Cpital or networth for agents

An agent is a person or a firm ( as per the podcast). What is the agent net capital or net worth requirements. This is confusing situation since capital is for company, worth is for person.

1 Like

Hi @Ernesto_Bahringer - good question. Firm employees (agents and investment adviser representatives) only have one financial requirement - solvency. Agents and IARs are only denied registration if they are insolvent (cannot pay current liabilities/bills). Neither must maintain a certain amount of net capital or net worth.

Broker-dealers, the firms that employ agents, must maintain a minimum net capital (don’t worry about how much). Investment advisers, the firms that employ IARs, must maintain a minimum net worth (usually $10k or $35k).

Bottom line - firm employees (agents and IARs) just have to remain solvent to obtain effective registration, while firms (broker-dealers and investment advisers) are subject to minimum financial requirements.

1 Like