# GUGGENHEIM INVESTOR SERVICES, LLC X-17A-5 (2021-02-22) — Broker-dealer annual report - Company: GUGGENHEIM INVESTOR SERVICES, LLC - Form: X-17A-5 - Filed: 2021-02-22 - Period: 2020-12-31 - Accession: 0000885730-21-000002 - CIK: 885730 - File #: 8-44742 - Material weakness: No - Auditor: KPMG - Auditor location: Chicago, IL - Contact: Rebecca Chan - Phone: 2123817555 - Signed by: Dina DiLorenzo (Managing Executive) Original filing: https://www.sec.gov/Archives/edgar/data/885730/000088573021000002/gis2020publicfs.pdf --- {0}------------------------------------------------ An Indirect Wholly Owned Subsidiary of Guggenheim Capital, LLC # (SEC I.D. No. 8-44742) # STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 (With Report of Independent Registered Public Accounting Firm Thereon) {1}------------------------------------------------ | | | OMB APPROVAL | | |---------------------------------------------------------------------------|-----------------------------------------------------------|--------------|----------------------------------------------------------| | | | | OMB Number:
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October 31, 2023 | | | | | Estimated average burden hours | | | | | per response…………………….12.00 | | | | | I | | | | | -44742 | | | | | | | Information Required of Brokers and Dealers Pursuant to Section 17 of the | FACING PAGE | | | | | Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | | | | | | | | REPORT FOR THE PERIOD BEGINNING | 01/01/2020 | AND ENDING | 12/31/2020 | | | MM/DD/YY | | MM/DD/YY | | A. | REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | | | Guggenheim Investor Services, LLC | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | 330 Madison Avenue | | | | | | (No. and Street) | | | | New York | NY | | 10017 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | Dina DiLorenzo | | | (212) 901-9405 | | | | | (Area Code – Telephone Number) | | B. | ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | KPMG LLP | | | | | | (Name – if individual, state last, first, middle name) | | | | 200 E. Randolph St. | Chicago | IL | 60601 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | x
Certified Public Accountant | | | | | Public Accountant | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* {2}------------------------------------------------ ## **OATH OR AFFIRMATION** I, Dina DiLorenzo, swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Guggenheim Investor Services, LLC, as of December 31, 2020, are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: None x Under relief provided by the Securities Exchange Commission, the Company is making this filing without notarization due to difficulties arising from the COVID-19 pandemic. Dina DiLorenzo Managing Executive #### Notary Public This report \*\* contains (check all applicable boxes): x - (a) Facing Page. - (b) Statement of Financial Condition. - (c) Statement of Income (Loss). - (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 Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. x - (l) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (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).* {3}------------------------------------------------ December 31, 2020 #### **Table of Contents** | | Page(s) | |---------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) KPMG LLP Aon Center Suite 5500 200 E. Randolph Street Chicago, IL 60601-6436 ## **Report of Independent Registered Public Accounting Firm** To the Member and Management Guggenheim Investor Services, LLC: ## *Opinion on the Financial Statement* We have audited the accompanying statement of financial condition of Guggenheim Investor Services, LLC (the Company) as of December 31, 2020, and the related notes (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020, in conformity with U.S. generally accepted accounting principles. #### *Basis for Opinion* This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is 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 statement, 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. ![](_page_4_Picture_9.jpeg) We have served as the Company's auditor since 2003. Chicago, Illinois February 19, 2021 {5}------------------------------------------------ # Statement of Financial Condition December 31, 2020 | Assets | | |----------------------------------------|---------------| | Cash | \$ 27,208,623 | | Other assets | 27,184 | | Total assets | \$ 27,235,807 | | Liabilities and Member's Equity | | | Accrued expenses and other liabilities | \$
