Md. Code Regs. 02.02.02.08

Current through Register Vol. 51, No. 24, December 2, 2024

Section 02.02.02.08 - Financial Requirements for Broker-Dealers

A. Terms Defined. For purposes of the Maryland Securities Act, Corporations and Associations Article, § 11-409, Annotated Code of Maryland, and this regulation, the terms "net capital" and "aggregate indebtedness" have the meanings stated in 17 CFR § 240.15c 3-1 (SEC Rule 15c3-1, Net Capital Requirements for Brokers and Dealers), which is incorporated by reference.

B. Broker-Dealers Subject to § 15 of the Securities Exchange Act of 1934. A broker-dealer that is registered in Maryland and that is subject to § 15 of the Securities Exchange Act of 1934 shall maintain the net capital required by 17 CFR § 240.15c 3-1 (SEC Rule 15c3-1 Net Capital Requirements for Brokers and Dealers), which is incorporated by reference.

C. Broker-Dealers Not Subject to § 15 of the Securities Exchange Act of 1934.

(1) A broker-dealer that is registered in Maryland and that is not subject to § 15 of the Securities Exchange Act of 1934 shall:

(a) Maintain a net capital of not less than $15,000; and

(b) Not permit its aggregate indebtedness to exceed 2000 percent of its net capital.

(2) A registered broker-dealer that deals exclusively in securities exempt under the Maryland Securities Act, Corporations and Associations Article, § 11-601(1) or (2), Annotated Code of Maryland, is exempt from the requirement of §C(1)(b) of this regulation.

D. Exemption. The Commissioner by order may exempt a registered broker-dealer from the requirements of this regulation.

Md. Code Regs. 02.02.02.08

Regulations .08 adopted effective January 17, 1994 (21:1 Md. R. 26)
Regulation .08B, C amended effective June 15, 1998 (25:12 Md. R. 944)