# WATERMARK SECURITIES, INC. X-17A-5 (2023-03-01) — Broker-dealer annual report - Company: WATERMARK SECURITIES, INC. - Form: X-17A-5 - Filed: 2023-03-01 - Period: 2022-12-31 - Accession: 0000876660-23-000001 - CIK: 876660 - File #: 8-43902 - Type: Broker-dealer - Material weakness: No - Auditor: BDO - Auditor location: New York, NY - Contact: Michael Link - Phone: 212-451-1187 - Email: mlink@zweig-dimenna.com - Website: zweig-dimenna.com - Signed by: Michael Link (President) Original filing: https://www.sec.gov/Archives/edgar/data/876660/000087666023000001/x1222-sfcsec1.pdf --- {0}------------------------------------------------ # **Watermark Securities, Inc.** Report in Accordance with Rule 17a-5(e)(4) Year Ended December 31, 2022 {1}------------------------------------------------ # Watermark Securities, Inc. ## Contents | Facing Page to Form X-17A-5 | 2A | |---------------------------------|-----| | Affirmation of Officer | 2B | | Independent Accountant's Report | 3-4 | | Form SIPC-7 | 5-6 | {2}------------------------------------------------ ### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-S PART Ill** PUBLIC CFR 240.17a-S(e)(l)(ii), if applicable. | SEC FILE NUMBER | | |-----------------|--| | 8-43902 | | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING | ____
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1_2/_3_1_/2_2 | | | | |---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------------------------------------------------|-----------------------------------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | __
NAME OF FIRM: | _______________
W_a_te_r_m_a_r_k_S_e_c_u_r_it_ie_s_, _ln_c_.
_ | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
[XI Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer | □ Major security-based swap participant | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | | 900 Third Avenue
(No. and Street) | | | | | | | | | | | | | | | New York
(City) | New York
(State) | | 10022
(Zip Code) | | | | | | | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | 212-451-1187
Michael Link | | | mlink@zweig-dimenna.com | | | | | (Name) | | (Area Code -Telephone Number)
(Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | | | | | | | | BOO USA, LLP
(Name - if individual, state last, first, and middle name) | | | | | | | 100 Park Avenue | New York | New York | 10017 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 10/08/2003 | | 243 | | | | | | rte
of Reg;stcafo, w;th PCAOBJ(;f appUcable) | | | (PCAOB Reg;su,uo, N,mbec, ;f applkable) | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | **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 0MB control number.** {3}------------------------------------------------ ### **OATH OR AFFIRMATION** | Michael Link
1,
financial report pertaining to the firm of | swear (or affirm) that, to the best of my knowledge and belief, the
as of
Watermark Securities. Inc. | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------| | 2~
December 31 | is true and correct. I further swear (or affirm) that neither the company nor any | | partner, officer, director, or equi~HQ~lil~
as that of a customer.
Notary Public, State of New York
No.02LUS078353
Qualified In New York County
Commission Expires Mav 27, 20ll9 7? | e case may be, has any proprietary interest in any account classified solely
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Signature: | | | Title:
President | | Notary Public | | #### This **filing\*\* contains (check all applicable boxes):** - \_C (a) Statement of financial condition. - C (b) Notes to consolidated statement of financial condition. - 0 (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D Ul Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - ~D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 00 (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.i7a-12, as applicable. - D (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. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or 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). - [xi (z) Other: A copy of the SIPC Supplemental Report - 0 *To* request conffdentlal treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3} or 17 CFR 240.18a-7{d)(2}, as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Fax: 212-697-1299 **www\_bdo\_com** **BDO** 100 Park Avenue New York, NY 10017 USA ## **Report of Independent Registered Public Accounting Firm** The Director Watermark Securities, Inc. New York, New York 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 Reconciliation (Form SIPC-7) for the year ended December 31, 2022. Management of Watermark Securities, Inc. (the "Company" ) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. 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 December 31, 2022. 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. We compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences. - 2. We compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part Ill for the year ended December 31, 2022, with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31, 2022 noting no differences. - 3. We compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences. - 4. We recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments noting no differences. We were 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 a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2022. 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. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BOO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) 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 the Company and SIPC and is not intended to be, and should not be, used by anyone other than these specified parties. February 28, 2023 {6}------------------------------------------------ | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | ## SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 **General Assessment Reconciliation** For the fiscal year ended **\_ 2\_0\_ 2\_2** **\_\_\_ \_** (Read carefully the instructions in your Working Copy before completing this Form) ### **TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS** 1. Name of Member, address, Designated Examining Authority , 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 1 ?a-5: | | I
2*2****459******************** ALL FOR AADC 100
43902
FINRA
DEC
WATERMARK SECURITIES INC
900 3RD AVE FL 31
L
NEW YORK, NY 10002-4776 | 7
_J | indicate on the form filed.
contact respecting this form. | Note: If any of the information shown on the
mailing label requires correction , please e-mail
any corrections to form@sipc.org and so
Name and telephone number of person to | |---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 2. A. | General Assessment (item 2e from page 2) | | \$ | _________
1,126
_ | | B. | Less payment made with SIPC-6 filed (exclude interest)
7/25/22 | | | 589 | | C. | Date Paid
Less prior overpayment applied | | | | | D. | Assessment balance due or (overpayment) | | | 537 | | 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) | | \$, | _________
537
_ | | | □
M
G. PAYMENT:
✓ the box
Check mailed to P.O. Box ~
Funds Wired
Total (must be same as F above) | q
__________
ACH | _ | | | 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 thereby
that all information contained herein is true, correct
and complete. | | Watermark Securities, Inc. | | | | day of January
Dated the~
, 20 ~ | President | (Authori zed Sign ature ) | | | | This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accessible place. | | (Title ) | | | ~ Dates
3: | :
Postmarked
Received | Reviewed | | | | LL.I
LL.I | > Calculations __
_ | __
Documentation
_ | | ___
Forward Copy
_ | | cc: | | | |-----|-------------|--| | 0 | Exceptions: | | **a.. en** Disposition of exceptions : ![](_page_6_Picture_12.jpeg) 5 {7}------------------------------------------------ # **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** Amounts for the fiscal period beginning \_1\_,1,\_22 \_\_\_\_ \_ and ending\_121\_31\_122 \_\_\_\_ \_ | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | Eliminate cents
1,038,256
----'----'--------
\$ | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------------------| | 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 accounts. | | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | | (4) Interest and dividend expense deducted in determining item 2a. | | | | (5) Net loss from 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
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. | 10,074 | | | (2) Revenues from commodity transactions. | | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | 277,849 | | | (4) Reimbursements for postage in connection with proxy solicitation. | | | | (5) Net gain from securities in investment accounts. | | | | (6) 100% of commissions 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 date. | | | | (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) of 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 IIA Line 13,
Code 4075 plus line 2b(4) above) but not in excess
of total interest and dividend income. | __________
\$
_ | | | (ii) 40% of margin interest earned on customers securities
accounts (40% of FOCUS line 5, Code 3960). | __________
\$
_ | | | Enter the greater of line (i) or (ii) | | | | Total deductions | | 287,923 | | 2d. SIPC Net Operating Revenues | 750,333
\$========== | | | 2e. General Assessment @ .0015 | 1 126
=====!=======
\$ | | | | | (to page 1, line 2.A.) | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.