What is Form X-17A-5?
SEC Form X-17A-5 is a financial reporting form that all broker-dealers who are registered with the U.S. Securities and Exchange Commission (SEC) must complete. This form consists of three parts and contains an annual audit that must be performed by a certified public accountant (CPA).
What is a focus II report?
FOCUS Report Part II (“Part II”) is a report of the U.S. Securities and Exchange Commission (“Commission” or. “SEC”) that is required to be filed by the following: • Brokers or dealers (“broker-dealers”) registered with the Commission under section 15 of the Securities.
Which items are allowable assets for the net capital computation?
When calculating net capital, a broker-dealer is required to sum all “allowable” assets, including securities positions and certain qualifying subordinated debt. Examples of “non-allowable” assets include unsecured receivables, fixed assets, real estate and other illiquid assets.
What is required for a focus report?
A FINRA Financial and Operational Combined Uniform Single (FOCUS) report includes a balance sheet, income statement, net capital calculation, and equity reconciliation. The intent is to demonstrate to regulators the financial position of the firm and its ability to maintain sufficient net capital.
What is SEC Form 17a?
This SEC Form 17-A shall be used for annual reports filed pursuant to Section 17 of the Securities Regulation Code (SRC) and paragraph (1)(A) of SRC Rule 17.1 thereunder. Annual reports shall be filed within one hundred five (105) calendar days after the end of the fiscal year covered by the report.
What are allowable assets?
Allowable Assets – Firm’s assets that are readily available or convertible into cash.
Who are Focus reports filed with?
The eFOCUS system provides firms with the capability to electronically submit their Financial and Operational Combined Uniform Single (FOCUS) Reports to FINRA. FINRA member firms are required to compose and submit FOCUS reports to FINRA pursuant to SEC Rule 17a-5.
What is SEC Rule 15c3 3?
Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage firms to maintain secure accounts. Also known as the Customer Protection Rule, SEC Rule 15c3-3 is part of the Code of Federal Regulations. It ensures that brokerage clients can withdraw assets at any time, and a brokerage has to work to uphold it.
What is included in net capital?
In theory, a calculation of “net capital” greater than zero would mean the “liquid assets” owned by a broker-dealer could be sold to repay all its obligations, even those not then due, other than any qualifying subordinated debt that the net capital rule treated as equity.
Who files a focus report?
FINRA member firms are required to compose and submit FOCUS reports to FINRA pursuant to SEC Rule 17a-5.
What is Focus report?
FOCUS Report means, for any Person, the Financial and Operational Combined Uniform Single Report required to be filed on a monthly or quarterly basis, as the case may be, with the Commission or the NYSE, or any report that is required in lieu of such report.
Who are required to submit audited financial statements to SEC?
Section 3. All corporations and partnerships registered with SEC must enroll in the OST in order to access and submit reports through the OST, except as otherwise provided in this Memorandum-Circular and other issuances of the Commission.