Regulatory Notice 18-38

Amendments to the SEC’s Financial Reporting Requirements—eFOCUS System Updates and Annual Audit Requirements

Summary

The Securities and Exchange Commission (SEC) has adopted amendments that simplify and update, among other rules and forms, certain of the FOCUS reporting requirements for brokers and dealers and make changes to the annual audit requirements. FINRA is updating the electronic FOCUS filing system (the eFOCUS System) to incorporate the SEC’s amendments. To facilitate members’ efforts to comply with the new requirements, FINRA is making available on the FINRA website resources that illustrate the eFOCUS System updates.

Pursuant to no-action relief issued by the staff of the SEC Division of Trading and Markets (the SEC staff), the SEC staff stated that it will not recommend enforcement action to the SEC if a broker-dealer continues to file the FOCUS Report as required prior to these amendments when reporting for periods ending on or before December 31, 2018. Therefore, the new FOCUS reporting requirements apply beginning with FOCUS reports filed for the period ending January 2019 and after. For example, for firms filing as of the last day of the month, the FOCUS reporting requirements apply beginning with FOCUS reports filed for the period ending January 31, 2019, and after. The new annual audit requirements apply to annual audit reports due for fiscal years ending in January 2019 and after.

Questions concerning this Notice should be directed to:

  • Yui Chan, Senior Director, Risk Oversight and Operational Regulation (ROOR), at (646) 315-8426;
  • Ann Duguid, Senior Director, ROOR, at (646) 315-7260; or
  • Anthony Vinci, Director, ROOR, at (646) 315-8335.

Related Documents: 

DateTitleFormat - Size
11/5/2018FOCUS Report Part IIPDF - 316.39 KB
11/5/2018FOCUS Report Part IIAPDF - 314.83 KB
11/5/2018FOCUS Report Part II CSEPDF - 342.02 KB