# RCH SECURITIES, LLC X-17A-5 (2021-02-26) — Broker-dealer annual report
- Company: RCH SECURITIES, LLC
- Form: X-17A-5
- Filed: 2021-02-26
- Period: 2020-12-31
- Accession: 0001424561-21-000001
- CIK: 1424561
- File #: 8-67813
- Material weakness: No
- Auditor: Dixon Hughes Goodman LLP
- Auditor location: Charlotte, NC
- Contact: Spencer Pringle
- Phone: 704-248-5839
- Signed by: Spencer Pringle (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1424561/000142456121000001/public.pdf
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# **Report of Independent Registered Public Accounting Firm**
To the Board of Directors RCH Securities, LLC Charlotte, NC
#### Opinion on the Financial Statements
We have audited the accompanying statement of financial condit ion of RCH Securities, 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 U.S. generally accepted accounting principles.
#### **Basis tor** Opinion
The 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
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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, eV:idence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management. as well as evaluating t he overall presentation of the financial statement. We believe t hat our audit provides a reasonable basis for our opinion.
We have served as t he Company's auditor since 2006.
Charlotte, NC February 26, 2021
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Statement of Financial Condition
December 31, 2020
**PUBLIC**
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# Table of Contents
| | Page |
|---------------|------|
| Audit Report | 1-2 |
| Balance Sheet | 3 |
| Notes | 4-6 |
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# STATEMENT OF FINANCIAL CONDmON DECEMBER 31, 2020
| ASSETS | |
|---------------------------------------|---------------|
| Cash | \$
599,259 |
| Prepaid Expenses | 59 478 |
| TOT AL ASSETS | \$
658 737 |
| LIABILITIES AND MEMBER'S EQUITY | |
| Due To Parent | \$
90,451 |
| Accounts Payable | 6,739 |
| Sala1ies & \Vages Payable | 19,919 |
| TOT AL LIABILITIES | 117,109 |
| MEMBER'S EQUITY | 541,628 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
658 737 |
See notes to financial statement.
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## NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
## 1. SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
Opet·ations - RCH Securities, LLC (the "Company"), a wholly owned subsidiary of Retirement Clearinghouse, LLC (the "Parenf'), is a limited liability company that operates as a registered broker dealer. As a registered broker dealer. the Company's principal business is the distribution and servicing of mutual fund-based Individual Retirement Accounts ("IRA'') to individual investors that choose to move their qualified savings from a 40l(k) or other qualified retirement plan into an IRA. The Company does not take title to, or control of. any securities. The Company is registered with the Securities and Exchange Commission, and is a member of the Financial Industry Regulatory Agency ("FINRA").
Estimates - The preparation of financial statement in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Accordingly, the actual amounts could differ from those estimates.
~ - The Company maintains cash deposits with financial institutions which are insured by the Federal Deposit Insurance Corporation ("FDIC").
Income Taxes - The Company is a limited liability company that is taxed as a partnership for federal and state income tax purposes. The Company's single member is also a limited liability company that is taxed as a partnership for federal and state income tax purposes. As a result, income or loss of the Company is considered income of the members of Retirement Clearinghouse, LLC and no income or Joss tax provision is recorded by the Company. The Company has determined that it does not have any material unrecognized tax bene fits or obligations as of December 31, 2020.
Subsequent Events - The Company evaluated the effect subsequent events would have on the financial statement through February 26, 2021, which is the date the financial statement was issued.
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## NOTES TO FINANCL<\L STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
#### 2. NET CAPITAL RI:QUIRE!:\'IENTS
The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. As of December 31, 2020, the Company had net capital of \$482,150 which was \$457,150 in excess of its required net capital of \$25,000. The Company had \$117,109 in aggregate indebtedness at December 31, 2020 and a net capital ratio of 0.24 to I.
#### 3. **RI:LATED PARTI' TRANSACTIONS**
The Company's primary purpose is to process certain transactions initiated by the Parent that require the services of a registered broker-dealer. These services can range from providing education regarding an individual's product choices, investment choices, or servicing options to helping investors consolidate assets into retirement products, as well as moving assets from qualified retirement plans to individual retirement products. As of December 31, 2020, \$90,451 was due to the Parent. In addition, as of December 31, 2020, amounts due to the Parent included in trade payables amounted to \$2,425.
### 4. CO1\1MITMENTS AND CONTINGENT lLIABILITIES
The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities and had not been named as defendant in any lawsuit at December 31, 2020 or during the year then ended.
#### 5. GUARANTEES
The Company has issued no guarantees at December 31, 2020 or during the year then ended.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.