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Net Capital Requirements
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3 Months Ended | |||
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Mar. 31, 2012
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| Net Capital Requirements |
As a registered broker-dealer, each of Ladenburg and Securities America is subject to the SEC’s Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital. Each of Ladenburg and Securities America has elected to compute its net capital under the alternative method allowed by this rule. At March 31, 2012, Ladenburg had regulatory net capital of $3,325, which exceeded its minimum capital requirement of $250, by $3,075. At March 31, 2012, Securities America had regulatory net capital of $5,756, which was $5,506 in excess of its required net capital of $250.
Investacorp and Triad have elected to compute net capital using the traditional method under the SEC’s Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital and a ratio of aggregate indebtedness to net capital, that shall not exceed 15 to 1. At March 31, 2012, Investacorp had net capital of $3,775, which was $3,462 in excess of its required net capital of $313. Investacorp’s net capital ratio was 1.24 to 1. At March 31, 2012, Triad had net capital of $2,719, which was $2,204 in excess of its required net capital of $515. Triad’s net capital ratio was 2.8 to 1.
Ladenburg, Securities America, Investacorp and Triad claim exemptions from the provisions of the SEC’s Rule 15c3-3 pursuant to paragraph (k)(2)(ii) as they clear their customer transactions through correspondent brokers on a fully disclosed basis.
Premier Trust, chartered by the state of Nevada, is subject to regulation by the Nevada Department of Business and Industry Financial Institutions Division. Under Nevada law, Premier Trust must maintain minimum stockholders’ equity of at least $1,000, including cash of at least $250. At March 31, 2012, Premier Trust had stockholders’ equity of $1,759. |