How Are Customer Assets Held At Securities Firms Protected?
Customer Assets Are Separate From Firms’ Assets Securities regulations protect your funds and your securities when you keep them at a broker-dealer. The Securities and Exchange Commission requires broker-dealers to deposit customer funds in a separate account, distinct from the firm’s own money. Securities held by clients in “street name” are kept securely with the Depository Trust Company, separate and distinct from the assets of securities firms. Regulated by the SEC and the Federal Reserve, the depository is a national clearinghouse for settling trades and a custodian of securities. Regulators and independent auditors periodically review firms’ financial records to ensure that clients’ assets are accurately tracked and held separately from the firm’s own holdings.
