17005117

UNIUD STATES OUB APPROVAL

SECURITMSANDEXCHANGECOY MISSION SE OMB Number; 32350123

Washington, A.C. 20549 BxPires: March 31, 2017

Mail Pr Jpp average burden

ANNUAL AUDITED REPORT Se ti

ho.f's' rres onse......12.00

FORM X-17A-5 FEB 2 82017 SEC FILE NUMBER

PART Ill Washington UC

8.69089

RACING PAGE 416Information 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!01116 AND ENDING 12131!16MM/DDIYY MM/DD1YY

A. REGISTRANT IDENTIFICATION

NAME OF BROKER-DEALER: TCFG Wealth Management, LLC OFFICM US>; ONLY

ADDRESS OF PRINCIPAL PLACE OF BUSINBSS; (Do not use P.O. Box No,) pmf iD N~o

28202 CabotRoag Suite 300(No. and Street)

Lacuna M ue— t—_ California 92677(City) (State) (Zip Coda)

NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORTRick R9berts49.9 365-5830

(Area Codo—Telephone dumber)

B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this ReportvBrian W. Anson

(Maine-(j Rvtdual, state last, As; wIddtenanw)18425 Burbank Blvd, #606 Tarzana Califomis 91356(Address) (City) (State) (Zip Code)

CHECK ONE,

© Cettifted Public Accountant

D Public Accountant

Cl Accountant not resident in United States or any of its possesslons.

FOR OFFICrAL USE ONLY

*Clabns for exemption from the requirement that the annual report be covered by the opinton of an independent public accountantmust 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 ofInformation contained in this form are not required to respond

SEC 1410 (06-02) unless the. form displays a currently valid OMB control number,

L.

OATH OR AFFMMATION

I, Rick Roberts , swear (or affirm) that, to the best of my knowledgeand belief the accompanying financial statement and supporting schedules pertaining to the firm of

TCFG Wealth Management LLC , as ofDecember 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 accountclassified solely as that of a customer, except as follows:

c

Nor Public

Ibis report ** contains (check all applicable boxes):0 (a) Facing Page.aDO❑X

9

j~ Signature

Title

DAVID W. SCHOFIELDCommission # 2040130Rotary Public • California

Oraage.Caunty(b) Statement of Financial Condition. Comm. E ]roa 9a 28, 2017(c) Statement of Income (Loss).(d) Statement of Changes in Financial Condition.(e) Statement of Changes in Stockholders' t~quity or Partners' or Sole Proprietors' Capital.(i) 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 150-3.(l) Information Relating to the Possession or Control Requirements Under Rule 156-3,(j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 156-1 and the

Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15e3-3.(k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of

consolidation.[] (1) An Oath or Affirmation.l (m) A copy of the S1PC 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-S(e)(3).

BRIAN W. ANSONCerti ed PtrbJic Acco:r»taut18425 Burbank Blvd„ Suite 606, Tarzana, CA 91356 • Tel. (8 18) 401-8800 - Fax (8 18) 401-8818

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of MembersTCFG Wealth Management, LLCLaguna Niguel, California

I have audited the accompanying statement of financial condition of TCFG Wealth Management, LLC as ofDecember 31, 2016 and the related statements of operations, changes in members' equity, and cash flows for theyear then ended. These financial statements are the responsibility of TCFG Wealth Management, LLC'smanagement. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (UnitedStates). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall financial statementpresentation I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial positionof TCFG Wealth Management, LLC as of December 31, 2016 and the results of its operations and cash flows for theyear then ended in accordance with accounting principles generally accepted in the United States of America.

The supplemental information for the year ended December 31, 2016 (Schedule 1, Statement of Net Capital UnderRule 150-1, Schedule 11, Determination of Determination of Reserve Requirements Under Rule 15c3-3(exemption), and Schedule I1I, Information for Possession or Control Requirements Under Rule 150-3(exemption)) has been subjected to audit procedures performed in conjunction with the audit of TCFG WealthManagement, LLC's financial statements. The supplemental information is the responsibility of TCFG WealthManagement, LLC's management. My audit procedures included determining whether the supplementalinformation reconciles to the financial statements or the underlying accounting and other records, as applicable, andperforming procedures to test the completeness and accuracy ofthe information presented in the supplementalinformation, In forming my opinion on supplemental information, I evaluated whether the supplementalinformation, including the form and content is presented in conformity with Rule I la-5 of the Securities ExchangeAct of 1934, In my opinion, the supplemental information is fairly stated, in all material respects, in relation to thefinancial statements as a whole,

This opinion is intended solely for the information and use of the board of members, the Securities and ExchangeCommission, and other regulatory agencies which rely on Rule 17a-5(g). under the Securities Exchange Act of 1934in their regulation of registered brokers and dealers, and is not intended to he and should not be, used by anyoneother than these specified parties.

