U.S. Clearing are members of the National Association of Securities Dealers (the "NASD"). U.S. Clearing is also a member of the American Stock Exchange (the "AMEX"), Boston Stock Exchange, Philadelphia Stock Exchange, Pacific Stock Exchange, Midwest Stock Exchange and Chicago Board Options Exchange. Q&R, U.S. Clearing, JJC Specialist and JJC Specialist Partners are members of the Securities Investor Protection Corporation, which provides protection for customer accounts up to $500,000 per customer, with a limitation of $100,000 on claims for cash balances. U.S. Clearing has also arranged for an additional $24.5 million worth of protection per customer on securities through the Aetna Casualty & Surety Co. (b) Financial Information about Industry Segments The Company operates in a single industry segment and has no foreign operations. No material part of the Company's consolidated revenues is received from a single customer or group of customers. (c) Narrative Description of Business The following table sets forth consolidated revenues of the Company, and the number of branch offices of Q&R in operation at year-end, on a comparative basis for its last three fiscal years:
Discount Brokerage Services On May 1, 1975, the SEC eliminated all fixed commission rates on securities transactions. Although this resulted in an immediate and substantial reduction in commission rates charged to institutional customers, rates charged to individual retail customers by the full-service national brokerage firms were not reduced. In mid-1975, Q&R's management perceived that an opportunity existed for firms willing to offer brokerage services at commission rates substantially below the pre-1975 fixed rates, and Q&R began offering such services. The discount brokerage service offered by Q&R is based on the principle that there are many investors who wish to conduct their own research and make their own investment decisions, and do not wish to pay for education or assistance. Q&R's management perceives that these investors basically wish to have their orders executed at the best possible price, and to have their transactions cleared and their accounts maintained - all at the lowest commission rate consistent with a professional level of service. Q&R, together with the clearing operation U.S. Clearing, is able to provide all of these services. Q&R reaches the self-directed investor through a combination of customer referrals and national and regional advertising (generally in financially oriented publications, radio and television). When an individual responds to a referral or advertising, he or she receives a booklet describing Q&R's services and its commission schedule, as well as a new account form for opening a cash or margin account. An account is established when the application is returned and the initial transaction takes place. An extensive branch office system has been established by Q&R for the many investors who prefer to be close to their broker. The branch office provides Q&R with a presence in the community and provides the client with the opportunity to visit the office. The investor may also contact the branch office by calling a toll-free phone number. A client is assigned his own Account Executive. From a single office in New York in 1974, Q&R has grown to a total of 97 offices nationwide. Fifteen new offices were opened during the fiscal year ended February 28, 1994. These offices are located in Syracuse, White Plains, and Forest Hills, New York; Salt Lake City, Utah; Glendale, Fresno, Rancho Bernardo, and downtown San Diego, California; King of Prussia, Pennsylvania; Bethesda, Maryland; Dayton, Ohio; Greenville and Columbia, South Carolina; San Antonio, Texas; and Port Richey, Florida. Q&R's Account Executives have access to the latest electronic display equipment and to direct lines to the floors of various exchanges to obtain current price quotations. Q&R has a policy against Account Executives giving investment advice or opinions. Q&R executes orders for its customers in listed and unlisted common and preferred stocks, debt securities and options. Q&R also has available various money market and mutual funds that are provided by outside vendors, representing 77 mutual fund families, of which there are in excess of 1,500 individual funds, including 135 no-load funds. After price information is given, the customer's order is taken by the Account Executive and executed, confirmed (both verbally and in writing) and the transaction is cleared by U.S. Clearing. At the end of each month in which the customer effects a trade, he or she is sent a statement that contains, in addition to standard information, market value, estimated annual yield and dollar income for each security as well as for the portfolio, and the amount of margin interest charged and dividends or interest earned. Q&R offers a service that allows customers with personal computers to monitor and manage their portfolios twenty-four hours a day without talking to an Account Executive. The "Quick Way" system enables customers to receive quotes, to have access to timely market and research information, and to enter orders that are electronically routed through a Q&R office to the proper