Segregation
Regulation & taxThe requirement that brokers keep client money and securities separate from their own.
In plain terms
Failures have historically involved breaching exactly this. It is why idle cash is the exposed asset.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Investor protection
Regulation & taxThe machinery — settlement guarantee, client-money segregation, ombudsman, compensation funds — that decides what happens when an intermediary fails.
In plain terms
Regulation does not promise returns. It promises that specific people had duties to you and that there is somewhere to go when they are not met.