Regulatory requirements

3 Months Ended

Mar. 31, 2022

Regulated Operations [Abstract]

Regulatory requirements

Regulatory requirementsThe Company's U.S. broker dealer subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the "Rule") promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. As of March 31, 2022, the net capital of Oppenheimer as calculated under the Rule was $440.4 million or 30.40% of Oppenheimer's aggregate debit items. This was $411.4 million in excess of the minimum required net capital at that date. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $100,000 or 6-2/3% of aggregate indebtedness, as defined. As of March 31, 2022, Freedom had net capital of $4.5 million, which was $4.4 million in excess of the $100,000 required to be maintained at that date.

As of March 31, 2022, the capital required and held under the FCA’s Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd. was as follows:

•Common Equity Tier 1 ratio 171% (required 56.0%);

•Tier 1 Capital ratio 171% (required 75.0%); and

•Total Capital ratio 228% (required 100.0%).

Effective January 2022 IFPR changed, minimum capital requirement, which is now sterling 750,000 (previously it was Euro 730,000). Capital ratios are now expressed differently, but are effectively unchanged when comparing performance to required regulatory minimums. As of March 31, 2022, Oppenheimer Europe Ltd. is in compliance with its regulatory requirements.

As of March 31, 2022, the regulatory capital of Oppenheimer Investments Asia Limited was $4.7 million, which was $4.3 million in excess of the $383,007 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong. As of March 31, 2022, Oppenheimer Investment Asia Limited is in compliance with its regulatory requirements.