FOCUS Report Nylife Securities Llc

X-17A-5 - FOCUS Report

Published: 2017-03-01 10:48:57
Submitted: 2017-03-01
Period Ending In: 2016-12-31

X-17A-5: Filer Information

X-17A-5: Submission Information

X-17A-5: A. Registrant Identification

Address of Principal Place of Business (Do not use P.O. Box No.)

Address 1
Address 2
ROOM 713
Mailing Zip/ Portal Code

Name and Telephone Number of Person to Contact in Regard to this Report

Patricia Loftus
Telephone Number

X-17A-5: B. Accountant Identification

Independent Public Accountant

X-17A-5: Signature

Oath or Affirmation

I, Patricia Loftus, swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of NYLIFE SECURITIES LLC, as of 12-31-2016, 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:

Notary Public


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Submission Information

Period Begin
Period End
Type Of Registrant
Material Weakness

Registrant Identification

Broker Dealer Name
Contact Person Name
Patricia Loftus
Contact Person Phone Number

Accountant Identification

Accountant Name
PricewaterhouseCoopers LLP
Accountant Type
Certified Public Accountant

Oath Signature

Sign Person Name
Patricia Loftus
Entity Name
Sign Date
Patricia Loftus
Oath Title
Chief Financial Officer
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nylifesecuritiespublic.pdf PUBLIC ANNUAL REPORTS

NYLIFE Securities LLC
(An affiliate of New York Lif.. ln suranc" Company)
Statement of Financial Condition
December 31, 2016

                                              vnmensrates                                 —cmmmone—
                                    secummesanpexciiancecommmsion                         dfehamce mnsous
                                           Washington, D.C. 20819                         epres        imanay
                                     ANNUAL AUDITED REPORT                                Aoseves enusong. M8 0
                                               FORM X—17A—5                                         seorienumaen
                                                    PART 111                                       s      assn
                                           wacine rack
              Information Required of Brokers and Denlers Pursuaint to Section 17 of the
                     Securities Exchange Act of 1934 and Rule 171—8 Thereunder
REPRT FoR THE PERIOD BEINNING                   ar/or/as                Anp inpNG         _      refuate
                                                     munniy                                     mnroony
                                  A. REGISTRANT IDENTIFICATION
NAMKOFHROKER—DFALEG wytrep securitics LC                                                      orricnuseonty
AopRESS or PRINCIPAL PLACE OF BUSINESS: (Do not wse .0. Box NoJ                                    rimvto no
     51 Madison Avenue
                                         io ad ce
     New York                                y                                             20020
            o                         es                      Virouo
Name Aybreuurone NUb or rurson to Comt aCr in recarn To Tis krrorr
    Patzicia Loftus                                       (212)576—se18.
                                                               (wrrGole Telgione Nuntso
INDEAENDENT PUBLIC AGCOUNTANT whose opinionis comained ithis Report®
     PricewaterhouseCoopors LLC
                                           (hane s (otaiad ns loc maita rand
       300 Madison Avonue                     New York                       w                     10017
      ied                                       n —                          m                        aiess
cueck on
                 ied Pabllc accountant
             Pubtic Accouotant
             Accountant notresident in United Sttes or ny ofite ponsossions
  £                                        ron orriciat use ony

*Claimsfor exemtionfrom therequiramais that the ammuat reparbe covered by the apnion ofanindependent publc aceounsont
musthesupportd bya sutement offactsand crcstancesrelea on usthebaskfotheexomplan; SeeSecton 201 7o—SGeJ)

                            Potertint persons who are to reapond to the collection of
                            informationeontained inthis ormare notrequlredto respons
   seo rero (os0)           unlesstmeform laplaye a ourrenty vald ONMB controt nuniser.

