Rule 17a-5 requires member firms to file annual financial reports with the SEC and FINRA known as FOCUS reports. FOCUS report stands for Financial and Operational Combined Uniform Single report. These reports are similar to financial statements in that they provide net capital information and related operational information.
There are three different FOCUS reports: Part I, Part II, and Part IIA. 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.
Depending on the type of firm, there are different FOCUS reports that the firm must submit. All firms must file quarterly reports by the 17th business day after the quarter’s end. 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 month’s end.
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.
