FINRA Posts Policy for Annual Financial Audit Extension Requests

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The FINRA policy related to the granting of extensions for the filing of annual financial audits contains a significant shift in its policy with respect to the length of extension that it will grant. The Annual Audit Extension Policy currently posted by FINRA states specifically that “In situations where FINRA deems it appropriate to grant an extension request, the time granted is generally limited to 10 business days. In exceptional circumstances, FINRA may determine that an extension of additional time for the filing of the audited financial statements may be granted, but not to exceed 30 calendar days from the original due date of the audit.”

While a request for an extension of time to file the audit will either be granted or denied based upon the specific facts and circumstances in each case, it’s clear that without a compelling basis, it most likely will not exceed 10 days. Therefore, member firms should ensure that sufficient time is allotted to complete the audit within the 60 day timeframe, and we recommend that you discuss these new requirements with your independent auditor at the beginning of the audit process so that they can plan to file on time or be prepared to receive at best, a 10 day extension and not the traditional 30 day extension.

Courtesy of the LeGaye Law Firm, PC

Michael Schaps, Co-Author

Daniel E. LeGaye, Co-Author

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Daniel LeGaye, The LeGaye Law Firm, PC | Attorney Advertising

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