# FINTRUST BROKERAGE SERVICES, LLC X-17A-5 (2024-03-26) — Broker-dealer annual report - Company: FINTRUST BROKERAGE SERVICES, LLC - Form: X-17A-5 - Filed: 2024-03-26 - Period: 2023-12-31 - Accession: 0001020141-24-000001 - CIK: 1020141 - File #: 8-49514 - Type: Broker-dealer - Material weakness: No - Auditor: GOLDMAN & COMPANY CPAS PC - Auditor location: MARIETTA, GA - Contact: ALLEN GILLESPIE - Phone: 864-288-2849 - Email: agillespie@finstrustadvisors.com - Website: fintrustadvisors.com - Signed by: ALLEN GILLESPIE (PRINCIPAL) Original filing: https://www.sec.gov/Archives/edgar/data/1020141/000102014124000001/fintrustaudit23.pdf --- {0}------------------------------------------------ | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | 0MB Number: 3235-0123
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SEC FILE NUMBER | | | |-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------------------|--|--| | | | | | | | | | ANNUAL REPORTS | | | | | | | FORM X-17A-5 | | 8-49514 | | | | | PART Ill | | | | | | | 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 Q 1/01 /23 | AND ENDING | | 12/31 /23 | | | | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | L
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e | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
[ Broker-dealer
D 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.) | | | | | | | | | | | | | 124 Verde Blvd, Suite 504 | | | | | | | | (No. and Street)
SC | | | | | | Greenville | | | 29607 | | | | (City) | {State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Allen Gillespie | 864-288-2849 | | agillespie@finstrustadvisors.com | | | | (Name) | (Area Code - Telephone Number) | | (Emall Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing | | | | | | Goldman & Company CPAs PC | | | | | | | 3535 Roswell Rd | (Name - if individual, state last, first, and middle name)
Marietta | GA | 30062 | | | | (Address) | (City) | (State) | (Zip Code) | | | | | | | | | | | (Date of Re istration with PCAOB' 'if a | licable | | PCAOB Registration Number, if a
licable) | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | | 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, Allen Gillespie | | | swear (or affirm) that, to the best of my knowledge and belief, the | |--------------------|--|--|---------------------------------------------------------------------| |--------------------|--|--|---------------------------------------------------------------------| | 12/31 | | | | financial report pertaining to the firm of Fintrust Brokerage Services LLC | | | |-------|--|--|--|---------------------------------------------------------------------------------------|--|--| | | | | | 20, is true and correct. I further swear (or affirm) that neither the company nor any | | | partner, offiggridirestpr, or equivalent person, as the case may be, has any proprietary interest in any account classified solely t' 'i, as that *gt? idt. ".,* ·' • 4'y,', � v . ·•,,vu)� c· W*+,* ·ltd.MS s • *l* ;ff\_ '-" i *:25* ne z0 *'8L***G** s Papal *,;.* 7s., *('.JI,,\_., , ---�---------------* • This **filing contains (check all applicable boxes):** - ii (a) Statement of financial condition. - L (b) Notes to consolidated statement of financial condition. - ii (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). - Ii (d) Statement of cash flows. - ii (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - iii (f) Statement of changes in liabilities subordinated to claims of creditors. - il (g) Notes to consolidated financial statements. - ii (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (J) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [l (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. - 0 (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(0)(2) or 17 CFR 240.18a-4, as applicable. - ii (o) Reconciliations, induding appropriate explanations, of the FOCUS Report with computation of net capital or tangible 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. - D (p) Summary of financial data for subsidiaries not consolidated In the statement of financial condition. - Ii (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. - 0 (r) Compliance report In accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ii (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 (t) Independent public accountant's report based on an examination of the statement of financial condition. - ii (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, 0r 17 CFR 240.17a-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. - ii (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 240.15c3-1e 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). - ]] l4If"!Sf, *To request confidential 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.* {2}------------------------------------------------ ### **FINTRUST BROKERAGE SERVICES, LLC** ### **FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES** With Report of Independent Registered Public Accounting Firm For the Year Ended December 3 1 , 2023 {3}------------------------------------------------ # **TABLE OF CONTENTS** | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
| | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | FINANCIAL STATEMENTS | | | Statement of Financial Condition . | 2 | | Statement of Operations
Statement of Changes in Member's Equity | 3
4 | | Statement of Cash Flows




| 5 | | | | | NOTES TO THE FINANCIAL STATEMENTS | 6-9 | | SUPPLEMENTAL SCHEDULES | | | Schedule 1
: Computation of Net Capital under Rule 15c3-1 of the Securities
and Exchange Commission | 10 | | Schedule II: Computation of Determination of Reserve Requirements for Brokers
and Dealers Pursuant to Rule l 5c3-3 under the Securities and
Exchange Commission | 11 | | Schedule III: Information Relating to the Possession or Control Requirements
under the Securities and Exchange Commission Rule 15c3-3 | 12 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM ON EXEMPTION

| 13 | | MANAGEMENT REPORT ON EXEMPTION | 14 | | INDEPENDENT ACCOUNT ANT'S REPORT ON AGREED UPON
PROCEDURES RELATED TO SIPC ASSESSMENT RECONCILIATION | 15 | | SIPC GENERAL ASSESSMENT RECONCILIATION FORM SIPC- 7
| 16 | {4}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM # **Opinion on the Financial Statements** Z Fintrust To the Member Brokerage of Services, LLC **E** 2- **·** We have audited the accompanying statement of financial condition of Fintrust Brokerage Services, LLC as of < December 3 1 , 2023 the related statements of income, changes in member's equity, and cash flows for the year a.. then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, theu :E financial statements present fairly, in all material respects, the financial position of Fintrust Brokerage O Services, LLC as of December 31, 2023, 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 O \_..,.** These financial statements are the responsibility of Fintrust Brokerage Services, LLC 's management. Our *O484,675 | | Deposit with Clearing Broker | 75,000 | | NFS Account Balances | 214,766 | | Prepaid Expenses | 1 5
,
818 | | Accounts Receivable | 19,647 | | TOT AL ASSETS | \$
809,906 | | | | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Due to Affiliates | 266,968 | | Accounts Payable | 42,385 | | TOTAL LIABILITIES | \$
309,353 | | MEMBER'S EQUITY | | | Member's Equity | \$
708,674 | | Net Loss | (208,121) | | TOTAL MEMBER'S EQUITY | \$
500,553 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
809,906 | {6}------------------------------------------------ ### **STATEMENT OF OPERATIONS** For the Year Ended December 3 I , 2023 #### **REVENUES** | NET LOSS | \$
(208,120) | |-----------------------------------------|-----------------| | TOT AL EXPENSES | \$
1,118,205 | | Other Expenses | 125,255 | | Clearing | 97,153 | | Occupancy & Equipment | 64,126 | | Travel & Entertainment | 1 5,
917 | | Advertising & Marketing | 7,862 | | Technology, Data, & Communications | 113,064 | | Office Supplies & Postage | 3,499 | | Professional Fees | 89,127 | | Compensation & Benefits | \$
602,202 | | EXPENSES | | | TOTAL REVENUES | \$
910,084 | | Interest Income | 10,374 | | Brokerage Commission and Account Fees | 173
,152 | | Riskless Principal Bond Trading Revenue | 149,834 | | Insurance & Annuities Distribution Fees | 296,139 | | Clearing Charge to RIA | 73,530 | | Mutual Fund 12b-1 Fees | \$
207,055 | | Brokerage and Commission Revenue | | {7}------------------------------------------------ # **Statement of Changes in Member's Equity** For the Year Ended December 3 1 , 2023 | MEMBER'S EQUITY AT JANUARY 1, 2023 | \$
708,674 | |------------------------------------|---------------| | Contributions | | | Distributions | | | Net Loss | (208,121) | | BALANCE AT DECEMBER 31, 2023 | \$
500,553 | {8}------------------------------------------------ # **STATEMENT OF CASH FLOWS** For the Year Ended December 31, 2023 ### **CASH FLOWS FROM OPERA TING ACTIVITIES** | Net Loss | \$
(208,121) | |----------------------------------------------------------------------------------|-----------------| | Adjustments to reconcile net income to net cash provided by operating activities | | | Due to Affiliate | (452,804) | | NFS Balances | 197,684 | | Prepaid Expenses | (14,797) | | Clearing Receivable | 13,795 | | Accounts Payable, Accrued Expenses, & Other Liabilities | (31,830) | | Net Cash Used In Operating Activities | \$
(496,074) | | NET DECREASE IN CASH AND CASH EQUIVALENTS | (496,074) | | BALANCE AT JANUARY 1, 2023 | \$
980,749 | | BALANCE AT DECEMBER 31, 2023 | \$
