Mo. Code Regs. Ann. tit. 15, § 30-59.100
Net Capital Requirements for Broker-Dealers
Effective Jan 30, 1987section 409.858, RSMo 1986.* This rule was previously filed as 15 CSR 30- 60.050. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987Secretary of State
PURPOSE: This rule prescribes the minimum net capital and ratio between net capital and aggregate indebtedness required of registered broker-dealers.
(1) A broker-dealer shall have the net capital necessary to comply with all of the following conditions:
- (A) The aggregate indebtedness to all other persons of a broker-dealer who has been registered under section 409.850, RSMo shall not exceed one thousandth percent (.001%) of his/her net capital; and
- (B) S/he shall have and maintain net capital of not less than twenty thousand dollars ($20,000).
- (2) The commissioner, by order, which may apply individually or to a class, may establish a lower net capital requirement, a lower cash reserve requirement or a higher maximum ratio of aggregate indebtedness to net capital either unconditionally or upon special terms or conditions, for a broker-dealer who satisfied the commissioner that because of the special nature of his/her business and his/her financial condition and the safeguards that have been established for the protection of customers’ funds, investors would not be adversely affected.
- (3) A broker-dealer not in compliance with the aggregate indebtedness, net capital or cash reserve requirements shall cease soliciting new business and immediately shall notify the commissioner in writing.
- (4) For the purposes of this rule and to insure uniform interpretation, the terms, aggregate indebtedness and net capital shall have the respective meanings as defined in rule15c3-1 under the Securities Exchange Act of 1934. A copy of any pertinent subordination agreement shall be filed with the commissioner within ten (10) days after agreement has been entered into and shall meet the requirements of a satisfactory subordination agreement as that term is defined in rule 15c3-1.
AUTHORITY: section 409.858, RSMo 1986.* This rule was previously filed as 15 CSR 30- 60.050. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987.
*Original authority: 409.858, RSMo 1985.