# CRESTA WESTHALL LLP X-17A-5 (2020-08-25) — Broker-dealer annual report - Company: CRESTA WESTHALL LLP - Form: X-17A-5 - Filed: 2020-08-25 - Period: 2020-06-30 - Accession: 0001554550-20-000001 - CIK: 1554550 - File #: 8-69126 - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Bloomingdale, IL - Contact: Richard Pound - Phone: 442073719691 - Signed by: Richard Pound (Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1554550/000155455020000001/crestapublic.pdf --- {0}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 {1}------------------------------------------------ UNITED STATES SECURITIES AND EX CHANGE COMMISSION Washington, O.C. 20549 ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | | OMB APPROVAL | |-------------|-------------------------------| | OMB Number: | 3235-0123 | | Expires: | August 31, 2020 | | | Estimated average burden | | | hours per response
. 12.00 | | | | | SEC FILE NUMBER | | |-----------------|--| | 8-69126 | | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | __
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_ _ | | |-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|------------------------------------|----------------------------------|-----------------| | | MMIDDIYY | | MMIDDIYY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME or BROKER-DEALER: Cresta Westhall LLP
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | OFFICIAL USE ONLY
FIRM 1.0. NO. | | | | | | | | 17 Saville Row, | | | (No. and Street) | | | | | London | UK | | W1S 3PN | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Richard Pound | | | 44 20 7371 9691 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Michael Coglianese CPA, P.C. | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 125 E. Lake Street, Ste 303 | Bloomingdale | IL | 60108 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | l/'lcertified Public Accountant | | | | | | OPublic Accountant | | | | | | | | | | | | DAccountant not resident in United States or any of its possessions. | | | | | *\*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 OMB control number. SEC 1410 (06-02) {2}------------------------------------------------ #### OATH OR AFFIRMATION | T Richard Pound | | swear (or affirm) that, to the best of | |---------------------|-------|-------------------------------------------------------------------------------------------------------------------------| | Cresta Westhall LLP | | my knowledge and belief the accompanying financial statement and supporting schedules periaining to the firm of
. as | | of June 30 | 20 20 | , are true and correct. I further swear (or affirm) that | | | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: STEFANOLUCATICLO CERT SIGNEDIN MyPRESCACE Signature #### Notary Public This report \*\* contains (check all applicable boxes): - V (a) Facing Page. - (b) Statement of Financial Condition. - (c) Statement of Income (Loss). - (d) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (i) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation. - (I) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) **BE IT KNOWN** that I, **SUNIT A KUMERI,** of 268 Bath Road, Slough, Berkshire, SLl 4DX, England, **NOTARY PUBLIC,** duly admitted and sworn, authorised to practise throughout England and Wales, **CERTIFY ONLY** that: Stefano Lucatello has been identified by me and is a Solicitor at Kobalt Law LLP with its registered office at 5 Fairbank Studios, 75-81 Burnaby Street, Chelsea, London, SWlO ONS. The annexed Statement of Financial Condition for June 30, 2020 is an original document signed by Richard Pound on behalf of **CRESTA WESTHALL LLP** which has been witnessed by Stefano Lucatello. **ISSUED** under my signature and seal of office this 24th ,,,......,~ ~----- --~unita **Kumeri** **Notary Public England and Wales** ![](_page_3_Picture_7.jpeg) ![](_page_3_Picture_8.jpeg) {4}------------------------------------------------ #### JUNE 30, 2020 #### TABLE OF CONTENTS #### Report oflndependent Registered Public Accounting Firm | Financial Statements: | Page | |-------------------------------------------------------|------| | Statement of Financial Condition 1 | | | Notes to the Statement of Financial Condition : 2-4 | | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ALTERNATIVE INVESTMENT ACCOUNTANTS \ ·- 1111 MICHAEL COGL!ANESE CPA, P.C. ----- #### Report of Independent Registered Public Accounting Firm To the Partners of Cresta Westhall LLP #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Crest Westhall LLP as of June 30\_ 2020, and the related notes (collectively referred to as the financial statement). In our opinion, the statemen: of financial condition presents fairly, in all material respects, the financial position of Cresta Westhall LLP as of June 30, 2020 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of Cresta Westhall LLP's management Our responsibility is to express an opinion on Cresta Westhall LLP'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 Cresta Westhall LLP 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 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. We have served as Cresta Westhall LLP's auditor since 2020. I l'I! ~ *c,l.\_,\_w, UA .* pc ' Bloomingdale, IL August 17, 2020 {6}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### ASSETS | Cash & cash equivalents
Commission receivable
Deposits held with FINRA
Prepaid expenses | 5 | 215,161
629,995
2,649
4,468 | |--------------------------------------------------------------------------------------------------|------|--------------------------------------| | Other assets
Total assets | S | 17,488
869,761 | | LIABILITIES AND PARTNERS' CAPITAL | | | | Liabilities: | | | | Accounts payable | | 1,949 | | Due to affiliates | | 87,450 | | | | 89,399 | | Partners' Capital | | 780,362 | | Total liabilities and partners' capital | ક્તિ | 869,761 | See notes to the financial statement {7}------------------------------------------------ ## NOTES TO THE STATEMENT OF FINANCIAL CONDITIO.S JUNE 30, 2020 #### 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Cresta Westhall LLP (the "Partnership") is a Limited Liability Partnership org:a:.:-...za: ..:: :!'.£!- United Kingdom effective July 6, 2012. The Partnership does business on a fuLly ~ basis and, therefore, does not hold or maintain any customer accounts. The Pa,-r.m.·sst.ip engages primarily in the private placements of securities, and serves clients fr: d1e !..'.!::7~ States and abroad. The Partnership is a registered broker under the Securities Exd -..a::ge ... -\;:t of 19 34 and is a member of Financial Industry Regulatory Authority ("FIN RA") and Sec'..:~es Investor Protection Corp ("SIPC").FINRA granted the Partnership membership effecci\.·e }:..!ne 17, 2013. The Partnership operates under the exemptive provisions of paragraph }~.:z ;~.:; of Rule 15c3-3 of the Securities Exchange Act of 1934 which provides that the Parmersh! p will not hold customer funds or safekeep customer securities. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### *Revenue recognition* The Partnership enters into arrangements with various independent Funds and earns commissions as a distributor of subscriptions to investors. Commissions are r ecognized as earned based on the amount of subscriptions raised at the agreed upon rate, as defined in each agreement. Fund distribution servi ces represent a single performance obligation and are satisfied at a point in time when an investor makes an investment in a share class of the Funds and on-going commissions are based on net asset values over the investment period. #### *Income taxes* The Partnership is organized as a United Kingdom ("UK") Limited Liability Partnership. The members of the partnership are all UK individuals or other UK corporate entities. Accordingly. the Partnership is not subject to United States federal or state income taxes, and therefore no provision for income taxes has been recorded in the accompanying statement of operations. ### *Income tax positions* The Financial Accounting Standards Board ("FASB") has issued a standard that clarifies the accounting and recognition of income tax positions taken or expected to be taken in the Partnership's income tax returns. The Partnership has analyzed tax positions taken for filing with all jurisdictions where it operates. The Partnership believes that income tax positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Partnership's financial condition, results of operations or cash flows. Accordingly, the Partnership has not recorded any reserves or related accruals for interest and penalties for uncertain tax positions. If the Partnership incurs interest or penalties as a result of unrecognized tax positions, the policy is to classify interest accrued with interest expense and penalties thereon with operating expenses. {8}------------------------------------------------ ### NOTES TO THE STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *(continued)* ## *Use of estimates* The preparation of financial statements in conformity with accounting prin dp.~ ~:~~~ accepted in the United States of America requires management to make es::i- ::!'!S assumptions that affect the reported amounts of assets and liabilities and disc: contingent assets and liabilities at the date of the financial statements and the ~-n=.ir::!l:=::• amounts of revenues and expenses during the reporting period. Actual results co!!J:C from those estimates. #### *Foreign currency* The functional currency for all operations of the Partnership is the United States :::- Nonmonetary assets & liabilities are remeasured at historical rates and monetary asSi"':S - .. liabilities are remeasured at exchange rates in effect at the end of the year. Stateme::: *d* income amounts are remeasured at average rates for the year. Gains and losses from :o-:-e : currency transactions are included in current results of operations in the accompar.·t-E statement of income. . - ## *Adoption of new accounting standards* On July 1, 2018, the Company adopted ASU No. 2014-09, "Revenue from Contracts v.it!: Customers" ("ASC Topic 606"), using the modified retrospective method (i.e., appliee prospectively effective July 1, 2018 without revising prior periods). There was no cumulative effect of initially applying ASC 606 on the opening balance of retained earnings. Therefore. the comparative information has not been reported under the accounting standards in effect for prior periods. #### *Subsequent events* The Partnership has evaluated subsequent events through August 17, 2020, which is the date the financial statements were available to be issued. #### 3. NET CAPITAL REQUIREMENTS The Partnership is subject to the uniform net capital requirements of Rule 15c3-1 of the Securities and Exchange Act, as amended, which requires the Partnership to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Partnership is required to maintain defined minimum net capital of the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At June 30, 2020, the Partnership had net capital, as defined, of\$115,316, which exceeded the required minimum net capital of \$5,960 by \$109,356. Aggregate indebtedness at June 30, 2019 totaled \$89,399. The Partnership's percentage of aggregate indebtedness to net capital was 77.53%. {9}------------------------------------------------ ### NOTES TO THE STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### 4. RELATED PARTY TRANSACTIONS Pursuant to a management services agreement, effective July 1, 2017, between 'i\ e~ii, Partners LLP ("WP LLP") and the Partnership, WP LLP agreed to pay all indirect o,;::ie;:;a:::c~ expenses of the Partnership in connection with its corporate offices including adminis...: ·~ .... services and facility charges as described in the agreement. The agreement also states :.~ Partnership will pay all of its own direct expenses, such as legal and accounting fees costs, registration and membership fees, and others as deemed necessary. #### 5. CONCENTRATIONS The Partnership received 92% of its revenue from 4 customers and the other 8% from othe'"" fund managers during the year ended June 30, 2020. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.