                                         catk or aprigmam0
1 Loftus                                                                   , awear(or aftin) ha,tothe bestof
my knowledge and belif thaccomnanying firanclal utement and supportg schedules petuiningto the im of
         WYLtFE Securities LC                                                                                as
o       ___Decenber 31                              206. aretrac and conmect, 1 urther nwenr(oraien) that
Aither the compuny nor any partner, proprito, prieipl oficer ordiresor has any propicty iterest in any sccount
clasefedslelas that ofa customer,excentas follous:

         n          creisouez                            _Chimcws @4
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      Ouriton    n new   Tok Comty                         Chief Financial officer
  Gomntzann Eoplus harcs 2020
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 is repot ** contuins (chek all apileable boxes:
   () Factog Page.
   (5) Sttement of FiancialConditon.
o (e) Sutement oncome (Los
o 0) Strement of Changes in FinanialConditon.
o (e) Sttement ofChanges in Stckholden® Equity orParmers® orSole Propretors® Capital
o (0. Sttement ofChanges io Libllites Subordinatedto Clims oCreditore
o ) Computation of Net Captal
o (!) Computation fr Deternimationof Rserve Requicements Pacsuantto Rule 183—3.
o @0 Informatlon Relating to the Possession or Control Requrements Under Rule 13—3
a § A Recancifation, including appropriate explintion ofh Computaton ofNet Captl Under Rule 1353—1 and the
       Compuation for Determination of the Reserve Requirements Undec ExhibiA of Rule 15033
o (%) A Resonellationbetween theaudited and unaudited Satementsof Pnancinl Condiion wilh respectto methods of
   (0. An Oathor Affmation
C (m) A capy ofthSIPC Supplemental Report
C1 (s) Areporedesenlbigany materilinadequacies ound t xinto fund t have exited sincsthdate o the previous oiit
**fr condiions of eonfidental reommen ofcerain portons othsin see secion240. 7o—SGeG)

NYLIFE Securities LLC
(An affiliate of New York Life Insurance Company)
December 31, 2016


Report of Independent Registered Public Accounting Firm
Financial StatQment

Statement of Financial Coooitiorl, ..                                ", .. "" .. 2

Notes to Statement of Firl3l1cial Corlddiorl .. ", .. " .... ,....    " .. 3-10


                   Report of Independent Registered Public Accounting Fem
      "Tothe Manazement ofNYLIRE Securtes LLC:
      In ou oplaionthe accompenying statement ofinancial conditon presentsfll, n l matecil
      respects, the financil postfon ofNVLINE Securies LLC (th"Company") asof December 1
      2016 in conformity with aceounting princlples enerally accepted n the United Statesof
      Ameriea. Thisstatement of naneal ondition is the responsthlty of the Company‘
      management. Our responsiblityis t expressan opinion on the statement offinancial
      condiion based on our aud. We eonducted onr nuditofthisstatement in ccordance withthe
      standards ofthe Puble CompanyAccounting Oversght Bourd (United Stater)Those
      standard require thatwe plan and perform the uclttoobtain reasonabl assurance about
      whetherth sitement of financlal condition is ree ofmaterial misstatement. An ult
      includes eesmining, on test buis,evidence supporting the smounts nd disclowures in the
      statement offinancial condition, assesing the accountingprinciples used and signifnt
      estimates made by management, and evaluting the overallsttement offnancial condton.
      We believe tha our audit ofthe statement of nancinl condition provides n reasonable basis for

       PnAitsnflmgiss 44P
      Febniny at, 207

      Ironsourtnesecoepere 11 PrintarertousCpers Cerur,goo Medton Aremi, New York NY10047
      7 (6atar so00, : (hrs) adt onuin sc miae

NYLIFE Securities LLC
(An affliate of New York Life Insurance Gompany)
Statement of Financial Condition
December 31, 2016

Cash and cash equvalents                                                           523,173008
Receivable from NYLIFE Disrbutors LLC                                                   2,112,138
Commissions receivatle                                                                  s450 251
Fee Income recaivable                                                                     ss4. 220
Oher recuivatles                                                                        10#on
Prepaid expenses and other assets                                                       150078
Deferred tax asset                                                                      1225000
             Total assets
Liabiltios and Member‘s Equity
Payable to New York Life Insurance Company                                         5.    aidik
Payable to Eagle Strategies LLC                                                           ase 1e2
Accrued commission expense                                                              4419200
Acerued liigation eence                                                                 2 001 051
Federalincome taxes payable to New York Lifo Insurance Company                            2re,7a7
Socurites sold nat yet purchased
Other accrued labiifes
             Total Nabiities
             Commiments and coningencies (See Note 11)
Total membor‘s eqvity                                                            _ sneas
             Total Habiities and member‘s equity                                  s      o32.700

