# RHONE GROUP ADVISORS LLC X-17A-5/A (2021-03-10) — Broker-dealer annual report - Company: RHONE GROUP ADVISORS LLC - Form: X-17A-5/A - Filed: 2021-03-10 - Period: 2020-12-31 - Accession: 0001128293-21-000002 - CIK: 1128293 - File #: 8-53003 - Material weakness: No - Auditor: Deloitte & Touche LLP - Auditor location: New York, NY - Contact: Richard Sobel - Phone: 212-751-4422 - Signed by: Allison Steiner (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1128293/000112829321000002/RhoneShortEdgar2020.pdf --- {0}------------------------------------------------ Rhone Group Advisors L.L.C. (A Wholly-owned Subsidiary of Rhone Group L.L.C.) (SEC I.D. No. 8-53003) #### STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2020 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM \*\*\*\*\*\*\*\* Filed in accordance with Rule 17 a-5( e )(3) Under the Securities Exchange Act of 1934 As a Public Document {1}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** SEC FILE NUMBER 8-53003 **FACING PAGE** Information **Required** of Brokers and Dealers **Pursuant** to **Section** 17 **of the Securities Exchange Act of 1934** and **Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | ___ o_1
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MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | Rhone
NAME OF BROKER-DEALER: | Group
Advisors | LLC | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
12
E.
49th
Street
- 20th
Floor | | | FIRM I.D. N_O. | | | (No. and Street) | | | | New
York | New
York | | 10017 | | (City) | | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Allison Steiner | | | (212) 218-6765 | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report• | | | | | &
Deloitte | Touche
LLP | | | | | (Name -if individual, state last, first, middle name) | | | | 30
Rockefeller
Plaza | New
York | New | 10112
York | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE:
I
certified Public Accountant
✓
Public Accountant
Accountant not resident in United States or any of its possessions. | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | *\*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)* > **Potential persons who are to respond to the collectlon of Information contained In this form are not required to respond unless the form dlsplays a currentlyvalld 0MB control number.** SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, | Allison Steiner | | , swear (or affirm) that, to the best of | |----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | Rhone Group Advisors LLC | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | of
December 31 | | 2020 | ---------,-------------------------------------, as
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: | | | | No exceptions | | | | | | | | | | 0
(a) Facing Page.
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consolidation. | This report** contains (check all applicable boxes):
(b) Statement ofFinancial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
d)Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes i~ Liabilities Subordinated to Ch~irns 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.
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. | @
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KATHRYNSCHENG
Notary Public, Slate of New York
No. 01CH6366863
Qualified In NewYorkCounty
Commission Expires November 06,
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(c) Statement oflncome (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
(j) A Reconciliation, including appropriate explanation of the Computation ofN et Capital Under Rule 15 c3-l and the
(k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | 0
(I) An Oath or Affirmation. | | | | | 0
0 | (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 2 40.17 a-5 (e)(J ).* {3}------------------------------------------------ # Statement of Financial Condition As of December 31, 2020 # **Contents** | Report oflndependent Registered Public Accounting Firm
| 1 | |------------------------------------------------------------|---| | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition 3-6 | | {4}------------------------------------------------ # **Deloitte.** **Deloitte & Touche LLP** 30 Rockefeller Plaza New York, NY 10112 USA Tel : + 1 212 492 4000 Fax:+ 1 212 489 1687 www. deloitte.com #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member and Management of Rhone Group L.L.C. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Rhone Group Advisors L.L.C. (the "Company") as of December 31, 2020, 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, 2020, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** The 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 regu lations 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 of the financial statement provides a reasonable basis for our opinion. *B4M/~UP* February 25, 2021 We have served as the Company's auditor since 2009. {5}------------------------------------------------ ## Statement of Financial Condition #### As of December 31 , 2020 | Cash and cash equivalents
\$
331
,712
Prepaid expenses
18,301
Total assets
\$
350,013
Liabilities
\$
Accounts payable and accrued expenses
38,090
Due to Parent
43,847
Total liabilities
,937
81
Member's equity
\$
268,076
\$
Total liabilities and member's equity
350,013 | Assets | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | *See accompanying notes to this Statement of Financial Condition.* {6}------------------------------------------------ # Notes to Statement of Financial Condition # December 31, 2020 #### **1. Organization and Business** Rhone Group Advisors L.L.C. (the "Company"), a Delaware limited liability company, is a registered broker-dealer in securities with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company was formed by Rhone Group L.L.C. ("Group" or "Parent") on August 11, 2000, and is a wholly-owned subsidiary of Group. The Company subsequently received its membership with National Association of Securities Dealers on February 21, 2001 for the purpose of acting as a broker-dealer in selling financial advisory services, limited partnerships in primary distributions and private placement of securities. The Company is exempt from SEC Rule 15c3-3 pursuant to paragraph k(2)(i) of that rule. #### **2. Summary of Significant Accounting Policies** ### **Basis of Presentation** The accompanying financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The following is a summary