# CREDICORP CAPITAL LLC X-17A-5 (2022-03-23) — Broker-dealer annual report - Company: CREDICORP CAPITAL LLC - Form: X-17A-5 - Filed: 2022-03-23 - Period: 2021-12-31 - Accession: 0001336040-22-000001 - CIK: 1336040 - File #: 8-67048 - Type: Broker-dealer - Material weakness: No - Auditor: BDO USA, LLP - Auditor location: Miami, FL - Contact: Carlos Coll - Phone: 305-455-0980 - Email: ssinger@mavenstrategic.com - Website: mavenstrategic.com - Signed by: Carlos Coll (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1336040/000133604022000001/credicorppublic2021.pdf --- {0}------------------------------------------------ # Credicorp Capital, LLC (formerly Ultralat Capital Markets, LLC) Statement of Financial Condition December 31, 2021 {1}------------------------------------------------ # **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER OMB APPROVAL 8-67048 **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/21 | | | 12/31/21 | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--|-----------------|--------------------------------------------|--|--|--|--| | | MM/DD/YY | | | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | | | NAME OF FIRM: _______________________________________________________________________ | Credicorp Capital, LLC | | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
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x
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Broker-dealer
Security-based swap dealer
Major security-based swap participant
☐ Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | | | 801 Brickell Avenue, Suite 1020
_____________________________________________________________________________________ | | | | | | | | | | | (No. and Street) | | | | | | | | | _____________________________________________________________________________________
Miami | FL | | | 33131 | | | | | | (City) | (State) | | | (Zip Code) | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | ssinger@mavenstrategic.com | | | | | | _____________________________________________________________________________________
Steven Singer
(Name) | 561-784-8922
(Area Code – Telephone Number) | | (Email Address) | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
_____________________________________________________________________________________
BDO USA, LLP | (Name – if individual, state last, first, and middle name) | | | | | | | | | _____________________________________________________________________________________
1450 Brickell Avenue, 18th floor | Miami | | FL | 33131 | | | | | | (Address) | (City) | | (State) | (Zip Code) | | | | | | _____________________________________________________________________________________
10/08/2003 | | | 243 | | | | | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | FOR OFFICIAL USE ONLY | | | | | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | | | | | | | CFR 240.17a-5(e)(1)(ii), if applicable. **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.** {2}------------------------------------------------ | Carlos Coll __________________________________________________________________________________________________________________________________________________________________ | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ______________________________________________________________________________________________________________________________________________________________________________
financial report pertaining to the firm of Credicorp Capital, LLC | | December 31 , 2021 , is true and correct. I further swear (or affirm) that neither the company nor any | | partner, officer, director, or equivalent person, as the case may be, has any proprietativ interest in any account classified solely | | as that of a customer. | | Signature: | | Notary Public State of Florida
Andres Chavamaga | | My Commission HH 008503
Title: | | 40
Expires 06/18/2024 | | | | larida 10 ' C400 101741070
Notary Public | | This filing** contains (check all applicable boxes): | | La) Statement of financial condition. | | 2 (b) Notes to consolidated 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). | | L (d) Statement of cash flows. | | [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | L (f) Statement of changes in liabilities subordinated to claims of creditors. | | [ (g) Notes to consolidated financial statements. | | [h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | ال (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | } Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | [] {k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | [] Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | [ {m} Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR
240.15c3-3(p){2) or 17 CFR 240.18a-4, as applicable. | | [] (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net
worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | exist. | | (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | | 1 (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. | | (r) Compliance report in accordance with 17 CFR 240.18a-7, as applicable. | | s) Exemption report in accordance with 17 CFR 240.18a-7, as applicable. | | (t) Independent public accountant's report based on an examination of the statement of financial condition. | | O (u) Independent public accountant's report based on an examination of the financial statements under 17 | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
