14. Uniform Net Capital Rule Requirements

Two of our subsidiaries, Waddell & Reed, Inc. ("W&R") and Ivy Funds Distributor, Inc. ("IFDI") are registered broker/dealers and members of the Financial Industry Regulatory Authority. Broker/dealers are subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15.0 to 1.0. The primary difference between net capital and stockholders' equity is the non-allowable assets that are excluded from net capital.

A broker/dealer may elect not to be subject to the Aggregate Indebtedness Standard of paragraph (a)(1)(i) of Rule 15c3-1, in which case net capital must exceed the greater of $250 thousand or 2% of aggregate debit items computed in accordance with the Formula for Determination of Reserve Requirements for broker/dealers. W&R made this election and thus is not subject to the aggregate indebtedness ratio as of December 31, 2014 or 2013.

Net capital and aggregated indebtedness information for our broker/dealer subsidiaries is presented in the following table as of December 31, 2014 and 2013:

	2014				2013
	(in thousands)
	W&R		IFDI		W&R		IFDI
Net capital	$	10,965		19,455		23,688		14,648
Required capital		250		3,995		250		3,340

Excess of required capital	$	10,715		15,460		23,438		11,308


Ratio of aggregate indebtedness to net capital		Not applicable		3.08 to 1.0		Not applicable		3.42 to 1.0