# FWS RETIREMENT SERVICES, LLC X-17A-5 (2022-03-30) — Broker-dealer annual report - Company: FWS RETIREMENT SERVICES, LLC - Form: X-17A-5 - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001482026-22-000001 - CIK: 1482026 - File #: 8-68491 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst Wintter & Associates - Auditor location: Walnut Creek, CA - Contact: Elizabeth Collins - Phone: 415-246-9169 - Email: bhasday@frenkel.com - Website: frenkel.com - Signed by: Brian Hasday (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1482026/000148202622000001/fws2021audit.pdf --- {0}------------------------------------------------ Annual Audit Report December 31, 2021 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION **Washington,** D.C. **20549** OMBAPPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated **avera1e** burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-S PART** Ill SEC FILE NUMBER **8-68491** **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 | ---------
01/01/21 | AND ENDING | ----------
12/31/21 | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------|-----------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | FWS Retirement Services, LLC
NAME OF FIRM: | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
• Security-based swap dealer
!St Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | | | D Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | One California Street, Suite 400 | • | | | | | | (No. and Street) | | | | | San Francisco | California | | 94111 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Brian V. Hasday | (415) 878-2310 | | BHasday@frenkel.com | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing•
Ernst Wintter & Associates LLP | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | 675 Ygnacio Valley Road, Suite A200 | Walnut Creek | California | 94596 | | | (Address) | (City) | (State) | (Zip Code) | | | February 24, 2009 | | | 3438 | | | | | | (PCAOB '''""'"" N,m,.,, • apPlkabl•J I | | | r·
of '"'""''" with PCAOB)lff applfGbl•J FOR OFFICUU. USE ONLY | | | | | | • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(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 0MB control number. {2}------------------------------------------------ ### **OATH OR AFFIRMATION** | l, | Brian V. Hasday | |----|-----------------| | | | I, Brian V. Hasday • swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of FWS Retirement Services, LLC as of **\_\_\_\_\_\_\_\_\_\_ D""'e""'c .... em~be~r...;;;3..;..,1** 2QgL 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 proprietary interest in any account classified solely as that of a customer. -•.,, ·, '··· 11\J *~s* ~ k !'J). MCti~, *hJr,J* . I ' ,., . I • ~ Notary Public Regina J. Brooks Notary Public. State of New York . ~ o I BR6310577 Kinl!S County **This filing•• contains (check all applicable box** : . . E · es 08i"5i2022 - li2I (a) Statement of financial condition. ommtsSion xptr *M* - D (b) Notes to consolidated statement of financial condition. - li2I (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). - 121 (d) Statement of cash flows. - 121 (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - 121 (g) Notes to consolidated financial statements. - li2l (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.lSa-2. - 1210) 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.lSa-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - li2] (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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.lSa-4, as applicable. - li2] (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.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - li2l (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - li2l (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - liZI (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - li2I (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or 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). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - 0 *To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7{d)(2), as applicable.* {3}------------------------------------------------ ### **Table of Contents** | Report oflndependent Registered Public Accounting Firm | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | Statement oflncome | 3 | | Statement of Changes in Members' Equity | 4 | | Statement of Cash Flows | 5 | | Notes to the Financial Statements | 6-8 | | Supplemental Schedules | 9 | | Schedule I: | 10 | | Computation of Net Capital Under Rule 15c3-I
of the Securities and Exchange Commission | | | Reconciliation with Company's Net Capital Computation | | | Schedule ll: | 11 | | Computation for Determination of the Reserve Requirements
and Information Relating to Possession or Control
