# FELDSTEIN FINANCIAL GROUP, LLC X-17A-5 (2021-03-29) — Broker-dealer annual report - Company: FELDSTEIN FINANCIAL GROUP, LLC - Form: X-17A-5 - Filed: 2021-03-29 - Period: 2020-12-31 - Accession: 0001144249-21-000002 - CIK: 1144249 - File #: 8-53388 - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Steven Feldstein - Phone: 908-879-9559 - Signed by: Steven Feldstein (President) Original filing: https://www.sec.gov/Archives/edgar/data/1144249/000114424921000002/AnnualReportFYE2.31.2020P.pdf --- {0}------------------------------------------------ #### UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response .. . . . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | |-----------------| | | | 8-53388 | 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 01/01/20 | AND ENDING 12/31/20 | | | | | | |------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------|--|--|--| | | | MM/DD/YY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF BROKER-DEALER: Feldstein Financial Group LLC | OFFICIAL USE ONLY | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FRM I.D. NO. | | | | | 1 Shadowbrook Lane | | | | | | | | | (No. and Street) | | | | | | | Basking Ridge | NJ | | 07920 | | | | | (City) | (State) | (Zip Code) | | | | | | Steven Feldstein | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | (908) 879-9559
(Area Code - Telephone Number) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | Berkower LLC | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - if individual, state last, first, middle name) | | | | | | | 517 Route 1 | lselin | NJ | 08830 | | | | | (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 | | | | | | | | | | | | | | | | | | | | | | | | | * Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant | | | | | | must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2) Potential 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 | Steven Feldstein | , swear (or affirm) that, to the best of | | | | | | | |--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|--| | Feldstein Financial Group LLC | my knowledge and belief the accompanying financial statement and supporting schedules perfaining to the firm of | | | | | | | | of December 31 | , 2020 , are true and correct. I further swear (or affirm) that | | | | | | | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | | | | | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Now fersly
fall of | | | | | | | | | ourty of | Signature | | | | | | | | | | | | | | | | | me this 17th, day of February 2021 | Title | | | | | | | | Staven Feldsetern | | | | | | | | | Notary Public | LISA M RICHARD | | | | | | | | | Notary Public - State of New Jersey
My Commission Expires May 18, 2021 | | | | | | | | This report ** contains (check all applicable boxes): | | | | | | | | | (a) Facing Page.
(b) Statement of Financial Condition. | | | | | | | | | | (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). | | | | | | | | | (d) Statement of Changes in Financial Condition. | | | | | | | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | | | | | (g) Computation of Net Capital. | | | | | | | | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | | | | | | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | | | | | | | | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the | | | | | | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
(k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of | | | | | | | | consolidation. | | | | | | | | | (1) An Oath or Affirmation. | | | | | | | | | (m) A copy of the SIPC Supplemental Report. | | | | | | | | | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | | | | ** For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | | | | | | | | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Sole Member of Feldstein Financial Group, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Feldstein Financial Group, LLC (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 This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 statements, 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 2018. Berkower LLC Iselin, New Jersey March 26, 2021 {3}------------------------------------------------ ## FELDSTEIN FINANCIAL GROUP, LLC ### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 {4}------------------------------------------------ ## FELDSTEIN FINANCIAL GROUP, LLC ### STATEMENT OF FINANCIAL CONDITION ### DECEMBER 31, 2020 #### ASSETS | Cash
Due From Clearing Broker (including \$50,000 clearing deposit)
Prepaid Expenses
TOTAL ASSETS | \$
\$ | 11,198
75,807
2,412
89,417 | |------------------------------------------------------------------------------------------------------------|----------|-------------------------------------| | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES
Accounts payable & accrued expenses
TOTAL LIABILITIES | \$ | 5,350 | | MEMBER'S EQUITY | | 84,067 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ | 89,417 | Please see the notes to the financial statement. {5}------------------------------------------------ ### 1. Organization Feldstein Financial Group, LLC (the "Company") is a privately held Limited Liability Company formed in New Jersey in 2002 for the purpose of conducting business as a securities broker/dealer (BD). As a BD, the Company is registered with the Financial Industry Regulatory Authority (FINRA). Through its clearing broker, the Company clears securities transactions on a fully disclosed basis for its clients. The Company operates under the exempt provisions of the Securities and Exchange Commission Rule 15c3-3(k)(2)(ii). ## 2. Summary of Significant Accounting Policies Basis of presentation-The financial statement has been prepared in conformity with accounting principles generally accepted