market for execution. The ability to obtain the best execution of an order is of the utmost importance to a customer, and to ensure that this is accomplished, Q&R and U.S. Clearing, through their exchange memberships, have direct wire access to the trading floors of all major exchanges and also interface electronically with the latest automated execution and order routing facilities. The Company believes that Q&R's advertising has played a role in expanding the firm's customer base. Advertising expenses for the fiscal years ended in 1994, 1993 and 1992 were $6,226,000, $6,010,000, and $4,972,000, respectively. Clearing Services U.S. Clearing, which became operational in 1979, maintains accounts and clears securities transactions for (1) customers of Q&R and (2) customers introduced by other brokerage firms and by banks (theintroducing party being commonly known as a "correspondent" broker). When a customer of Q&R or of a correspondent broker opens an account, the account is physically maintained by U.S. Clearing, as agent for Q&R or the correspondent broker. U.S. Clearing clears all securities transactions for Q&R's customer accounts and presently carries accounts and clears transactions for 179 correspondent brokers. The competition to obtain clearing agreements with correspondent brokers is intense, and U.S. Clearing competes in this respect with a number of highly visible, large, well-financed clearing firms. Contacts between U.S. Clearing and potential correspondent brokers are made by advertising, referrals and solicited calls. Price, services, diversity of data processing programs and applications, and reputation are the main bases of competition. Although U.S. Clearing's prices are not the lowest in the industry, management believes that U.S. Clearing's service and systems are competitive. The following table sets forth clearance income, number of securities transactions processed and number of correspondents for U.S. Clearing for the periods shown:
Electronic data processing is an integral part of the Company's entire brokerage operations, particularly of U.S. Clearing's operations. Although the Company owns or leases all of the data processing hardware necessary to input trading and back-office data, it relies on a data processing service bureau for programming and main frame computer capabilities. Management thus far has been satisfied with the service bureau's performance, but there can be no assurance of satisfactory performance in the future. The Company believes that U.S. Clearing's internal controls and safeguards against risk of securities theft are adequate. U.S. Clearing relies upon certificate counts, microfilming procedures, and video cameras recording movements in high security areas as deterrents to securities theft. In addition, as required by the NYSE and certain other regulatory authorities, U.S. Clearing carries a fidelity bond covering loss or theft. The total coverage of $20,000,000 (with a $250,000 deductible provision per incident) is believed to be adequate. Customer Financing Customers of Q&R and of U.S. Clearing's correspondent brokers may effect transactions either on a cash or margin basis. In an account authorized for margin trading, Q&R and U.S. Clearing may lend its customers an amount up to that permitted by the Federal Reserve Board, currently 50% of the market value of securities purchased (Regulation T). The amount of the loan is also subject to NYSE margin requirements and the firm's internal policies, which in some instances are more stringent than Regulation T and NYSE requirements. "Short" sales of securities represent sales of borrowed securities and obligate the client to purchase the securities at a later date. Clients may sell securities short in a margin account subject to minimum equity, applicable margin requirements, and the availability of such securities to be borrowed and delivered. Interest is charged on the amount borrowed by customers to finance their margin transactions. Interest charged on customer accounts represented a major component of the Company's gross revenues for the fiscal year ended February 28, 1994. Secured borrowings, subordinated loans and equity capital are the primary sources of funds to finance customer margin account borrowings. U.S. Clearing also uses cash balances in customer accounts, known as free credit balances, to finance customer margin account balances. As of February 28, 1994, customer free credit balances available to U.S. Clearing aggregated more than $248,000,000. U.S. Clearing pays interest on approximately $152,000,000 of these funds. The amount of the Company's net interest revenues from financing margin transactions and from free credit balances is affected not only by the volume of business but also by fluctuations in prevailing interest rates. Specialist Business JJC Specialist Corp. is a wholly-owned subsidiary of the Company. The unit consists of 23 specialists who are members of the NYSE that make markets in 132 common stocks and 27 preferred stocks. Each specialist unit is obligated by NYSE rules to maintain a fair and orderly market in those stocks in which it is registered. It does so by purchasing and selling stocks at times of demand and supply. The specialist, therefore, becomes the central figure in the auction market. The business provides an opportunity for profits but also involves a high degree of risk during market volatility. At present, there are 40 specialist units that compete in the allocation process for new stocks. On December 24, 1992, JJC Specialist Corp. acquired through merger the partnership of Stokes, Hoyt & Co., a specialist on the floor of the NYSE. This unit became JJC Specialist Partners and was merged into JJC Specialist Corp. on March 1, 1994. The following table sets forth the highest,lowest and average month-end long and short positions of the Company's specialist business ending February 28, 1994:
Average Month-End Highest Position Lowest Position Position Long Short Long Short Long Short
$14,523,969 $15,682,223 $8,620,452 $4,829,969 $11,519,470 $7,307,867
Competition All aspects of the Company's business are highly competitive. Competition within the securities industry is principally based on the price and quality of the products and services offered, financial resources, and the Company's reputation within the investing community. There is also competition to attract and retain personnel within the securities industry. Competition for clients has increased from other sources, such as commercial banks, savings institutions, mutual fund management companies and investment advisory companies. It is likely that competition from these institutions will intensify as they expand their brokerage, clearance and specialist services. Regulation The Company's primary subsidiaries are subject to various federal and state laws which specifically regulate their activities. The primary purpose of these requirements is to enhance the protection of customer assets rather than the Company's stockholders. Under certain circumstances, these rules may limit the ability of the Company to make withdrawals of capital from the primary subsidiaries. These laws and regulatory requirements generally subject the primary subsidiaries to standards of solvency with respect to capital requirements, financial reporting requirements, approval of qualifications of personnel engaged in various aspects of its business, recordkeeping and business practices, the handling of customer funds resulting from securities transactions and the extension of credit to customers on margin transactions. Infractions of these rules and regulations may result in suspension of individual employees and/or their supervisors, termination of employees, limitations on certain aspects of the primary subsidiaries' businesses, as well as censures and fines, or even proceedings of a civil or criminal nature which could result in a temporary or permanent suspension of a part or all of the primary subsidiaries' activities. Additional information regarding regulation is set forth in Note 12 of the Notes to Consolidated Financial Statements under the caption "Capital Requirements". Such information is incorporated by reference.
Employees As of February 28, 1994, the Company and its subsidiaries had 926 employees, including full-time and part-time employees. Of these, 362 acted as Account Executives for Q&R. The Company's executive management group consists of six executive officers. The Company believes its relations with its employees are good.
(d) Financial Information about Foreign and Domestic Operations and Export Sales
Not applicable.
Item 2.
Item 2. Properties The headquarters of the Company is located at 230 South County Road, Palm Beach, Florida 33480. The offices of its primary subsidiaries are located at 26 Broadway, New York, New York 10004, under a lease expiring in 2002. Q&R's 97 branch offices are located in 33 states and the District of Columbia. Those offices are located in premises covered by leases that expire on various dates through 2003.
Item 3.
Item 3. Legal Proceedings In the ordinary course of their securities business, certain of the Company's subsidiaries have been named as defendants in a number of lawsuits and arbitration proceedings. In the opinion of management, based on discussions with counsel, the resolution of such lawsuits and arbitration proceedings will not in the aggregate have a material adverse effect on the financial condition or the results of operations of the Company or its subsidiaries.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of the Company's security holders during the last quarter of its fiscal year ended February 28, 1994.
PART II Item 5.
Item 5. Market for the Registrant's Common Equity and Related Stockholder Matters
The information required herein is reported on page 24 of the Company's Annual Report to Stockholders for the year ended February 28, 1994, and is incorporated herein by reference.
Item 6.
Item 6. Selected Financial Data The information required herein is reported on page 1 of the Company's Annual Report to Stockholders for the year ended February 28, 1994, and is incorporated herein by reference.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The information required herein is reported on pages 11 and 12 of the Company's Annual Report to Stockholders for the year ended February 28, 1994, and is incorporated herein by reference.
