Net Capital Requirements

3 Months Ended

Mar. 31, 2023

NOTE 6 – 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 Securities Exchange Act of 1934, as amended (the "Exchange Act"), and capital compliance rules of the Financial Industry Regulatory Authority ("FINRA"). 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 The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements.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 New Self-Regulatory Organization of Canada ("New SRO") in 2023, and previously was regulated by the Investment Industry Regulatory Organization of Canada ("IIROC") in 2022. Under the regulations prescribed by IIROC through December 31, 2022 and the New SRO thereafter, EJ Canada was and 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 Partnership’s capital figures for the U.S. and Canada broker-dealer subsidiaries as of:


	March 31, 2023			December 31, 2022
U.S.:
Net capital	$	1,101		$	1,038
Net capital in excess of the minimum required	$	1,032		$	965
Net capital as a percentage of aggregate debit items		31.9	%		28.4	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		15.4	%		13.3	%

Canada:
Regulatory risk-adjusted capital	$	112		$	103
Regulatory risk-adjusted capital in excess of the minimum required	$	111		$	102

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