               The accompanying notes are aninlegral part ofthis firancia‘ statement

NYLIFE Securities LLC
(An affliate of New York Life Insurance Gompany)
Notes to Statement of Financial Condition
December 31, 2016

1.   Organization and Business
     NYLIFE Securties LLC the ‘Company‘, s a wholl.ouned subsidry of NYLIFE LLC (a
     wnolt:oumed subsidary of New York LiInsurance Company (NYLC®), The Company was
     originaly incorporated underthe laws of New York in 1960 as NYLIFE Securtes Inc. and was
     converted to a Deaware Imited lebilty company on January 1, 2007. The Company is registered
     wih the Securties and Exchange Commission as a broker—dealer and is a member ofthe Fnancial
     Industry Regulstory Aulhorly,Inc. The Company also conduels business as leensed insurance
     The Company receives commissions and incars clearing caslsfor acting as introducingbroker for
     clients and uses a nonafilated clearig beoker, Natonal Financil Services LLC (NFS, on a fuly
     disclosed basis, to perform trade executlon, clearance, setlement and related sctties
     The Company also recaives commissions rom the sale of aper—end mutial finds, vaiable ie and
     annuily, and group annulty products, offered by unrelated fnanclal instttions, for which the
     Gompany‘s rogistered representatives are generaly paid commissions.
     Under various contracivalagreements with unafffated product providers (spansored
     arangements} the Company receives an adininistrtive service fae from the product providers in
     connection wih sales ofthe product nroviders‘Ife and annuty, heallh insurance and cisabiity
     income products by eligble NYLIC agents. Commissions for these sponsared arrangements are
     said drecty o the agents by the product providers and are not refecied in thase financial
2.   Basis of Presentation
     The accompanying finencial statement has been pregared in confarmiy wth accounting principies
     generaly secepled in the Unted States of America (GAA®*)
     Summaryof S         icant Accounting Pol
     Use of Estimates
     The preperalion offinancial statements in accordance with GAAP requires management to make
     estmates and assumptlons that affectthe reported amounts ofassels and labiites and disciosure
     of contingent assetsand libitiesat the date of the Statement of Financial Conditon. Actval
     resutts could cifer from those estimates
     Investments and Commissions
     Securties ransactions are recorded on trade date
     Prepald Expenses and Other Assets and Securties Sold not yet Purchased
     Prepald expenses include monies on deposit wih FINRA for futire Kcensing fees required for e
     Gompany‘s rogistered reresentatves and 2017 annval FINRA renewal fees pald bythe Company
     Financial nstruments ouned and fnanca instruments sold, not yet purchased which include isted
     equily securiies, corporate bonds and municpal bonds are recorded on a rade date basls and are
     reported atfaivalue. Refer to Note 5 Fair Vale Measurementfora diseussion on the fat valve of
     equily securites, municipal bonds and corporate bonds