484,675 | {9}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENTS** For the Year Ended December 31, 2023 #### **I. Organization and Nature of Business** FinTrust Brokerage Services, LLC, a North Carolina limited liability company, is a registered broker-dealer in securities with the Securities and Exchange Commission (SEC) and is a member of various exchanges and the Financial Industry Regulatory Authority, Inc. (FlNRA). The Company received its approval for membership on January 2, 1997. Since the Company is a limited liability company, the Member is not liable for the debts, obligations, or liabilities of the Company, whether arising in contract, tort or otherwise, unless the Member has signed a specific guarantee. ### **2. Significant Accounting and Reporting Policies** #### **Basis of Accounting** The Company maintains its books and records on the accrual basis of accounting for financial reporting purposes, which is in accordance with U.S. Generally Accepted Accounting Principles (GAAP) as required by the SEC and FINRA. The Company is evaluating new accounting standards and will implement as required. ### **Use of Estimates** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### **Cash and Cash Equivalents** For the purposes of the Statement of Cash Flows, the Company defines cash equivalents as highly liquid investments with original maturity dates of less than ninety (90) days that are not held for sale in the ordinary course of business. #### **Revenue from Contracts with Customers** #### *Significant Judgements* The Company follows ASC606 Revenue for Contracts with Customers, revenue is recognized upon satisfaction of performance detailed by the contract with its customers. The recognition and measurement ofrevenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether the performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether the revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. #### *Riskfess Principal Trading Gross* The Company earns trading revenue from riskless principal transactions with institutional customers. Fees are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. This includes riskless principal (government, corporate bonds and CMO/ ABS) transactions in which the Company receives a buy order from a customer and the Company purchases the security from another person or entity to offset the sale to the customer. The Company buys the bond at a lower price than what it sold it at. The riskless principal revenue is earned at the time the transaction is executed. {10}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENTS** For the Year Ended December 31, 2023 #### **2. Significant Accounting and Reporting Policies - Continued** ### Brokerage and Account Fees The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon, and the risks and rewards of ownership of the securities has been transferred to or from the customer. The Company also charges an annual account fee that is recognized when paid by debit from the customer's account. ### Insurance and Annuity Distribution Fees The Company acts as a distributor of variable insurance and annuity products. The distribution fees are calculated based on a fixed rate multiplied by the daily net asset value of the fund or account value of the insurance or annuity contract. The rate is typically 1%-8%, recognized quarterly or monthly based on the contract. ### Mutual Funds 12b-1 Fees Mutual funds 12b-1 fees or pooled investment vehicles ( collectively "funds") have entered into agreements with the Company to distribute and/or sell its shares to investors Fees are paid up front and over time (i.e.: 12b-I fees) on the basis of a contractual rate applied to the monthly or quarterly market value of the fund (that is, net asset vale [NA V]. The fund may also pay, upon investor exit from the fund (that is, contingent deferred sales charge [CDSC]), or as a combination thereof. Revenue is recognized monthly as services are provided. Services within the scope of ASC606 include: brokerage commissions, mutual fund 12b-1 fees, insurance & annuity commissions, and riskless principal bond trading commissions. ### Clearing Charge to RIA The Company is paid a fee by its related party (RIA) for services provided to the RIA clients The fee is recognized monthly and is based on the billable value of the RIA clients assets as of the previous quarter end. ### Income Taxes The Company is a single member limited liability company that is treated as a disregarded entity for income tax purposes as all income or loss flows through to the Member. Therefore, no income tax expense or liability is recorded in the accompanying financial statements. The Company follows the FASB Accounting Standards Codification (ASC) 740-10, Accounting for the Uncertainty in Income Taxes. Under FASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are "more likely than not" of being sustained "when challenged" or "when examined" by the applicable taxing authority. Tax positions not deemed to meet the "more likely than not" threshold would be recorded as a tax expense and liability in 2023. A tax position includes any entity's status, including its status as a pass-through entity, and the decision to not file a tax return. Management has evaluated the Company's tax positions and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance as of December 3 1 , 2023. The Company is not currently under audit by any tax jurisdiction. {11}------------------------------------------------ # **NOTES TO THE FINANCIAL STATEMENTS** For the Year Ended December 31, 2023 ### **2. Significant Accounting and Reporting Policies - Continued** Fair