# ROYCE FUND SERVICES, LLC X-17A-5 (2025-12-22) — Broker-dealer annual report - Company: ROYCE FUND SERVICES, LLC - Form: X-17A-5 - Filed: 2025-12-22 - Period: 2025-09-30 - Accession: 0000711125-25-000016 - CIK: 711125 - File #: 8-28663 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers - Auditor location: San Francisco, CA - Contact: Thomas Palasits - Phone: 212 508-4561 - Email: tpalasits@royceincvest.com - Website: royceincvest.com - Signed by: Thomas R. Palasits (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/711125/000071112525000016/rfs2025.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER 8-28663 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING 09/30/2025 FILING FOR THE PERIOD BEGINNING 10/01/2024 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION # NAME OF FIRM: ROYCE Fund Services, LLC TYPE OF REGISTRANT (check all applicable boxes): [ Broker-dealer ] [ Security-based swap dealer ] [ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # One Madison Avenue | | (No. and Street) | | | |----------------------------------------------------------------------------------------------------------|------------------------------------------------------------|----------------------------|--------------------------------------------| | New York | NY | | 10010 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Thomas R. Palasits 212 508-4561 | | tpalasits@royceincvest.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing *
PriceWaterhouseCoopers LLP | (Name - if individual, state last, first, and middle name) | | | | 405 Howard St | San Francisco | CA | 94105 | | (Address) | (City) | (State) | (Zip Code) | | 10/20/2003 | | 238 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION | I Thomas R. Palasits | swear (or affirm) that, to the best of my knowledge and belief, the | | |---------------------------------------------------------------------|---------------------------------------------------------------------|-------| | financial report pertaining to the firm of Royce Fund Services, LLC | | as of | September 30 2 025 \_\_ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. Signature: Title: Chief Financial Officer #### This filing \*\* contains (check all applicable boxes): - = (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - | {c} Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - = (d) Statement of cash flows. - [e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - = (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [i] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [m] Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - | (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [ [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | | Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [t] Independent public accountant's report based on an examination of the statement of financial condition. - @ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - @ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17-12, as applicable. - [] (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - [ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {2}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Financial Statements and Supplemental Schedules Pursuant to Rule 17a-5 of the Securities and Exchange Act of 1934 September 30, 2025 {3}------------------------------------------------ | | Page(s) | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--| | Report of Independent Registered Public Accounting Firm | 1-2 | | | Financial Statements | | | | Statement of Financial Condition
Statement of Loss and Comprehensive Loss
Statement of Changes in Members' Equity
Statement of Cash Flows
Notes to Financial Statements | 3
4
5
6
7 | | | Supplemental Schedules | | | | Computation of Net Capital Pursuant to SEC Rule 15c3-1 | 13 | | | Statement Regarding Determination of Reserve Requirements Pursuant to
SEC Rule 15c3-3 | 14 | | | Information Relating to Possession or Control Requirements for
Brokers and Dealers Pursuant to SEC Rule 15c3-3 | 15 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Report of Independent Registered Public Accounting Firm #### Opinion on the Financial Statements To the Board of Directors and Member of Royce Fund Services, LLC We have audited the accompanying statement of financial condition of Royce Fund Services, LLC loss and comprehensive loss, of changes in members equity, and of cash flows for the year then ended, including the related notes in all material respects, the financial position of the Company as of September 30, 2025, 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 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 of these financial statements 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 accompanying Computation of Net Capital Pursuant to SEC Rule 15c3-1, Statement Regarding Determination of Reserve Requirements Pursuant to SEC Rule 15c3-3, and Information Relating to Possession or Control Requirements for Brokers and Dealers Pursuant to SEC Rule 15c3-3 as of have been subjected to audit procedures information is the responsib 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, {5}------------------------------------------------ is presented in conformity with Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. December 22, 2025 2. {6}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Statement of Financial Condition As of September 30, 2025 #### ASSETS | Cash and cash equivalents | \$
