# EDGAR Filing Document

**Accession Number:** 0001139084
**File Stem:** 0001139084-23-000001
**Filing Date:** 2023-2
**Character Count:** 42271
**Document Hash:** cf2171f0544594290d46a406efec2661
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001139084-23-000001.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001139084-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**EFFECTIVENESS DATE**: 20230223

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DESJARDINS SECURITIES INTERNATIONAL INC.
- **CENTRAL INDEX KEY:** 0001139084

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-53256
- **FILM NUMBER:** 23656330

**BUSINESS ADDRESS:**
- **STREET 1:** 1170 PEEL STREET
- **STREET 2:** SUITE 300
- **CITY:** MONTREAL, QUEBEC
- **STATE:** A8
- **ZIP:** H3B 0A9
- **BUSINESS PHONE:** (514) 281-2244 X

**MAIL ADDRESS:**
- **STREET 1:** 1170 PEEL STREET
- **STREET 2:** SUITE 300
- **CITY:** MONTREAL, QUEBEC
- **ZIP:** H3B 0A9

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DESJARDINS SECURITIES INTERNATIONAL INC
- **DATE OF NAME CHANGE:** 20020215

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** 3858839 CANADA INC                                      /BD
- **DATE OF NAME CHANGE:** 20020215

### Attached PDF Documents

**Attachment 1:** `DSII-ExemptionLetter-22.pdf`

Desjardins
Capital Markets

January 11th, 2023

Audrey Mercier
Richter S.E.N.C.R.L./LLP
1981 McGill College
Montreal (Quebec)
H3A 0G6

Re: Exemption Report

In compliance with SEA Rule 17a-5(d), Desjardins Securities International Inc. ("the Firm") attests that it claims an exemption to SEA Rule 15c3-3(k). The Firm operates pursuant to SEA Rule 15c3-3(k)(2)(ii) and is an introducing firm clearing through Pershing LLC.

To the best knowledge and belief of Desjardins Securities International Inc., the exemption provisions of Rule 15c3-3(k)(2)(ii), without exception, have been met during the most recent fiscal year 2022.

On behalf of the Board of directors:

Radek Loudin
Chief Compliance Officer

Craig Brenner
Chief operating Officer

Danny Charette
Financial Officer

Head Office
1170 Peel Street, Suite 300
Montreal, Quebec H3B 0A9
514-841-1273

Securities offered through
Desjardins Securities International Inc.
member FINRA, SIPC

**Attachment 2:** `DSII-Audit-22-SIPC7Report.pdf`

RICHTER

# Report of Independent Registered Public Accounting Firm

To the Board of Directors of Desjardins Securities International Inc.

In accordance with Rule 17a-5(e)(4) of the Securities Exchange Act of 1934, we have performed the procedures enumerated below with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of the Securities Investor Protection Corporation (SIPC) of Desjardins Securities International Inc. for the year ended December 31, 2022, which were agreed to by Desjardins Securities International Inc., the Securities and Exchange Commission, Financial Industry Regulatory Authority, Inc., and the Securities Investor Protection Corporation (collectively, the "specified parties") solely to assist the specified parties in evaluating Desjardins Securities International Inc.'s compliance with the applicable instructions of Form SIPC-7 during the year ended December 31, 2022. Management is responsible for Desjardins Securities International Inc.'s compliance with those requirements.

This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures we performed and our findings are as follows:

1. Compared the listed assessment payments on page 1, item 2B of Form SIPC-7 with the respective cash disbursement records entries of $687.98, noting no difference.
2. Compared the Total Revenue amount reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2022 to the Total Revenue amount of $1,628,252 reported on page 2, item 2a of Form SIPC-7 for the year ended December 31, 2022 and noted no difference.
3. Compared any adjustments reported on page 2, items 2b and 2c of Form SIPC-7 with the supporting schedules and working papers, as follows:
   a. Compared deductions on line 5, net gain from securities in investment accounts, of $128,346 to the trial balance of the Company as at December 31, 2022, noting no difference.
   b. Compared deductions on line 8, other loss not related either directly or indirectly to the securities business, of $48,232 to the addition of the balances; gain and loss on foreign exchanges and interest income, as included in the trial balance of the Company as at December 31, 2022, noting no difference.
   c. Compared deductions on line 9, total interest and dividend expense, of $7,701 to the trial balance of the Company as at December 31, 2022, noting no difference.