Value F ASB ASC 820 defines fair value, establishes a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measures fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level I : Inputs are unadjusted quoted prices in active markets for identical assets or liabilities the Company has the ability to access. - Level 2: Inputs are inputs ( other than quoted prices included in Level I) that are observable for the assets or liability, either directly or indirectly. - Level 3: Unobservable inputs for asset or liability and rely on management's own assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data.) The Company held two Certificates of Deposits and a money market fund in its net capital account at NFS as of December 31, 2023. The value of the money market at year end was \$115 ,088 and is included in "Cash and Cash Equivalents" on The Statement of Financial Condition. The value of the CD's at year end was \$196,832 and are included in the line item "NFS Accounts Balances" on The Statement of Financial Condiation. They mature on 07/29/2024 and 09/23/2025 and are considered Level I securities. Interest Income for the year is \$10,374, at interest rates of 3.0% -3.6% annually. ### **3. Guarantees** In the normal course of its business, the Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specific potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specific third-party service providers, including sub-custodians and thirdparty brokers, improperly execute transactions. The maximum potential amount of the future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely to have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. For the year ended December 3 1 , 2023, the Company experienced no material net losses as the result of the indemnity. ### **4. Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule l 5c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15: I . At December 3 1 , 2023, the Company had net capital of\$467,072 which was \$417,072 in excess of its minimum net capital of \$50,000. The Company's percentage of aggregate indebtedness to net capital was 66.23% at December 31, 2023. {12}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENTS** For the Year Ended December 3 1 , 2023 #### **5. Commitments and Contingencies** The Company has evaluated commitments and contingencies in accordance with Accounting Standards Codification 450, *Contingencies* (ASC 450) and Accounting Standards Codification 440, *Contingencies* (ASC 440). Management has determined that no significant contingencies exist as of December 3 1 , 2023. The Company has sustained a net loss and negative cash flow from operations for the current year. Management and ownership has determined the Company will be able to meet current obligations and net capital requirements with its current cash and future revenue or capital contributions as necessary. #### **6. Related Party Transactions** The Company has an expense sharing agreement with an affiliate effective January I, 2022. Under the agreement, the Company pays the Affiliate a monthly fee for the use of personnel, office premises, including furniture and equipment, facilitating the payment of commissions to the Company's registered representatives, and other administrative services and operating expenses. The sharing rates are based on relative revenue as adjusted for certain types ofrevenue that require less administrative and personnel expense. In 2023, shared expenses under this agreement totaled \$553,514 and are included within various operating expense line items on the accompanying Statement of Operations. During 2023, the Company's Member processed the commissions and other direct expenses of the Company as common paymaster, with the related liability passed through to the Affiliate for collection from the Company. The commissions paid totaled \$270,950 and are included with compensation and benefits, and the other direct expenses totaled \$88,687 and are included within various operating expense line items, on the accompanying Statement of Operations. In addition, under a clearing charge agreement effective January 1 , 2022, the Company charges this affiliate for costs of trading and related office expenses which totaled \$73,530 and is included in the revenue on the accompanying financial statements. As of December 3 1 , 2023, the Company has recorded a liability due to this affiliate related to these transactions for \$170,968. The Company is party to a services agreement effective in 2022 with another affiliate to pay \$4,000 monthly for accounting, human resources, and other administrative services provided by this affiliate, which automatically renews annually unless terminated by either party. As of December 3 1 , 2023, the Company has recorded a liability due to this affiliate related to these transactions for \$96.000. #### **7. Accounts Receivable** The Company has evaluated its accounts receivable and determined that no valuation allowance is needed as all accounts receivable are deemed collectible. The Company's