# WATERMARK SECURITIES, INC. X-17A-5 (2021-02-24) — Broker-dealer annual report - Company: WATERMARK SECURITIES, INC. - Form: X-17A-5 - Filed: 2021-02-24 - Period: 2020-12-31 - Accession: 0000876660-21-000001 - CIK: 876660 - File #: 8-43902 - Material weakness: No - Auditor: BDO - Auditor location: New York, NY - Contact: Michael Link - Phone: 212-451-1187 - Website: bdo.com - Signed by: Michael Link (President) Original filing: https://www.sec.gov/Archives/edgar/data/876660/000087666021000001/x1220-sfcsec.pdf --- {0}------------------------------------------------ # **Watermark Securities, Inc.** Report in Accordance with Rule 17a-5( e )(4) Year Ended December 31 , 2020 {1}------------------------------------------------ ## Watermark Securities, Inc. ### Contents | Facing Page to Form X-17A-5 | 2A | |-------------------------------------|-----| | Affirmation of Officer | 2B | | Independent Accountant'
s Report | 3 | | Form SIPC-7 | 4-5 | {2}------------------------------------------------ #### UNITEDSTATES SECURITlESAND EXCHANGE COMMISSION Washington, D.C. 20549 PUBLIC SEC 1410 (11 ·05) ## **ANNUAL AUDITED REPORT FORM X·17A·5 PART Ill** | | OMB APPROVAL | | |-------------------|--------------|--------------------------| | OMB Number: | | 3235-0123 | | Expires: | | October 31, 2023 | | | | Estimated average burden | | hours perresoonse | | 12.00 | | SEC ALE NUMBER | |----------------| | 8-43902 | 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 | ___
___
o_1_1_0_11_2_o | AND ENDTNG | ___
1_2_13_1_12_0 | ___
_ | |----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|------------|----------------------|--------------------------------| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Watermark Securities, Inc. | | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM l.D. NO. | | | | 900 Third Avenue | | | | | | {No. and Street) | | | | | New York | New York | | 10022 | | | (City) | (State) | | (lip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michael Link | B. ACCOUNTANT IDENTIFICATION | | 212-451-1187 | (Area Code - Telephone Number) | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | BOO USA, LLP | | | | | | (Name - if individual. state last. first. middle name) | | | | | 100 Park Avenue | New York | New York | | 10017 | | (Address) | (City) | (State) | | (Zip Code) | | CHECK ONE:
I/'
!certified Public Accountant
B
Public Accountant
Accountant not resident in United States or any of its possessions. | | | | | | | POR 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/or the e.--cemption. See Section 240.17a-5(e){2)* > Potentlal 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. 2A {3}------------------------------------------------ ### **OATH OR AFFIRMATION** | 1, Michael Link | | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Watermark Securities, Inc. | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
-- | | --:----:---:::-:-----------------------------
of December 31, | 20 20 | --
~•as
are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | | | | | Signature | | | MOSHE A UJCH:\_,IS__ _____ | P_r_e_s_id_en_t _____ _ | | ~
L ,,.-,
I
1 '\
/ V
-~----
Notary Public | Notary 0 11bhc C:!· ~ '"11
No. ~2 U· T
,.,-
Qualified in NE: /v Y0rh C0unty
----------4;A!Tlmission Expires .va. 27. :::011 | Title
·: York
2.) | | This report 0
contains (check all applicable boxes):
0 (a) facing Page.
0 (b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
§ (d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
§ (g) Computation of Net Capital.
(h) Computation for Detennination of Reserve Requirements Pursuant to Rule l 5c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | O (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
0 (j) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule l 5c3-l and the | | consolidation.
(I) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report.
~.,/ | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule J 5c3-3.
