Regulatory Financial Reporting

Regulatory reporting isn’t just a requirement – it’s a reflection of your firm’s financial integrity. ACI prepares and files every report with precision, ensuring timely, accurate submissions that satisfy regulators and simplify audits. From FOCUS filings to Form Custody, our team handles the details so you can avoid disruptions.

ACI’s regulatory financial reporting services include:

FOCUS Reports

ACI prepares and files FINRA Financial and Operational Combined Uniform Single (FOCUS) Reports (Form X-17A-5) in full compliance with SEC Rule 17a-5, providing the transparency regulators expect and the accuracy your firm needs to operate with confidence.

Preparation of Part IIA or Part II, including balance sheet, income statement, equity reconciliation and net capital computation
Timely monthly or quarterly filing through FINRA Gateway, supported by audit-ready documentation
Internal controls and capital tracking designed to prevent violations before they occur

Supplemental Schedule of Income (SSOI)

Required under FINRA Rule 4524, the SSOI breaks down revenue by source and product. ACI ensures precise SSOI classification and reconciliation to keep firms compliant and exam-ready.

Net Capital Computations & Monitoring

ACI performs ongoing and monthly net capital calculations in accordance with SEC Rule 15c3-1, providing real-time visibility that helps you stay ahead of violations and avoid costly interruptions to your business.

Regulatory Haircut Computations

ACI calculates and documents all applicable market, credit and concentration haircuts required under SEC Rule 15c3-1. We prioritize precision in every deduction, ensuring completeness, compliance and audit preparedness.

Form Custody

Even firms that don’t carry customer funds or securities must submit Form Custody to confirm exemption from SEC Rule 17a-5(a)(4). ACI helps ensure customer funds are protected through clean reporting – and keeps you on solid regulatory footing.

SIPC 6/7 Computations and Filings

SIPC-6 (midyear) and SIPC-7 (annual) filings require broker-dealers to calculate their assessments based on revenue reported in their FOCUS Reports. ACI streamlines this process, ensuring every figure is sourced, supportable and submitted without delay.

Schedule 1

Another required supplement to FINRA FOCUS Reports, Schedule 1 captures an operational snapshot of your firm, including customer account data, clearing arrangements, exchange memberships and transaction volumes. ACI ensures this submission is complete, accurate and aligned with your broader regulatory obligations.

Questions on regulatory financial reporting for broker-dealers? Here’s what you need to know.

What is a FOCUS Report, and who is required to file it?

The FOCUS Report (Form X-17A-5) is a mandatory filing under SEC Rule 17a-5 that provides a broker-dealer’s financial and operational information to regulators. Firms must file either Part IIA (introducing brokers) or Part II (clearing brokers), depending on their business model. The report includes net capital computations, balance sheets, income statements and other critical data.

What is the SSOI, and how is it different from the FOCUS Report?

The Supplemental Statement of Income (SSOI) is a required addendum to the FOCUS Report that provides a more detailed breakdown of a firm’s revenue sources. While the FOCUS includes broad financials, the SSOI classifies income into categories such as commissions, investment banking fees and proprietary trading. It must be submitted concurrently with the FOCUS filing.

How are SIPC assessments calculated?

Assessments are based on gross revenue figures pulled from the FOCUS Report. The SIPC-6 computes this midyear; the SIPC-7 finalizes it at year-end. ACI extracts and reconciles these figures, calculates the required assessment and ensures both filings are accurate and timely.

Who needs to file Form Custody?

All broker-dealers registered with the SEC must file Form Custody, regardless of whether they hold customer funds or securities. For firms that claim exemption from custody obligations, the form confirms their exempt status and outlines the basis for it. ACI prepares and files Form Custody quarterly to keep firms aligned with SEC Rule 17a-5(a)(5).

What happens if a firm’s custody status changes?

If a firm transitions from an introducing broker to a carrying firm – or changes its clearing arrangement – its Form Custody filings must reflect that shift. ACI supports firms through these transitions, ensuring accurate documentation of their status and exemption (if applicable).

How often do FOCUS Reports need to be filed?

Most broker-dealers must file FOCUS Reports on a quarterly basis, while some firms are subject to monthly filings. ACI tracks and manages these deadlines on behalf of its clients to ensure timely, accurate submission through FINRA Gateway.

Why is revenue classification on the SSOI so important?

Accurate revenue classification supports downstream regulatory reporting, including SIPC assessments and financial audits. Errors can result in inconsistent filings or audit flags. ACI reconciles the SSOI directly against the general ledger and prior submissions to avoid discrepancies.

What is SEC Rule 15c3-1, and why does it matter?

SEC Rule 15c3-1 applies to all broker-dealers who hold or directly handle customer funds and other assets. The rule has strict guidelines to ensure broker-dealers segregate customer assets and maintain a reserve in order to maintain integrity and a secure financial system. The FinOp is responsible for ensuring compliance with this rule or the appropriate exemption in the event the firm does not handle customer assets.

What are regulatory haircut computations?

Under Rule 15c3-1, broker-dealers must apply “haircuts” (reductions) to the value of certain assets to reflect market, credit or concentration risk. ACI calculates standard and non-standard haircuts and integrates them into your net capital and reserve computations – with documentation ready for audit.

What is Schedule I, and how is it used?

Schedule I is an annual summary submitted with the final FOCUS Report of the calendar year. It helps regulators assess your firm’s operational profile, including how you handle customer accounts, what exchanges you’re active on and how many transactions you process. ACI ensures your Schedule I data is clean, complete and consistent with your FOCUS Reports and other year-end filings.