§ 303.041. Broker-dealer capital requirements.

 (a)  Except as set forth in subsection (e), every broker-dealer registered under section 301 of the act (70 P. S. §  1-301) shall maintain net capital of $25,000. The aggregate indebtedness of a registered broker-dealer may not exceed 1500% of its net capital. For purposes of this section, the terms ‘‘net capital’’ and ‘‘aggregated indebtedness’’ have the meanings set forth in Rule 15c3-1 (17 CFR 240.15c3-1) (relating to net capital requirements for brokers and dealers) promulgated under the Securities Exchange Act of 1934 (15 U.S.C.A. § §  78a—78mm).

 (b)  As a condition of the right to continue to transact business, every broker-dealer registered under the act that is not registered as a broker-dealer with the United States Securities and Exchange Commission (SEC) under the Securities Exchange Act immediately shall notify the Commission if the broker-dealer’s aggregate indebtedness exceeds 1500% of its net capital or if its total net capital is less than the minimum required. Within 24 hours after transmitting the notice, the broker-dealer shall file a report of its financial condition with the Commission including the following:

   (1)  A proof of money balances of ledger accounts in the form of a trial balance.

   (2)  A computation of net capital and aggregate indebtedness as those terms are used in this section and a computation of the ratio of aggregate indebtedness to net capital.

   (3)  An analysis of the aggregate market value of fully paid securities in customers’ security accounts which are not segregated.

   (4)  A proof of ledger net credit balances of moneys borrowed from banks, trust companies and from other financial institutions, and from others, which are fully or partially secured by securities carried for the account of a customer.

   (5)  A computation of the aggregate amount of customers’ ledger debit balances.

   (6)  A computation of the aggregate amount of customers’ ledger credit balances.

   (7)  A statement as to the approximate number of customer accounts.

 (c)  The term ‘‘customer’’ of a broker-dealer as used in this subsection includes every person except the broker-dealer.

 (d)  The Commission may by order permit an applicant for registration as a broker-dealer under section 301 of the act which is not registered or has not applied for registration as a broker or dealer with the SEC to file, execute and maintain a surety bond in compliance with §  303.051 (relating to surety bonds).

 (e)  Every broker-dealer registered under section 301 of the act that is registered as a broker or dealer with the SEC shall maintain minimum net capital and comply with the aggregate indebtedness requirements as set forth in Rule 15c3-1 (17 CFR 240.15c3-1)(relating to net capital requirements for brokers and dealers) promulgated under the Securities Exchange Act of 1934.

   The provisions of this §  303.041 amended under sections 303(a), (c) and (d) and 609(a) of the Pennsylvania Securities Act of 1972 (70 P. S. § §  1-303(a), (c) and (d) and 1-609(a)).

   The provisions of this §  303.041 adopted March 29, 1974, effective March 30, 1974, 4 Pa. B. 582; amended January 17, 1992, effective January 18, 1992, 22 Pa.B. 287; amended December 28, 2001, effective December 29, 2001, 31 Pa.B. 7032. Immediately preceding text appears at serial pages (268819) to (268821).

   This section cited in 64 Pa. Code §  303.051 (relating to surety bonds).