accounts receivable is due upon providing services. The balance at December 3 1,2022 was \$34,463. #### **8. Advertising Costs** Advertising costs are expensed as incurred. For the year ended December 3 1 , 2023, the Company incurred advertising costs of \$7,862. #### **9. Subsequent Events** The Company evaluated subsequent events through March 3 1 , 2024, the date its financial statements were issued. The Company did not identify any material subsequent events requiring adjustment to or disclosure in its financial statements. {13}------------------------------------------------ # **SCHEDULE** I **Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commissions** For the Year Ended December 3 1 , 2023 | COMPUTATION OF NET CAPITAL | | |-------------------------------------------------------------------|------------------| | TOT AL MEMBER'S EQUITY | \$
500,553 | | LESS: | | | Non-Allowable Assets | | | Accounts Receivable | (9,999) | | Prepaid Expenses | (15
,
818) | | Total Non-Allowable Assets | (25,817) | | Other Operational Deductions or Charges | (1,037) | | TENTATIVE NET CAPITAL | \$
473,699 | | HAIRCUTS ON SECURITIES | 6,627 | | NET CAPITAL | \$
467,072 | | Minimum dollar net capital requirement of reporting broker dealer | 50,000 | | EXCESS NET CAPITAL | \$
417,072 | | TOTAL AGGREGATE INDEBTEDNESS | 309,353 | | MINIMUM NET CAPITAL BASED ON AI | 20,624 | | PERCENTAGE OF NET CAPITAL TO AI | 66.23% | There are no material differences between net capital in the amended unaudited Part IIA of Form X-17A-5 and net capital above. {14}------------------------------------------------ # **SCHEDULE** II ### **Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities and Exchange Act of 1934** For the Year Ended December 3 1 , 2023 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to paragraph (k)(2)(ii) of the rule and Footnote 74 of the SEC Release #34-70073. All customer securities transactions are cleared through another broker-dealer on a fully disclosed basis. {15}------------------------------------------------ # **SCHEDULE** III ### **Information Relating to the Possession or Control Requirements under the Securities and Exchange Commission Rule 15c3-3** For the Year Ended December 3 I , 2023 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 pursuant to paragraph (k)(2)(ii) of the rule and Footnote 74 of the SEC Release #34-70073. All customer securities transactions are cleared through another broker-dealer on a fully disclosed basis. See accompanying report of independent registered public accounting firm. {16}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM #### Fintrust TotheMemberof Brokerage Services, LLC **E** > **·** We have reviewed management's statements, included in the accompanying Fintrust Brokerage ! Services, LLC's Annual Exemption Report, in which (1) Fintrust Brokerage Services, LLC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Fintrust **Brokerageu** a.. Services, LLC claimed an exemption from I7 CF.R. \$240.15c3-3: (k)(2(ii) (the "exemption' provisions") and Fintrust Brokerage Services, LLC is also filing this Exemption Report because the O Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 U adopting amendment to 17 C.F.R \$ 240.17a-5 are limited to effecting transactions via subscriptionspw d on a subscription way basis where the funds are payable to the issuer or its agent and not to the **0** Company ed (2) Fintrust Brokerage Services, LLC stated that Fintrust Brokerage Services, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Fintrust Brokerage bl) Services, LLC's management is responsible for compliance with the exemption provisions and its statements. 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 Fintrust Brokerage Services, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. 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 statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 and Footnote 74 of the SEC Release No. 34-70073 under the Securities Exchange Act of 1934. Goldman & Company, CPA's, P.C. Marietta, Georgia March 31, 2024 {17}------------------------------------------------ # **F I** -N TRUST BROKERAGE SERVICES #### **EXEMPTION REPORT** FinTrust Brokerage Services, LLC ("Company") is a registered broker-dealer subject to SEC Rule 17a-5 ("Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by Rule 17a-5(d)(l) 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. § 240.1Sc3-3 under the following provisions of 17 C.F.R. 5240.15c3-3 **(k2ii)** (2) The Company met the identified exemption provisions in 17 C.F.R. 5240.15c3-3 (k) throughout the most recent fiscal year without exception. (3) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. 