Brian W. AnsonCertified Public AccountantTarzana, CaliforniaFebruary 23, 2017

TCFG WEALTH MANAGEMENT, LLC

Statement of Financial ConditionDecember 31, 2016

ASSETS

CashAccounts receivableDeposits from clearing organizationsDue from related party

Total assets

LIABILITIES AND MEMBERS' EQUITY

LIABILITIES

Accounts payableCommissions payablePayable to clearing organizations

Total liabilities

MEMBERS' EQUITY:

Members' EquityTotal members' equity

Total liabilities and members' equity

$ 226,686

68,500

50,0004,450

$ 349,636

$ 5,00038,46010,351

53,811

295,825

295,825

$ 349,636

The accompanying notes are an integral part of these financial statements

TCFG WEALTH MANAGEMENT, LLC

Statement of OperationsFor the year ended December 31, 2016

REVENUES:

Commissions $ 2,221,093Interest and dividend income 6,998

Other income 76,987

Total income 2. 05,078

EXPENSES:

Clearing fees 123,125

Commissions 1,747,554

Employee compensation and benefits 182,153

Legal and professional 38,794

Occupancy 17,580

Other operating expenses 190,087

Total expenses 2,299,293

INCOME BEFORE INCOME TAXES 5,785

INCOME TAX PROVISION (Note 2)

Income tax expense 6,800

NET LOSS $ (1,015)

The accompanying notes are an integral part of these financial statements

TCFG WEALTH MANACTEMENT, LLC

Statement of Changes in Members' EquityFor the year ended December 31, 2016

Beginning balance January 1, 2016

Distributions

TotalMembers'Equity

$ 336,840

(40,000)

Net loss (1,015)

Ending balance December 31, 2016

The accompanying notes are an integral part of these financial statements

$ 295,825

i

TCFG WEALTH MANAGEMENT, LLC

Statement of Cash FlowsFor the year ended December 31, 2016

C'AS'HTMVS HUMOPERATWAL'IIVM:

mks $ (1,015)

AcTji~brrerls to teo~~cl~e r~ loss to

il'i C~lt~ed gio~i~gaCt1VIC~:

l~cl~einca~ - i

Ac=rtrec6eble (54,46A}

nxtoieWedpaty 4,450

Cdu assds X674

I

Accairis~ (18371

Camrissinpalue 3$460

ar.torem 10,351 j

Toialac t lis (9,371)

NV cashl,d incpm6Ua6fis (101386)

CASHFLOWFRa rANU\U MC tal.~itlidla~al (40,000) i

1~t cash> d ~ s (40,000) I

Imuse ncashi

(50,386)

cube gdm.W Z77°M.

Carerd ofperiod 716,686

St~lealdiscloareoft~Own-~txri~f~z

Cash*dittbeSearfix.

Titerest $ -kmmtames $ 0800

The accompanying notes are an integral part of these financial statements

TCFG WEALTH MANAGEMENT, LLCNotes to the Financial Statements

December 31, 2016

Note I -Nature of Business

TCFG Wealth Management, LLC (the "Company") was organized April 10: 2012 under the lawsof Delaware. The Company is a licensed securities broker-dealer with the Securities andExchange Conurtission ("SEC') and is a member of the Financial Industry Regulatory AUthOrity("Fiji IRA")and the Securities Investor Protection Corporation ("SLPC'). The Company engages in a

broad range of activities in the private wealth management, equity and fixed income capitalmarkets, asset management and private equity businesses, ineltidiitgsecuriticsbrokerageandassetmana--entent services.

The Company has a sole member, Certus financial Group, LLC ("Certus").

The Company operates under the provisions of paragraph K (3) of Rule 150-3 ofthe SEC involvingthe sale of corporate securities and business brokerage activities and has claimed exemption fromRule 15c3- 3 ("Rude") under section (k)(2)(ii) of the SEC, and accordingly is exempt from theremaining provisions of that Mule.

Note 2 -Significant Accounting Policies

Birsis vfAccouniingThese financial statements are presented oil the accrual basis of accounting in accordance withgenerally accepted accounting principles whereby revenues are recognized in the period earned andexpenses when incurred.

Cash wid Cash EquivalentsFor purposes of the statements of cash flows, the Company considers short-term investments. which

may be withdrawn at any time without penalty, and restricted cash. which will become availablewithin one ),car tiom the date of the financial statements, to be cash equivalents.

Use cif 'EsIhnalesThe preparation of financial statements in conformity with accounting principles a eaerall) accepted in fileUnited States of America requires managemeut to ruake estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets acid liabilities at the date of tinefinancial statements and the reported amounts of revenues and expenses during the repoltin.- period. Actualresults could differ from those estimates.

