Regulatory requirements

9 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Regulatory requirements

Regulatory requirements

The 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 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 September 30, 2024, the net capital of Oppenheimer as calculated under the Rule was $487.5 million or 42.54% of Oppenheimer's aggregate debit items. This was $464.6 million in excess of the minimum required net capital at that date. The Company's subsequent redemption of all outstanding Notes on October 10, 2024 reduced Oppenheimer's net capital by approximately $113 million. This reduction did not have an impact of Oppenheimer's compliance with the Rule or its ability to continue with business-as-usual operating activities. See note 11 for additional details.

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 September 30, 2024, Freedom had net capital of $3.8 million, which was $3.7 million in excess of the $100,000 required to be maintained at that date.

As of September 30, 2024, the capital required and held under the Financial Conduct Authority's Investment Firms’ Prudential Regime (“IFPR”) for Oppenheimer Europe Ltd. was as follows:

•Common Equity Tier 1 ratio 94% (required 56.0%);

•Tier 1 Capital ratio 94% (required 75.0%); and

•Total Capital ratio 128% (required 100.0%).

As of September 30, 2024, Oppenheimer Europe Ltd. was in compliance with its regulatory requirements.

As of September 30, 2024, the regulatory capital of Oppenheimer Investments Asia Limited was $3.4 million, which was $3.0 million in excess of the $386,133 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 September 30, 2024, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements.

As of September 30, 2024, Oppenheimer Trust is required to maintain minimal capital of $4.15 million. Oppenheimer Trust is currently in compliance with its capital requirements.