FINRA has adopted new Rule 4524, Supplemental FOCUS Information, after receiving approval from the SEC.  The SEC also approved adoption of one such schedule - the Supplemental Statement of Income ("SSOI"), as a supplement to the Statement of Income (Loss) page of the FOCUS Report. The new rule requires each firm, as FINRA shall designate, to file such additional financial or operational schedules or reports as FINRA may deem necessary or appropriate, as a supplement to the FOCUS Report. Implementation, Filing Dates. FINRA Rule 4524 is being implemented today, 2/28/12;  the initial SSOI, for quarter ending 9/30/12, is due (i.e., must be filed) on or before 10/26/12. Background Information. In addition to FOCUS Reports, that broker-dealers are required to file under Rule 17a-5 under the Securities Exchange Act of 1934 (SEA), the SEC now has approved adoption of a new rule that provides a mechanism by which FINRA can obtain from firms more detailed financial information to augment the FOCUS Report. The content of such supplemental schedules or reports, their format, and the timing and frequency of such fillings will be specified in a Regulatory Notice (or similar communication) issued pursuant to FINRA Rule 4524. FINRA will file with the SEC pursuant to Section 19(b) of the SEA the content of any such Regulatory Notice (or similar communication) issued pursuant to FINRA Rule 4524. The SEC also approved adoption of a new supplementary schedule under FINRA Rule 4524 - the SSOI - which contains additional line items that seek a more detailed categorization of the revenue and expense line items that are on the Statement of Income (Loss) page of the FOCUS Report Part II, Part IIA and Part II CSE. The SSOI will help FINRA better understand a firm’s revenue sources and expense composition on an ongoing basis. The SSOI also includes instructions that provide definitions and guidance with respect to certain line items.  The SSOI contains a de minimis exception for providing details of revenue and expenses for certain designated sections. If the aggregate amount for the designated section is less than the greater of $5,000 or 5% of the firm’s total revenue or total expense, as applicable, for the reporting period, a firm is only required to enter the aggregate amount to complete the section. Further, FINRA notes that, just as is the case with the Statement of Income (Loss) page of the FOCUS Report, not every line item on the SSOI will apply to every firm, especially those with limited business lines or product offerings. As part of the SSOI, FINRA will require additional information from firms that derived more than 10% of their total revenues during a reporting period from participation in unregistered offerings. These firms must complete an Operational Page that requires certain specific information about each unregistered offering. Each firm is required to file the SSOI within 20 business days of the end of each calendar quarter using the eFOCUS system available through FINRA’s Firm Gateway. Firms must use their current FINRA entitlement user ID and password to access the Firm Gateway.  Questions regarding access to the Firm Gateway should be directed to the firm’s Super Account Administrator (SAA). FINRA Staff Contacts. Direct questions re: this RegNote to:   Kris Dailey, VP, Risk Oversight & Operational Regulation - (646) 315-8434;  Susan DeMando Scott, AVP, Financial Operations Dept - (202) 728-8411;  Matthew Vitek, AGC, Office of General Counsel - (202) 728-8156. For further details, go to:   [FINRA RegNote 12-11, February 2012].