of the significant accounting and reporting policies used in preparing the financial statement. #### **Cash and Cash Equivalents** The Company considers all demand deposits with banks with original maturities ofup to three months to be cash and cash equivalents. The cash equivalents are invested in a money market fund. The money market fund is valued using the published net asset value (''NAV"), which is redeemable daily. #### **Prepaid Expenses** Prepaid expenses primarily consist of regulatory registration fees. Such expenses are amortized over a fixed period of time as the benefit is received. ## **Estimates** The preparation of the Statement of Financial Condition 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 Statement of Financial Condition. Actual results could differ from those estimates. {7}------------------------------------------------ # Notes to Statement of Financial Condition (continued) December 31, 2020 #### **2. Summary of Significant Accounting Policies ( continued)** #### **Fair Value Measurements** The Company follows Fair Value Measurements and Disclosures Topic 820 of the FASB Codification ("ASC 820"). Under ASC 820, the Company is required to characterize its financial assets as Level I, Level II or Level III based upon the various inputs or methodologies used to value the financial assets. The three-tier hierarchy of inputs is summarized in the three broad levels listed below: - Level I Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. - Level II Observable inputs, other than quoted prices included in Level I, for the assets or liabilities or prices for similar assets and liabilities. - Level III Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Substantially all of the financial assets and liabilities such as cash and cash equivalents, are recorded at fair value or carrying amounts that approximate fair value as a result of the short term to maturity of the instruments. Cash and cash equivalents include investments in highly liquid securities such as money market funds. At December 31, 2020, cash and cash equivalents includes \$174,558 in a non-interest bearing account and an investment in a JP Morgan Treasury Plus Money Market Fund totaling \$157,154, which was measured using a Level I input. Total cash and cash equivalents at December 31, 2020 are \$331,712. {8}------------------------------------------------ # Notes to Statement of Financial Condition (continued) December 31, 2020 #### **2. Summary of Significant Accounting Policies** ( **continued)** #### **Financial Instruments Not Measured at Fair Value** The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments as of December 31 , 2020 that are not measured at fair value in the Company's consolidated statement of financial condition. | | Fair Value Measurements | | | | | | |------------------|-------------------------|----|----------------|-----------|----------|-----------| | | Fair Value | | Carrying Value | Levell | Level II | Level Ill | | Cash Equivalents | \$
157,154 | \$ | 157,154 | \$157,154 | | | #### **3. Income Taxes** Federal, state and local income taxes have not been assessed on the profits, if any, of the Company as members of Group are individually liable for their own tax payments. The Company is organized as a single member limited liability company and as such is a disregarded entity for income tax purposes. No provision for federal or state and local income taxes has been made since the Parent is responsible for any income taxes associated with such income. Parent is the owner and may be liable for New York City Unincorporated Business Tax ("UBT"). Parent records any corresponding tax benefit or liability on its consolidated financial statement. During the year ended December 31 , 2020, losses were generated by the Company, creating a UBT deferred tax benefit for the Parent. This benefit will offset current or future years UBT of the Parent. Based on its analysis, the Parent has determined that the Company does not have any uncertain tax positions that require recognition or measurement in the Company's Statement of Financial Condition. {9}------------------------------------------------ # Notes to Statement of Financial Condition (continued) #### December 31, 2020 #### **4. Related Party Transactions** The Company entered into a service agreement with Group on December 1, 2003. Under the service agreement the Company agreed to reimburse Group for all expenses directly attributable to the Company, and an allocable portion of expenses paid by Group for which the Company had indirectly derived benefit. On August 1, 2011, the service agreement was amended, and Group elected to forego the expense reimbursement payments due in the future and instead will make a capital contribution to the Company equal to the allocable expenses from Parent. Such contributions are made to the Company through the settlement of the intercompany accounts associated with the expenses allocated to the Company. In addition to such contributions, the Parent contributed \$200,000 of capital to Company during the year ended December 31, 2020. The Service Agreement may be terminated by either party upon five business days prior written notice to the other party. The Company recorded a liability due to Parent of \$43,847 as of December 31, 2020 which relates to expenses directly attributable to the Company which were paid on behalf of the Company by the Parent. #### **5. Net Capital Requirement** The Company is subject to the SEC's Uniform Net Capital Rule 15c3-l (the "Rule"), which requires the maintenance of minimum net capital, as defined, which shall be the greater of\$100,000 or 6-2/3% of aggregate indebtedness, as defined. As of December 31, 2020, the Company had net capital of \$243,141 which was \$143,141 in excess of its minimum net capital requirement of \$100,000. The Company's ratio of aggregate indebtedness to net capital was .34 to 1. #### **7. Other Events** The impact of the coronavirus ("COVID-19") outbreak on the financial performance of the Company will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company's results may be materially adversely affected. ## **6. Subsequent Events** Management has evaluated the impact of all subsequent events on the Company through the date of issuance of this financial statement and has determined that there were not subsequent events requiring recognition or disclosure in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.