# GOODBODY SECURITIES INC X-17A-5 (2021-02-26) — Broker-dealer annual report - Company: GOODBODY SECURITIES INC - Form: X-17A-5 - Filed: 2021-02-26 - Period: 2020-12-31 - Accession: 0001328730-21-000001 - CIK: 1328730 - File #: 8-66955 - Material weakness: No - Auditor: DeMarco Sciaccotta Wilkens & Dunleavy, LLP - Auditor location: Tinley Park, IL - Contact: Paul Curtin - Phone: 00135316419261 - Signed by: Stephen Donovan (Company Director) Original filing: https://www.sec.gov/Archives/edgar/data/1328730/000132873021000001/gsipublic.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_1.jpeg) G00DB0DY SECURITIES INCORPORATED STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2020 {1}------------------------------------------------ ### U.S. SECURITIES AND EXCHANGE COMMISSION ### WASHINGTON, D.C. 20549 # FACING PAGE Information Required of Brokers and Dealers # Pursuaut to Section 17 of the Securities Exchange Act of 1934 and ## Rule 17a-5 Thereunder ### REPORT FOR THE PERIOD BEGINNING JAN 157 2020 AND ENDING DEC 3157 2020 ## A. REGISTRANT IDENTIFICATION NAME OF BROKER-DEALER: ### GOODBODY SECURITIES INCORPORATED ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) FIRM I.D. NO. ### BALLSBRIDGE PARK, BALLSBRIDGE (No. and Street) #### DUBLIN ,. DUBLIN 4 IRELAND (State) {City } (Zip Code) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT ### PAUL CURTIN +353 1 6419261 (Area.Code - Telephone Number) ### B. ACCOUNTANT IDENTIFICATION ### DEMARCO SCIACCOTTA WILKENS & DUNLEAVY, LLP INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report\* (Name - if individual, state last, first, middle name) | 9501 W. 171st Street, H-103 | | Tinley Park, ILINOIS | | 60487 | IISA | |-----------------------------|--------------------------------------------------------------------------------------------------------------|----------------------|---------------------------------------------------------------------|-------|----------------------------------------------------------------------------------------------------------------| | (Address) | | (City) | (State) | | (Zip Code) | | CHECK ONE: | Certified Public Accountant | | | | | | | Public Accountant | | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | * Claims for exemplion 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) | | | {2}------------------------------------------------ ## **OATH OR AFFIRMATION** I, **Stephen Donovan,** swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statement and supporting schedules pertaining to the firm of Goodbody Securities Incorporated, as of December 31, 2020, 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: None. | | ~rf~./
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BALLSBRIDGE, DUBLIN 4.
Notary Public for ~~l=-ty and City of Dublin
Co~iNJOllt ,._ J.ife | | | | | | | This report** contains (check all applicable boxes): | | | | | | (a)
(b)
c)
(d)
(e)
(f)
(g) | Facing Page.
Statement of Financial Condition.
Statement of Income (Loss).
Statement of Cash Flows.
Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital.
Statement of Changes in Liabilities Subordinated to Claims of Creditors.
Computation of Net Capital. | | | | | | (h)
(i)
0) | Computation for Determination of Reserve Requirements Pursuant to Rule 1 Sc-3-3.
Information Relating to the Possession or Control Requirements Under Rule 15c-3-3.
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. | | | | | | D (k) | A Reconciliation between audited and unaudited Statements of Financial Condition with | | | | | | §
(I) | respect to methods of consolidation.
An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report.
(n) Exemption Report | | | | | \*\* For conditions of confidential treatment of certain portions of this filing, see section 240. l 7a-5(e)(3). {3}------------------------------------------------ TABLE OF CONTENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STATEMENT OF FINANCIAL CONDITION NOTES TO T.H.E STATEMENT OF FINANCIAL CONDITION {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors Goodbody Securities Incorporated # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Goodbody Securities Incorporated (the "Company") as of December 31 , 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Goodbody Securities Incorporated 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 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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Goodbody Securities Incorporated's auditor since 2012. *~~t«~4.* **~!~ltd al** Tinley Park, Illinois February 23 , 2021 {5}------------------------------------------------ ### **STATEMENT OF FINANCIAL CONDITION As at 31si December 2020** | | \$ | |---------------------------------------------------------|----------------------| | Assets | | | Cash and cash equivah,mts | 2,708,9.14 | | Prepayments | 10,683 | | Accounts ReceivableCustomer | 1,686. | | Federal Taxes Receivable | 375 | | Total Assets | 2,721 ,658 | | Liabilities | | | Payable to related party | 296,094 | | Accounts payable and other ac:cru.ed expenses | 31 ,741 | | Fail to receive | 1;686 | | Taxes Payable | 50 | | Total Liabilities | 329,571 | | Stockholder's Equity | | | Common stock, par value \$0.01. Authorized 3,000 shares | | | issued and outstanding 1 share at \$0.01 per share | | | Additional paid in capital | 2,os7,ooo | | Retained earnings | 335;087
2,392;087 | | Tola! stockholder's equity | | | Total Liabilities and Stockholder's Equity | 2,721,658 | | | | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ Notes to the Statement of Financial Condition December 31"\ 2020 - 1. G.eneral Information and Summary of Significant Accounting Policies - (a) The Company Goodbody Securities Incorporated (the ''Company'') was incorporated on 4th March, 2005. As of December 31 st 2020, the Company was a wholly owned subsidiary ofGanmac Holdings (BVI) ltd ("GANMAC"). GANMAC's primary shareholder is FEXCO Holdings which has a holding of 51%. GANMAC's other shareholder is the Goodbody Employee Benefit Trust ("EST") which has a holding of 49%. The EBT holds shares on behalf of the employees of the Goodbody group. The Company is a U.S. registered broker-dealer with ali office in Oublin, Ireland. GSI trades exclusively in non°US equity securities with institutional investors. The company also distributes third-party research created by Goo'dbody Stockbrokers, its Irish affiliate, to US investors, On 24th January; 2006 the Financial Industry Regulatory Authority (FINRA) approved the application of Goodbody Securities Incorporated for membership of FINRA and as such the Company is a registered