3,715,267 | |------------------------------|-----------------| | Receivables: | | | Distribution fees receivable | 405,324 | | Due from parent | 519,674 | | Receivable from affiliates | 5,000 | | Other assets | 10,590 | | Total assets | \$
4,655,855 | #### LIABILITIES AND MEMBERS EQUITY | Liabilities: | | |----------------------------------------|-----------------| | Accounts payable | \$
163,981 | | Due to parent | 984 | | Payable to affiliates | 58,363 | | Accrued distribution expense | 499,687 | | Total liabilities | 723,015 | | Commitments and contingencies (Note 6) | | | Members' equity | 3,932,840 | | Total liabilities and members' equity | \$
4,655,855 | See accompanying notes to the financial statements {7}------------------------------------------------ # Royce Fund Services, LLC # (a majority owned subsidiary of Franklin Resources, Inc.) Statement of Loss and Comprehensive Loss For the Year Ended September 30, 2025 | Revenues:
Distribution fees received from affiliated funds, net of waivers | \$
4,960,022 | | |-------------------------------------------------------------------------------|-----------------|--| | Interest income | 82,657 | | | Total revenues | 5,042,679 | | | Expenses: | | | | Third party distribution fees and other direct costs | 4,754,185 | | | Sales commissions | 38,745 | | | Administrative fees and other expenses | 692,076 | | | Total expenses | 5,485,006 | | | Net Loss and Comprehensive Loss | \$
(442,327) | | See accompanying notes to the financial statements {8}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Statement of Changes in Members Equity For the Year Ended September 30, 2025 | Balance at October 1, 2024 | \$ 4,375,167 | |-------------------------------|--------------| | Net Loss | (442,327) | | Balance at September 30, 2025 | \$ 3,932,840 | See accompanying notes to the financial statements {9}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Statement of Cash Flows For the Year Ended September 30, 2025 | Net Loss | \$ (442,327) | |--------------------------------------------------------|--------------| | Net changes in assets and liabilities: | | | Distribution fees receivable | 41,375 | | Due from parent | 26,390 | | Receivable from affiliates | 33,212 | | Other assets | 6,287 | | Accounts payable | (158,758) | | Due to parent | (139,932) | | Payable to affiliates | (97,662) | | Accrued distribution expense | (125,073) | | Net cash used in operating activities | (856,488) | | Net decrease in cash and cash equivalents | (856,488) | | Cash and cash equivalents at the beginning of the year | 4,571,755 | | Cash and cash equivalents at the end of the year | \$ 3,715,267 | See accompanying notes to the financial statements {10}------------------------------------------------ ### 1. Organization Royce Fund Services, LLC (the Company) is registered as a broker-dealer in securities under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company, a wholly owned subsidiary of Royce & Associates, LP (the Parent), which is an indirect majority owned subsidiary of Franklin Resources, Inc., is the distributor of shares of The Royce Funds and The Royce Capital Funds, which are open-end registered investment companies with multiple portfolios (hereinafter referred to as the Funds). As an introducing broker, the Company does not carry securities accounts for customers or perform custodial functions relating to customer securities. ## 2. Summary of Significant Accounting Policies #### A. Operations Under a distribution agreement with the Funds, the Company seeks to promote the sale and/or continued holding of shares of such Funds through a variety of activities, including advertising, direct marketing, servicing investors and introducing parties on an ongoing basis. The Company pays commissions and other fees to certain broker-dealers who have introduced investors to certain of the Funds. As compensation for its services, the Company is entitled to receive from the average net assets of the Consultant Classes of Royce Small Cap, Small Cap Opportunity, MicroCap, Small Cap Total Return, Premier and Small Cap Special Equity a monthly fee equal to 1% per annum of their respective average net assets. The Company is also entitled to receive 0.25% per annum of the respective average net assets of the Service Class of Royce Small Cap, Small Cap Opportunity, MicroCap, Small Cap Total Return, Premier, Small Cap Special Equity, Small Cap Value, Smaller Companies Growth, Smid Cap Total Return and International Premier Funds as well as Royce Capital Fund Micro-Cap and Small-Cap Portfolios. The Company is also entitled to receive 0.50% per annum of the respective average net assets of the R Class of Small Cap Opportunity and Small Cap Total Return. {11}------------------------------------------------ For the year ended September 30, 2025, the Company voluntarily waived fees from the following classes of shares: Service Class | Royce Small Cap | \$
12,620 | | |-----------------------------|--------------|--| | Royce Smid Cap Total Return | 986 | | | | \$
