Amendments to the SEC’s Financial Reporting Requirements

December 28, 2018

On November 5, 2018, FINRA released Regulatory Notice 18-38, which notified member firms of amendments to Financial and Operational Combined Uniform Single (“FOCUS”) reports adopted by the U.S. Securities and Exchange Commission (“SEC”) to reflect changes in generally accepted accounting principles regarding the reporting of comprehensive income.

Firms must begin filing the amended forms for FOCUS reports covering periods ending January 2019 or later.

The updates affect the following FOCUS filings:

  • FOCUS Report Part II
  • FOCUS Report Part IIA
  • FOCUS Report Part II CSE

Although FINRA won’t require firms to begin filing the new forms until the filing period ending January 31, 2019, FINRA will make the updated eFOCUS forms available on the Firm Gateway beginning December 31, 2018. The FINRA Gateway Call Center at (800) 321-6273 will provide technical assistance with the new eFOCUS forms.

The SEC also adopted amendments related to annual audit report filings. If a firm has comprehensive income to report in a given filing period, annual audits for fiscal years ending in January 2019 or later must include a Statement of Comprehensive Income instead of a Statement of Income.

For More Information

For more information, please contact your ACA consultant or Dee Stafford at (561) 628-5288 or dstafford@acacompliancegroup.com.