Net Capital Requirements

12 Months Ended

Dec. 31, 2021

NOTE 10 – NET CAPITAL REQUIREMENTS

As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Exchange Act and capital compliance rules of the FINRA Rule 4110. Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $0.25 or 2% of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements.

EJ Canada is a registered broker-dealer regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”). Under the regulations prescribed by IIROC, EJ Canada is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of EJ Canada's assets and operations.

The following table shows the capital figures for its U.S. and Canada broker-dealers as of December 31:


	2021			2020
U.S.:
Net capital	$	1,421		$	1,306
Net capital in excess of the minimum required	$	1,352		$	1,248
Net capital as a percentage of aggregate debit items		41.3	%		45.0	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		20.7	%		23.1	%

Canada:
Regulatory risk-adjusted capital	$	71		$	56
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC	$	50		$	47

U.S. net capital, Canada regulatory risk-adjusted capital and the related capital percentages may fluctuate on a daily basis.