Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

What is the filing requirement for firms regarding their fiscal year-end date and FOCUS reports?

1. File annually regardless of the year-end

2. File within 10 days of the year-end

3. File within 17 business days if not on a calendar quarter

4. File quarterly to match calendar quarters

The correct answer is: File within 17 business days if not on a calendar quarter

The filing requirement for firms regarding their fiscal year-end date and FOCUS (Financial and Operational Combined Uniform Single) reports is to file within 17 business days if the fiscal year-end is not aligned with a calendar quarter. This time frame allows firms that operate on a different fiscal schedule to comply with regulatory oversight while ensuring their financial data remains current and accessible for review. The reasoning for this requirement is linked to the need for timely financial reporting and oversight in the industry. By establishing a specific timeline for filing such reports, regulatory bodies can effectively monitor a firm’s financial health and compliance with applicable regulations, irrespective of when their fiscal year ends. Firms that operate on a calendar year may have different reporting obligations, but the key aspect of this requirement is the timeframe set forth for those whose fiscal year does not coincide with the standard calendar quarters. This helps maintain a consistent flow of information for regulatory agencies and assists firms in staying compliant with financial reporting mandates.