# RCH SECURITIES, LLC X-17A-5 (2024-03-01) — Broker-dealer annual report - Company: RCH SECURITIES, LLC - Form: X-17A-5 - Filed: 2024-03-01 - Period: 2023-12-31 - Accession: 0001424561-24-000001 - CIK: 1424561 - File #: 8-67813 - Type: Broker-dealer - Material weakness: No - Auditor: FORVIS LLP - Auditor location: Charlotte, NC - Contact: Spencer Pringle - Phone: 704-248-5839 - Signed by: Spencer Pringle (President) Original filing: https://www.sec.gov/Archives/edgar/data/1424561/000142456124000001/public.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Board of Directors RCH Securities, LLC Charlotte, NC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of RCH Securities, LLC (the "Company") as of December 31, 2023, including 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 , 2023, 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 statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ## **FOrtV IS, L-L..P** **We have served as the Company's auditor since 2008. Charlotte, NC February 29, 2024** {1}------------------------------------------------ Statement of Financial Condition December 31, 2023 **PUBLIC** {2}------------------------------------------------ ## Table of Contents | | Page | |--------------------------------------------------------|------| | Repo1t of Independent Registered Public Accounting Fnm | 1 | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-4 | {3}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023 | ASSETS | | |----------------------------------------|-----------------| | Cash | \$
466,358 | | Due From Parent | 984,172 | | Prepaid Expenses | 47,880 | | TOT AL ASSETS | \$
1,498,410 | | LIABILITIES AND MEMBER'S EQUITY | | | Accounts Payable | \$
3,279 | | Salaries & Wages Payable | 23,773 | | Accrued Purchases | 3,600 | | Accrued Expenses-ERC | 177,182 | | Payroll WIH | 554 | | TOT AL LIABILITIES | 208,388 | | MEMBER'S EQUITY | 1,290,022 | | TOT AL LIABILITIES AND MEMBER'S EQUITY | \$
1,498,410 | See notes to financial statement. {4}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** #### **1. SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES** **Operations** - RCH Securities, LLC (the "Company"), a wholly owned subsidiaiy of Retirement Cleai·inghouse, LLC (the "Pai·ent"), is a limited liability company that operates as a registered broker dealer. As a registered broker dealer, the Company's p1incipal business is the dishibution 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 secmities. The Company is registered with the Securities and Exchange Commission, and is a member of the Financial Industiy Regulatmy Agency ("FINRA"). **Estimates** - The prepai·ation of financial statement in confonnity with accounting p1inciples generally accepted in the United States of Ame1ica ("U.S. GAAP") requires management to make estimates and assumptions that affect the repo1ted amounts of ce1tain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the repo1ted amounts of revenues and expenses during the repo1ting pe1iod. Accordingly, the actual amounts could differ from those estimates. **Cash** - The Company maintains cash deposits with financial institutions which ai·e insmed by the Federal Deposit Insurance C01poration (''FDIC"). **Income Taxes** - The Company is a lilnited liability company that is taxed as a paitnership for federal and state income tax pmposes. The Company's single member is also a liinited liability company that is taxed as a paitnership for federal and state income tax pmposes. As a result, income or loss of the Company is considered income of the members of Retirement Cleaiinghouse, LLC and no income or loss tax provision is recorded by the Company. The Company has detemiined that it does not have any mate1ial unrecognized tax benefits or obligations as of December 31, 2023. **Subsequent Events** - The Company evaluated the effect subsequent events would have on the financial statement through Febrna1y 29, 2024, which is the date the financial statement was issued. {5}------------------------------------------------ #### **NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2023** #### **3. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission's Unifonn Net Capital Rule (SEC Rule 15c3-l), 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 1. As of December 31, 2023, the Company had net capital of \$257,970 which was \$232,970 in excess of its required net capital of \$25,000. The Company had \$208,388 in aggregate indebtedness at December 31, 2023 and a net capital ratio of O. 09 to 1. #### **4. RELATED PARTY TRANSACTIONS** The Company's primaiy purpose is to process ce1tain transactions initiated by the Pai·ent that require the se1vices of a registered broker-dealer. These se1vices can range from providing education regarding an individual's product choices, investment choices, or se1vicing options to helping investors consolidate assets into retirement products, as well as moving assets from qualified retirement plans to individual retirement products. Only transactions that relate specifically to broker-dealer activities result in revenue being recognized by the Company. Dming 2023, all of the Company's revenue was derived from the clients of its Parent. The Company received an allocation of total assets under administration of \$179,395. The Pai·ent allocates vai-ious percentages of its common office overhead expenses, personnel, mai·keting, and technology to the Company according to an expense shai·ing agreement. The Company incurred \$542,385 in such charges for the yeai· ended December 31, 2023. As of December 31, 2023, \$984,172 was due from the Pai·ent. In addition, as of December 31, 2023, amounts due to Pai·ent included in trade payables amounted to \$2,079. #### **4. COMMITMENTS AND CONTINGENT LIABILITIES** The Company had no lease or equipment rental commitments, no unde1writing commitments, no contingent liabilities and had not been nained as defendant in any lawsuit at December 31 , 2023 or dming the yeai· then ended. #### **5. GUARANTEES** The Company has issued no guarantees at December 31, 2023 or dming the yeai· then ended. #### **6. ACCRUED EXPENSES-ERC** The Company booked an accrued expense for the portion of Employee Retention Credit received in 2022 and 2023 that may have to be returned to the IRS based on eligibility. {6}------------------------------------------------ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.