Question

For a non-carrying broker dealer, which part of the FOCUS report is NOT required and which part must be filed?

1) Part I is NOT required and Part IIA must be filed
2) Part I is required and Part IIA is NOT required
3) Part IIA is required and Part I is NOT required
4) Both Part I and Part IIA are required

Answer 1

Option 1 is correct; for a non-carrying broker dealer, Part I of the FOCUS report is NOT required, but Part IIA must be filed to report financial condition.

Step-by-step explanation:

For a non-carrying broker dealer, Part I of the FOCUS report is NOT required and Part IIA must be filed. This means that the correct answer to the question would be option 1. The FOCUS report, which stands for Financial and Operational Combined Uniform Single Report, is a tool used by the Securities and Exchange Commission (SEC) and self-regulatory organizations to monitor the financial and operational condition of registered broker-dealers.

Non-carrying broker-dealers, who do not hold customer funds or securities, are typically subject to less stringent reporting requirements than carrying broker-dealers. They are required to file Part IIA, which contains information on their financial condition, but not Part I, which is more comprehensive and includes information on securities.