Early-Warning Notification Provisions

What this video covers

• The three same-day notification triggers: net capital below minimum, insolvency, and books-and-records not current, including the 48-hour corrective report requirement for the third trigger
• Why same day means same calendar day, not next business day, and the regulatory purpose of maximum advance warning
• The 120% trigger as a 24-hour notice: computing 120% of a firm's dollar minimum and distinguishing it from below-minimum same-day territory
• The 1,200% aggregate indebtedness (AI) ratio as a 24-hour basic-method buffer, with context against the 15:1 same-day ceiling
• The alternative-method 5% of aggregate debit items trigger versus its normal 2% floor
• The critical exam trap distinguishing a same-day books-and-records failure from a 24-hour auditor material-inadequacy finding, including parallel 48-hour corrective reports
• Mandatory dual reporting to both the Securities and Exchange Commission (SEC) (principal office in Washington DC plus regional office) and the Designated Examining Authority (DEA), with consequences of filing only one
• The FINRA 150%/SEC 120%/SEC 100% three-tier early-warning ladder and its applicability limits to carrying or clearing firms