MONTRÉAL

1981 McGill College
Montréal QC H3A 0G6
514.934.3400

TORONTO

181 Bay St., #3510
Bay Wellington Tower
Toronto ON M5J 2T3
416.488.2345

CHICAGO

200 South Wacker Dr., #3100
Chicago, IL 60606
312.828.0800

RICHTER.CA

RICHTER

4. Proved the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers obtained in procedure 3, as follows:

a. Recalculated the mathematical accuracy of the SIPC Net Operating Revenues on page 2, line 2d and the General Assessment @ .0015 on page 2, line 2e of $1,540,527 and $2,310.79, respectively of the Form SIPC-7, noting no difference.

We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the Company's preparation of Form SIPC-7 in accordance with the applicable instructions. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of management and the board of directors of Desjardins Securities International Inc., the Securities and Exchange Commission, Financial Industry Regulatory Authority, Inc., and the Securities Investor Protection Corporation and is not intended to be and should not be used by anyone other than these specified parties.

Montreal, Québec
February 21, 2023

1CPA auditor, public accountancy permit No. A129175

**Attachment 3:** `DSII-22-AuditedFinancials.pdf`

![img-0.jpeg](img-0.jpeg)

# Desjardins Securities International Inc.

## Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

## Table of Contents

| Financial Statements | - Balance Sheets | 3 |
| --- | --- | --- |
|  | - Statements of Operations | 4 |
|  | - Statements of Changes in Shareholder's Equity | 5 |
|  | - Statements of Cash Flows | 6 |
| Notes to the Financial Statements | - Note 1. Description of Business | 7 |
|  | - Note 2. Significant Accounting Policies | 7 |
|  | - Note 3. Income Taxes | 9 |
|  | - Note 4. Shareholder's Equity | 9 |
|  | - Note 5. Related Party Transactions | 10 |
|  | - Note 6. Financial Risk Management | 10 |
|  | - Note 7. Schedule of Computation of Net Capital | 12 |

2

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Balance Sheets

As at December 31

(stated in U.S. dollars)

|  | Notes | 2022 | 2021 |
| --- | --- | --- | --- |
| ASSETS |  |  |  |
| Cash and cash equivalents |  | $9 650 438 | $9 289 909 |
| Amounts receivable |  |  |  |
| From broker-dealers and counterparties |  | 1 009 069 | 675 435 |
| From parent company and affiliates, without interest or reimbursement terms | 5 | 21 258 | 12 179 |
| Research services receivable |  | 18 134 | 12 812 |
|  |  | 1 048 461 | 700 426 |
| Other assets |  |  |  |
| Deposit |  | 100 000 | 100 000 |
| Prepaid expenses |  | 58 001 | 53 586 |
|  |  | 158 001 | 153 586 |
|  |  | $10 856 900 | $10 143 921 |
| LIABILITIES |  |  |  |
| Amounts payable |  |  |  |
| To broker-dealers and counterparties |  | $6 235 | $5 978 |
| Accounts payable and accrued liabilities |  | 62 972 | 58 836 |
| To parent company and affiliates, without interest or reimbursement terms | 5 | 62 010 | 13 890 |
| Income tax payable |  | 192 787 | 33 797 |
|  |  | 324 004 | 112 501 |
| SHAREHOLDER'S EQUITY | 4 | 10 532 896 | 10 031 420 |
|  |  | $10 856 900 | $10 143 921 |

See accompanying notes to the Financial Statements.

On behalf of the Board of Directors

..., Director  
 Danny Charette

..., Director  
 Craig Brenner

3

# **DESJARDINS SECURITIES INTERNATIONAL INC.**

# **Statements of Operations**

**For the years ended December 31, 2022 and 2021**

(stated in U.S. dollars)

|  | Notes | 2022 | 2021 |
| --- | --- | --- | --- |
| Revenue |  |  |  |
| Commissions |  | $1 083 319 | $1 292 637 |
| Research services |  | 464 910 | 361 751 |
| Foreign exchange gain (loss) |  | (52 279) | (6 936) |
| Net interest |  | 124 600 | 2 065 |
|  |  | 1 620 550 | 1 649 517 |
| Operation and administration |  |  |  |
| Management fees | 5 | 446 057 | 467 927 |
| Clearing and regulatory fees |  | 87 931 | 80 675 |
| Business development costs |  | 42 963 | 639 |
| Professional fees |  | 86 282 | 91 305 |
| Other |  | 26 136 | 28 177 |
|  |  | 689 369 | 668 723 |
| Income before income taxes |  | 931 181 | 980 794 |
| Income tax expense | 3 | 429 705 | 241 374 |
| Net income |  | $501 476 | $739 420 |

See accompanying notes to the Financial Statements.

4

# **DESJARDINS SECURITIES INTERNATIONAL INC.**

# **Statements of Changes in Shareholder's Equity**

**For the years ended December 31, 2022 and 2021**

(stated in U.S. dollars)

|  | Share capital | Retained earnings | Total |
| --- | --- | --- | --- |
| Balance as at December 31, 2020 | $3,214,763 | $6,077,237 | $9,292,000 |
| Net income | - | 739,420 | 739,420 |
| Balance as at December 31, 2021 | $3,214,763 | $6,816,657 | $10,031,420 |
| Net income | - | 501,476 | 501,476 |
| Balance as at December 31, 2022 | $3,214,763 | $7,318,133 | $10,532,896 |

See accompanying notes to the Financial Statements.

5

# **DESJARDINS SECURITIES INTERNATIONAL INC.**

# **Statements of Cash Flows**

**For the years ended December 31, 2022 and 2021**

(stated in U.S. dollars)

|  | 2022 | 2021 |
| --- | --- | --- |
| Operating activities |  |  |
| Net income | $501,476 | $739,420 |
| Deferred tax | - | 42 |
| Change in operating assets and liabilities: |  |  |
| Amounts receivable from and payable to broker-dealers and counterparties, net | (333,376) | (119,390) |
| Research services receivable | (5,322) | 29,330 |
| Other assets | (4,415) | 4,178 |
| Accounts payable and accrued liabilities | 4,135 | 12,228 |
| Income taxes payable | 158,990 | 63,329 |
|  | 321,488 | 729,137 |
| Financing activities |  |  |
| Amounts payable to parent company | 39,041 | 1,823 |
|  | 39,041 | 1,823 |
| Increase in cash and cash equivalents | 360,529 | 730,960 |
| Cash and cash equivalents, beginning of year | 9,289,909 | 8,558,949 |
| Cash and cash equivalents, end of year | $9,650,438 | $9,289,909 |
| Cash and cash equivalents consist of: |  |  |
| Cash | 716,648 | 490,207 |
| Money market investments | 8,933,790 | 8,799,702 |
| Cash and cash equivalents, end of year | $9,650,438 | $9,289,909 |

See accompanying notes to the Financial Statements.

6

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

### 1. Description of Business

Desjardins Securities International Inc. (the Company) was incorporated on January 24, 2001 under the Canada Business *Corporations Act*. The Company is a member of the *Financial Industry Regulatory Authority* (FINRA) and *US Securities and Exchange Commission* (SEC), and operates pursuant to SEC Rule 15c3-3(k)(2)(ii) as an introducing broker-dealer, clearing all transactions on a fully disclosed basis through its clearing firm, Pershing LLC. Desjardins Securities International Inc. does not hold customer funds or safe keep customer securities.

The Company is a wholly-owned subsidiary of Desjardins Securities Inc., which is under the ultimate control of the Federation des caisses Desjardins du Québec (the Federation) through Desjardins Financial Holding Inc., a wholly owned subsidiary of the Federation, and is therefore a component of Desjardins Group (the Desjardins Group). The Company's head office is located at 1170 Peel Street, Suite 300, Montreal, Quebec, Canada, H3B 0A9.

### 2. Significant Accounting Policies

These Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles in the United States ('US GAAP').

#### a) Use of Estimates

The preparation of the Financial Statements in accordance with US GAAP requires management to make estimates and assumptions which affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent assets and liabilities at the reporting date. These estimates are based on judgment and the best available information at the time. Therefore, actual results may differ from these estimates. There were no significant estimates during 2022 and 2021.

The COVID-19 pandemic did not have a material impact on the judgments made as well as on the estimates and assumptions made by management for the purposes of preparing the financial statements.

#### b) Transactions

Transactions and related revenues and expenses are recorded on a trade date basis.

#### c) Financial Instruments

The Company classifies its financial assets in the category 'Loans and receivables'. Financial liabilities are classified in the category 'Other'.

All financial assets and liabilities are initially recognized at fair value. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

After the initial recognition, financial assets and liabilities are subsequently carried at amortized cost under the effective interest rate method. The carrying value of these financial assets and liabilities approximates their fair value.

#### d) Cash and Cash Equivalents

Cash and cash equivalents consist of cash and money market investments. Cash equivalents are short-term investments, very liquid, easily convertible into a known cash amount, subject to a negligible risk of a change in value and are not segregated and deposited for regulatory purposes.

#### e) Accounts receivable

The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off balance sheet credit exposures in accordance with FASB Accounting Standards Codification ('ASC') 326-20, Financial Instruments - Credit Losses. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts.

The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that is deducted from the asset's amortized cost basis. Changes in the allowance for credit losses are reported in Credit Loss expense.

---

7

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

The Company's research services receivable relate to the research services revenues. These amounts receivable are short term in nature. The Company estimates expected credit losses over the life of the financial assets as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts.

The commission receivables include amounts receivable from unsettled trades, amounts receivable for securities failed to deliver, accrued interest receivables and cash deposits. The Company's trades and contracts are cleared through an external party Pershing LLC. The receivables balance are settled on a monthly basis. The amount of unsettled credit exposures is limited to the amount owed the Company for a short period of time. In addition, the exposure to credit losses is de minimus because the terms of the majority of transactions executed by the parent are RVP/DVP (receipt versus payment/deliver versus payment).

### f) Foreign Currency Translation

The Company's functional and presentation currency is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the transaction date. Revenue and expenses denominated in foreign currencies are translated at the exchange rate prevailing at the transaction date. Gains and losses resulting from the translation of foreign currencies are included in 'Revenue - Foreign exchange gain (loss)' in the Statements of Operations.

### g) Revenue Recognition

The Company's revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Company's performance obligations are satisfied at a point in time. The Company's main sources of revenue from contracts with customers are as follows:

- *Brokerage commissions* are charged to customers for order execution services and trade clearing and settlement services.  
  The Company recognizes revenue at the time of execution of the order (i.e. trade date). Commissions are generally collected from cleared customers on settlement date.
- *Research fees* are charged to customers for financial information, analysis and research to which they subscribe, that are delivered by the Company. The Company recognizes revenue when the collectibility is reasonably assured, generally in arrears.

The Company also earns revenues from other sources including interest revenue earned on the cash balances and money market investments recognized based on the effective interest rate method, and foreign exchange gains or losses resulting from translation of transactions denominated in foreign currencies.

### h) Deposit

The Company operates pursuant to Security and Exchange Act Rule 15c3-3(k)(2)(ii) as an introducing broker-dealer on a fully disclosed basis through its clearing firm, Pershing LLC. This organisation requires a clearing deposit of $100,000.

### i) Income Taxes

#### Current Income Tax

Current income tax assets and liabilities for the current year and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted at the reporting dates.

#### Deferred Tax

Deferred taxes are accounted for using the liability method. This method requires that deferred taxes reflect the expected deferred tax effect of all temporary differences at the reporting date between the carrying amounts of assets and liabilities for financial statement purposes and their tax bases. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognized when it is more likely than not that they will be realized.

8

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

### j) Subsequent events

The Company has evaluated whether any events or transactions occurred subsequent to the date of the Financial Statements and through February 15, 2023 and determined that there were no material events or transactions that would require recognition in these Financial Statements.

### 3. Income Taxes

#### a) Income Tax Expense

|  | 2022 | 2021 |
| --- | --- | --- |
| Current | $429,705 | $241,332 |
| Deferred | - | $42 |
|  | $429,705 | $241,374 |

Earnings are subject to Canadian income taxes. The effective tax rate on earnings varies from year to year according to the changes in the combined statutory income tax rate. The Company's income tax expense recorded in the Statements of Operations differs from the amount that would be computed by applying the Canadian statutory tax rates as a result of the following:

|  | 2022 | 2021 |
| --- | --- | --- |
| Income taxes at the Canadian combined statutory rate of 26.50% (26.50% in 2021) | $246,731 | $260,053 |
| Change in income taxes resulting from: |  |  |
| Non-deductible expenses and other | 2,377 | 160 |
| Adjustments in respect of current income taxes | (2,716) | (916) |
| Exchange remeasurement of current income taxes | 340 | 799 |
| Income taxes on foreign exchange gains on account of capital | 182,973 | (18,722) |
| Income tax expense | $429,705 | $241,374 |

The Company is subject to examination by the tax authorities for the open tax years ending December 31, 2019 to 2022.

The Company has no accrual for uncertain tax positions.

### 4. Shareholder's Equity

#### a) Authorized Share Capital

- - an unlimited number of voting and participating Class A shares, without par value;
- - an unlimited number of non-voting, participating Class B shares, convertible to Series D shares, without par value;
- - an unlimited number of voting, non-participating Class C shares, without par value;
- - an unlimited number of non-voting, non-participating Class D shares, non-cumulative dividend of 1% per month, without par value;
- - an unlimited number of non-voting, non-participating Class E shares, non-cumulative dividend of 1% per month, without par value;
- - an unlimited number of non-voting, non-participating Class F shares, non-cumulative dividend of 8% per year, without par value;
- - an unlimited number of non-voting, non-participating Class G shares, non-cumulative dividend of 8% per year, without par value.

9

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

### b) Share Capital Issued

|  | 2022 | 2021 |
| --- | --- | --- |
| 4,075,000 Series A common shares | $3,214,763 | $3,214,763 |

### c) Capital Management

As a FINRA and SEC registered introducing broker-dealer, the Company is subject to the SEC's Uniform Net Capital Rule 15c3-1, which requires the maintenance of a minimum net capital equal to the greater of $100,000 or 62⁄3% of aggregate indebtedness, both as defined by the Rule. As of December 31, 2022, the Company has a net capital of $8,865,560 which exceeds the required net capital of $100,000 by $8,765,560 (see Note 8).

The Company does not hold client funds or securities nor owe money or securities to customers. Accordingly, the Company operates under the exemptive provisions of Rule 15c 3 3 of the Act, under paragraph (k)(2)(ii) of that Rule. Therefore, the Company is not required to determine customer reserve requirements or provide information for possession or control requirements.

## 5. Related Party Transactions

The related party balances set forth in the table below result from transactions between the Company and the parent company and affiliates from Desjardins Group, in the normal course of business, as part of its operations. These transactions are measured at the exchange value which is the consideration established and agreed to by the related parties.

The transactions and balances with these entities are the following:

|  | 2022 | 2021 |
| --- | --- | --- |
| Management fees (parent company) (1) | $446 057 | $467 927 |
| Intercompany commissions revenue (parent company) | 45 444 | - |
| Cash (affiliates) | 527 162 | 487 980 |
| Amount receivable from parent company and affiliates | 21 258 | 12 179 |
| Amounts payable to parent company and affiliates | (62 010) | (13 890) |

(1) Management fees consist of various services and facilities, as agreed upon in the expense sharing agreement.

## 6. Financial Risk Management

In the normal course of business, the Company purchases and sells for its clients a variety of financial instruments to earn commission revenue. Each agreement or contract exposes the Company to varying degrees of credit, liquidity and market risks.

### a) Credit risk

Credit risk, principally, relates to the failure by a client to honour its contractual obligations or to an unfavourable market fluctuation that would prevent the Company from realizing its guarantees in full. This risk is managed in accordance with the credit policies established by management. Most of these transactions are standardized contracts executed in recognized markets and are subject to daily settlement of the various margins.

### b) Liquidity risk

Liquidity risk is the risk that the Company cannot quickly convert its assets into cash in order to efficiently fulfill its financial obligations, particularly in order to fulfill the clients' requests for funds.

The following table presents financial liabilities by residual contractual terms to maturity:

10

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

| Financial liability | December 31, 2022 | December 31, 2021 | Contractual term to maturity |
| --- | --- | --- | --- |
| To broker-dealers and counterparties | $6,235 | $5,978 | Due within one year |
| Accounts payable and accrued liabilities | 62,972 | 58,836 | Due within one year |
| To parent company and affiliates, without interest | 62,010 | 13,890 | On demand |

### c) Market risk

Market risk is the risk that the fair value of financial instruments will fluctuate because of changes in market prices. The Company is primarily exposed to foreign exchange risk.

