# CFWP SECURITIES, LLC X-17A-5 (2020-03-04) — Broker-dealer annual report - Company: CFWP SECURITIES, LLC - Form: X-17A-5 - Filed: 2020-03-04 - Period: 2019-12-31 - Accession: 0001088943-20-000008 - CIK: 1596102 - File #: 8-69415 - Material weakness: No - Auditor: Ernst & Young LLP - Auditor location: New York, NY - Contact: Pascal Karam - Phone: 212-294-7772 - Signed by: Kenneth Paulson (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1596102/000108894320000008/CFWPBSonly.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) STATEMENT OF FINANCIAL CONDITION CFWP Securities, LLC December 31, 2019 With Repo1t of Independent Registered Public Accounting Firm {1}------------------------------------------------ | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | 0MB Number: 3235-0123
Expires: August 31, 2020
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hours per response 12. 00 | | |--------------------------------------------------------------------------------------|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------------------------| | | ANNUAL AUDITED REPORT | | SEC FILE NUMBER | | FORM X-17A-5 | | 8-69415 | | | | PART III | | | | | FACING PAGE | | | | | | Information Required of Brokers and Dealers Pursuant to Section 17 of the | | | REPORT FOR THE PERIOD BEGINNING | 01/01/19 | Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
AND ENDING | 12/31/19 | | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER -DEALER: | | | | | | | | OFFICIAL USE ONLY | | CFWP Securities, LLC | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM ID. NO. | | 110 East 59th Street | | | | | | (No. and Street) | | | | New York | New York | | 10022 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | Kenneth Paulson | | | 212-294-7922 | | | | | (Area Code -Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT REGISTERED PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | Ernst & Young LLP | | | | | | (Name -if individual, state last, first, middle name) | | | | 5 Times Square | New York | New York | 10036-6530 | | (Address) | (City) | (State) | (Zip Code) | | | | | | | CHECK ONE: | | | | | Certified Public Accountant
Public Accountant | | | | | | Accountant not resident in United States or any of its possessions. | | | | � | | | | | | FOR OFFICIAL USE ONLY | | | 0MB APPROVAL *\*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 240.17 a-5(e)(2).* SEC 1410 (06-02). {2}------------------------------------------------ #### **AFFIRMATION** I, Kenneth Paulson, affirm that, to the best of my knowledge and belief, the accompanying statement of financial condition pertaining to CFWP Securities, LLC (the "Company"), as of December 31, 2019, is true and correct. I further affirm that neither the Company nor any member, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer. *\_i�* Kenneth Paulson Chief Financial Officer - Notary Public CHANTAL M BARRAUS Notary Public, State of New York Registration **#01** BA6364242 Qualified In **New** York County Commission Expires Sept. 11, 2021 {3}------------------------------------------------ This report\*\* contains (check all applicable boxes) - 0 Facing Page. - 0 Report of Independent Registered Public Accounting Finn. - 0 Statement of Financial Condition. - **D** Statement of Operations. - **D** Statement of Cash Flows. - **D** Statement of Changes in Member's Equity. - **D** Statement of Changes in Subordinated Borrowings. - 0 Notes to Statement of financial condition. - **D** Computation of Net Capital Pursuant to Rule 15c3-1. - **D** Computation for Determination of the Reserve Requirements under Exhibit A of SEC Rule 15c3-3 and Information Relating to the Possession or Control Requirements under SEC Rule 15c3-3. - **D** 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. - 0 An Oath or Affirmation. - **D** A copy of the SIPC Supplemental Report. - **D** A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **Ti?l :+1212773�00 ST�ssqwre R:lx:+12127736350 1<¥.tw'itlrk, r•N10036-615:U ey.com** ## Report of Independent Registered Public Accounting Firm To the Member and Man ag em en! of C FWP Secur t es, LLC #### 0 pinion on the Financial Statement We have aud ted the accompanying statement of financial condit on of C FWP Secur ties, LLC (the "Company') as of December 31 , 2019 and the related notes (the "financial statement"). In our o p nion, the f n an cia I statement presents fair y, in all mater al respects, the f nancial po s t ion of the Company at December 31 , 2019, in conformity w th U.S. generally acce pied accounting pr nciples. #### Basis for Opinion This financial statement is the responsibil ty of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our aud t. We are a public accounting firm registered w th the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be i nde pendent w th respect to the Company in accordance wth the U.S. federal secur ties laws and the applicable rules and re gu latio ns of the Secur ties and Exchange Commission and the PCAOB. We conducted our aud t in accordance w th the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain re aso nab le assurance ab out whether the financial statement is free of mate r al misstatement, whether due to error or fraud. Our aud t included performing pro ce du res to assess the r sks of material misstatement of the financial statement, whether due to error or fraud, and p erfo rmin g procedures that respond to those risks. Such pro ce du res included examining, on a le st bas s, ev id en ce regarding the amounts and d sclosures in the financial statement. 0 ur aud t also included evaluating the account ng pr nciples used and sign ficant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's aud tor s nce 2014. February 28, 2020 {5}------------------------------------------------ ## Statement of Financial Condition ## December 31, 2019 #### *(In Thousands)* | Assets | | |----------------------------------------|----------| | Cash and cash equivalents | \$
18 | | Prepaids | 7 | | Total assets | \$
25 | | Liabilities and Member's Equity | | | Commitments and contingencies (Note 3) | | | Member's equity | \$
25 | | Total liabilities and member's equity | \$