13,606 | | Because the Company serves as distributor only for mutual funds managed by the Parent, the Parent provides administrative services to the Company at no cost. Therefore, the Companys results of operations may not be indicative of the results of operations of a stand-alone company. #### B. Fair Value of Financial Instruments The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The Company's assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities, which may include published net asset values (NAV) for fund products. Level 2 Observable inputs other than Level 1 quoted prices, such as non-binding quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable or corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity. These inputs require significant management judgment and reflect the Company's estimation of assumptions that market participants would use in pricing the asset or liability. Quoted market prices may be adjusted if events occur such as significant price changes in proxies traded in relevant markets after the close of corresponding markets, trade halts or suspensions or unscheduled market closures. These proxies consist of correlated countryspecific exchange-traded securities, such as futures, American Depositary Receipts indices or exchange-traded funds. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market. {12}------------------------------------------------ #### C. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments that, when purchased, have an original maturity of 90 days or less. The carrying amount of cash equivalents approximates fair value. The Company maintains cash in bank accounts, which at times, may exceed federally insured limits. Deposits with one financial institution exceeded local regulatory insured limits by a total of \$3,465,267 at September 30, 2025, representing a concentration of credit risk. #### D. Receivables Distribution fees receivable from affiliated funds are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value. Based on the Company's assessment, no credit loss expenses were recognized during the year ended September 30, 2025. Fees from the funds are received on the first day of the month. Contingent Deferred Sales Charges (CDSC) fees, discussed further below, are received as redemptions occur for sales subject to the fee. #### E. Revenue Recognition #### Distribution Revenue The Company earns revenue from providing distribution services to the Funds. Multiple services included in distribution and services agreements are accounted for separately when the obligations are determined to be distinct. Revenues are recognized when the Companys obligations to sell shares of the Funds are satisfied and it is probable that a significant reversal of the revenue amount would not occur in future periods. The obligations are satisfied on trade date. Ongoing distribution fees are variable consideration determined based on a percentage of daily net asset value of the fund and are dependent on the net asset value of the shares at future points in time as well as the length of time the investor remains in the fund. As the ongoing distribution fees are uncertain on trade date, they are initially constrained and recognized as the amounts become known. Distribution fees also include CDSC which are based on contractual rates as a percentage of a clients trade value if redemptions occur during a specified period from the original purchase date. At the time of recognition, Distribution fees of \$4,956,111 and CDSC of \$3,911, totaling \$4,960,022 for the year ended September 30, 2025, may relate to sales of shares of Royce-sponsored funds where the performance obligation was satisfied in prior periods. When the Company enters into arrangements with broker-dealers or other third parties to sell or market proprietary fund shares and/or provide shareholder account maintenance {13}------------------------------------------------ services, distribution and servicing expenses are accrued for the amounts owed to third parties. ### F. Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America that require management to make assumptions and estimates that affect the amounts and disclosures presented. Actual results could differ from those estimates and the differences could have a material impact on the financial statements. ## 3. Recently Adopted Accounting Guidance In November 2023, the Financial Accounting Standards Board (FASB) issued an amendment to the existing segment reporting guidance. The amendment requires disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (CODM) by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The amendment was effective on October 1, 2024. See Note 8-Segment Information. #### 4. Income Taxes The Company is a disregarded limited liability company of its Parent, Royce & Associates, LP, which files as a partnership for tax purposes. The Company has determined that it has no material uncertain tax positions as of September 30, 2025. The Company does not anticipate any significant increases or decrease to unrecognized tax benefits during the next twelve months. The federal and state partnership returns filed by the Parent are subject to examination by the respective tax authorities. The Company is not currently under examination by income tax authorities in federal or state jurisdictions. The following tax years remain open for each of the more significant jurisdictions where the Company is subject to income tax: after fiscal year 2020 for U.S. federal tax returns and after fiscal year 2020 for New York State Partnership Returns and after 2017 for New York City UBT returns. # 5. Regulatory Requirements The Company is subject to the Securities and Exchange Commissions (SEC) Uniform Net Capital Rule pursuant to Rule 15c3-1 (the Rule), which requires the maintenance of minimum net capital of \$5,000 or 6-2/3% of total aggregate indebtedness, whichever is greater, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (or 1500%). Net capital and the related ratio of aggregate indebtedness to net capital, as defined, may fluctuate on a daily basis. {14}------------------------------------------------ As of September 30, 2025, the Company had