Note 15 - Net Capital Requirements of Broker Dealer Subsidiary

12 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE

15.

NET CAPITAL REQUIREMENTS

OF BROKER DEALER SUBSIDIARY

NSC is subject to the SEC's Uniform Net Capital Rule (Rule

15c3

-

1

), which, among other things, requires the maintenance of minimum net capital. At

September 30, 2020

, NSC had net capital of

$3,812,891

 which was

$2,812,891

 in excess of its required minimum net capital of

$1,000,000.

NSC is exempt from the provisions of Rule

15c3

-

3

since it is an introducing broker dealer that clears all transactions on a fully disclosed basis and promptly transmits all customer funds and securities to clearing brokers.

WEC is also subject to the Net Capital Rule, 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 under the Net Capital Rule, shall

not

exceed

15

to

1.

At

September 30, 2020

, WEC had net capital of 

$467,947

 which was 

$305,992

 in excess of its required minimum net capital of

$161,955

. WEC's ratio of aggregate indebtedness to net capital was

5.2

to

1.

WEC is exempt from the provisions of Rule

15c3

-

3

since it is an introducing broker-dealer that clears all transactions on a fully disclosed basis and promptly transmits all customer funds and securities to clearing brokers.

FSIC is also subject to the Net Capital Rule, 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 under the Net Capital Rule, shall

not

exceed

15

to

1.

At

September 30, 2020

, FSIC had net capital of 

$117,538

which was 

$112,538

in excess of its required minimum net capital of

$5,000.

FSIC's ratio of aggregate indebtedness to net capital was 

0.2

to

1.

FSIC is exempt from the provisions of Rule

15c3

-

3

since it is an introducing broker-dealer that clears all transactions on a fully disclosed basis and promptly transmits all customer funds and securities to clearing brokers.

Advances, dividend payments and other equity withdrawals from NSC, WEC and FSIC 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.