FINRA Rule 4110

This rule is designed to protect investors and ensure the financial stability of carrying and clearing members by prescribing greater net capital or net worth requirements when necessary.

The rule also restricts members from withdrawing capital, paying dividends, or making loans that would reduce their equity, and requires prior written approval from FINRA for certain transactions.

Additionally, the rule outlines specific requirements for sale-and-leaseback arrangements, factoring, financing, loans, and similar arrangements, as well as subordinated loans and capital borrowings.