FINRA proposes to adopt FINRA Rule 4524, Supplemental FOCUS Information, and Proposed Supplementary Schedule to the Statement of Income (Loss) Page of FOCUS Reports, to require each member to file such additional financial or operational schedules or reports as FINRA may deem necessary as a supplement to the FOCUS report.  The content of such supplemental schedules or reports would be specified in a Regulatory Notice, which FINRA would file with the SEC pursuant to proposed FINRA Rule 4524.  As part of the proposed rule change, FINRA is filing one such proposed schedule, a supplement to the Statement of Income (Loss) page of the FOCUS Report. Text of Proposed Rule Change The proposed rule change will be effective upon SEC approval, followed by a FINRA announcement of implementation dates of both proposed FINRA Rule 4524 and the proposed schedule - i.e., the proposed supplement to the Statement of Income (Loss) page of the FOCUS Report - in a Regulatory Notice.  Implementation of the proposed schedule will be no sooner than 180 days, and no later than 365 days, following SEC approval. Proposed FINRA FINRA Rule 4524 would provide the mechanism by which FINRA can obtain from members more detailed financial information to augment the FOCUS reports required to be filed pursuant to SEA Rule 17a-5.  Proposed FINRA Rule 4524 would require members to file such additional financial or operational schedules or reports to supplement FOCUS reports as FINRA may deem necessary or appropriate for the protection of investors or in the public interest. The rule would provide FINRA with the framework to request more specific information regarding, among other things, the assets and liabilities of a member, the generation of revenues and allocation of expenses by business segment or product lines, the sources of trading gains and losses, the types and amounts of fees earned, and the nature and extent of participation in securities offerings.  Depending on the nature of the proposed supplemental schedule or report, FINRA may require that all members or any specified subset of members submit the schedule or report to FINRA. Proposed Supplemental Statement of Income & Loss. The proposed SSOI is intended to capture more granular detail of a firm’s revenue and expense information.  The lack of more specific revenue and expense categories for certain business activities on the SSOI page of the FOCUS Reports has led many firms to report much of their revenue and expenses as “other” (miscellaneous), a very general categorization that provides FINRA limited visibility into revenue and expense trends. The proposed SSOI is divided into sections containing line items that seek additional detail to permit FINRA to better understand revenue sources and expense composition on an ongoing basis. This additional detail would allow FINRA to better assess risk at a firm, and as a result, better allocate examination resources. Each member would be required to file with FINRA the proposed SSOI within 17 business days of the end of each calendar quarter. The proposed SSOI includes a new Operational Page that would collect additional information from certain members with respect to participation in unregistered offerings during the reporting period.  Members whose revenue from unregistered offerings exceeds 10% of total revenue for the reporting period would be required to complete the Operational Page by providing specific information about each unregistered offering. FINRA believes that such information would provide it with greater transparency and a stronger understanding regarding the types of unregistered offerings that generate significant revenue for members. For further details, go to:  FINRA Rule Filing 11-64, 11/1/11]