# CIC MARKET SOLUTIONS, INC. X-17A-5 (2025-03-03) — Broker-dealer annual report - Company: CIC MARKET SOLUTIONS, INC. - Form: X-17A-5 - Filed: 2025-03-03 - Period: 2024-12-31 - Accession: 0001082414-25-000004 - CIK: 1082414 - File #: 8-51649 - Type: Broker-dealer - Material weakness: No - Auditor: WithumSmith Brown - Auditor location: Whippany, NJ - Contact: Robert Fortino - Phone: 212-751-4422 - Email: alex.englese@cic.eu - Website: cic.eu - Signed by: Alex J. Englese (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1082414/000108241425000004/CICPublicFY2024.pdf --- {0}------------------------------------------------ Statement of Financial Condition Pursuant to Rule 17a-5(d) of the Securities and Exchange Act of 1934 > DECEMBER 31, 2024 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER 8-51649 | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | |--------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|-----|--------------------------------------------| | | 01/01/2024 | | 12/31/2024 | | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | CIC Market Solutions, Inc
NAME OF FIRM: _______________________________________________________________________ | | | | | TYPE OF REGISTRANT (check all applicable boxes):
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Broker-dealer
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☐ 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.) | | | | | 520 Madison Avenue, 37th Floor | | | | | _____________________________________________________________________________________ | (No. and Street) | | | | NEW YORK
_____________________________________________________________________________________ | NY | | 10022 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Alex J. Englese
_____________________________________________________________________________________ | 212-659-6292 | | alex.englese@cic.eu | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | WithumSmith+Brown
_____________________________________________________________________________________ | | | | | 200 Jefferson Park Suite 400 | (Name – if individual, state last, first, and middle name)
Whippany | | NJ
07981 | | _____________________________________________________________________________________
(Address) | (City) | | (State)
(Zip Code) | | 10/20/2003 | | 100 | | | _____________________________________________________________________________________
(Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.** {2}------------------------------------------------ | as that of a customer. | Declatestion No. 01 81 R125011 | LORI ALESSI
NOTARY PUBLIC, STATE OF NEW YORK | Signature | |-----------------------------------------------------------------|--------------------------------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 12/31 | | | 2 024 is true and correct. I further swear (or affirm) that neither the company nor any
partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | financial report pertaining to the firm of CIC Market Solutions | | | as of | | Alex J. Englese | | | swear (or affirm) that, to the best of my knowledge and belief, the | - - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ #### **CONFIDENTIAL** #### **CIC MARKET SOLUTIONS, INC.** #### **Contents** | | Page | | |---------------------------------------------------------|------|-----| | Report of Independent Registered Public Accounting Firm | | 1 | | Financial Statements | | | | Statement of financial condition | | 2 | | Notes to Statement of financial condition | | 3-5 | | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholder and Those Charged with Governance of CIC Market Solutions, Inc.: #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of CIC Market Solutions, Inc. (the "Company") as of December 31, 2024, and the related notes (collectively referred to as 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, 2024, in conformity with accounting principles generally accepted in the United States of America. #### **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. We have served as the Company's auditor since 2022. Whippany, New Jersey February 28, 2025 {5}------------------------------------------------ #### **Statement of Financial Condition December 31, 2024** | ASSETS | | |-----------------------------------------------|-----------------| | Cash | \$
1,562,629 | | Fail to deliver | 124,403 | | Due from parent | 325,874 | | Due from customer | 216,395 | | Accounts receivable | 19,250 | | Prepaid and other assets | 23,658 | | Deferred tax asset | 254,028 | | | \$
2,526,237 | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Accounts payable and accrued expense | \$
260,379 | | Due to affiliate | 502,770 | | Due to customer | 124,403 | | Fail to receive | 216,395 | | Total liabilities | 1,103,947 | | | | | Common stock, \$0.01 par value per share, | | | 934 shares authorized, issued and outstanding | \$
9 | | Additional paid-in capital | 13,431,009 | | Accumulated deficit | (12,008,728) | | Total stockholder's equity | 1,422,290 | | | \$
2,526,237 | {6}------------------------------------------------ #### **NOTE A - ORGANIZATION** CIC Market Solutions, Inc. (the "Company") is a wholly-owned subsidiary of Crédit Industriel et Commercial (the "Parent" or "CIC"), a French company. The Company is a registered broker and dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). During 2024, the Company's principal business activity consisted of facilitating certain securities transactions for CIC pursuant to the "Services Agreement" (See Note B) and distributing research reports in compliance with Rule 15a-6. The Company also acts as advisor earning advisory fees for services performed for CIC (New York Branch) ("CIC-NY"). #### **NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### **[1] Use of estimates:** The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 statement of financial condition. Actual results could differ from those estimates. #### **[2] Income taxes:** Deferred tax assets and liabilities represent the expected future tax consequences of the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates ln effect at the balance sheet date. The resulting asset or liability is adjusted to reflect enacted changes in tax law. A valuation allowance is established for deferred tax assets unless their realization is considered more likely than not. Authoritative accounting guidance requires the Company to determine whether a tax position taken or expected to be taken on a tax return is more likely than not to be sustained upon examination by the applicable taxing authority including resolution of any related appeals or litigation processes, based on technical merits of the position. At December 31, 2024, the Company had no uncertain tax positions that require accrual under guidance. #### **[3] Cash:** The Company at times maintains cash in deposit accounts in excess of Federal Deposit Insurance Corporation ("FDIC") limits. #### **[4] Leases:** The