Managevtent ReviewThe naantagenlert has revicuycd the results ofoperatitlns for the 1?eriod of lime fi-um its v m— crd Deeetnber: l: 20116

thronkll February.". 1017 the bate the fin;mcial statinnelm wcie availahlz to be issued. and have determined ih it noadjusitn{RIS are tlel:eSi:lr1 t0 dIC alliounts rgotied ill Itlt: r1eCUnit?aR.(111 tlnaricial Statemerlti 11or have i111F Subsequentevents occurred, the nature of sOdch svotild requh- diSC109Lire.

TCFG WEALTH NIANAGEibtENT. LLCDotes to the financial Statements

December 31. 2016

Fair iahte:ileusurenrentsThe fair value of die Company's financial instruments reflects the anicunts that the Company estimates to

receive inn connection with the sale of an asset or paid in connection with the transfer. of a lability in

an order ly° transaction between market participants at the measurement date (exit price). The fair value

hierarchy that prioritizes the use of inputs used in valuation techniques is as follows:

Level 1 -quoted prices in active markets for identical assets and liabilities;

Level ? — observable inputs other than quoted prices in active markets, such as quoted prices forsimilar assets and liabilities in active markets, quoted prices for identical or similar assets and

liabilities in markets that are not active, or other laputs that are observable or can be corroboratedby observable market data:

Mote 2 -Significant Accounting Policies. continued

Level 3 — unobservable inputs reflecting managements assumptions. consistent xvithreasonably available assumptions made by other market participants_ These valuations

require significant judgment.

There were no levels to measure at December 3l, 2016.

Revenue RecognitionPurchases and sales of securities are recorded on a trade date basis. Commission revenue and expense

are recorded on a settlement date ba;is, generally the third business day .tollowinn the transaction. If

materially different, commission revenue and related expenses are recorded on a trade date basis.

Investment banking revenues include amounts earned from providing merger and acquisition or general

advisory services. Revenue from investment banking is recognized as earned on a pro rata basis over theWill. of the contract; except that fees contingent on compiction of a transaction are recognized at the time

the transaction is completed and the income is reasonably determinable.

Fbiancial instruments and credit riskFinancial instruments that potentially subject the Company to credit risk include cash and cash

equivalents, accounts receivable and accounts payable and accrued expenses.

Income TaresThe Company elected to be taxed as a partnership under the provisions of.the Internal Revenue Code.

As a result, all federal income tax liability or expense is paid by the sole member ofthe Company. The

Company is subject to a minimum State of California Franchise Tax of $800 and a Gross Receipts Tax of

$6,000.

The Company is generally no longer subject to tax examinations relating to federal and state tax

returns beyond three years.

TCFG WEALTH MANAGEMENT, LLCNotes to the Financial Statements

December 31, 2016

Rerenf riccourrtirrg Pronotrrrcertiet)fs

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board

(" FASB") or other standards-setting bodies are not expected to have a material impact on the

Company's financial position, results of operations or cash flows.

Note 3- Significant Provisions of the Company's Limited Liability Agreement

The equity interest of the Company is owned by one member. Certus. whom contributed S 10.000

upon inception of the Company.

The Company's duration is perpetual and can be dissolved as a result of the following events: death,retirement, resignation., expulsion, bankruptcy or dissolution or the occurrence of any other event

which terminates the continued membership ofa member.

Note 4-Related Party

The Company has an Agreement (the "TCFG Expense Sharing Agreement") with Certus for the

payment of rent. During

2016, the Company reimbursed its sole member 517,530 in reimbursement for its pro rata share of rent

pursuant to an TCFG Expense Sharing Agreement entered into in December 2012.

Note 5 - Deposit with Clearing Organization

The Company maintains a deposit account with National Financial Services, LLC ("NFS") as part of the

Compan}%s contract for services, NFS requires a deposit for its services that serves as a reserve for

countetparty credit risk, including default risk and settlement risk, as iv;:11 as market risk to open un-

hedged positions. As of December 31, 201 6 the deposit balance was $50.000.

Note 6- Commitments and Contingencies

The Company from time to time may be involved in litigation relating to claims arising out of its ordinary

course of business. Management believes that there are no claims or actions pending or threatenedagainst the Company, the ultimate disposition of which would have a material impact on the Company's

Financial position. results of operations orcash flo+vs.

Note 7 -Net Capital Requir•ements

The Company is subject to the SEC uniform net capital rifle ("Rutc 15c3-1"), which requires the

maintenance of a minimum amount of net capital and requires that tine ratio of aggregate indebtedness tonet capital, both as defined, shall not exceed 8 to L Rule 15e3-1 also provides that equity capital may not

be withdrawn or cash dividends paid if the resulting net capital ratio would execed S to 1. The Company

had net capital and net capital requirements of $2221875 and $5,000 at. December 31. 2016, TheCompany's agg=regate indebtedness to net capital ratio was .24 in ̂ _016.

