The NASD in Notice to Members 07-16 issued several interpretations of the net capital rule. Among them are (i) duty of a broker to know its net capital not just at the end of the day but at all times during the day; (ii) payment for order flow is not an allowable asset; (iii) adverse arbitration awards are to be booked as a liability upon entry of the award regardless that no appeal or judgment has been finalized; (iv) requests for an extension to file the Audited FOCUS Report must be submitted at least 3 days in advance of the due date; and (v) there is a $1,000 a day fine for each day a FOCUS Report is late, up to 10 days.

http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_018897.pdf