Regulatory Notice 19-08

Guidance on FOCUS Reporting for Operating Leases


In October 2018, the staff of the SEC Division of Trading and Markets (the SEC staff) issued no-action relief (the no-action relief letter) regarding the treatment of operating leases under SEA Rule 15c3-1 (Rule 15c3-1) in connection with the Financial Accounting Standards Board’s (FASB) Accounting Standards Update for Leases (the Lease Accounting Update). Based on discussions with the SEC staff, and in response to member inquiries, FINRA is issuing this Notice to provide guidance to members for reporting lease assets and lease liabilities on their FOCUS reports.

Members should apply the guidance in this Notice going forward when preparing their FOCUS reports. Members are not required to refile any FOCUS reports that they have already submitted to comply with this guidance.

Questions concerning this Notice should be directed to:

  • Yui Chan, Senior Director, Risk Oversight & 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.