NYLIFE Securities LLC
(An at ite of New York Life Insurance Company)
Notes to Statement of Financial Condition
December 31, 2016
     Cash and Cash Equivalents
     Cash and eash equivalents nclude money market accounts, which are payable on demand, and
     shortterm U.S. Tressury bils with an riginal maturly of ess than 90 days. Cash equivalents are
     discussed in Note 5 Fair Value Measurement.
     Income Taxes
     For U.. federalincome tax purposes, the Company is reated as a Iimited liiity company whase
     {ederaltxable income orlss fowsthrough t ts parent, NYLIC, and is ncluded n the group‘s
     U.S. federal consolidated incometax return. The consoldated income tax provision or beneftis
     allosated among the members o the group in accordance with a tex alocation agreement, The tax
     allocation agreament provides that the Company is allocated ts share ofthe consalidated tex
     provision or benefit determined generaly on a separale company basis, and may, where
     appicable,include thetax benefis af operating or captal losses utlizable in NYLIC‘s consoldated
     return.Infereompany x balances are generaly settied quartery on an eatimated bas‘s wih fnal
     settement wihin 30 days of thefling ofthe consolilated return. Currentfederal income laxes are
     eharged or credfed to operations based upon amounts estimated to be payable or recoverable as
     a result otexable operations for the current year and any adjustments to such estimates from prior
     State and locatax returns are generaly fled seperately.In those cases wherethe Company‘s
     resulls are included wth NYLIC‘s state tax lings,the Gompany is charged orcredted for slate
     taxes paid by NYLIC onlyto the extentthatthe Company‘sincoma/oss increases orreduces
     NYLICs stt tax Fabilly. However,in years where NYLC‘s own incomelovel requires i to pay a
     {fet tate tex and the Companys ncomaloss does notafct NYLIC‘s state x labiiy, no state tax
     fitblity or beneft is allocated tothe Company pursvantto the tax alocalion agreement
     Deferred federal ncome tax assets andflls are recagnized for expected futuretax
     consequences of emporary differences between GAAP and taxable income. Temporary
     diferences are identfied and measured using a balance sheet approach wheraby GAAP and tex
     balance sheats are compared. Deferred income lares are generaly recogrized based on enacted
     tax rates and a valuation allowanceis recorded it is more ikely than not any porton of the
     deferied tax assetwil not bo realized
     "The Company determnes whetheri is more Ikelythan nottata tax positon wil be sustained
     upan examination by the appropriate taxing authorties before any partofthe benelcan bo
     recorded ithe financialstatements. The amount o ax benet recognized for an uncertain tx
     sostton is he largest amountobenaft that is greaterthan fity percent lely of belng realized
     upon setlement. Unrecognized tax benefts are included in Ofher acemued libiities in e
     #ccompanying Statement of Finencial Condion and are charged to earnings n the period that
     such determination is made
     In the normal courseaf business,the Company enters into contracts thatcontain a varely of
     representations, warranties and indemnifeations. The Company‘s maximum exposure under thase
     arrengements is unknown. as this would imvolve potentiafulure caims that may be made against
     the Company that have not yet accurred. However, based on experience, the Company expects
     the risk ofoss o be remote.

NYLIFE Securities LLC
(An affliate of New York Life nsurance Company)
Notes to Statement of Financial Condition
December 31, 2016
     Business Risks and Uncertainties
     Weak market nerformance may adversely affect sales of mutualfunds and registered insurance
     products and cause potential purchasers of these products to reftain from new or addiional
     investments, and may cause cutrentinvestors to widraw from the market arreduce their rtes of
     engoing imvestment. Poor equty markel performance may mt reverves of the Company which
     are based on fees related to the value of shareholder investment in mutual funds and registered
     Insurance products and could impactthe carying values of cetain assets
     Changes in the regulatory envionment may also adversely alfect sales of mutual funds and
     registared insurance products
     The Company reles on computer systems to conduct business, inluding customer service
     customer relatonship management and producing financial statements. Whie the Company has
     soliies, procedures, automation and backup plans and faciltes designed to prevent or i the
     effect o fadure: is computer systems may be vuitermble to disruptions or breaches as the resulof
     naturaldisasters, man—made deasters, criminal aclivty, pandemics,ransaction errors by
     registered representatives or personnel, or other events beyond ts control.The fature of the
     Company‘s computer systems for any reason could disuptts operations, result n the loss of
     customer business and adversely impactts proftabiity. System faiures could result n additonal
     expenses which could potentally impact net operating resuts
     Recent Accounting Pronouncements
     Future Adoption of New Accounting Pronouncements
     In Janvary 2016,the FABB issued updated guidance thatcianges the rules regarding recogniton
     and measurementoffnancialassets and financial aiities. Amonget other changes, the new
     quidence diminates the current classfeation ofthe equty securites as rading or availablefor—sale
     and requires trat an entty reportsall equity securiles(exceptthose accounted for under the equity
     method of accounting. orthose that resutin consoliation of the investee}at fi valvewih
     changes in far value recognized n income. The new standard is effectve on Janvary 1, 2018 and
     reauies a cumulatve effectve adiustment to be recorded fo the impact on adoption. The
     Company is currenty assessingtimpact on itfancialstatemment
     in May 2016, tho FASB issued updaled guidance on accounting for revene recogntion, which
     supersedes most existing revene recognton guidence. The guidance requires an ently to
     resogrize reveruupon the transfer of promised goods or services to customers n an amount that
     reflecs tne consideration to which the enlly expectsto be entld to, n exchange for those goods
     or services. The guidance also requires additonal disclosures aboutthe nature, amount,tming and
     uncerlainy of revene and cash flws arising from customer contracts, ncluding signficant
     jidgments and changes in Juigments and assets recognized from cost ncured to obtain o fll|‘a
     eoniract. The Company plans to adoptthe new standard on is effectve date January 1, 2018 and
     is curently nssessing the impact on ts fianciastatements.
     Falk Vakue Measurement
     Fairvalue is deined as the pric that would be recaived to sell an asset or paid to transfer a labiity
     in an ordedy transaction between market paricipants atthe measurement date. The authorative
     quidence around falr valueestabishes a framework for measuring fir valse thatincludes a
     hererchy used to classiy the inputs used in measuring flr value. The hiererchy proriizes the
     inputsto valuation tchniques used to measure far value into three fevels. The evel in the far

