Sec. 48-4-011 - MINIMUM FINANCIAL REQUIREMENTS AND FINANCIAL REPORTING REQUIREMENTS

ยง 48-4-011. MINIMUM FINANCIAL REQUIREMENTS AND FINANCIAL REPORTING REQUIREMENTS

011.01 Each broker-dealer which is a member of FINRA registered or required to be registered under the Act shall:

011.01A Comply with the financial requirements established in SEC Rule 15c 3-1 (17 C.F.R. 240.15c3-1), and 15c 3-3 (17 C.F.R. 240.15c3-3), and

011.01B Comply with the financial reporting requirements established in SEC Rule 17a-11 (17 C.F.R. 240.17a-11) and provide copies of notices and reports required by such SEC Rules to the Director upon request.

011.02 Each broker-dealer which is not a member of FINRA registered or required to be registered under the Act shall:

011.02A Maintain a net capital of not less than twenty-five thousand dollars ($25, 000.00).

011.02A1 A broker-dealer which has a net capital which is less than required by this Section shall submit a surety bond in the amount of twenty-five thousand dollars ($25, 000.00) with its application.

011.02A2 Net capital means total assets minus total liabilities.

011.02B File with the Director audited financial statements showing the assets, liabilities and net capital of the broker-dealer within ninety days of the end of the broker-dealer's fiscal year, which shall be:

011.02B1 Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;

011.02B2 Audited by an independent public accountant or an independent certified public accountant; and

011.02B3 Accompanied by an opinion of the accountant as to the report of financial position, and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.

(Amended effective November 27, 2019)

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