25 | | | | *See notes to statement of financial condition* {6}------------------------------------------------ ## Notes to Statement of Financial Condition Decembe*r* 31, 2019 *(In Thousands)* ### **1. General and Summary of Significant Accounting Policies** #### **Description of Business** CFWP Securities, LLC (the "Company") is a registered broker-dealer with the Securities and Exchange Commission ("SEC"). The Company is a limited liability company and was organized in the State of Delaware. The Company is 100% owned by Cantor Fitzgerald Wealth Partners Holdings, LLC, a limited liability company which is a wholly owned subsidiary of Cantor Fitzgerald, L.P. ("Cantor"). The Company has been inactive since December 31, 2017 and has not participated in any securities transactions. #### **Basis of Presentation** The statement of financial condition is presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). ### **Use of Estimates** Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Management believes that the estimates utilized in preparing the statement of financial condition are reasonable. Estimates, by their nature, are based on judgment and available information. As such, actual results could differ materially from the estimates included in the statement of financial condition. ### **Cash and Cash Equivalents** The Company considers all highly liquid investments with maturity dates of 90 days or less at the date of acquisition, to be cash equivalents. #### **Income Taxes** Income taxes are accounted for under Accounting Standard Codification ("ASC") Topic 740, *Income Taxes,* using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the statement of financial condition carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable {7}------------------------------------------------ ## Notes to Statement of Financial Condition (continued) ## December 31, 2019 ### *(In Thousands)* ### **1. General and Summary of Significant Accounting Policies** *(continued)* income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that it is more likely than not that deferred tax assets will not be recognized, a valuation allowance would be established to offset their benefit. ASC Topic 740, *Income Taxes,* clarifies the accounting for income taxes by prescribing a "more likely than not" recognition threshold that a tax position is required to meet before being recognized in the statement of financial condition. In addition, the guidance clarifies the measurement of uncertain tax positions, classification of interest and penalties, and requires additional disclosures on tax reserves. #### **New Accounting Pronouncements** In December 2019, the FASB issued ASU No. 2019-12, *Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.* The ASU is part of the FAS B's simplification initiative; and it is expected to reduce cost and complexity related to accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740, *Income Taxes* related to the approach for intraperiod tax allocation if applicable, the methodology for calculating income taxes in an interim period, the allocation of consolidated income tax expense to separate statement of financial condition of entities not subject to tax and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard will become effective for the Company beginning January 1, 2021 and, with certain exceptions, will be applied prospectively. Early adoption is permitted. Management is currently evaluating the impact of the new guidance on the Company's statement of financial condition #### **2. Income Taxes** The Company has been inactive since December 31, 2017. As of December 31, 2019, the Company did not have any deferred tax assets before valuation allowance. The Company has analyzed its tax positions with respect to applicable income tax issues for open tax years (in each respective jurisdiction) and determined that there are no material tax liabilities as of December 31, 2019. {8}------------------------------------------------ # Notes to Statement of Financial Condition (continued) # December 31, 2019 ## *(In Thousands)* ### **2. Income Taxes** *(continued)* The Company has been included in Cantor's U.S. federal, state and local income tax returns. The Company is not presently under examination for United States federal, state, and local income tax purposes, and is no longer subject to examination by tax authorities for the years prior to 2016 in all jurisdictions. ### **3. Commitments and Contingencies** ### **Legal Matters** In the ordinary course of business, various legal actions are brought and may be pending against the Company. The Company is also involved, from time to time, in other reviews, investigations and proceedings by governmental and self-regulatory agencies (both formal and informal) regarding the Company's business. Any of such actions may result in judgments, settlements, fines, penalties, injunctions or other relief As of December 31, 2019, no such claims or actions have been brought against the Company and therefore no reserves were recorded. Legal reserves are established in accordance with F ASB guidance on *Accounting for Contingencies,* when a material legal liability is both probable and reasonably estimable. Once established, legal reserves are adjusted when additional information becomes available or when an event occurs requiring a change. ### **4. Related Party Transactions** Cantor provides the Company with administrative services and other support for which they charge the Company based on the cost of providing such services. Such support includes allocations for utilization of legal, audit, and regulatory services. During 2019, \$5 due to Cantor was settled by a deemed contribution to the Company through Cantor's ownership interest in the members. ### **5. Regulatory Requirements** As a registered broker-dealer, the Company is subject to the SEC's Uniform Net Capital ("Rule 15c3-l "). The Company has elected to compute its net capital using the basic method which requires that minimum net capital, be the greater of \$5 or 6 2/3% of aggregate indebtedness. As of December 31, 2019, the Company had net capital of \$18, which was \$13 in excess of required net capital. {9}------------------------------------------------ ## Notes to Statement of Financial Condition (continued) # December 31, 2019 *(In Thousands)* #### **6. Subsequent Events** The Company has evaluated subsequent events through the date the statement of financial condition were issued. There have been no additional material subsequent events that would require recognition in this statement of financial condition or disclosure in the notes to the statement of financial condition. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.