NYLIFE Securities LLC
(An     ate of New York Life Insurance Company)
Notes to Statement of Financial Condition
December 31, 2016
      value Nerarchy wilhin which the favalue measurementfals s determined based on the lowest
      level nout that s signiieant tthefar value measurement
      The three levels ofthefir valueberarchy based on the nputsto the valuation are as folows
      Level1 Fairvalue is based on unadiisted quated prices foridentical assets orlabiiies in an
             active markel. Active markets are deffnad as a market n which many transactions accur
             wih suffclentfreauenty and volume to providepricing nformation on an ongoing besis
      Level2 Fair value based on observable inouts, otherthan Level 1 inputs, such as quoted
             prices in acive markels forsimilar assets or liltes, quoted prices in markets that are
             not actvefoidentical r simlar assels, r other model iven inpuls that are abservable
             or can be corraborated by observable market data for supstantally the ful trm oftha
             assels o biities, Valuations are goneraly obtained from pring services for
             idertieal r comparable assets olabiltiesor through the use of valuation methodologles
             using observaile market inputs
      Lvel Instruments whose values are based on pries or valuation techniques thatrequie inputs
           that are both unobbservable and signifcantto the overallfavalve measurement. These
           inouts refeet menagements oun assumptions in priing the assetor labity.

NYLIFE Securities LLC
(An affilate of New York Life Insurance Gompany)
Notes to Statement of Financial Condition
December 31, 2016

     The folowing table representsthe balances of assets measured at fl value on a recurring basis
     as of December 21, 2016
                                      Quoted Prices in
                                       Active Markets         Significant       Signiicant
                                          for Identical       Observable    Unobservable
                                             Assets             Inputs         Inpute
                                             Level 1            Lover2]       Level 3                 Total
      Cash equialents
          Money markefunds            s           7ear                                       — s        Tean
          U.S. Treasury bils                                                                         22600 830
      Toial cash equvalents

      Securites owned (1)
         Corporate bonds                                                                     — s           doase
         Equily securites            __              sre                         _           ;        —_      578.
      Total securites ooned           s              sre                                     — s           fosio
      Securites sot! not yet purchased
         Equiy securites              $           11315       s             $                —   $
          Muricigal bonds                                 s
      Total securites sold not yet
          purchased                               1131 s

