12. Capital and Reserve Requirement Information

As a broker-dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority, our subsidiary, VP Distributors, LLC (“VPD”), is subject to certain rules regarding minimum net capital. VPD operates pursuant to Rule 15c3-1(a), promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, accordingly, is required to maintain a ratio of “aggregate indebtedness” to “net capital” (as those items are defined in the rule) which may not exceed 15.0 to 1.0.

Aggregate indebtedness, net capital, and the resultant ratio for VPD were as follows:


	December 31,
	2014		2013		2012
*($ in thousands)*
Aggregate indebtedness	$	23,511	$	28,020	$	23,443
Net capital		21,919		22,086		16,617
Ratio of aggregate indebtedness to net capital		1.1 to 1		1.3 to 1		1.4 to 1

VPD’s minimum required net capital at December 31, 2014 and 2013 based on its aggregate indebtedness on those dates was $1.6 million and $1.9 million, respectively.

The operations of VPD do not include the physical handling of securities or the maintenance of open customer accounts. Accordingly, VPD claims exemption from the reserve provisions of Rule 15c3-3 promulgated under the Exchange Act pursuant to the exemption allowed by paragraph (k)(2)(i) of such rule.