Annual Financial Reports
Each member firm (except for a fully disclosed firm that does not carry customer accounts) must file a yearly financial report that has been audited by an independent public accountant. The financial report must include a Statement of Financial Condition, a Statement of Income, and supporting schedules, such as a computation of the firm’s net capital. The financial statements must be made in accord with generally accepted accounting principles, and supporting schedules must be consistent with the member’s FOCUS reports.
The broker-dealer must attach an oath to the financial report, affirming that to the best of its knowledge the financial report is true and correct and that neither the firm nor any of its officers has a proprietary interest in any customer account. The oath or affirmation must be made before a person duly authorized to administer it.
The independent public accountant must be registered with the Public Company Accounting Oversi