0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
(n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | **For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5{e){3). | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Independent Accountant's Report** The Director Watermark Securities, Inc. New York, New York In accordance with Rule 17a-S(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Watermark Securities, Inc. (the "Company") and the Securities Investor Protection Corporation ("SIPC") with respect to t he accompanying General Assessment Reconciliation (Form SIPC· 7) of t he Company for the year ended December 31, 2020, solely to assist you and the SIPC in assessing the Company's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7). Management is responsible for the Company's compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States) and the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the specified parties in this report. Consequently, we make no representation regarding t he sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures and findings are as follows: 1. We compared the listed assessment payments in Form SIPC-7 with the respective cash disbursement records entries. We found no differences as a result of the procedures. 2. We compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part 111 for the year ended December 31 , 2020 with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31 , 2020. We found no differences as a result of the procedures. 3. We compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers. We found no differences as a result of the procedures. 4. We recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adj ustments. We found no differences as a result of the procedures. We were not engaged to, and did not, conduct an examination, the objective of which would be the expression of an opinion on the Company's compliance with the applicable instructions of the Form SIPC-7. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified parties listed above and is not int ended to and should not be used by anyone other than these specified parties. February 23, 2021 BOO is the brand name for the BOO network and for each of the BOO Member Firms. BOO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BOO network of independent member fi rms. {5}------------------------------------------------ | SIPC-7 | | |-----------------|--| | (36-REV 12/ 18) | | #### SECURITIES INVESTOR PROTECTION CORPORATION P.O. Box 92185 Washington, D.C. 20090-2185 202-371-8300 General Assessment Reconciliation | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | For the fiscal year ended \_ 12/ 31/ 20 (Read carefully the instructions in your Working Copy before completirg this Form) # TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS 1. Name of Mem ber, address, Designated Examini ng Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: ~2 .. "''"\*\*454°•••••••uu .. •••u•ALL FOR AADC 100 43902 FINRA DEC WATERMARK SECURITIES INC 900 3RD AVE FL 31 NEW YORK, NY 10022-4776 L \_J Note: If any of the information shown on the mailing label requires correction, please e-mail any corrections to form@sipc.org and so indicate on the form filed. Name and telephone number of person to contact respecting this form. | 2. A. | General Assessmenl (item 2e from page 2) | \$
2,015 | |-------|-------------------------------------------------------------------------------------------------------------------------------------------|----------------------| | 8. | Less payment made with SIPC-6 filed (exclude interest) | 1,113 | | | 7/20/W20 | | | | Date Paid | | | c. | Less prior overpayment applied | | | | D. Assessment balance due or (overpayment) | 902 | | | E. Interest computed on late payment (see instruction E) for _____ days at 20% per annum | | | F. | Total assessment balance and interest due (or overpayment carried forward) | 902
---------~--- | | | G. PAYMENT:
-J the box
Check mailed to P.O. Box r7l Funds Wired D
ACH D
_________ _
s _
Total (must be same as F 1bove) | | | | ________
\$(
_
H. Overpayment carried forward | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number): | The SIPC member submitting this form and the
person by whom it is executed represent tt-ereby
that all information contained herein is true, correct | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--|--| | and complete. | X
rauon. Pa11nersh1p or other 01gan.za11on) | | | | ' 20 .3.:!_.
Dated the 15th day of January | (Au1horrzed Slgnalure)
President | | | | | (Tille) | | | | for a period of not less than 6 years, the latest 2 years in an easily accessible place. | This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form | | | | w
3: | a: Dates: | Postmarked | Received | Reviewed | | |------------------|----------------|--------------------------------|----------|---------------|--------------| | -
w
>
w | Ca lcu lations | | | Documentation | Forward Copy | | a:
u
c | Exceptions: | | | | | | | | Cl) Disposition of exceptions: | | | | {6}------------------------------------------------ ## **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** | | | Amounts for the fiscal period | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|-----------------------------------| | | beginnin g
ending | 1/1/2020
12/31/2020 | | | | Eliminate cents | | Item No.
2a. Total revenue (FOCUS Line 12/Part ~I A Line 9, Code 4030) | \$ | 1,585,752
-~~~~.;,__;_~~~ | | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and | | | | predecessors not included above. | | | | (2) Net loss from principal transactions in securities in trading accourits. | | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | | (4) Interest and dividend expense deducted in determining item 2a. | | | | (5) Net loss lrnm management of or participation in the underwriting or distribution of securities. | | | | (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | | (7) Net loss from securities in investment accounts. | | | | Total additions | | 0 | | 2c. Deductions:
( 1) Revenues from the distribution of shares of a registered open end investment company or unit
investmerit trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered Ira registered investment companies or insurance company separate
accounts. and from transactions in security futures products. | | 6,294 | | (2) Revenues from commodi ty transactions. | | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | | 236,345 | | (4) Reimbursements for postage in connection with proxy solicitation. | | | | (5) Net gain from securities in investment accounts. | | | | (6) 100% of comm issions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance dale. | | | | (7) 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) ol the Act). | | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | | (Deductions in excess of \$100,000 require documentation) | | | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART llA Line 13,
s __________ _
Code 4075 plus line 2b(4} above) but not in excess
of total interest and dividend income. | | | | s __________ _
(ii) 40% ol margin interest earned on customers securities
accounts (40% of FOCUS line 5, Code 3960). | | | | Enter the greater of line (i) or (ii) | | | | Total deductions | | 242,639 | | 2d. SIPC Net Operating Revenues | | \$=============1,=3=43='=11=3==== | | | | | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.