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Net Capital Requirements
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9 Months Ended | |||
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Sep. 30, 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 September 30, 2012, Ladenburg had regulatory net capital of $6,791, which exceeded its minimum capital requirement of $250, by $6,541. At September 30, 2012, Securities America had regulatory net capital of $6,534, which was $6,284 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 does not exceed 15 to 1. At September 30, 2012, Investacorp had net capital of $3,001, which was $2,696 in excess of its required net capital of $305. Investacorp’s net capital ratio was 1.5 to 1. At September 30, 2012, Triad had net capital of $3,475, which was $2,971 in excess of its required net capital of $504. Triad’s net capital ratio was 2.2 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 September 30, 2012, Premier Trust had stockholders’ equity of $1,504. |