net capital of \$2,992,252 which was \$2,944,051 in excess of required capital of \$48,201. The Companys percentage of aggregate indebtedness to net capital was 24.16%. The Company claims exemption from the SECs Customer Protection Rule (Rule 15c3- 3). Section (k)(1) of Rule 15c3-3 allows for this exemption because the Companys business is limited to the distribution of mutual funds. #### 6. Commitments and Contingencies In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Companys maximum exposure under these arrangements is unknown, as they would involve future claims that may be made against the Company that have not yet occurred. #### 7. Related Party Transactions The Company has an expense sharing agreement with the Parent whereby the Parent assumes expenses related to Marketing, Accounting and Distribution Services on behalf of the Company. For the year ended September 30, 2025, the Parent assumed \$1,847,082 of expenses, therefore the results differ from those that would have been achieved had the Company operated as an independent entity. The Company derives 100% of its revenue from The Royce Funds. #### 8. Segment Information The Company is engaged in a single line of business as a securities broker-dealer which provides sales and distribution services. The chief operating decision maker (CODM), identified as the Companys Chief Executive Officer, assesses the performance of the business and allocates resources primarily based on net income of the Company. The CODM regularly reviews the significant segment expenses categories that are presented on the statement of income. Total assets on the statement of financial condition is the measure of segment assets. #### 9. Subsequent Events There have been no subsequent events through December 22, 2025, the date the financial statements were available to be issued, that require recognition or disclosure. {15}------------------------------------------------ #### SUPPLEMENTAL SCHEDULES {16}------------------------------------------------ # Royce Fund Services, LLC ### (a majority owned subsidiary of Franklin Resources, Inc.) Computation of Net Capital Pursuant to SEC Rule 15c3-1 September 30, 2025 | Total Members' Equity | | | \$
3,932,840 | | |----------------------------------------------------------------------------------------------------------------------------|------------------------------------------|-------------------|-----------------|--| | Deductions and/or charges
Due from parent
Receivable from affiliates
Distribution fees receivable
Other assets | \$ 519,674
5,000
405,324
10,590 | | | | | Total non-allowable assets | | \$940,588 | | | | Total deductions and/or charges | | | 940,588 | | | Net capital before haircuts on securities positions | | | 2,992,252 | | | Net capital | | | 2,992,252 | | | Computation of basic aggregate indebtedness
and net capital requirement | | | | | | Computed net capital required (6-2/3% of total
aggregate indebtedness)
Minimum dollar net capital requirement | | \$48,201
5,000 | | | | Net capital requirement | | | 48,201 | | | Excess net capital | | | \$
2,944,051 | | | Total aggregate indebtedness | | | \$
723,015 | | | Percentage of aggregate indebtedness to net capital | | | 24.16% | | Statement Pursuant to Paragraph (d)(4) of SEC Rule 17a-5 There are no material differences between this computation of net capital and the corresponding computation prepared by Royce Fund Services, LLC and included in its unaudited Part II-A FOCUS filing of September 30, 2025, filed on October 17, 2025. {17}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Statement Regarding Determination of Reserve Requirements Pursuant to SEC Rule 15c3-3 September 30, 2025 The Company has claimed exemption from Rule 15c3-3 of the Securities and Exchange Commission under paragraph (k)(1) of that rule. There are no material differences between the information presented above and the information presented in the Companys unaudited Part II-A FOCUS filing as of September 30, 2025, filed on October 17, 2025. {18}------------------------------------------------ # Royce Fund Services, LLC (a majority owned subsidiary of Franklin Resources, Inc.) Information Relating to Possession or Control Requirements for Brokers and Dealers Pursuant to SEC Rule 15c3-3 September 30, 2025 The Company is claiming an exemption from the possession or control requirements in accordance with provisions of Rule 15c3-3 pursuant to paragraph k(1) of such rule under the Securities Exchange Act of 1934. There is no material difference between the information presented above and the information presented in the Companys unaudited Part II-A FOCUS filing as of September 30, 2025, filed on October 17, 2025. {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) #### Report of Independent Registered Public Accounting Firm To the Management of Royce Fund Services, LLC We have reviewed Royce Fund Services, LLC assertions, included in the accompanying Royce Fund Services, LLC Exemption Report, in which (1) the Company identified 17 C.F.R. § 240.15c3-3(k)(1) as the provision under which the Company claimed an exemption from 17 C.F.R. § 240.15c3-3 (the exemption provision ) and (2) the Company stated that it met the identified exemption provision throughout the year ended September 30, 2025 without exception exemption provision throughout the year ended September 30, 2025. (k)(1) of 17 C.F.R. § 240.15c3-3. 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 the on provision. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management s assertions. 