Company evaluated its existing vendor agreements, including its expense sharing agreement for the recognition criteria in accordance with ASU 2016-02, Leases (Topic842), which requires the lessee to recognize a right of use asset and lease liability and present them in the statement of financial condition. The Company determined that during the year ended December 31, 2024 no agreements or arrangements existed that would be classified as a lease under the guidance. #### **[5] Current Expected Credit Losses [CECL]:** The CECL methodology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for certain financial assets at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The Company's has concluded that an allowance for credit losses is not required at December 31, 2024 and is based on the Company's expectation for the collectability of the receivable utilizing the CECL framework. {7}------------------------------------------------ The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with fees is not significant based on the contractual arrangement and expectation of collection in accordance with industry standards. #### **NOTE C – RELATED PARTY TRANSACTION** In accordance with a services agreement with the Parent, effective April 1, 2018 the Company facilitates certain securities transactions between the Company and major US institutional investors in compliance with Rule 15a-6. The Parent compensates the Company for all costs incurred in order to introduce and maintain the US/Canada clients to the Parent along with the compensation for its chaperoning functions under the agreement. At December 31, 2024, \$325,874 was due from the Parent. The Company's subordinated loan payable to CIC had a maturity date of May 24, 2024. The loan was repaid on May 22, 2024. The current balance of the subordinated loan as of December 31, 2024 is \$0. The Company is a party to an administrative services agreement with an affiliate dated June 30, 2019, CIC (New York Branch) ("CIC-NY"). The affiliate provides the Company with certain services and allocates the expenses in the area of benefits administration, leasehold space, furniture and equipment, operational services, computers and related systems support, data and communication lines and equipment. The Company is a party to a separate services agreement with CIC-NY, dated July 1, 2024 where the Company agrees to provide CIC-NY with services in the area of economic analysis, along with access to European and Macro economic data. At December 31, 2024 \$11,250 was receivable from CIC-NY which is within the accounts receivable balance on the statement of financial condition. At December 31 2024, the Company has a payable to CIC-NY related to its participation in CIC-NY's defined benefit plan. See Note F. #### **NOTE D - INCOME TAXES** The Company is subject to Federal, New York State and New York City income taxes. There was current tax benefit of \$0 and a deferred tax benefit of \$254,028 for the year ended December 31, 2024. As of December 31, 2024, the Company has net operating loss carryforwards for federal income tax purposes of approximately \$6,196,423. The net operating loss carryforwards will expire through 2037. These net operating losses are limited by the Internal Revenue Code Section 382 loss limitation incurred as a result of an ownership change that took place during 2006 and 2007. Deferred tax assets and liabilities represent the expected future tax consequences of the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates ln effect at the balance sheet date. The resulting asset or liability is adjusted to reflect enacted changes in tax law. A valuation allowance is established for deferred tax assets unless their realization is considered more likely than not. As of December 31, 2024, the Company had a Valuation Allowance of \$1,047,221. #### **NOTE E- NET CAPITAL REQUIREMENTS** The Company is subject to the Uniform Net Capital Rule ("Rule 15c3-1") of the Securities and Exchange Commission ("SEC") which requires the maintenance of minimum net capital, as defined, equal to the greater of \$250,000 or 2% of aggregate debits, as defined. At December 31, 2024, the Company had net capital of \$799,480 which was \$549,480 in excess of the amount required of \$250,000. The Company's ratio of aggregate indebtedness to net capital was 1.38 to 1. Pursuant to SEC Rule 15a-6 and related FAQ's issued by the SEC Division of Trading and Markets, a registered {8}------------------------------------------------ broker-dealer that acts as a chaperone in connection with securities transactions is required to take a net capital charge for failed transactions, even if the foreign broker-dealer is required to take a fails charge under foreign law. #### **NOTE F- PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS** The Company's U.S. affiliate maintains a 401(k) profit-sharing plan (the "Plan") covering substantially all of the employees of the Company. The Company contributes to the Plan 50% of up to the first 6% of the employees' contributions. Pursuant to the administration services agreement with CIC-NY, the Company's employees also participate in CIC-NY's Cash Balance Plan, a defined benefit plan. At December 31, 2024, \$502,770 is included in due to affiliate for the accumulated benefits payable. #### **NOTE G- FAIL TO DELIVER AND FAIL TO RECEIVE TRANSACTIONS** During the fiscal year, the Company experienced instances of fail to deliver and fail to receive transactions. These failures occurred due to delays in the settlement process and operational issues. As of December 31, 2024, the Company had outstanding fail to deliver transactions amounting to \$124,403 and fail to receive transactions amounting to \$216,295. The fail to receive transactions are recorded as liabilities, while the fail to deliver transactions are recorded as receivables. These transactions did not have a material impact on the Company's financial position. The Company has implemented enhanced monitoring and operational procedures to reduce the occurrence of such failures. Additionally, collateral arrangements have been established to mitigate potential risks. In the normal course of business, we execute, settle, and finance customer and proprietary securities transactions. These activities expose the company to off-balance sheet risk in the event that customers or other parties fail to satisfy their obligations. In accordance with industry practice, securities transactions generally settle within one business day after trade date. Should a customer or broker fail to deliver cash or securities as agreed, we may be required to purchase or sell securities at unfavorable market prices. #### **NOTE H-SUBSEQUENT EVENTS** The Company evaluated subsequent events or transactions that occurred from January 1, 2025 through the date these financial statements were issued. The Company did not have any significant subsequent events. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.