Investors Protection

Protection for investors: Our investment firm prioritizes the security and safety of our investors’ funds by maintaining segregated accounts for each investor. This means that all investor funds are kept separate from the company’s operational funds, ensuring that your investments are fully protected and not commingled with the firm’s assets. This practice not only enhances the transparency of our operations but also provides an additional layer of security, giving our investors peace of mind knowing that their assets are safeguarded in all circumstances.

Segregation is the separation of an individual or group of individuals from a larger group. It sometimes happens to apply special treatment to the separated individual or group. Segregation can also involve the separation of items from a larger group. For example, a brokerage firm might segregate the handling of funds in certain types of accounts in order to separate its working capital from client investments.

Understanding Segregation
Segregation became a rule in the securities industry in the late 1960s and was solidified with the advent of the Security and Exchange Commission’s consumer protection rule, the Securities Exchange Act (SEA) Rule 15c3-3. Other rules require firms to file monthly reports regarding the proper segregation of investor funds.

KEY TAKEAWAYS

Segregation refers to the separation of assets from a larger group or creating separate accounts for specific groups, assets, or individuals.
Segregation is common in the brokerage industry and is designed to avoid the commingling of customer assets with the working capital of the brokerage firm.
SEA Rule 17a-5(a) requires broker-dealers to file monthly reports regarding the proper segregation of customer accounts, as well as reserve account requirements.
A portfolio manager might also segregate some accounts from the larger pool when specific individuals have unique requirements related to risk and investment objectives.
The chief aim in segregating assets at a brokerage firm is to keep client investments from commingling with company assets so that if the company goes out of business, the client assets can be promptly returned. It also prevents businesses from using the contents of client accounts for their own purposes.

Segregated account management ensures that decisions made are according to the client’s risk tolerance, needs, and goals. When funds are pooled or commingled rather than segregated, as with a mutual fund, investment decisions are made by the portfolio manager or investment company. On the other hand, the individual investor makes the decisions in their account held at a broker-dealer.