Note 8 - Concentrations

During die }ear ended December : 1. 2016. 47% of the Company's rcvciwe was dcriv,2d from onecu~totner.

TCFG WEALTH MANAGEMENT, LLCStatement of Net Capital

Schedule IFor the year ended December 31, 2016

M egttty, Daombe 31, 2016

mad-NmalImvhea&#s:AawtI cd%,)HeCli xassds

Teri W=tcapw

1iuts

MrCAPEFAL

Mmmm -Acgit4

• i r .I 771c:LaRUM* :.\ { : Y.I. .

'Iba~waemrelxitedcli~et~xxslatl~eauftx)dIb=atD.=ixr31, 2016,

Ras 12131/16 Audit IMV16 Qww$ 295,825 $ 295;875 $ -

6~500 A5004,450 4,450

222,875 27875 -

0 0 -

222,875 22%875 -

5,000 5,000

$ 217,875 $ 217,0

53,811 53,811

0.24 0.24

10

The accompanying notes are an integral part of these financial statements

TCFG WEALTH MANAGEMENT, LLC

Schedule IIDeteimination of Reserve Requirements

Under Rule 15c3-3 of the Securities and Exchange CommissionDecember 31, 2016.

The Company is exempt from the Reserve Requirement of computationaccording to the provision of Rule 156-3(k)(2)(ii).

Schedule III

Information Relating to Possession or ControlRequirements Under Rule 15c3 3)

December 31, 2016

The Company is exempt from the Rule 15c3-3 as it relates to possession and Controlrequirements umder the (k)(2)(ii) exemptive provision.

The accompanying notes are an integral part of these financial statements

Assertions Regarding Exemption Provisions

We, as members of management of TCFG Wealth Management ("the Company"), are responsible forcompliance with the annual reporting requirements under Rule 17a-5 of the Securities Exchange Act of1934. Those requirements compel a broker or dealer to file annuals reports with the SecuritiesExchange Commission (SEC) and the broker or dealer's designated examining authority (DEA). Oneof the reports to be included in the annual filing is an exemption report prepared by an independentpublic accountant based upon a review of assertions provided by the broker or dealer_ Pursuant to thatrequirement, the management of the Company hereby makes the following assertions:

Identified Exemption Provision:

The Company claims exemption from the custody and reserve provisions of Rule 15c3-3 by operatingunder the exemption provided by Rule 15c3-3, Paragraph (k)(2)(ii).

Statement Regarding Meeting_ Exemption Provision:

The Company met the identified exemption provision without exception throughout the period endingJanuary 1, 2016 through December 31, 2016.

TCFG WEALTH MANAGEMENT, LLC

711. ~-Rick Roberts, President & CEO

7I* / ?-z> iZ

(D te)

BRIAN W. ANSONCerlije Public~fccountant18425 Burbank Blvd., Suite 606, Tarzana, CA 91356 - Tel. (8 19) 401-8800 • Fax (818) 401-8818

REPORT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM

Board of MembersTCFG Wealth Management, LLCLaguna Niguel, California

I have reviewed management's statements, included iathe accompanying Exemption Report inwhich (1) TCFG Wealth Management, LLC, identified the following provisions of 17 C.F.R.§ t5e3-3(k) under which TCFG Wealth Management, LLC claimed an exemption from 17 C.F.R.§240.156-3: (k)(2)(H) (the "exemption provision") and (2) TCFG Wealth Management, LLC,stated that TCFG Wealth Management, LLC, met the identified exemption provision throughoutthe most recent fiscal year without exception. TCFG Wealth Management, LLC's managementis responsible for compliance with the exemption provision and its statements.

My review was conducted in accordance with the standards of the Public Company AccountingOversight Board (United States) and accordingly, included inquiries and other requiredprocedures to obtain evidence about TCFG Wealth Management, LLC's compliance with theexemption provision. A review is substantially less in scope than an examination, the objectiveof which is the expression of an. opinion on management's statements. Accordingly, I do notexpress such an opinion.

Based on my review, 1 am not aware of any material modifications that should be made tomanagement's statements referred to above for them to be fairly stated, in all material respects,based on the provisions set forth in paragraph (k)(2)(ii) of Rule 156-3 under the SecuritiesExchange Act of 1934.

Brian W. AnsonCertified Public AccountantTarzana, CaliforniaFebruary 23, 2017

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TCFG Wealth -Management, LLC

Financial Statements and Supplemental Schedule

(with Report of Independent Registered Public

Accounting Firm.Thereon)

December 31, 2016