Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 38 - SECURITIES - REPEALED
Subchapter 2 - DEALERS
Section 16-38-5.3 - Registration; financial requirements
Universal Citation: HI Admin Rules 16-38-5.3
Current through August, 2024
(a) Every registered dealer shall file an annual report of condition within ninety days following the end of the calendar or fiscal year adopted as follows:
(1) Dealers registered under the Securities
Exchange Act shall file a copy of the annual financial report filed with the
SEC; and
(2) All other dealers
shall file a balance sheet certified by an independent public accountant in
conformance with generally accepted accounting principles and that evidences
the dealer's compliance with the requirements of subsection (b).
(b) A dealer that is subject to subsection (a)(2) shall have at all times a minimum net capital of not less than $5,000. As used in this section, "net capital" shall mean net worth, or the difference between total assets and total liabilities or indebtedness, after adjustment to eliminate or revise assets of doubtful or uncertain value and to reflect true liabilities, in accordance with the following schedule:
(1) Asset items not allowable:
(A) Furniture, fixtures, and equipment;
and
(B) Intangible items, such as
goodwill, prepaid preincorporation, or organizational expenses, etc.;
(2) Asset items to be adjusted or
substantiated:
(A) Securities owned shall be
adjusted to market value;
(B) Value
of real estate shall be attested to by qualified and disinterested
persons;
(C) Property in joint
ownership shall be limited to applicant's interest therein; and
(D) Value of unsecured notes, accounts
receivable, or advanced commissions due from a salesperson, officer, director,
partner, or affiliate may be required by the commissioner to be substantiated
by an opinion of a bank, finance company, or other lending institution
satisfactory to the commissioner.
Disclaimer: These regulations may not be the most recent version. Hawaii may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
