Section 4.02. Net capital requirements and aggregate indebtedness limitations.

 

(1)  Every broker-dealer, whether or not subject to rule 15c3-1 of the securities exchange act of 1934, shall maintain net capital in such minimum amounts as are designated in that rule for the activities to be engaged in by the broker-dealer in this state.

(2)  The aggregate indebtedness of each broker-dealer to all other persons shall not exceed the levels prescribed under rule 15c3-1 of the securities exchange act of 1934.

(3)  If a broker-dealer is an individual, the person shall segregate from personal capital an amount sufficient to satisfy the net capital requirement, and the amount so segregated shall be utilized solely for the business for which the broker-dealer is registered.

(4)  The division may by order exempt any broker-dealer from the provisions of this subsection, either unconditionally or upon specified conditions, if by reason of the broker-dealer's membership on a national securities exchange or the special nature of its business and its financial position, and the safeguards that have been established for the protection of customers' funds and securities, the provisions are not necessary in the public interest or for the protection of investors.

History: Cr. Register, December, 1977, No. 264 , eff. 1-1-78; am. (3) and (4), Register, December, 1980, No. 300 , eff. 1-1-81; am. (1), Register, December, 1982, No. 324 , eff. 1-1-83; am. (1), Register, December, 1983, No. 336 , eff. 1-1-84; CR 08-077 : am. (3) Register December 2008 No. 636 , eff. 1-1-09.