135,950 | | Due to affiliates | 442,291 | | Total liabilities | 578,241 | | Member's equity | 26,657,566 | | Total liabilities and member's equity | \$ 27,235,807 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ Notes to Statement of Financial Condition December 31, 2020 #### **1. Organization and Nature of Business** Guggenheim Investor Services, LLC (Company) is a broker-dealer registered with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation (SIPC). The Company is a wholly-owned subsidiary of Guggenheim Funds Services, LLC (Parent) whose ultimate parent is Guggenheim Capital, LLC (Guggenheim). The Company engages in advisory services for financial structuring transactions. ### **2. Summary of Significant Accounting Policies** ## *Basis of Presentation* The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). #### *Use of Estimates* The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. #### *Cash* The Company maintains cash at federally insured banking institutions. Cash on deposit with financial institutions may, at times, exceed federal insurance limits. #### *Income Taxes* The Company is a single member LLC, organized as a Delaware Limited Liability Company, and treated as a disregarded entity for U.S. income tax purposes. State tax liabilities are determined under individual state laws. The Company has no federal or state income tax liabilities in 2020. The results of the Company's operations are included in the federal and state income tax returns of the Parent. Accounting Standards Codification (ASC) 740-10, *Income Taxes*, requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are more-likely than-not of being sustained by the applicable tax authority based upon technical merits of the position. Tax benefits from tax positions not deemed to meet the more-likely than-not threshold should not be recognized in the year of determination. Management has reviewed the Company's tax positions for all open years and concluded that the Company has no material uncertain tax positions at December 31, 2020. Further, as of December 31, 2020, the Company has recorded no liability for net unrecognized tax benefits relating to uncertain tax positions they have taken or expect to take in future tax returns. The Company has not recorded any penalties and/or interest related to uncertain tax positions. {7}------------------------------------------------ Notes to Statement of Financial Condition December 31, 2020 #### *New Accounting Pronouncements* In June 2016, the FASB issued ASU No. 2016-13, "*Measurement of Credit Losses on Financial Instruments*" (ASU 2016-13) that impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the life of the financial asset, recorded at inception or purchase. On January 1, 2020, the Company adopted ASU 2016-13 on a prospective basis by means of a cumulativeeffect adjustment to the opening retained earnings as of the beginning of the first reporting period effective. The Company determined that recognition of a cumulative effective adjustment was not necessary given the Company's expectation of credit losses at the date of adoption. ### **3. Market Risk** The ongoing COVID-19 pandemic has significantly impacted global commercial and financial activities. Its eventual impact on the global economy and markets cannot now be determined. The significance of the pandemic, including its effect on financial and operational results, is to be dictated by, among other things, its severity, duration, and the effectiveness of the response. While the Company continues to monitor the impact of the pandemic closely, the extent of its impact on financial and operational results is uncertain. #### **4. Related-Party Transactions** In the ordinary course of business, the Company earned fees relating to structuring and arranging securitized transactions, which offer an attractive combination of risk and return to our clients. Related parties may invest in such structured transactions. Certain services are charged to the Company from its affiliates under the Services and Expense Agreement. These services include, but are not limited to administrative, compliance, legal, business and operations personnel, premises, human resources, information technology, systems and office administration. The Company has a service agreement with a subsidiary of Guggenheim under which certain services are provided to the Company. ### **5. Regulatory Requirements** As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule 15c3-1 under the Securities Exchange Act of 1934, which requires the maintenance of the greater of minimum net capital of \$5,000, or 6 2/3%, of aggregate indebtedness, and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2020, net capital was \$26,630,382, an excess of \$26,591,833, and the ratio of aggregate indebtedness to net capital was 0.02 to 1. {8}------------------------------------------------ ## Notes to Statement of Financial Condition December 31, 2020 The Company does not carry customer accounts and does not claim an exemption under paragraph (k) of 17 C.F.R. § 240.15c3-3. The Company is relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits its business activities exclusively to corporate finance, merger and acquisition, and divestiture and investment advice services. #### **6. Subsequent Events** Management has evaluated all subsequent transactions and events after the statement of financial condition date through February 19, 2021, the date the financial statements were available to be issued and has determined that no items require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.