[_ (v) Independent public accountant's report based on an examination of certain statements in the 17 | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | {w}Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17
CFR 240.18a-7, as applicable. | | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12,
as applicable. | | (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or | | a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). | | | {3}------------------------------------------------ | C O N T E N T S | | |-----------------|--| |-----------------|--| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | |---------------------------------------------------------|-------------| | FINANCIAL STATEMENT | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3
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7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Tel: 305-381-8000 Fax: 305-374-1135 **www.bdo.com** 100 SE 2nd St., Suite 1700 Miami, FL 33131 # **Report of Independent Registered Public Accounting Firm** Board of Directors and Member Credicorp Capital, LLC Miami, Florida # **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Credicorp Capital, LLC (the "Company") as of December 31, 2021, 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 at December 31, 2021, 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 [consolidated] 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 2021. Miami, Florida March 22, 2022 BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. {5}------------------------------------------------ # **CREDICORP CAPITAL, LLC (formerly Ultralat Capital Markets, LLC)** STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 # **ASSETS** | Cash and cash equivalents | \$
5,932,957 | |----------------------------------------------|-----------------| | Receivable from clearing broker | 209,543 | | Due from affiliates | 34,985 | | Deposits at clearing brokers | 375,000 | | Right-of-use lease assets, net | 250,058 | | Property and equipment, net | 129,010 | | Other assets | 231,838 | | TOTAL ASSETS | \$
7,163,391 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accounts payable and accrued liabilities | \$
525,261 | | Commissions payable | 23,924 | | Due to affiliates | 71,248 | | Lease liabilities | 277,302 | | TOTAL LIABILITIES | 897,735 | | COMMITMENTS AND CONTINGENCIES (NOTE 6 AND 8) | | | MEMBER'S EQUITY | 6,265,656 | TOTAL LIABILITIES AND MEMBER'S EQUITY \$ 7,163,391 See accompanying notes. {6}------------------------------------------------ # **NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### *Description of Business and Organization* Credicorp Capital, LLC (formerly Ultralat Capital Markets, LLC) (the Company), is a member of the Financial Industry Regulatory Authority (FINRA) and is a registered broker dealer. The Company primarily acts in a principal capacity, buying and selling securities on a riskless basis with customers and other dealers within Latin America, principally Colombia. The Company is also authorized to buy and sell equities, mutual funds, corporate debt, and U.S. Government debt, for its customers, and charge a commission. The Company is a Florida Limited Liability Company and wholly owned subsidiary of Credicorp Capital US (the Parent), formerly Ultralat Group, Inc. The Parent is a wholly owned subsidiary of Credicorp Capital Ltd. an entity registered in Bermuda. Credicorp Capital Ltd. is a wholly owned subsidiary of Credicorp Ltd. (the Ultimate Parent), a New York Stock Exchange listed Peruvian financial services company. Effective February 1, 2021, the Company completed the transfer of net assets from Credicorp Capital Securities, a subsidiary of Credicorp Capital Ltd., which is a wholly owned subsidiary of the Company's Ultimate Parent. In accordance with ASC 805-50, the transfer of net assets of \$1,315,451 was between entities under common control, did not meet the definition of a business combination and there was no change in the reporting entity. The net assets were transferred at the carrying value on the transfer date of February 1, 2021. Concurrent with the completion of the merger, the Company changed its name to Credicorp Capital LLC. Due to this transaction, the net capital requirement has changed to the greater of \$250,000 or 6 2/3% of aggregate indebtedness. # *Government and Other Regulation* The Company's business is subject to significant regulation by the Securities and Exchange Commission (SEC) and FINRA. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the applicable requirements of these organizations. # *Cash and Cash Equivalents* The Company considers all highly liquid debt instruments having maturities of three months or less at the date of acquisition to be cash equivalents. The Company may, during the ordinary course of business, maintain account balances in excess of federally insured limits. The Company does not expect any risk of loss relating to these deposits. ### *Receivables* The Company's receivables from its clearing broker includes amounts receivable from unsettled trades, including amounts related to accrued interest receivables and cash deposits. The Company's trades are cleared through its clearing broker and settled daily between the clearing broker and the Company. Because of this daily settlement, the amount of unsettled credit exposure is limited to the amount owed the Company for a very short period of time. The