FOCUS reporting for broker dealers: Why it's essential to have professional help
If you are a broker dealer then FOCUS reporting is a fact of life for your firm. SEC Rule 17a-5 states that all broker dealers are required to now present quarterly or monthly FOCUS reports. FOCUS stands for Financial and Operational Combined Uniform Single report. FOCUS reporting is used to track a particular financial institutions activity over a set period of time. After the FOCUS reports are finished a FINRA coordinator will review the material, audit reports, and see that accurate financial reporting is being given. A FOCUS Report consists of a balance sheet, an income statement, a statement of changes in ownership equity, and a complete total of net capital earned during that period, including credit and debit balances. The point of FOCUS reporting is for FINRA to find "excess net capitol" which will then allow the broker dealer to continue business as usual without further government interruption. FOCUS reporting is essential for all broker dealer registrations, and for continued compliance status.
How important is FOCUS reporting for your firm?
Well, non-compliance when it comes to FOCUS reporting can equate to massive fines and penalties and can cause a great disturbance to the firms overall operations. FOCUS reports must be accurate and completed on time in order to avoid these stiff fines and penalties from FINRA.
So what is the best solution when it comes to preparing FOCUS Reports?
The best solution is to hire an established Wall Street accounting and compliance firm who can prepare your FOCUS Report and file it with FINRA. FOCUS reporting by a professional accounting firm is the only way to ensure that your FOCUS Reports are accurate and precise, and that FINRA is satisfied. When an expert accounting firm is dealing with your reporting, they will always use the FINRA Gateway platform to ensure that your FOCUS reports are submitted correctly.
When hiring an accounting firm to aid you with your FOCUS reporting, remember to only hire a firm where the accountants are also certified Financial and Operation Principals. This means that they have passed the Series 27/28 examination and are fully qualified to aid you with your FOCUS reporting, and prepare a truly professional FOCUS Report for FINRA. Remember, not all accounting and compliance firms are created equal. Many firms are inexperienced with this type of reporting and not aware of the constant fluctuations regarding FINRA compliance. A truly experienced accounting and compliance firm will always be savvy regarding FOCUS reporting and will usually be located in the heart of Wall Street, with their finger directly on the economic pulse. An experienced compliance firm will also have many references, which are available upon request, from some of the top investment firms in the country.
If you would like any further information about FOCUS reporting, or FOCUS reports, please fill out the box to the right of the page and an established accounting professional will contact you regarding your complimentary consultation. Act quickly and save yourself the time, money and the frustration that comes with trying to do FOCUS reporting without an expert by your side.