Item 8.
Item 8. Financial Statements and Supplementary Data The information required herein is reported on pages 13 through 23 of the Company's Annual Report to Stockholders for the year ended February 28, 1994, and is incorporated herein by reference.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant The information required herein will be reported in the Company's definitive Proxy Statement for the Annual Meeting of Stockholders to be held June 28, 1994, which will be filed on or before June 28, 1994, and is incorporated herein by reference. The Company's executive officers hold office until their respective successors are duly elected and qualified, or until their earlier resignation or removal. The executive officers devote substantially all of their business efforts to the affairs of the Company. The following table sets forth the name, age and position with the Company of the executive officers.
Name Age Position
Leslie C. Quick, Jr. 68 Chairman of the Board of Directors, Chief Executive Officer, Chief Financial Officer and Director
Peter Quick 38 Director and President
Leslie C. Quick III 41 Director, Vice President and Treasurer
Christopher C. Quick 37 Director and Vice President
Thomas C. Quick 39 Director, Assistant Treasurer and Vice President
Pascal J. Mercurio 55 Director and Vice President
Leslie C. Quick, Jr. is the founder of the Company and served as President, Chief Executive Officer and a director from its organization in 1981 until June 1986. In April 1983, he was elected Chairman of the Board of Directors of the Company. He has served as President and Chief Executive Officer of Q&R from its organization in 1974 until June 1986 and as a director from 1974 until March 1993. He has served as President and Chief Executive Officer of U.S. Clearing from January 1979 to May 1981, and as a director from January 1979 to May 1993. Mr. Quick has also served as Treasurer and a director of JJC Specialist from September 1982 until March 1990, and as President and Chief Executive Officer from March 1983 until June 1986. Mr. Quick has also served as President and as a director of Q&R Charter, Inc. since December 1982. Peter Quick, a son of Leslie C. Quick, Jr., became a director of the Company in November 1982 and was elected President in March 1994. Mr. Quick has served as a Vice President from June 1985 until his election as President in March 1994. He was named Vice President of U.S. Clearing in May 1987. He served in that capacity until May 1990 when he became President of U.S. Clearing, which position he held until March 1994 when he was elected President of the Company and Vice President of U.S. Clearing. Leslie C. Quick III, a son of Leslie C. Quick, Jr., has served as Vice President since March 1994, Treasurer since February 1985 and as Assistant Secretary and a director since July 1981. Mr. Quick served as President of the Company from June 1986 to March 1994, at which time he was elected President of U.S. Clearing and became a Vice President of the Company. He also serves as Vice President, Treasurer, Secretary and a director of Q&R. He has served as Secretary and Assistant Treasurer of JJC Specialist. Christopher C. Quick, son of Leslie C. Quick, Jr., has served as a Vice President of the Company since 1988 and as a director since November 1982. Mr. Quick has served as President of JJC Specialist since June 1986 and as a director since its organization in September 1982. From September 1982 until June 1986, Mr. Quick served as Vice President - Trading of JJC Specialist. He is a member of the NYSE and serves as a registered specialist in the specialist book managed by JJC Specialist. Thomas C. Quick, a son of Leslie C. Quick, Jr., has served as Vice President and a director of the Company since July 1981. In addition, Mr. Quick has served as Vice President and director of U.S. Clearing since May 1982 and as Assistant Treasurer of that corporation since May 1985. Mr. Quick joined Q&R in 1977, became Vice President and a director in May 1981 and was elected President of that corporation in June 1986. Pascal J. Mercurio has been a director of the Company since July 1981 and a director of Q&R since March 1980. He joined U.S. Clearing as a director and Executive Vice President upon its organization in January 1979. Since that time he has served in various capacities and in May 1990, he became U.S. Clearing's Chairman of the Board and Chief Executive Officer.
Item 11.