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 assertions referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph December 22, 2025 {20}------------------------------------------------ Royce Fund Services, LLC Exemption Report Royce Fund Services, LLC (the Company) is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, Reports to be made by certain brokers and dealers). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. § 240.15c3-3(k)(1). (2) The Company met the identified exemption provisions in 17 C.F.R. § 240.15c3-3(k) throughout the period from October 1, 2024 through September 30, 2025 without exception. Royce Fund Services, LLC I, Thomas R. Palasits, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. s/s Chief Financial Officer December 22, 2025 {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) #### Report of Independent Accountants To the Management of Royce Fund Services, LLC We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation ("SIPC") Series 600 Rules, which are enumerated below, on the accompanying General Assessment Form (Form SIPC-7) of Royce Fund Services, LLC (the "Company") for the year ended September 30, 2025. Management of Royce Fund Services, LLC is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. In an agreed-upon procedures engagement, we perform specific procedures that the Company has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and we report on findings based on the procedures performed. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended September 30, 2025. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and the associated findings are as follows: - 1. Compared the listed assessment payment on page 2, line 15 of Form SIPC-7 with the respective cash disbursement record entry, as follows: - a. Payment dated November 24, 2025 in the amount of \$72.70, included in the amount reported on line 15, was compared to Bank of America transaction reference number 906625026918800, provided by Thomas Palasits, Chief Financial Officer, noting no differences. - 2. Compared the "Total revenues" amount reported on page 4 of the Annual Audited Report Form X-17A-5 Part III for the year ended September 30, 2025 to the "Total Revenue" amount of \$5,042,679 reported on page 1, line 1 of Form SIPC-7 for the year ended September 30, 2025, noting no differences. - 3. Compared any adjustments reported on page 1, item 4 of Form SIPC-7 with the supporting schedules and working papers, as follows: - a. Compared the "Distribution fees received from affiliated funds, net of waivers" amount of \$4,960,022 reported on page 4 of the Annual Audited Report Form X-17a-5 Part III for the year ended September 30, 2025, to the deduction "Revenues from the distribution of shares of a registered open end investment company or unit investment trust, from the sale of variable annuities, from the business of insurance, from investment advisory services rendered to registered investment companies or insurance company separate accounts and from transactions in security futures products." amount of \$4,960,022 reported on page 1, line 4a of Form SIPC-7 for the year ended September 30, 2025, noting no differences. {22}------------------------------------------------ - 4. With respect to the calculations reflected in Form SIPC-7 and in the related schedules and working papers obtained in procedure 3, we performed the following: - a. Recalculated the mathematical accuracy of the SIPC Net Operating Revenues on page 2, line 7 of \$82,657 and the General Assessment on page 2, line 8 of \$123, noting no differences. - b. Recalculated the mathematical accuracy of page 1, line 3, Add lines 1 and 2h, of \$5,042,679, noting no differences. - c. Recalculated the mathematical accuracy of page 1, line 6, total deductions, of \$4,960,022, noting no differences. - d. Recalculated the mathematical accuracy of page 2, line 11d, Add lines 11a through 11e, of \$10, noting no differences. - e. Compared the amounts on page 2, lines 10 and 11d, and observed whether the lesser of the two amounts of \$10 was included on page 2, line 12, Lesser of line 10 or 11d, noting no differences. - f. Agreed the amounts on page 2, lines 8, 9, and 12 to page 2, lines 13a, 13b, and 13c, respectively, noting no differences. Recalculated the mathematical accuracy of page 2, line 13d, Subtract lines 13b and 13c from 13a – assessment balance due, of \$72.70, noting no differences. - g. Recalculated the mathematical accuracy of page 2, line 15, Amount you owe SIPC, of \$72.70, noting no differences. - 5. Added and compared the amounts of any overpayments applied to the current assessment on page 2, line 9 amount of \$40.30 and line 11a amount of \$10 of the Form SIPC-7, totaling \$50.30, with page 2, line 16 of the Form SIPC-7 filed for the prior period ended September 30, 2024 on which it was originally computed, noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and on its compliance with the applicable instructions on Form SIPC-7 for the year ended September 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of management of Royce Fund Services, LLC and the Securities Investor Protection Corporation and is not intended to be, and should not be, used by anyone other than these specified parties. December 22, 2025 {23}------------------------------------------------ #### GENERAL ASSESSMENT FORM For the fiscal year ended 9/30/2025 | | Determination of "SIPC NET Operating Revenues" and General Assessment for: | | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------------| | | MEMBER NAME
ROYCE FUND SERVICES LLC | SEC No.