broker dea!er in securities under the Securities and Exchange Act of 1934. The Company operates under the provisions of paragraph (k)(2)(i) of Rule 15c3-3 of the Securities and Exchange Act of 1934. and, accordingly, is exempt from the remaining provisions ofthat rule. ### **(b) Basis of Preparation** These Financial Statements were prepared in accordance with accounting principles generally accepted in the UTlited States of America which require management to. rnake estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the fin;:1ncial \$tatements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those. estimates. ### **(c) Revenue Recognition** Service income is t:iarned from an agreement with GBS whereby t he Company acts as an introducing intermediary broker-dealer in transactions between GBS and its US counterparties. The Company believes the performance obligation for providirig this service is satisfied on a monthly basis for as long as the Gornpapy remains a registered broker-dealer in good standing. The Company also has an agreement with GBS to distribute independent third-party research produced by GBS to the Company's US institutional clients. The US institutic:ina! clients put a non-contractual value. on this research .and sends that value to the Company. The Company; per its agreementwith GBS, retains a portion as if::i distribution fee. · The Company accounts for revenue in accordance with ASC Topcc 606, Revenue from Contracts with Customers. Revenue recognition is determined through the. following steps: (1) identify the contract(s) with a custom~r; (2) identify the performance obligations in the contract; (3) determine .the transaction price; (4) allocate the transactio\_n price to the performance obligations in the contract; a,nd (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue from contracts with customers includes service fee income from service arrangement The recognition .and measurement of revenue is based on the assessment of individual contract term\$. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over Ume; when to recognize revenue based on the appropriate measure of the Company's progress under the contract: and whether constraints on variable consideration should be applied due to uncertain -future events. {7}------------------------------------------------ Notes to the Statement of Financial Condition December 31st, 2020 - 1. General Information and Summary of Significant Accounting Policies (continued) - (d) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to faxable 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. ### 2. Income Taxes Provision for income taxes for the years ended December 3181, 2020 includes the following amounts (the Company reports under the accrual method for tax purposes): | Current Taxes | િક | |----------------------------------|-------| | Federal | 9.104 | | City | 25 | | State | 25 | | Total Current | 9.154 | | Deferred Tax | | | | 277 | | Total provision for income taxes | 9,432 | The Company's effective income tax rate is higher than what would be expected if the federal statutory rate were applied to income before income taxes primarily because of certain expenses for financial reporting purposes that are not deductible for tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The major temporary differences that give rise to the deferred tax assets are due to start-up and organizational costs. A valuation allowance for deferred tax assets was not considered necessary at December 31\*, 2020, Management believes it is more likely than not that the Company will fully realize the total deferred income tax asset as of December 31, 2020, based upon its expected future levels of taxable income. The Company is no longer subject to examination by tax authorities for Tederal, state or local income taxes for periods before 2017. ### 3. Cash and Cash equivalents The Company considers all highly-liquid instruments with original maturities of 3 months or less at the date of purchase to be cash equivalents. {8}------------------------------------------------ ![](_page_8_Picture_1.jpeg) Notes to the Statement of Finctncial Condition December 31•t, 2020 # 4. Net Capital The Company is subjectto the Securities and Exchange Commission (SEC) Uniform Net Capital Rule 15C3-1 which requires the maintenance of minimum net capital as defined. At December .31st, 2020; the Company had net capital, as defined by the SEC Uniform Net Capital Rule 15c3-1, of \$2,380,988 which was \$2;130,988 in excess bf its required net capital of \$250,000. # **5. Related party transactions** GBS charges a. fee for corporate overhead services. Service fee income is charged to GBS .. For the year ended December 31, 2020, corporate overhead expenses and service fee income were \$183,442 and \$278,93.3 respectively. The Company has an agreement With GBS t0 distribute independent third-party research produced by GBS to the Company's US institutional clients. The Company receives a research services fee from GBS for providing this service: For the year ended December 31st, 2020, total research services fee income from GBS was \$57,451 . At December 31 st 2020, the Company had a net payable due to.GBS of \$2S6,094. ## **6. Commitments and Contingencies** There were no commitments . .and contingencies al the year end. # **7, Concentrations of Credit Risk..** As a securities broker-dealer, the Company is engaged ih various securities trading and brokerage activities servicing a diverse group of investors. A substantial portion of the Company's transactions are executed with and on behalf of investors, ihcluding other brokers arid dealers, commerdal banks, U.S. governmental agencies, mutual funds, and financial institutions ahd are generally coHateraliied. The Company's. exposure to credit risk ass.ociated With the hon-performance of these customers in fulfilling their contractual obligations pursuant to securities transactions can. be directly impacted by volatile securities markets, credit markets, and regulatory changes. In addition, the Company's cash is on deposit at two financial institutions and the balances at times may exceed the federally insured limit. The Company believes it is not exposed to any Significant credit risk to cash: ### **8. Subsequent Event** The Company has evaluated subsequent. events occurring after the statement of rinancial condition date December 31. 2020, through the date. these financial statements were issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which would require disclosure or adjustment to the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.