Company continually reviews the credit quality of its counterparties. {7}------------------------------------------------ # **NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### *Property and Equipment* Property and equipment is recorded at cost. Expenditures for major betterments and additions are charged to the asset accounts while replacements, maintenance and repairs which do not improve or extend the lives of the respective assets are charged to expense currently. #### *Depreciation and Amortization* Depreciation of property and equipment is computed using the straight-line method at various rates based upon the estimated useful lives of the assets. The range of estimated useful lives is summarized as follows: | Furniture and fixtures | 7 years | |------------------------|----------------------------------------| | Leasehold improvements | Lesser of useful life or term of lease | | Office equipment | 2 –
5 years | #### *Leases* The Company adopted ASC 842 – *Leases* on January 1, 2019, which requires the recording of a right-of-use asset and related lease liability on the statement of financial condition. Such amounts are based on the net present value of future lease obligations, using an incremental borrowing rate to determine the Company's effective cost of capital (see Note 6). #### *Defined Contribution Plan* The Company maintains a 401(k) plan covering substantially all employees, with the Company matching up to 6% of employee payroll deferrals. #### *Income Taxes* The Company is a disregarded entity for federal income tax purposes. Instead, its taxable income or loss is reflected on the Parent's income tax return and therefore, there is no provision for income taxes included in the accompanying financial statements, as the Parent does not allocate income taxes to the Company. The Company assesses its tax positions in accordance with "*Accounting for Uncertainties in Income Taxes*" as prescribed by the Accounting Standards Codification, which provides guidance for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return for open tax years (generally a period of three years from the later of each return's due date or the date filed) that remain subject to examination by the Company's major tax jurisdictions. The Company assesses its tax positions and determines whether it has any material unrecognized liabilities for uncertain tax positions. The Company records these liabilities to the extent it deems them more likely than not to be incurred. The Company believes that it does not have any significant uncertain tax positions requiring recognition or measurement in the accompanying financial statement. #### *Use of Estimates in the Preparation of Financial Statement* The preparation of the financial statement in conformity with accounting principles generally accepted in the United States of America 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 financial statement. Actual results could differ from those estimates. {8}------------------------------------------------ #### **NOTE 2. NET CAPITAL REQUIREMENTS** As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule of the Securities and Exchange Commission, which requires that "Net Capital", as defined, shall be at least the greater of \$250,000 or 6-2/3% of "Aggregate Indebtedness", as defined. At December 31, 2021, the Company's "Net Capital" was \$5,796,006 which exceeded requirements by \$5,546,006. The ratio of "Aggregate Indebtedness" to "Net Capital" was 0.11 to 1 at December 31, 2021. #### **NOTE 3. FAIR VALUE MEASUREMENTS** As of December 31, 2021, the Company did not hold any securities requiring fair value measurement. ### **NOTE 4. RISK CONCENTRATIONS** #### *Clearing and Depository Concentrations* The clearing and depository operations for the Company's securities transactions are provided by a brokerage firm located in Jersey City, New Jersey. The Company also has a clearing arrangement with a brokerage firm located in New York, New York. At December 31, 2021, deposits at clearing brokers, the receivable from clearing broker and \$5,086,955 of cash and cash equivalents are held by and due from these brokerage firms. #### *Other Risk Concentrations* In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to off-balance sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss. The Company's customer securities activities are transacted on either a cash or margin basis. In margin transactions, the Company's clearing brokers extend credit to its customers, subject to various regulatory and internal margin requirements, collateralized by cash and the securities in the customers' accounts. In connection with these activities, the Company executes customer transactions involving the sale of securities not yet purchased, substantially all of which are transacted on a margin basis subject to individual exchange regulations. Such transactions may expose the Company to significant off-balance-sheet risk in the event margin requirements are not sufficient to fully cover losses that customers may incur. In the event the customer fails to satisfy its obligations, the company may be required to purchase or sell which are transacted on a margin basis subject to individual exchange regulations. Such transactions may expose the Company to significant off-balance-sheet risk in the event margin requirements are not sufficient to fully cover losses that customers may incur. In the event the customer fails to satisfy its obligations, the Company may be required to purchase or sell financial instruments at prevailing market prices to fulfill customer's obligations. The Company seeks to control the risks associated with its customer activities by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines. The Company monitors required margin levels daily and pursuant to such guidelines, requires customers to deposit additional collateral or to reduce positions when necessary. {9}------------------------------------------------ #### **NOTE 5. PROPERTY AND EQUIPMENT** Property and equipment at December 31, 2021 consisted of the following: | Furniture and fixtures | \$
