Preparation of net capital computations

While most broker dealer firms are required to file regulatory reports at the end of each month or each quarter, FINRA requires that all New York Stock Exchange broker dealers provide notification if they incur a mid-quarter net capital decline of greater than 20%.  Additionally, all broker dealer firms are expected to be able to compute their net capital on a moment-by-moment basis to ensure there is never a violation of net capital related rules and regulations.  It becomes very difficult for broker dealer firms to effectively estimate their net capital if they are only preparing net capital computations on a quarterly basis.  Changes in net capital occur as a constant flux, and it is pertinent for broker dealers to gain an understanding of where their net capital lies on a fairly regular basis.

At ACI, our Certified Public Accountants prepare and review monthly net capital computations for all broker dealer firms we service.  Over twenty-five years of experience has made us experts in the field of net capital, allowing us to provide value to our broker dealer clients as to how to conduct their businesses with net capital implications in mind.  Our understanding of allowable vs. non-allowable assets helps our broker dealer clients to effectively spend their money so that net capital can be maximized.  We inform our broker dealer clients when they are close to having insufficient funds to remain in net capital compliance and we understand the deadlines that exist in relation to the infusion of additional capital to ensure that it is considered as “good capital” for net capital computation purposes.