Net Capital Requirements

12 Months Ended

Dec. 31, 2020

NOTE 11 – 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 The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements.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.

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

The following table shows the Partnership’s capital figures for its U.S. and Canada broker-dealer subsidiaries as of December 31, 2020 and 2019:

	2020			2019
U.S.:
Net capital	$	1,306		$	1,244
Net capital in excess of the minimum required	$	1,248		$	1,188
Net capital as a percentage of aggregate debit items		45.0	%		44.2	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		23.1	%		26.4	%

Canada:
Regulatory risk-adjusted capital	$	56		$	40
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC	$	47		$	38

U.S. net capital, Canada regulatory risk-adjusted capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements.