Regulatory Notice 10-12

Guidance on FAS 167 for FOCUS Reporting

This Notice provides FINRAmember firms with guidance fromthe staff of the Division of Trading andMarkets of the Securities and Exchange Commission (SEC) on the procedures for reporting adjustments on the FOCUS Report resulting fromthe Financial Accounting Standard Board’s Statement of Financial Accounting Standards No. 167 (FAS 167), Amendments to FASB Interpretation No. 46(R). The provisions of FAS 167 are effective at the start of a firm’s first fiscal year beginning after November 15, 2009, or as of January 1, 2010, for firms reporting earnings on a calendar-year basis.

Questions concerning this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation (ROOR), at (646) 315-8434;
  • Yui Chan,Managing Director, ROOR, at (646) 315-8426; or
  • Susan DeMando Scott, Associate Vice President, Financial Operations Department, at (202) 728-8411.

Questions regarding the applicability of FAS 167 to your firmshould be discussed with your independent public accountant. Questions regarding the procedures for reporting the adjustments resulting fromthe application of FAS 167 on the FOCUS Report may be directed to your FINRA Regulatory Coordinator.