# WEISS MULTI-STRATEGY FUNDS LLC X-17A-5 (2022-02-24) — Broker-dealer annual report - Company: WEISS MULTI-STRATEGY FUNDS LLC - Form: X-17A-5 - Filed: 2022-02-24 - Period: 2021-12-31 - Accession: 0001283154-22-000001 - CIK: 1283154 - File #: 8-66414 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG LLP - Auditor location: Short Hills, NJ - Contact: Michele Lanzoni - Phone: 860-240-8973 - Signed by: Victoria Stearns (Interim President & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1283154/000128315422000001/auditreportpublic2021a.pdf --- {0}------------------------------------------------ Statement of Financial Condition (With Report of Independent Registered Public Accounting Firm) December 31, 2021 {1}------------------------------------------------ **UNITED STATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549** ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 | | SEC FILE NUMBER | |---------|-----------------| | 8-66414 | | **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 01/01/21 | | AND ENDING 12/31/21 | ------
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MM/DD/YY | | | A. REGISTRANT lDENTIFJCAi,1ON | ~ ,,,, | | | | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | New York | | | 10022 | | (City)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michele M. Lanzoni (860) 240-8973 | (State ) | | (Zip Code) | | | | | (Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
KPMG LLP | (Name - if individual. stale last. first. middle name) | | | | 51 JFK Parkway | Short Hills | NJ | 07078 | | (Address) | (City) | (S tate) | (Zip Code) | | CHECK ONE:
certified Public ~ccountant
Public Accountant | count nt 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 offacts and circumstances relied on as the basis.for the exemption. See Section 240. /7a-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 valld 0MB control number.** SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | __
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Weiss Multi-Strategy Funds LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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of December 31
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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: | | | | | | | | | | | | | ~••"'~
Signature | | | ,I. | ~,· •· Interim President & CEO
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l!.J (a) Facing Page. | .• ,,~•"'
~~ | | | [Z] (b) Statement of Financial Condition. | | | | | D (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.
0 U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3- | | | | l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | consolidation. | | | | 0 (I) An Oath or Affirmation. | | | | 0 (m) A copy of the SIPC Supplemental Report. | 0 (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. / 7a-5(e)(3). | | {3}------------------------------------------------ **INDEX** **December 31, 2021** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) KPMG LLP New Jersey Headquarters 51 John F. Kennedy Parkway Short Hills, NJ 07078-2702 ## **Report of Independent Registered Public Accounting Firm** To the Member and Management Weiss Multi-Strategy Funds LLC: ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Weiss Multi-Strategy Funds LLC (the Company) as of December 31, 2021 and the related notes (collectively, 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, 2021, in conformity with U.S. generally accepted accounting principles. ## 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 2014. Short Hills, New Jersey February 23, 2022 {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION | December 31, 2021 | | |------------------------------------------------------|-----------------| | ASSETS | | | Cash and cash equivalents | \$
4,853,267 | | Other assets | 44,740 | | Total assets | \$
4,898,007 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities
Accounts payable and accrued expenses | \$
96,713 | | Member's equity | 4,801,294 | | Total liabilities and member's equity | \$
4,898,007 | {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** #### **1. Nature of business and summary of significant accounting policies** #### Nature of Business Weiss Multi-Strategy Funds LLC {the "Company") is a limited liability company formed in December 2003 under the laws of the state of New York. The Company's operations consist of engaging in private placement of securities and as a mutual fund retailer. The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority ("FINRA"). #### Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GMP"). The Company does not have any items of other comprehensive income, and therefore, a statement of comprehensive income is not presented. These financial statements were approved by management and available for issuance on February 23, 2022. Subsequent events have been evaluated through this date. #### Cash Equivalents Cash equivalents consist of cash deposits in a money market account within various financial institutions. #### Revenue Recognition The Company provides marketing services related to the private placement of securities and as a mutual fund retailer to pooled investment vehicles advised by Weiss Multi-Strategy Advisers LLC under an exclusivity agreement in return for a fixed monthly fee as compensation for services. Revenues from such services are recognized on a monthly basis and recorded in Investment services fees in the statement of operations. See Note 5 for further details. #### Income Taxes The Company is a single member limited liability company. As such, it is a disregarded entity for tax purposes and is not subject to pay any federal or state income taxes on its income. At December 31, 2021, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. {7}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** ### **1. Nature of business and summary of significant accounting policies (continued)** #### Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company's management to make estimates and assumptions that could affect the amounts disclosed in the financial statements. Actual results could differ from those estimates. ### **2. Net capital requirement** The Company, as a member of FINRA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1 (the Rule). This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn or cash dividends paid if certain net capital requirements are not met. At December 31, 2021, the Company's net capital was \$4,756,554 which was \$4,750,107 in excess of its minimum requirement of \$6,448. ### **3. Concentrations of risk** The Company maintains its cash balances in various financial institutions with maturities of three months or less. These balances are insured by the Federal Deposit Insurance Corporation up to \$250,000 per institution. During the COVID-19 outbreak, the Company implemented its business continuity plan which mitigated the impact of the pandemic on the Company's operations and performance. These circumstances may continue for an extended period of time, and may have an adverse impact on economic and market conditions. The ultimate economic fallout from the pandemic, and the long-term impact is not known. The extent of the impact to the financial performance and the operations of the Company will depend on future developments, which are highly uncertain and cannot be predicted. ## **4. Exemption from Rule 17 C.F.R. § 240.17a-5** The Company does not carry customer accounts and does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3. The Company is relying on footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits its business activities exclusively to providing marketing services related to private placement of securities and as a mutual fund retailer. {8}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** #### **5. Related party transactions** The Company has an expense sharing agreement with certain of its affiliates that include Weiss Multi-Strategy Advisers LLC (WMSA), Weiss Special Operations, LLC (WSO) and GWA, LLC whereby said affiliates pay certain expenses on the Company's behalf that are reimbursed by the Company on a monthly basis. For the year ended December 31 , 2021, amounts charged by related companies totaled approximately \$764,000 and is included in investment service fee expense. The Company also reimbursed certain related parties approximately \$6,000 for expenses paid on its behalf and is included in other expenses in the statement of operations. Amounts due to related companies as of December 31, 2021 were approximately \$67,000 which is included in accounts payable and accrued expenses in the statement of financial condition. The Company entered into an exclusive marketing agreement with respect to the pooled investment vehicles advised by WMSA. Under the terms of the agreement, WMSA pays a monthly flat fee to the Company in the amount of \$200,000 for marketing and placement services. For the year ended December 31, 2021, the Company received \$2,400,000 under the agreement, which is recorded as investment service fees in the statement of operations. #### **6. Employee benefit plan** The Company maintains a retirement plan (the "Plan"), pursuant to Section 401 (k) of the Internal Revenue Code, for eligible participants to make voluntary contributions of a portion of their annual compensation, on a deferred basis, subject to limitations provided by the Internal Revenue Code. During 2021, there were no active employees. ### **7. Subsequent Event** Effective January 1, 2022, the Company amended its exclusive marketing agreement fee with WMSA to \$1,000,000 per annum, to be paid in monthly installments. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.