     (1) Lang securties are included in prepaid expenses and other assets on the stalement of
         financil condtion
     Transters Betwoen Levels
     Transters between levels may oceur due to changes in valvation sources, o changes in the
     availabltyof market observableinpuls, which generally are caused by changes in market
     condtions such as liquidl, recing volume orbi—ask spreads. The Company‘s palicis to
     assume the transter occurs at the beginning of the period. During the year ended December 31,
     2016, there were no transfers batweon levels
     Determination of Fatr Values
     "The falowing is a descritionaf the valuation methodologies used to delermine fair valve, as wall
     as the general classfieation of such Instruments pursuantto the falr value hierarcny
     Gash Equivatents
     Gash equivalents include money marketfinds and Treasury bils. Money markat funds l value is
     based on unadjusted quoted prices in actve markets and thoyare classfled as Level 1. Treasury
     ol ai valueis based on observable inouts and is classtled as Level 2. The proes sre olther
     oblained from a priing vendor oamorized cost s used as the best estimate offar valve

NYLIFE Securities LLC
(An affitate of New York Life Insurance Company)
Notes to Statement of Financial Condition
December 31, 2016
     Equbty Securities, Municipal Bonds and Corporate Bonds
     Equlty securties falvalue is based on unadjusted quoted prices n active markets and are
     ctassfied as Level 1. Municipal bonds and corporate bands fair valueis based on abservable
     inputs using readily available priing information and are classtied as Lovel2
6.   Related Party Transactions
      The Company has entered into a soliiing dealer agreement wih NVILIRE Distrbutors LLC
      (Distibutors‘), a wholt.owned subsidiary of New York LifInvestmment Menagement
      Hldings LLC, whereby the Companyreceives, from Distrbators, commissions for sales of the
      MainStay Funds by the Company‘sregistered representatves, for which the Company‘s registered
      representatives are goneraly pad commissions
      The Company. under a service agreement wth New York LifInsurance and Annuity Gorporation
      (NYLAG), a wholy—owned subsidary of NYLIC, harges NYLIAC a fos for sales and supervisory
      servises rendered in connection wth variable e and variable annuty sales and inforce business
      The Company Incurs sales and superiiory expenses related to the alfering oftrese products
      The Company, under a service agreement win Eagle Stratagies LLC ("Eagle‘), a wholy—osmed
      subsidary of NYLIRE LLC, bils Eagle for seperately dentflable brokerage servces. including
      clearing and custody services,provided to Eagle trough NFS in conneton win Eagle‘s
      investment advisory programs
     Accived commission expense on the Statement of Fiancial Condtion ncludes $1,014,247 of
     transactions with Distibstors
     The Company is party to a service agreement wih NYLIC, whereby NYLIC provides services to the
     Company. The Gompany is charged for cartain services based upon separately dentflable acival
     costs incurred. The services include personnal, ofice space, olher services, and admnistatve.
     Also pursuantto the service agreement wih NYLIC, the Company is also charged admiistrative
     expenses from NYLC which are specifcally identffabe tothe Company orallocated by NYLIC
     prineipally tough analyses o time spent on malters relating to the Gompany or pursuant to
     agreed upon formulas. in additon, the Company s being charged wih seles and supervicory
     expenses related to the services rendered in connsction wih NVLIAC variable ie and variable
     annuity seles,and indorce business
7.   Guarantees
     The Company introduces all ots clientsecurtles ransactions to a ctearing broker, NFS, on fuly
     disclosed besis. Pursuanttothe terms of the agreement between the Company and the clearing
     broker,the clearing broker has the rightto charge the Companyfor osses tha resul from a
     customer‘sfaluretfulil ts contactual obligatons
     As the rightto charge the Company has no maximum amount and apples t alrades executed
     through the clearing broker, the Company balfeves there is no meximum amount assignable to this
     right. At December 31, 2016, the Company has recorded no labitieswithregard to hisright

NYLIFE Securities LLC
(An affilate of New York Life insurance Company)
Notes to Statement of Financial Condition
December 31, 2016

     in adeitio,the Company has the ightto pursue collection or performance from the customers who
     do not perform under heir contractual oblgations. The Gompany montors the credit standing of
     the clearing broker and all ustomers wit which t conducts business
     Income Taxes
     Pursuant to the tax alocation agreemont (see Note3 Signifeant Accounting Paliies), as of December
     31, 2016 the Company had a net ncome tax payable to New York Life of $270,747
     Deferred income taxes are generally recognized, based on enacted tax ates, when assetsand labittes
     have different values forfnancial stateme at and tax purposes.

