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Net Capital Requirements
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3 Months Ended |
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Mar. 31, 2013
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| Regulatory Capital Requirements [Abstract] | |
| Net Capital Requirements |
Net Capital Requirements
The Company’s broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital. Each of Securities America and Ladenburg has elected to compute its net capital under the alternative method allowed by this rule. At March 31, 2013, Securities America had regulatory net capital of $8,308, which was $8,058 in excess of its required net capital of $250. At March 31, 2013, Ladenburg had regulatory net capital of $6,605, which exceeded its minimum capital requirement of $250, by $6,355.
Triad and Investacorp 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, 2013, Triad had net capital of $3,580, which was $2,810 in excess of its required net capital of $770. Triad’s net capital ratio was 3.2 to 1. At March 31, 2013, Investacorp had net capital of $3,738, which was $3,332 in excess of its required net capital of $406. Investacorp’s net capital ratio was 1.6 to 1.
Securities America, Triad, Investacorp and Ladenburg 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 at least $250 in cash. At March 31, 2013, Premier Trust had stockholders’ equity of $1,484, including at least $250 in cash.
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