D.C. Mun. Regs. tit. 26, r. 26-B179

Current through Register 71, No. 45, November 7, 2024

Rule 26-B179 - FINANCIAL REQUIREMENTS FOR INVESTMENT ADVISERS

179.1

For purposes of this section, "net capital" shall have the same meaning as set forth in SEC Rule 15c3-1 under the Securities Exchange Act of 1934, and any amendments thereto.

179.2

An investment adviser whose principal place of business is located in the District and is required to provide a balance sheet pursuant to Part II, item 14 of Form ADV shall:

(a) Maintain a minimum net capital of $ 25,000.00; and

(b) An investment adviser licensed or required to be licensed whose minimum net capital does not exceed $ 35,000.00 pursuant to monthly calculations shall post a Surety Bond in the amount of $ 10,000.00 within thirty (30) days after the computation which reflects the deficiency and the Surety Bond shall remain in effect for not less than twelve months thereafter. If the investment adviser's minimum net capital remains below the $ 35,000.00 at the end of twelve months in which the bond is required, the investment adviser shall maintain the Surety Bond on a continuing basis.

179.3

An investment adviser licensed or required to be licensed in the District shall notify the Department by the close of business on the next day if the minimum net capital as set forth in § 179.1 of this section falls below the minimum required.

179.4

After transmitting the notice, the investment adviser shall, by the close of business on the following business day, file with the Department a report of its financial condition, including the following:

(a) A trial balance of all ledger accounts;

(b) A computation of net capital as defined in subsection 179.1;

(c) A statement of all client funds, securities, or assets that are not segregated;

(d) A computation of the aggregate amount of client debit balances; and

(e) A statement as to the number of client accounts and details of client accounts for any District residents.

D.C. Mun. Regs. tit. 26, r. 26-B179

Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001)