8-28663 | | | | For the fiscal period beginning 10/1/2024
and ending | 9/30/2025 | | | 1 | Total Revenue (FOCUS Report - Statement of Income (Loss) - Code 4030) | | \$ 5,042,679.00 | | 2 | Additions: | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | | d Interest and dividend expense deducted in determining item 1. | | | | | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | | | g Net loss from securities in investment accounts. | | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 | | 3 | Add lines 1 and 2h | | \$ 5,042,679.00 | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$ 4,960,022.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | e Net gain from securities in investment accounts. | | | | | f 100% commissions and markups earned from transactions in (1) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | | | | 5 a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss) - Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report - Statement of Income (Loss) -
Code 3960) | | | | | c Enter the greater of line 5a or 5b | \$ 0.00 | | | 6 | Add lines 4a through 4h and 5c. This is your total deductions. | | \$ 4,960,022.00 | {24}------------------------------------------------ | SIPC-7
37 REV 0722 | SECURITIES INVESTOR PROTECTION CORPORATION | SIPC-7
37 REV 0722 | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------| | | GENERAL ASSESSMENT FORM | | | | For the fiscal year ended 9/30/2025 | | | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | \$ 82,657.00 | | 8 | Multiply line 7 by .0015. This is your General Assessment. | \$ 123.00 | | 9 | Current overpayment/credit balance, if any | \$ 40.30 | | 10 | \$ 10.00
General assessment from last filed 2025 SIPC-6 or 6A | | | | \$ 10.00
11 a Overpayment(s) applied on all 2025 SIPC-6 and 6A(s)
\$ 0.00
b Any other overpayments applied
\$ 0.00
c All payments applied for 2025 SIPC-6 and 6A(s)
\$ 10.00
d Add lines 11a through 11c | | | 12 | LESSER of line 10 or 11d. | \$ 10.00 | | 13 | \$ 123.00
a Amount from line 8
\$ 40.30
b Amount from line 9
\$ 10.00
c Amount from line 12 | | | | d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | \$ 72.70 | | 14 | Interest (see instructions) for 0 days late at 20% per annum | \$ 0.00 | | 15 | Amount you owe SIPC. Add lines 13d and 14. | \$ 72.70 | | 16 | Overpayment/credit carried forward (if applicable) | \$ 0.00 | | SEC No.
8-28663 | FYE
Designated Examining Authority
Month
DEA: FINRA
2025
Sep | | | | MEMBER NAME
DOVCE FUND SEDVICES II C | | | MAILING ADDRESS ONE MADISON AVENUE | | |--------------------------------------|--| | 17TH FLOOR | | | NEW YORK NY 10010 | | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) a By checking this box, you certify that you have the authority of the SIPC member to sign this s form: that all information in this form is true and complete: and that on b form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized, and do hereby consent, to the storage and handling by SIPC of the data in accordance with SIPC's Privacy Policy | ROYCE FUND SERVICES LEC | Tom Palasits | |-------------------------|---------------------------| | (Name of SIPC Member) | (Authorized Signatory) | | 11/4/2025 | tpalasits@royceinvest.com | | (Date) | (e-mail address) | Completion of the "Authorized Signatory" line will be deemed a signature. This form and the assessment payment are due 60 days after the end of the fiscal year. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.