Rule 17a-5 requires member firms to file monthly and quarterly financial reports with the SEC and FINRA. These reports are known as Financial and Operational Combined Uniform Single Reports, or FOCUS Reports.FOCUS Reports are similar to financial statements in that they provide balance sheet, income statement, net capital, and related operational information.
Broker-dealers submit FOCUS Reports on Form X-17A-5. A firm does not need to submit each section of a FOCUS Report; instead, it must submit either Part I, Part II, or Part IIA. The exact part of the form that a firm submits is dependent on whether the firm is a carrying firm or a non-carrying firm. You will not need to know the specifics of what must be included in each kind of report, only which form must be filed by which broker-dealers and by what date.
All firms must file quarterly reports by the 17th business day after a quarter ends. Carrying and clearing firms must file FOCUS Part II reports; introducing firms must file FOCUS Part IIA reports. Carrying firms must also file Part I monthly reports by the 10th business day after the end of each month. In addition, all firms must file an annual Schedule I form, which describes operational details about the firm. A Schedule I must be filed within 17 days of the last day of the calendar year (December 31). When a firm terminates its membership in any exchange or self-regulatory organization, it must file a FOCUS Part II or IIA within 2 days of termination. As a supplement to its FOCUS Report filing requirement, FINRA reserves the right to require member firms to file any additional financial or operational schedules or reports as it deems necessary for the protection of investors.
