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Note 17 - Net Capital Requirements of Broker-Dealer Subsidiaries
12 Months Ended
Sep. 30, 2014
Table Text Block [Abstract]  
Schedule of Capitalization [Table Text Block]

NOTE 17. NET CAPITAL REQUIREMENTS OF BROKER-DEALER SUBSIDIAIRES


National Securities is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which, among other things, 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 to 1. During 2014, pursuant to a directive form FINRA, National Securities changed from using the alternative method of computing net capital to the aggregate indebtedness method. At September 30, 2014, National Securities had net capital of $8,698,839 which was $6,682,242 in excess of its required net capital of $2,016,597. National Securities percentage of aggregate indebtedness to net capital was 347.7%. National Securities claims exemption from the provisions of the SEC's Rule 15c3 3 pursuant to paragraph (k) (2) (ii) as it clears its customer transactions through its correspondent brokers on a fully disclosed basis.


vFinance Investments is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which, among other things, 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 to 1. At September 30, 2014, vFinance Investments had net capital of $3,242,156 which was $2,242,156 in excess of its required net capital of $1,000,000. vFinance Investments percentage of aggregate indebtedness to net capital was 73.2%. vFinance Investments claims exemption from the provisions of the SEC's Rule 15c3 3 pursuant to paragraph (k) (2) (ii) as it clears its customer transactions through its correspondent brokers on a fully disclosed basis.


Advances, dividend payments and other equity withdrawals from its Broker-Dealer Subsidiaries are restricted by the regulations of the SEC, and other regulatory agencies. These regulatory restrictions may limit the amounts that a subsidiary may dividend or advance to the Company.