NET CAPITAL REQUIREMENTS

3 Months Ended

Mar. 28, 2014

NOTE 5 – NET CAPITAL REQUIREMENTS

As a result of its activities as a broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934 (“Exchange Act”) and capital compliance rules of the Financial Industry Regulatory Authority (“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 The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements.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.

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

The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealers as of:


	March 28, 2014			December 31, 2013
U.S.:
Net capital	$	899		$	873
Net capital in excess of the minimum required	$	856		$	830
Net capital as a percentage of aggregate debit items		41.7	%		41.4	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		25.4	%		24.8	%
Canada:
Regulatory risk adjusted capital	$	33		$	34
Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC	$	30		$	27

Net capital and the related capital percentages may fluctuate on a daily basis. In addition, EJTC was in compliance with its regulatory capital requirements.