# IFM (US) SECURITIES, LLC X-17A-5/A (2020-09-15) — Broker-dealer annual report - Company: IFM (US) SECURITIES, LLC - Form: X-17A-5/A - Filed: 2020-09-15 - Period: 2020-06-30 - Accession: 0001563344-20-000003 - CIK: 1563344 - File #: 8-69201 - Material weakness: No - Auditor: CohnReznick LLP - Auditor location: New York, NY - Contact: Peter Mordue - Phone: 212.784.2270 - Signed by: Peter Mordue (Director) Original filing: https://www.sec.gov/Archives/edgar/data/1563344/000156334420000003/ifmpublicreport.pdf --- {0}------------------------------------------------ # IFM (US) SECURITIES, LLC (A Limited Liability Company) # STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 {1}------------------------------------------------ UNJTEDSTA TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMS APPROVAL OMS Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours r res nse ...... 12.00 # **ANNUAL AUDITED REPORT FORM X·17A-5 PARTlll** SEC ALE NUMBER S-69201 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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NAME OF BROKER-DEALER: | | OFFICIAL USE ONLY | | | | | FIRM 1.0. NO. | | | (No. and Street) | | | | | NY | | 10036-1510 | | | (Sute) | | (Zip Code) | | | | | 212.78<4.2270
(Area Code - Telephone Number) | | | | | | | | | | | | | | | | | | | | | | | New York | NY | 10019 | | | (City) | (State) | (Zip Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | __
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AND ENDING _
A. REGISTRANT IDENTIFICATION
ADDRESS OF PR1NC1PAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•
(Name - tf1nd1vid11al. state lost.first. middle name)
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/acts and circumstances relied on as the ba5isfor the exemption. See Section 240. J7a-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 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | 1. _Peter Mordue | ~~~~~~~~~~~ | . swear (or affirm) that. to the best of | |----------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------------------------| | IFM (US) Securities, LLC | | my knowledge and belief the accompan) ing financial statement and supporting schedules pertaining to the firm of
• as | | of June 30 | | . arc true and correct. I further swear (or aftirm) that | | | | neither the company nor any partner. proprietor. principal officer or director has an) proprietary interest in any account | | classified so lei) as that of a customer. except as folio\\ s: | | | SHER ON N FARRO'N NOTARY PUBLIC-STATE OF **NEW YORK** No . 01 FA6364449 Qualified in Queens County My Commission Expir 09-11-2021 '" *\_\_)/v* ( 1( i 7 / [,"...-' , \_\_\_ \_ Signature I ) */1rccfC,,* ·1 itle Notary P:Jbiic This report\*\* contains (check all applicable boxes): - **[2]** (a) Facing Page. - **0** (b) Statement of Financial Condition. - 0 (c) Statement of Income (Loss) or, if there is other comprehensi\'e income in the period(s) presented. a Statement of Comprehensive Income (as defined in §210.1-02 of Regulation S-X). § ( d) Statement of Changes in Financial Condition. - - (e) Statement of Changes in Stockholders· Equity or Partners· or Sole Proprietors· Capital. - ( n 'tatement 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 Ruic 15c3-3. - **0** (\_j) A Reconciliation. including appropriate explanation of the Computation ofNet Capital Under Rule l 5c3-J and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule I 5c3-3. - **0** (k) *A* Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. - § (l) An Oath or Affirmation. - (m) A copy of the !PC 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 lrealment of certain portions of this filing. see section 240. l 7a-5(e){3).* {3}------------------------------------------------ # IFM (US) SECURITIES, LLC (A Limited Liability Company) # JUNE 30, 2020 # TABLE OF CONTENTS ### Report of Independent Registered Public Accounting Firm | Financial Statement: | Page | |----------------------------------------------------|------| | Statement of Financial Condition 1 | | | Notes to the Statement of Financial Condition 2-4 | | {4}------------------------------------------------ ![](_page_4_Picture_1.jpeg) # Report of Independent Registered Public Accounting Firm To the Member and Board of Directors IFM (US) Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of IFM (US) Securities, LLC (a limited liability company and a wholly-owned subsidiary of IFM Investors (US), LLC) (the "Company") as of June 30, 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 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 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 presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2015. ~~/L/ York, New York New September 14, 2020 {5}------------------------------------------------ # IFM (US) SECURITIES, LLC (A Limited Liability Company) STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### ASSETS | Cash
Receivables from Parent | \$
324,837
5,230,416 | |--------------------------------------------------------------------------|----------------------------| | Total assets | \$
5,555,253 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities:
Accounts payable, accrued expenses and other liabilities | 43,300 | | Member's equity | \$
5,511,953 | | Total liabilities and member's equity | \$