Requirements for Brokers and Dealers pursuant to Rule 15c3-3 | | | Review Report of Independent Registered Public Accounting Firm | 12 | | SEA Rule 15c3-3 Exemption Report | 13 | {4}------------------------------------------------ *675 Yg11acio Valley Road, Suite A200* Wa/m11 *Creek, CA 94596* (925) 933-2626 Fa.r (925) 944-6JJJ ## **Report of Independent Registered Public Accounting Firm** To the Members of FWS Retirement Services, LLC ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of FWS Retirement Services, LLC (the "Company") as of December 31, 2021, the related statements of income, changes in members' equity and cash flows for the year then ended, and the related notes and schedules I and II (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 statements are 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 statements, 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. #### **Auditor's Report** on **Supplemental Information** Schedules I and II have been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240. I 7a-5. In our opinion, schedules I and II are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 201 I. Walnut Creek, California March 28, 2022 {5}------------------------------------------------ ### **Statement of Financial Condition** **December 31, 2021** | Assets | | |---------------------------------------|---------------| | | | | Cash | 331,572
\$ | | Referral fees receivable | 535,354 | | Total Assets | 866,926
\$ | | | | | Liabilities and Members' Equity | | | Liabilities | | | Accounts payable | 20,000
\$ | | Total Liabilities | 20,000 | | Members' Equity | | | Class A, 2 units | 802, 171 | | Class B, 2 units | 44,755 | | Total Members' Equity | 846,926 | | Total Liabilities and Members' Equity | 866,926
\$ | {6}------------------------------------------------ ## **Statement of Income** ## **For the Year Ended December 31, 2021** | Revenue | | |--------------------------|--------------| | Referral fee income | \$ 6,805,974 | | Total Revenue | 6,805,974 | | Operating Expenses | | | Professional fees | 29,830 | | Regulatory fees | 6,387 | | Other operating expenses | 12,145 | | Total Expenses | 48,362 | | Net Income | \$ 6,757,612 | {7}------------------------------------------------ ### Statement of Changes in Members' Equity ### For the Year Ended December 31, 2021 | | Class A
Members | Class B
Members | Total | | |-------------------|--------------------|--------------------|--------------|--| | January I, 2021 | s
860,2 10 | 171,124
\$ | s 1,031,334 | | | Distributions | (6,233,220) | (708,800) | (6,942,020) | | | Net income | 6,175,181 | 582,431 | 6,757,612 | | | December 31, 2021 | s
802,171 | s
44,755 | s
846,926 | | {8}------------------------------------------------ ## **Statement of Cash Flows** ## **For the Year Ended December 31, 2021** | Cash Flows from Operating Activities | | |-----------------------------------------------|---------------| | Net income | \$ 6,757,612 | | Adjustments to reconcile net income | | | to net cash provided by operating activities: | | | (]ncrease) decrease in: | | | Referral fees receivable | 64,111 | | Increase (decrease) in: | | | Accounts payable | (4,550) | | Net Cash Provided by Operating Activities | 6,817,173 | | Cash Flows from Financing Activities | | | Member distributions | (6,942,020) | | Net Cash Used in Financing Activities | (6,942,020) | | Net Decrease in Cash | (124,847) | | Cash at beginning of year | 456,419 | | Cash at End of Year | 331,572
\$ | {9}------------------------------------------------ ## Notes to the Financial Statements # **December 31, 2021** ### 1. **Organization** FWS Retirement Services, LLC (the "Company") was organized as a Delaware limited liability company on April 27, 2009. The Company was formed as an accommodating broker dealer to receive referral fees on the sales of retirement plan products and investment advisory services. The Company is a securities broker dealer registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FlNRA") in ovember 2010. ### 2. **Significant Accounting Policies** ### **Basis of Presentation** The financial statements have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America ("GAAP"). ### **Use of Estimates** GAAP may require management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. ### **Fair Value of Financial Instruments** Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments approximate the carrying values of such amounts. The Company has no financial instruments that were required to be recorded at fair value on a recurring basis. ### **Cash and Cash Equivalents** The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. There were no cash equivalents as of December 31 , 2021. ### **Referral Fees Receivable** Referral fees receivable represents amounts that have been earned and are due from broker dealers and an investment advisory firm. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis in accordance with FASB ASC 326-20, *Financial Instruments* - *Credit losses.