252,176 | |-------------------------------------------------|---------------| | Office equipment | 435,391 | | Leasehold improvements | 337,084 | | Website development | 52,910 | | Artwork | 20,040 | | | 1,097,601 | | Less: accumulated depreciation and amortization | 968,591 | | | \$
129,010 | | | | #### **NOTE 6. LEASE COMMITMENTS** In January 2019, the Company adopted ASC 842, Leases ("ASC 842"), which requires substantially all leases (with the exception of leases with a term of one year or less) to be recorded on the statement of financial condition using the right-of-use (''ROU") asset approach. Upon adoption, the Company recognized a lease liability of approximately \$1,004,000, with an offsetting ROU asset of approximately \$883,000, and an approximate \$121,000 reduction of deferred rent resulting in no impact to equity. The discount rate used to calculate the present value of future minimum lease payments was 5%. As of December 31, 2021, the ROU asset was \$250,058 and the lease liability was \$277,302. The Company is obligated under a non-cancelable operating lease for its office facility in Miami, Florida, expiring in 2022. The Company has a security deposit held by the landlord in the amount of \$60,000. This amount is included in other assets in the accompanying statement of financial condition. In addition, the Company is obligated under a non-cancelable operating lease with an affiliate for its foreign office facility in Bogota, Colombia, expiring in 2023. The approximate minimum annual lease payments required under the Company's operating lease liabilities together with their present value as of December 31, 2021, are as follows: | 2022 | | 278,000 | |------------------------------------------------------|----|---------| | 2023 | | 8,000 | | Total payments due under operating lease liabilities | | 286,000 | | Less discount to present value | ( | 8,698) | | Total operating lease liabilities | \$ | 277,302 | The weighted average remaining lease term for the operating leases is approximately 12 months. The weighted average discount rate as of December 31, 2021, was 5%. Cash amounts included in the measurement of the operating lease liability was approximately \$307,000 for the year ended December 31, 2021. {10}------------------------------------------------ # **NOTE 7. RELATED PARTY TRANSACTIONS** # *Referral Fee Agreement* The Company has sub-clearing agreements with a Colombian broker dealer affiliate and a Chilean broker dealer affiliate in which the Company acts as a principal. The affiliates introduce foreign customers to the Company. As of December 31, 2021, the Company owes \$71,248, which is included in due to affiliates on the statement of financial condition. # *Investment Advisor Affiliate* The Company is an affiliate of Credicorp Capital Advisors LLC, formerly UltraAdvisors, an investment advisor registered in the State of Florida (CCA). CCA maintains a brokerage account with the Company's clearing firm for which activity is reflected on the Company's statement of financial condition and may result in a balance due to or from the Company. At December 31, 2021, CCA owed the Company \$2,685, which is included in due from affiliates on the statement of financial condition. # *Chaperoning and Non-Chaperoning – Affiliates* The Company provides chaperoning and non-chaperoning services to its affiliates in Colombia, Peru and Chile. As of December 31, 2021, \$32,300 was due to the Company, which is included in due from affiliates on the statement of financial condition. #### *Lease Agreement* The Company has a lease agreement with an affiliate for its Bogota, Colombia office (see Note 6). # **NOTE 8. CONTINGENCIES** During the normal course of operations, the Company, from time to time, may be involved in lawsuits, arbitrations, claims, and other legal or regulatory proceedings. The Company does not believe that these matters will have a material adverse effect in the Company's financial position. #### *COVID-19* In January 30 2020, the World Health Organization ("WHO") announced a global health emergency because of a new strain of coronavirus (the "COVID-19 outbreak") and the risks to the international community of the potential for the virus to spread globally. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is actively monitoring the impact of the global situation on its financial condition, liquidity, operations, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2022. The Company has evaluated subsequent events through March 22, 2022, the date this financial statement was available to be issued, and determined that no additional financial statement recognition or disclosure is necessary. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.