5,555,253 | See notes to the financial statement {6}------------------------------------------------ # IFM (US) SECURITIES, LLC (A Limited Liability Company) NOTES TO THE STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### 1. ORGANIZATION AND DESCRIPTION OF BUSINESS IFM (US) Securities, LLC (the "Company") is a wholly-owned subsidiary of IFM Investors (US), LLC (the "Parent"). The Company was organized on November 19, 2012 as a Delaware limited liability company and is registered to do business in New York as a foreign limited liability company. The Company is a registered broker-dealer under the Securities Exchange Act of 1934 and is a member of both the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investors Protection Corporation ("SIPC"). The operating agreement provides for the limited liability company to exist in perpetuity. There is only one class of member. The individual member's limit on liability is based on the relevant state law. The Company markets limited partnership interests of private funds managed by advisory affiliates. The Company operates under the exemptive provisions of paragraph (k)(2)(i) of Rule 15c3- 3 of the Securities Exchange Act of 1934 which provides that the Company carries no margin accounts, promptly transmits all customers' funds and delivers all securities received in connection with the Company's activities as a broker or dealer, and does not otherwise hold funds or securities for, or owe money or securities to customers. The accompanying statement of financial condition has been prepared from the separate records maintained by the Company and, due to certain transactions and agreements with the Parent, such financial statement may not necessarily be indicative of the financial condition that would have existed or the results that would have been obtained from operations had the Company operated as an unaffiliated entity. ### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### *Revenue recognition* Revenues are recognized as cost plus 15% reimbursement from the Parent in the form of fee income. # *Concentration of risk* The Company maintains cash in a bank account which is interest bearing. Interest bearing and non-interest bearing accounts are insured by the FDIC up to \$250,000 per financial institution. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. # *Use of estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. {7}------------------------------------------------ # IFM (US) SECURITIES, LLC (A Limited Liability Company) NOTES TO THE STATEMENT OF FINANCIAL CONDITION JUNE 30, 2020 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *[continued)* #### *Income taxes* As a wholly-owned limited liability company, the Company is considered to be a disregarded entity and thus does not file income tax returns in any jurisdiction. The Company files under the Parent's consolidated tax return in which all items of income, expense, gains and losses are reportable by the Parent for tax purposes. The Company has no unrecognized tax benefits at June 30, 2020. ### *Uncertain tax positions* In accordance with the FASB ASU No. 740 ("ASC 740") Subtopic 05 "Accounting for Uncertainty in Income Taxes," the Company did not recognize any amounts from uncertain tax positions. The Company's conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors. Generally, Federal, state and local authorities may examine the Company's tax returns for three years from the date of filing. #### 3. RELATED PARTY TRANSACTIONS #### *Administration fees* Pursuant to an Expense Sharing Agreement, the Company reimburses the Parent for allocated salaries, rent, communication and other expenses paid for by the Parent. These charges are updated periodically, and determined based on percentages of personnel, square footage and other factors. #### *Fee revenue* The Company receives fees based on the cost plus 15% reimbursement from the Parent. As of June 30, 2020, \$5,230,416 was outstanding and due from the Parent #### 4. NET CAPITAL REQUIREMENTS The Company is subject to the uniform net capital requirements of Rule 15c3-1 of the Securities and Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company 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 Company had net capital, as defined, of \$281,537, which exceeded the required minimum net capital of \$5,000 by \$276,537. Aggregate indebtedness at June 30, 2020 totaled \$43,300. The Company's percentage of aggregate indebtedness to net capital was 15.38%. {8}------------------------------------------------ # **IFM (US) SECURITIES, LLC** (A Limited Liability Company) **NOTES TO THE STATEMENT OF FINANCIAL CONDITION JUNE** 30, **2020** #### **5. SUBSEQUENT EVENTS** In December 2019 and early 2020, the coronavirus that caused COVID-19 was reported to have surfaced in China. The spread of this virus globally has caused business disruption domestically in the United States and worldwide. While the disruption is currently expected to be temporary in nature, there is considerable uncertainty around the duration of this uncertainty. Therefore, while the Company expects this matter may negatively impact the Company's financial condition, results of operations, and cash flows, the extent of the financial impact and duration cannot be reasonable estimated at this time. Management of the Company has evaluated events and transactions that may have occurred since June 30, 2020 and determined that there are no material events that would require disclosures in the Company's financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.