# PLEXUS FINANCIAL SERVICES, LLC X-17A-5 (2021-03-30) — Broker-dealer annual report - Company: PLEXUS FINANCIAL SERVICES, LLC - Form: X-17A-5 - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0001484356-21-000002 - CIK: 1484356 - File #: 8-68504 - Material weakness: No - Auditor: Plante Moran, PLLC - Auditor location: Chicago, IL - Contact: Peter Sinelnikov - Phone: 2127514422 - Signed by: Peter Sinelnikov (FINOP/PFO) Original filing: https://www.sec.gov/Archives/edgar/data/1484356/000148435621000002/PFSshortEdgar2020.pdf --- {0}------------------------------------------------ **UNITED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | 0MB APPROVAL | | | | | |----------------------------|--|-----------------|--|--| | 0MB Number: | | 3235-0123 | | | | Expires: October 31 , 2023 | | | | | | Estimated average burden | | | | | | hours per response 12.00 | | | | | | | | SEC FILE NUMBER | | | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** # **8** - **68504** ## **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | ------'---'-------
01/01/2020
AND ENDING | | -------'--'-------
12/31/2020 | | | |----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|------------------------------------------------|----------------------------------|--|--| | | MM/DD/YYYY | | MM/DD/YYYY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF BROKER-DEALER: PLEXUS FINANCIAL SERVICES, LLC | | | | | | | | | OFFICIAL USE ONLY | | | | | | | FIRM ID. NO. | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | 21805 Field Parkway, Suite 320 | | | | | | | | (No. and Street) | | | | | | Deer Park | IL | | 60010 | | | | (City) | (:State) | | (Zip Code) | | | | Peter Sinelnikov | B. ACCOUNT ANT IDENTIFICATION | (212)-751-4422
(Area Code -- Telephone No.) | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | | Plante Moran, PLLC | | | | | | | | (Name -- if individual, stale las/, first, middle name) | | | | | | 10 S. Riverside Plaza | Chicago | IL | 60606 | | | | (Address) | (City) | (State) | (Zip Code) | | | | CHECK ONE:
[!] Certified Public Accountant
D Public Accountant
D Accountant not resident in United States or any of its possessions | | | | | | | | FOR OFFICIAL USE ONLY | | | | | *\*Claims for exemption 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).* > **Potential 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.** SEC 1410 (06-02) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Peter Sinelnikov , swear ( or affirm) that, to the PLEXUS FINANCIAL SERVICES, LLC , as of \_D\_e\_c\_e\_m\_b\_e\_r\_3\_1~, 2\_0\_2\_0 \_\_\_\_\_\_\_\_\_\_\_ , 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: best ofmy knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | Signature | |------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------| | | FINOP/PFO | | | Title | | fi
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Notarv Public | CLAUDIATAYLOR
NOTARY PUBLIC, State of New York
No. 01TA6068172
Qualified In Kings Coon.It'_,,.,
Commission Expires 10/28/d!,M.J:. | | This report** contains (check all applicable boxes): | | | 12] (a) Facing page. | | | [2J (b) Statement of Financial Condition. | | | (c) Statement oflncome (Loss). | | | D
(d) Statement of Changes in Financial Condition.
D | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | D | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | D
(g) Computation of Net Capital. | | | D
D | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | (i) Information Relating to the Possession or control Requirements Under Rule I 5c3-3. | | D | (j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | D
solidation. | (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of con | | [2J (I) An Oath or Affirmation. | | | D
(m) A copy of the SIPC Supplemental Report. | | | D | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | D
( o) Exemption report | | *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3).* {2}------------------------------------------------ #### PLEXUS FINANCIAL SERVICES, LLC Deer Park, Illinois Year Ended December 31, 2020 Together With Report of the Independent Registered Public Accounting Firm {3}------------------------------------------------ # **PLEXUS FINANCIAL SERVICES, LLC** # **TABLE OF CONTENTS** # **Year Ended December 31, 2020** ## **PAGE** # **REPORT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** .................... 1 #### **FINANCIAL STATEMENTS** | Statement of Financial Condition






| 2 | |--------------------------------------------------------------|---| | Notes to Financial Statements





3-5 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Managing Member Plexus Financial Services, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Plexus Financial Services, LLC as of December 31, 2020 and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Plexus Financial Services, LLC 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 Plexus Financial Services, LLC's management. Our responsibility is to express an opinion on Plexus Financial Services, LLC'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 Plexus Financial Services, LLC 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Plexus Financial Services, LLC's auditor since 2017. Chicago, Illinois March 26, 2021 ![](_page_4_Picture_11.jpeg) {5}------------------------------------------------ # **PLEXUS FINANCIAL SERVICES, LLC** Statement of Financial Condition December 31, 2020 #### **Assets** | Assets: | | | |-----------------------------------------------------------|----|---------| | Cash and cash equivalents | | 602,072 | | Regulatory deposit -
FINRA | | 1,954 | | Fixed assets (net of accumulated depreciation of \$5,306) | | 2,449 | | Advisory fees receivable | | 86,418 | | Commissions receivable-group annuities | | 115,993 | | Total Assets | | 808,886 | | Liabilities and Member's Equity | | | | Liabilities: | | | | Accrued expenses | | 43,333 | | Due to affiliate | | 47,084 | | Deferred revenue | | 38,750 | | Total Liabilities | | 129,167 | | | | | | l\/lember's Equity | | 679,719 | | Total Liabilities and Member's Equity | \$ | 808,886 | The accompanying notes are an integral part of this financial statement {6}------------------------------------------------ # **PLEXUS FINANCIAL SERVICES, LLC NOTES TO FINANCIAL STATEMENT December 31, 2020** ## **Note 1 - Organization and Nature of Business** Plexus Financial Services, LLC (PFS, the Company) is a licensed introducing broker-dealer registered with the Securities and Exchange Commission (SEC) as an investment advisor and The Financial Industry Regulatory Authority (FINRA) as a broker-dealer. PFS is wholly-owned by The Plexus Groupe, LLC (TPG), an independent national insurance brokerage firm, and obtained its license on December 3, 2010. PFS receives advisory fees and commissions for servicing retirement and group annuity plans primarily of new and existing TPG customers. #### **Note 2 - Summary of Significant Accounting Policies** #### Basis of Accounting PFS uses the accrual method of accounting for financial reporting purposes. #### Commissions and Advisory Fees Receivable Commissions and advisory fees receivable are carried at original invoice amount. No allowance for uncollectible accounts has been provided. In the opinion of management, based upon historical experience, any needed allowance for potential uncollectible accounts would be immaterial to the financial statements. #### Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers cash on deposit in demand accounts and money market funds as cash and cash equivalents. #### Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles 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 statements and the reported amounts of revenues and expenses during the reporting period . Actual results could differ from those estimates. #### Concentration of Risk Cash on deposit with financial institutions totaled approximately \$602,072 as of December 31 , 2020. Cash deposits could potentially be subject to credit risk as the deposits are only insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. {7}------------------------------------------------ # **PLEXUS FINANCIAL SERVICES, LLC NOTES TO FINANCIAL STATEMENT December 31, 2020** # **Note 2 - Summary of Significant Accounting Policies (continued)** #### Income taxes The Company is a pass-through entity for income tax purposes whereby any income tax liabilities or benefits are attributable to TPG and their owners. Therefore, no provision for income taxes has been reflected in the accompanying financial statements. It is the opinion of management that the Company has no significant uncertain tax positions that would be subject to change upon examination. The federal income tax returns of the Company are subject to examination by the IRS, generally for three years after they were filed. ## **Note 3 - Net Capital** PFS is subject to the Securities and Exchange Commission's (SEC) regulations and operational policies which require PFS to maintain a minimum amount of net capital equal to the greater of 6 2/3 percent of aggregate indebtedness (Al), as defined, or \$5,000 and a ratio of Al to net capital not exceeding 15 to 1. The Company's regulated net capital as of December 31 , 2020 was \$472,905 which exceeded the required net capital by \$464,294. The Company's ratio of Al to net capital as of December 31, 2020 was 0.27 to 1.0. ## **Note 4 - Related Party Transactions** PFS shares office space and various office-related expenses with TPG and another party related by common ownership, CEM Insurance Company (CEMIG) under an expense agreement approved by FINRA. At the beginning of the subsequent month, TPG and the Company settle the balances due. The Company and CEMIG settle the balances due at the end of each month. The net amounts owed to TPG totaled \$47,084 at December 31 , 2020. {8}------------------------------------------------ # **PLEXUS FINANCIAL SERVICES LLC NOTES TO FINANCIAL STATEMENT December 31, 2020** ## **Note 5 - Subsequent Events** No significant events occurred subsequent to PFS's year end. Subsequent events have been evaluated through March 26, 2021, which is the date these financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.