Uniform Net Capital Rule Requirements

12 Months Ended

Dec. 31, 2016

Uniform Net Capital Rule Requirements

14. Uniform Net Capital Rule Requirements

Two of our subsidiaries, W&R and IDI are registered broker-dealers and members of the Financial Industry Regulatory Authority, Inc. 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, 2016 or 2015.

Net capital and aggregated indebtedness information for our broker-dealer subsidiaries is presented in the following table as of December 31, 2016 and 2015:


	2016				2015
	(in thousands)
	W&R		IDI		W&R	IDI
Net capital	$	52,639		12,894	21,719		17,310
Required capital		250		2,152	250		2,956
Excess of required capital	$	52,389		10,742	21,469		14,354
Ratio of aggregate indebtedness to net capital		Not			Not
		applicable		2.50 to 1.0	applicable		2.56 to 1.0