in the United States of America as detailed in the Financial Accounting Standards Board's Accounting Standards Codification. Use of Estimates-The preparation of the financial statement in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses at the date of the financial statement and for the period they include. Actual results may differ from these estimates. Cash-For the purpose of calculating changes in cash flows, cash includes all cash balances and highly liquid short-term investments with original maturity date of three months or less. The Company had no cash equivalents at December 31, 2020. Income taxes- The Company has elected to be taxed as a single member limited liability company under the Internal Revenue Service Code. Accordingly, under such an election, the Company's taxable income is reported by the individual member and therefore, no provision for federal income taxes has been included in this financial statement.. Revenue recognition- Revenue from contracts with customers includes Brokerage Commissions. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at 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 revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to certain future events. {6}------------------------------------------------ #### Feldstein Financial Group, LLC Notes to the Financial Statement (Continued) For the Year Ended December 31, 2020 Brokerage commissions-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 that 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 have been transferred to/from the customer. New Accounting Pronouncements-On January 1, 2020, the Company adopted FASB ASC Topic 326 – "Financial Instruments - Credit Loses" ("ASC Topic 326") which replaces the incurred loss methodology with the current expected credit loss ("CECL") methodology The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. Expected credit losses on offbalance sheet credit exposures must be estimated over the contractual period the Company is exposed to credit risk as a result of a present obligation to extend credit. The Company adopted ASC Topic 326 using the modified retrospective approach for all inscope assets. The impact of the adoption of the current expected credit loss ("CECL") methodology to the current period was not material. ### 3. Fair Value of Financial Instruments Fair-Value Measurements under generally accepted accounting principles clarifies the principle that fair value should be based on the assumption market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. {7}------------------------------------------------ #### Feldstein Financial Group, LLC Notes to the Financial Statement (Continued) For the Year Ended December 31, 2020 Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined is based on the lowest level input that is significant to the fair value measurement. Prepaid expenses, accounts payable and accrued expenses, and due from clearing broker in the balance sheet are estimated to approximate fair market value at December 31, 2020 because of their short term nature. #### 4. Off Balance Sheet Risk The Company executes various transactions for the benefit of customers through the clearing broker on a fully disclosed basis. This business activity subjects the Company to certain off balance sheet risk, which may be in excess of the liabilities reported in the balance sheet. In the event that a customer is in default of an obligation to the clearing broker, the clearing broker will require the Company to fulfill the obligation on behalf of its customer. The Company seeks to control these risks by monitoring the transactions of customer accounts on a daily basis. The Company has the authority to liquidate position in customer accounts at its discretion in order to ensure the account is in financial compliance with established requirements imposed by the clearing broker. ### 5. Related Party Transactions The Company has executed an expense sharing agreement with an entity related to the Company by common ownership, whereby the related entity pays for certain allocated overhead costs. The costs include employee compensation of \$84,608 and telephone, utilities and other costs of \$8,810 for the year ended December 31, 2020. The costs are deemed as capital contributions by the member. ### 6. Net Capital Requirement The Company is subject to the Securities and Exchange Commission's Net Capital Rule 15c3-1, 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 to 1. At December 31, 2020, the Company had net capital of \$81,655 which exceeded the minimum requirement of \$5,000 by \$76,655. The Company's ratio of aggregate indebtedness to net capital was .0655 to 1. {8}------------------------------------------------ #### Feldstein Financial Group, LLC Notes to the Financial Statement (Continued) For the Year Ended December 31, 2020 ### 7. Due From Clearing Broker The Company clears its customer transactions through another broker-dealer on a fully disclosed basis, The Company's due from clearing broker include amounts receivable from unsettled trades, including amounts receivable for securities failed to deliver, accrued interest receivables and cash deposits. A portion of the Company's trades are cleared through a clearing organization and settled daily between the clearing organization and the Company. Because of this daily settlement, the amount of unsettled credit exposures is limited to the amount owed the Company for a very short period of time. ### 8. Subsequent Events The Company has made a review of material subsequent events from December 31, 2020 through the date of this report and found no material subsequent events reportable during this period. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.