     The companents ofthe net deferred tax assetreported as of December 31, 2016 are altibutable to the
     folowing temporary stferences
      Deferred tax assets
      Acerued expenses                                                            s r2ue
      Depreciaton                                                                     so4.440
                 Deferred tax asset                                               3 1.220,000

     As of Decermber 31, 2016,the Company has no federal net operating orcapitlloss carryforvards
     as thay were fuly utlized n the consoliated federal income taxreturn wih NYLIC
     A valvation allowance against tdeferred tax assot established at the date o the Statement of
     Financial Condiion is not considered necessary because t is more laly than not the deterred tex
     asset wil be realized.

     As a member of NYLIC‘s consoldated graup,the Compeny‘s federal ncome tax returns are
     routnely audted by t Intemmal Revenue Service (IRS‘)and provsions are made in the fnancial
     statements n anticipation of the resuls of ese auds. The IRS has completed audts Irough
     2010 and tax years 2011 through 2013 are currently under examination with the IRS. The final
     outcome ofthese examinations is noyel determinable, however,the Company dons not antcipate
     that any adjvstments would resultIn a materachange to s firenclaconditon. The Company
     belleves that ts recorded incorme tax labiies are adeauale for l opon years.
     "The Company did not have eny uncertain tax positons as of December 31, 2018
     Net Copital Requiroments
     The Company is subjecttothe Securites and Exchange Commission Unform Nt Capital Rule
     (Rule 1503—1%, which requires the maintenance of mnimum net captal. The Company has
     elected to computa ts net capital requirement in accordance wih the Altematve Method permited
     by the rule. This method requres the maintenance of minmum net captal, as datined, ofthe
     greater of 2% of agaregate debattems arsing from customer ransactions or $250,000. At
     December 31, 2016, the Company had net captal as detined under such rules, of $19,071,053
     which was $18,821,053 in exces of ts required not captal of $250,000

NYLIFE Securities LLC
(An affliste of New York Life Insurance Company)
Notes to Statement of inancial Condition
December 31, 2016
10.   Exemptive Provision
      "The Company claims an exempton from the provisions of Rule 18¢3—3 ofthe Securibes Exchange
      Actof 193in accordance wih (<(2¥() for varble annutes, varable e insurance procuets,
      mua funds and Secton 520 Cllege Savings Plans and wih Section (k21) forrnsactons
      cleared on afuly disclosed basis tmrough NFS
11.   Contingencies
      In the normal courseof business, the Company has been namied a defendantin various legal
      matters. The Company is also from time to tme invalved in governmental, adiministraive, and
      investigative proceedings and inquires. Notwithslanding the uncertain nalure ofigation and
      requlatory inguiris,the outcome of which carnot be predited. the Company believes that, after
      provisions made in the ancial statements,the utimate labity that could resultrom iigation and
      proceedings would not have a material adverse effect on the Company‘sfiancial postion:
      however,i is possible thatsetlements oadverse determinaons in one or more nctions or other
      proceedings i the fulurecould have a material adverseeffect on the Company‘s operating resulls
      for a gven year
      During 2016, the Company concluded settlements wth customers in connection withthe sale of
      regitered products. Menagementbeleves the remaining ablty, which is reflected in acorued
      ifigaton expense on the Statement of Financial Conditon, is suficientto cover remaining
      setlement and legal costs associated wih theso matters
12.   Subsequent Events
      As of February 28, 2017,the date the Statemant of Financial Conditon was avaible to be issued.
      there have been no events occuring subsequent tothe close ofthe Company‘s baoks oraccounts
      for tre accormpanying Statementof Financial Gonditan that would have a materialefecton the
      financial condtion of e Company.

Document Created: 2017-03-01 10:07:04
Document Modified: 2017-03-01 10:07:04
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