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financials assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the Statement of Financial Condition that is deducted from the asset's amortized cost basis. Changes in the allowance for credit losses are reported as credit loss expense on the Statement of Income. Per management's analysis, no allowance for credit losses was considered necessary as of December 31, 2021. ### **Income Taxes** The Company, a limited liability company, is taxed as a partnership under the Internal Revenue Code and a similar state statute. In lieu of income taxes, the Company passes I 00% of its taxable income and expenses to its members. Therefore, no provision or liability for federal or state income taxes is included in these financial statements. The Company is no longer subject to examinations by major tax jurisdictions for years before 2017. {10}------------------------------------------------ ## Notes to the Financial Statements December 31, 2021 ### 2. Significant Accounting Policies *(continued)* #### Income **Taxes** *(continued)* In the event of an Internal Revenue Service ("IRS") examination, the IRS is allowed to collect any underpayments of tax from partnerships (and entities taxed as partnerships) rather than the individual partners. If the rRS examines partnership items in a prior year under examination, any tax adjustments will be taken into account at the partnership level in the current year when the examination is complete. The partnership will pay the tax, interest, and penalties on underpayments using the highest statutory corporate or individual rate, which can be reduced under certain circumstances. Certain partnerships can elect out of the new tax examination process if eligible. Management does not believe these changes have an effect on the Company's financial statements as of and for the year ended December 31, 2021. #### 3. **Revenue from Contracts with Customers** Revenue from contracts with customers is recognized when, or as, the Company satisfies performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time when it is determined the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the uncertainties with respect to the amount are resolved. ln determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. #### **Refernl Fees** The Company earns referral fees for referring customers to broker dealers and an investment advisory firm. Referral fees are calculated as a percentage of member commissions from the placement of retirement plan products and advisory fees from investment advisory services performed. The performance obligation is deemed fulfilled as of the underlying trade date and when advisory services are completed monthly and quarterly. #### **Contract Balances** Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer payments. Typically, the Company receives payment from the customer in the month following the trade date or completion of investment advisory services. Therefore, a receivable is recognized since the performance obligation is met prior to receiving payment from the customer. Receivables related to revenue from contracts with customers totaled \$599,465 and \$535,354 as of January I, 2021 and December 31, 2021 , respectively. There was no deferred revenue at January I, 2021 and December 31, 2021 . The Company does not incur any expenses to obtain or fulfill contracts with customers. {11}------------------------------------------------ ## **Notes to the Financial Statements** ## **December 31, 2021** ### **4. Member Interests** In accordance with the Company's Operating Agreement (the "Agreement"), no member of the Company shall be personally liable for any debts, losses, or obligations of the Company. The Company, without limit, can issue Class A member units and Class B member units, but shall have no right to create a class of units superior to the Class A units without written consent of a majority of the Class A members. In accordance with the Agreement, the Class A members are allocated 100% of the gross revenue they generate plus I% of the Class B members gross revenue. The Class B members are allocated 99% of the gross revenue they generate. Expenses are allocated based upon ownership percentage. The net pass through of income and expenses, as defined, shall be allocated annually to each member. During 202 I, distributions of \$6,233,220 to the Class A members and \$708,800 to the Class B members were made in accordance with the Agreement. ### **S. Related Party Transactions** The Company has an Expense Sharing Agreement with Frenkel Benefits, LLC ("FB"), the Company's managing member and holder of class A units. FB pays most overhead expenses for the Company. The Company has no obligation to reimburse or compensate FB. The Company's results of operations and financial position could differ significantly from those that would have been obtained if the entities were autonomous. ### **6. Net Capital Requirements** The Company is subject to the SEC's uniform net capital rule (Rule I 5c3-I) which requires the Company to maintain a minimum net capital equal to or greater than \$5,000 and a ratio of aggregate indebtedness to net capital not exceeding 15 to I, both as defined. At December 31, 2021, the Company's net capital was \$311,572, which exceeded the requirement by \$306,572. ### 7. **Risk Concentration** Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. For the year ended December 31, 2021, the Company maintains cash balances which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash deposits. At December 31, 2021, I 00% of referral fees receivable was due from three companies. ### **8. Risks and Uncertainties** The global pandemic caused by COVID-19 developed rapidly and resulted in a high level of uncertainty and volatility that impacted businesses in all sectors. At this stage, the impact to the Company's business and financial results has not been significant based on the type of business conducted. Based on management's experience to date, management expects this to remain the case. The Company has taken certain health and safety operational measures and continues to follow government policies and advice. While there has not been a material impact thus far, the timeframe and outcome of the pandemic are uncertain. ### **9. Subsequent Events** The Company has evaluated subsequent events through March 28, 2022, the date which the financial statements were issued. {12}------------------------------------------------ # SUPPLEMENTAL SCHEDULES ## Pursuant to Rule 17a-5 of the Securities Exchange Act {13}------------------------------------------------ **Schedule** I # **Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission** ## *As* **of December 31, 2021** | Net Capital | | |----------------------------------------------------------|---------------| | Total members' equity | \$
846,926 | | Less: Non-allowable assets | | | Referral fees receivable | 535,354 | | Total non-allowable assets | 535,354 | | Net Capital | 311,572 | | Net minimum capital requirement of 6 2/3% of aggregate | | | indebtedness of\$20,000 or \$5,000, whichever is greater | 5,000 | | Excess Net Capital | \$
306,572 | # **Reconciliation with Company's Net Capital Computation (Included in Part** II **of Form X-17A-5 as of December 31, 2021)** There was no material difference between the Computation of Net Capital included in this report and the corresponding schedule included in the Company's audited December 31, 2021 Part IIA FOCUS filing. {14}------------------------------------------------ # FWS Retirement Services, LLC Schedule II Computation for Determination of the Reserve Requirements and Information Relating to Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 1Sc3-3 **For the Year Ended December 31, 2021** The Company acts as an accomodating broker-dealer, specifically making referrals in connection with the sale of mutual funds and variable annuity products, and receives a fee as a result of such referrals. The Company does not accept customer funds or securities and did not have possession of any customer funds or securities in connection with these activities. Therefore, in reliance on Footnote 74 to SEC Release 34-70073 and as discussed in Q & A **8** of the related FAQ issued by SEC staff, the firm did not claim an exemption from SEA Rule 15c3-3 as it does not effect transactions for anyone defined as a customer under Rule 15c3-3, and there are no items to report under the requirements of this Rule. {15}------------------------------------------------ *675 Yg11acio Volley Road, S11i1e A200 Wa/11 u1 Creek, Ct\ 94596* (925) 933-2626 hi.r /925) 944-6333 ### **Review Report of Independent Registered Public Accounting Firm** To the Members of FWS Retirement Services, LLC We have reviewed management's statements, included in the accompanying SEA Rule l5c3-3 Exemption Report pursuant to SEC Rule l 7a-5, in which (I) FWS Retirement Services, LLC (the "Company") did not claim an exemption under paragraph (k) of 17 C.F.R. §240. I 5c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R §240.!7a-5 because the Company limits its business activities exclusively to act as an accommodation broker-dealer, specifically making referrals in connection with the sale of mutual funds and variable annuity products, and receives a fee as a result of such referrals. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R §240.17a-5, and related SEC Staff Frequently Asked Questions. Walnut Creek, California March 28, 2022 {16}------------------------------------------------ # **FWS Retirement Services, LLC One California Street, Suite 400, San Francisco, CA 94111** ## **SEA Rule 1Sc3-3 Exemption Report** FWS Retirement Services, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.l?a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240. I 7a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and - 2. The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. §240. l 7a-5 because the Company limits its business activities exclusively to: (1) act as an accommodation broker-dealer, specifically making referrals in connection with the sale of mutual funds and variable annuity products, and receives a fee as a result of such referrals, and the Company (l) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. FWS Retirement Services, LLC I affirm that, to my best knowledge and belief, this Exemption Report is true and correct. ~~V. Hasday Brian Managing Director & Chief Compliance Officer February 22, 2022 **FWS Retirement Services , LLC One California Street, Suite 400, San Francisco, CA 94111** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.