Item 11. Executive Compensation The information required herein will be reported in the Company's definitive Proxy Statement for the Annual Meeting of Stockholders to be held June 28, 1994, which will be filed on or before June 28, 1994, and is incorporated herein by reference.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The information required herein will be reported in the Company's definitive Proxy Statement for the Annual Meeting of Stockholders to be held June 28, 1994, which will be filed on or before June 28, 1994, and is incorporated herein by reference.
Item 13.
Item 13. Certain Relationships and Related Transactions The information required herein will be reported in the Company's definitive Proxy Statement for the Annual Meeting of Stockholders to be held June 28, 1994, which will be filed on or before June 28, 1994, and is incorporated herein by reference.
PART IV Item 14.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a)(1) The following report and consolidated financial statements are incorporated by reference from the Registrant's 1994 Annual Report to Stockholders and filed as part of this Report:
Report of Independent Public Accountants
Consolidated Financial Statements:
Consolidated Statements of Financial Condition - February 28, 1994 and February 28, 1993
Consolidated Statements of Income for the Years Ended the last day of February 1994, 1993 and 1992
Consolidated Statements of Changes in Shareholders' Equity for the Years Ended the last day of February 1994, 1993 and
Consolidated Statements of Cash Flows for the Years Ended the last day of February 1994, 1993 and 1992
Notes to Consolidated Financial Statements
(a)(2) The following is a list of financial statement schedules filed as part of this report beginning on page 27:
Schedule I - Marketable Securities - Other Investments
Schedule III - Condensed Financial Information of Registrant
Schedule IX - Short-Term Borrowings
Report of Independent Public Accountants on Schedules
(a)(3) See accompanying Index to Exhibits
(b) No reports on Form 8-K were filed by the Registrant during the last fiscal quarter of the fiscal year covered by this Report.
(c) The following is a list of all Exhibits filed as part of this Report:
Exhibit No. Description Page 3.1 Amended By-Laws previously filed and herein incorporated by reference.
3.2 The Company's restated certificate of incorporation was filed as exhibit 4.1 to the Company's Registration Statement on Form S-8, Registration No. 33-28345, and is hereby incorporated by reference.
4.1 Instruments defining the rights of security holders were filed as exhibits 4.1 and 4.2 to the Company's Registration Statement on Form S-1, Registration No. 2-83667, and Exhibit 4.3 to the Company's Registration Statement on Form S-8, Registration No. 33-28345,and are hereby incorporated by reference.
10.1 Material contracts were filed as exhibits 10.4 and 10.5 to the Company's Registration Statement on Form S-1, Registration No. 2-83667, and are hereby incorporated by reference.
10.2 Agreement and Plan of Merger (Reincorporation Merger Agreement) was filed as Exhibit A to the Company's Notice of Annual Meeting of Stockholders and Proxy Statement for the June 23, 1987 Annual Meeting of Stockholders. Restated Certificate of Incorporation of The Quick & Reilly (Delaware) Group, Inc. was filed as Exhibit B to the Company's Notice of Annual Meeting of Stockholders and Proxy Statement for the June 23, 1987 Annual Meeting of Stockholders. By-Laws of The Quick & Reilly (Delaware) Group, Inc. was filed as Exhibit C to the Company's Notice of Annual Meeting of Stockholders and Proxy Statement for the June 23, 1987 Annual Meeting of Stockholders.
10.3 Quick & Reilly Stock Option Plan was filed as Appendix A to the Company's Notice of Annual Meeting of Stockholders for the fiscal year ended February 28, 1991.
13.1 Annual Report to Stockholders for 36 the year ended February 28, 1994. With the exception of the information incorporated By reference into Items, 5, 6, 7, and 8 of this Form 10-K, the Annual Report to Stockholders for the year ended February 28, 1994 is not deemed filed as part of this report for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
22.1 A list of the Company's subsidiaries. 63
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual report to be signed on its behalf by the undersigned, thereunto duly authorized. THE QUICK & REILLY GROUP, INC.