Foreign exchange risk arises from the possibility that changes in foreign exchange rates could result in losses. The Company may enter into financial instruments consisting primarily of short-term investments and related party balances that may be denominated in foreign currencies. The Company has no involvement with derivative financial instruments used to reduce the foreign exchange risk.

In addition, earnings are subject to Canadian income taxes measured and paid in Canadian dollars. The Company translates its U.S. denominated Financial Statements into Canadian dollars for purposes of filing its Canadian tax returns. Given the changes in foreign exchange rates, this exposes the Company to significant fluctuations in the amount of taxes to be paid.

11

# DESJARDINS SECURITIES INTERNATIONAL INC.

## Notes to the Financial Statements

December 31, 2022 and 2021

(stated in U.S. dollars)

### 7. Schedule of Computation of Net Capital

|  | 2022 |
| --- | --- |
| Total shareholder's equity as at December 31, 2022 | $10 532 896 |
| Deduct non-allowable assets |  |
| Cash (affiliates) | 527 162 |
| Receivable from parent company and affiliates | 21 258 |
| Receivable from broker-dealers and counterparties | 958 891 |
| Research services receivable | 18 134 |
| Prepaid expenses | 58 001 |
|  | 1 583 446 |
| Other deductions - Insurance deductible margin on securities position and foreign exchange margin | 83 892 |
| Net capital | 8 865 558 |
| Computation of aggregate indebtedness to net capital requirements |  |
| Required minimum net capital: the greater of: |  |
| i) $100,000 or |  |
| ii) 61⁄4% of aggregate indebtedness of $324,004 | 100 000 |
| Excess net capital | $8 765 558 |
| Ratio: Aggregate indebtedness to net capital | 0.0365 |

The Company is exempt from the reserve requirements of Rule 15c3-3 of the Security and Exchange Act under paragraph (k)(2)(ii) of that Rule. There are no material differences between the above computation and the corresponding computation prepared by the Company and included in the unaudited Part II Focus Report, as filed on January 26, 2023.

---

12

**Attachment 4:** `DSII-Review-22-Exemption.pdf`

# RICHTER

## Report of Independent Registered Public Accounting Firm

To the Board of Directors of Desjardins Securities International Inc.

We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Desjardins Securities International Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Desjardins Securities International Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3 pursuant to the provisions of subparagraph (k)(2)(ii) (the "exemption provisions") and (2) Desjardins Securities International Inc. stated that Desjardins Securities International Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Desjardins Securities International Inc.'s management is responsible for compliance with the exemption provisions and its statements.

Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Desjardins Securities International Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the conditions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. This report is intended solely for the information and use of management and the board of directors of Desjardins Securities International Inc., the Securities and Exchange Commission, Financial Industry Regulatory Authority, Inc., and the Securities Investor Protection Corporation and is not intended to be and should not be used by anyone other than these specified parties.

Montreal, Québec
February 21, 2023

1CPA auditor, public accountancy permit No. A129175

MONTRÉAL

1981 McGill College
Montréal QC H3A 0G6
514.934.3400

TORONTO

181 Bay St., #3510
Bay Wellington Tower
Toronto ON M5J 2T3
416.488.2345

CHICAGO

200 South Wacker Dr., #3100
Chicago, IL 60606
312.828.0800

RICHTER.CA

**Attachment 5:** `DSII-Audit-22-AuditorReport.pdf`

# RICHTER

## Report of Independent Registered Public Accounting Firm

To the Shareholder and the Board of Directors of Desjardins Securities International Inc.

### *Opinion on the Financial Statements*

We have audited the accompanying balance sheet of Desjardins Securities International Inc. (the 'Company') as at December 31, 2022, the related statements of operations, changes in shareholder's equity and cash flows, for the year ended December 31, 2022, and the related notes and schedules (collectively referred to as the 'financial statements'). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2022, and the results of its operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States ('US GAAP').

### *Basis for Opinion*

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. 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 statements are 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 statements, 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.

### *Supplemental Information*

The schedule of computation of net capital has been subjected to audit procedures performed in conjunction with the audit of Desjardins Securities International Inc.'s financial statements. The schedule of computation of net capital is the responsibility of Desjardins Securities International Inc.'s management. Our audit procedures included determining whether the schedule of computation of net capital reconciles to the financial statements or the underlying accounting and other records, as applicable and performing procedures to test the completeness and accuracy of the information presented in the schedule of computation of net capital.

#### MONTRÉAL

1981 McGill College  
Montréal QC H3A 0G6  
514.934.3400

#### TORONTO

181 Bay St., #3510  
Bay Wellington Tower  
Toronto ON M5J 2T3  
416.488.2345

#### CHICAGO

200 South Wacker Dr., #3100  
Chicago, IL 60606  
312.828.0800

RICHTER.CA

RICHTER

In forming our opinion on the schedule of computation of net capital, we evaluated whether the schedule of computation of net capital, including its form and content is presented in conformity with 17 C.F.R. § 240.17a-5. In our opinion, the schedule of computation of net capital is fairly stated, in all material respects, in relation to the financial statements as a whole.

We have served as the Company's auditor since 2014.

Montreal, Québec
February 21, 2023

1CPA auditor, public accountancy permit No. A129175

**Attachment 6:** `DSII-Formx-17a-5-3.pdf`

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

| OMB APPROVAL |
| --- |
| OMB Number: 3235-0123 |
| Expires: Oct. 31, 2023 |
| Estimated average burden hours per response: 12 |

**ANNUAL REPORTS**
**FORM X-17A-5**
**PART III**

| SEC FILE NUMBER |
| --- |
| 8-53256 |

**FACING PAGE**

Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

FILING FOR THE PERIOD BEGINNING 01/01/22 AND ENDING 12/31/22
MM/DD/YY MM/DD/YY

**A. REGISTRANT IDENTIFICATION**

NAME OF FIRM: Desjardins Securities International Inc

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer ☐ Security-based swap dealer ☐ Major security-based swap participant
☐ Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

1170 Peel St , suite 300

(No. and Street)

Montreal

Canada

H3B0A9

(City)

(State)

(Zip Code)

PERSON TO CONTACT WITH REGARD TO THIS FILING

Danny Charette

514-234-8576

danny.charette@desjardins.com

(Name)

(Area Code - Telephone Number)

(Email Address)

**B. ACCOUNTANT IDENTIFICATION**

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Richter LLP

(Name - if individual, state last, first, and middle name)

1981 McGill College

Montreal

Quebec

H3A0G6

(Address)

(City)

(State)

(Zip Code)

(Date of Registration with PCAOB)(if applicable)

(PCAOB Registration Number, if applicable)

**FOR OFFICIAL USE ONLY**

* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable.

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.

# **OATH OR AFFIRMATION**

I, Danny Charette, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Desjardins Securities International Inc, as of 2/9, 2023, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

Signature:

Title:
FinOP

Notary Public Kristen Zimakas, Lawyer,  
Barreau du Québec #188268-6

**This filing** contains (check all applicable boxes):

- ☑ (a) Statement of financial condition.
- ☑ (b) Notes to consolidated statement of financial condition.
- ☑ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X).
- ☑ (d) Statement of cash flows.
- ☑ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- ☐ (f) Statement of changes in liabilities subordinated to claims of creditors.
- ☑ (g) Notes to consolidated financial statements.
- ☑ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- ☐ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- ☐ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- ☐ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- ☐ (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
- ☐ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- ☐ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- ☐ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- ☐ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- ☑ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- ☐ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ☑ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ☑ (t) Independent public accountant's report based on an examination of the statement of financial condition.
- ☑ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- ☐ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ☑ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ☐ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
- ☐ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).
- ☑ (z) Other: Copy of the SIPC Supplemental Report

**To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.**

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001139084

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** Yes

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** DESJARDINS SECURITIES INTERNATIONAL INC.

**Business Address:** 1170 PEEL STREET, SUITE 300, MONTREAL, QUEBEC, A8, H3B 0A9

**Contact Person:** Danny Charette

**Contact Phone:** 514-234-8576

### Independent Public Accountant Identification

**Accountant Name:** RICHTER LLP

**Accountant Address:** 1981 McGill, Montreal, A8, H3A0G7

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **DANNY CHARETTE**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **DESJARDINS SECURITIES INTERNATIONAL INC.**, as of **12-31-2022**, are true and correct.

**Signature:** Danny Charette

**Title:** Finop

**Notarized:** Yes