The Financial Industry Regulatory Authority has issued Regulatory Notice 10-12 providing members with guidance from the Securities and Exchange Commission’s Division of Trading and Markets on the procedures for reporting adjustments on the FOCUS Report resulting from the Financial Accounting Standard Board’s Statement of Financial Accounting Standards No. 167 (FAS 167) Amendments to FASB Interpretation No. 46(R). FAS 167, among other things, established new standards for reporting transfers of assets to special-purpose entities, known as variable interest entities (VIEs) under Generally Accepted Accounting Principles, and for consolidating VIEs. Firms are required to consider the impact of the FAS 167 provisions on all future FOCUS Report filings, commencing with the January 2010 FOCUS Report.
Click here to read FINRA Regulatory Notice 10-12.