BY PETER QUICK Dated: May 19, 1994 Peter Quick, President
Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
LESLIE C. QUICK, JR. Dated: May 19, 1994 Leslie C. Quick, Jr. Chairman of the Board of Directors, Chief Executive Officer, Chief Financial Officer and Director
PETER QUICK Dated: May 19, 1994 Peter Quick President and Dirctor
THOMAS C. QUICK Dated: May 19, 1994 Thomas C. Quick Director, Vice President and Assistant Treasurer
CHRISTOPHER C. QUICK Dated: May 19, 1994 Christopher C. Quick Vice President and Director
LESLIE C. QUICK III Dated: May 19, 1994 Leslie C. Quick III Vice President, Treasurer and Director
ALEXANDER BENISATTO Dated: May 19, 1994 Alexander Benisatto Director
RICHARD G. BRODRICK Dated: May 19, 1994 Richard G. Brodrick Director
THOMAS E. CHRISTMAN Dated: May 19, 1994 Thomas E. Christman Director
ARLENE B. FRYER Dated: May 19, 1994 Arlene B. Fryer Secretary and Director
HENRY P. KILROY Dated: May 19, 1994 Henry P. Kilroy Director
CLIFFORD W. MAYS Dated: May 19, 1994 Clifford W. Mays Director
PASCAL J. MERCURIO Dated: May 19, 1994 Pascal J. Mercurio Vice President and Director
ROBERT J. RABINOFF Dated: May 19, 1994 Robert J. Rabinoff Controller and Principal Accounting Officer
THE QUICK & REILLY GROUP, INC.
AND FINANCIAL STATEMENT SCHEDULES
Reference
Annual Report to Stock- Form holders 10-K (page)
Financial Statements
Consolidated Statements of Financial Condition at February 28, 1994 and February 28, 1993 13
For each of the three fiscal years in the period ended February 28, 1994:
Consolidated Statements of Income 14
Consolidated Statements of Changes in Shareholders' Equity 15
Consolidated Statements of Cash Flows 16
Notes to Consolidated Financial Statements 17 - 21
Report of Independent Public Accountants 22
Supplementary Information:
Quarterly Financial Data (unaudited) 23
Common Stock Data 24
Schedules
Report of Independent Public Accountants on Schedules 35
I - Marketable Securities - Other Investments 27-28
III - Condensed Financial Information of Registrant 29-33
IX - Short-Term Borrowings 34
THE QUICK AND REILLY GROUP, INC.
INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
(Item 14(a))
Information presented in the schedules pertains only to continuing operations unless otherwise stated. All other schedules are omitted because the required information is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto. The consolidated financial statements and supplementary information listed in the above index, which are included in the Annual Report to Stockholders of The Quick & Reilly Group, Inc. for the year ended February 28, 1994, are hereby incorporated by reference.
Schedule III (Page 4)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
THE QUICK & REILLY GROUP, INC. (Parent Company Only)
NOTES TO CONDENSED FINANCIAL INFORMATION
NOTE 1 - DIVIDENDS RECEIVED FROM SUBSIDIARIES
The Quick & Reilly Group, Inc. received from its consolidated subsidiaries cash dividends of $2,000,000 for each of the fiscal years ended February 28, 1994 and 1993, respectively.
NOTE 2 - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The condensed financial information of The Quick & Reilly Group, Inc. (Parent Company Only) should be read in conjunction with the consolidated financial statements of The Quick & Reilly Group, Inc. and subsidiaries and the notes thereto incorporated by reference in this report.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Quick & Reilly Group, Inc.:
We have audited in accordance with generally accepted auditing standards, the consolidated financial statements included in The Quick & Reilly Group, Inc. and subsidiaries' annual report to stockholders incorporated by reference in this Form 10-K, and have issued our report thereon dated April 15, 1994. Our audits were made for the purpose of forming an opinion on those statements taken as a whole. The schedules listed in the index on page 25 are the responsibility of the Company's management and are presented for the purpose of complying with the Securities and Exchange Commission's rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.
Arthur Andersen & Co. New York, New York April 15, 1994