5 240.17a-5 are limited to: (1) proprietary trading; (2) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or Its agent and not to the Company; (3) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; (4) participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4; and/or (5) engaging solely in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules and approved for membership in FINRA as a CAB, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. FinTrust Brokerage Services, LLC I, Allen Gillespie, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. *A c,* Chief Compliance Officer January 9, 2024 124 Verdae Boulevard, Suite 504 I Greenville, SC 29607 Phone: 864.288.2849 I www.fintrustadvisors.com Investment advisory services offered through FinTrust Capital Advisors, LLC. Securities offered through FinTrust Brokerage Services, LLC. Member FINRA & SIPC {18}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPL YTNG AGREED-UPON PROCEDURES ### To the Member of Fintrust Brokerage Services, LLC We have performed the procedures included in Rule I 7a-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 SIP-7) for the year ended December 31, 2023. Management of Fintrust Brokerage Services, LLC (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. u ""' 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 U applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Additionally, SIPC has � agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This p report may not be suitable for any other purpose. The procedures performed may not address all the items of 0 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 our associated findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2023 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2023, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) 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; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form sIPC-7 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 AlCP A 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 STPC- 7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. 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 Fintrust Brokerage Services, LLC and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. *.dA-d are* Goldman & Company, CPA's, P.C. Marietta, Georgia March 31, 2024 {19}------------------------------------------------ ### **GENERALASSESSMENTFORM** For the fiscal year ended 12/31/2023 | | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
FINTRUST BROKERAGE SERVICES LLC
1/1/2023
and ending
For the fiscal period beginning | SEC No.
8-49514
12/31/2023 | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|---------------| | 1 | Total Revenue (FOCUS Report- Statement of Income (Loss)- Code 4030) | | \$916,756.00 | | 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 | | \$916,756.00 | | 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. | \$493,737.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$ 103,826.00 | | | | 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 (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | \$3,758.00 | | | | 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 lino 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. | | \$ 601,321.00 | | | | | | {20}------------------------------------------------ | SIPC-7 | SECURITIES INVESTOR PROTECTION CORPORATION
37 REV 0722 | | | SIPC-7
37 REV 0722 | |--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|----------------------|-----------------------| | | | GENERALASSESSMENTFORM | | | | | For the fiscal year ended | 12/31/2023 | | | | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | \$315,435.00 | | 8 | Multiply line 7 by .0015. This is your General Assessment. | | | \$473.00 | | 9 | Current overpayment/credit balance, if any | | | \$ 0.00 | | 10 | General assessment from last filed 2023 SIPC-6 or 6A | | \$ 263.00 | | | 11 | a Overpayment(s) applied on all 2023 SIPC-6 and 6A(s)
b Any other overpayments applied
c All payments applied for 2023 SIPC-6 and 6A(s)
d Add lines 11 a through 11 c | \$ 0.00
\$ 0.00
\$ 263.00 | \$ 263.00 | | | 12 | LESSER of line 10 or 11 d. | | | \$ 263.00 | | | 13 a Amount from line 8
b Amount from line 9 | | \$ 473.00
\$ 0.00 | | | | c Amount from line 12
d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | \$ 263.00 | \$ 210.00 | | 14 | Interest (see instructions) for
O
days late at 20% per annum | | | \$ 0.00 | | 15 | [Amount you owe SIPC. Add lines 13d and 14. | | | 21cc] | | 16 | Overpayment/credit carried forward (if applicable) | | | \$0.00 | SIPC-7 | SEC No. | Designated Examining Authority | FYE | Month | | |--------------------------------|------------------------------------------------------------------------------------|------|-------|--| | 8-49514 | DEA: FINRA | 2023 | Dec | | | MEMBER NAME
MAILING ADDRESS | FINTRUST BROKERAGE SERVICES LLC
124 VERDAE BLVD STE 504
GREENVILLE, SC 29607 | | | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) By checking this box, you certify that you have the authority of the SIPC member to sign this 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 SI PC's Privacy Policy | FINTRUST BROKERAGE SERVICES LLC | Brittany Bynum | |---------------------------------|-----------------------------| | (Name of SIPC Member) | (Authorized Signatory) | | 2/27/2024 | bbynum@fintrustadvisors.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.