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Net Capital Requirements
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9 Months Ended |
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Sep. 30, 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 September 30, 2013, Securities America had regulatory net capital of $10,055, which was $9,805 in excess of its required net capital of $250. At September 30, 2013, Ladenburg had regulatory net capital of $15,222 which was $14,972 in excess of its required net capital of $250.
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 may not exceed 15 to 1. At September 30, 2013, Triad had net capital of $4,843, which was $3,818 in excess of its required net capital of $1,025. Triad’s net capital ratio was 3.2 to 1. At September 30, 2013, Investacorp had net capital of $4,694, which was $4,323 in excess of its required net capital of $371. Investacorp’s net capital ratio was 1.2 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 September 30, 2013, Premier Trust had stockholders’ equity of $1,301, including at least $250 in cash.
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