Asset Segregation
Asset segregation refers to keeping client or investment assets separately identified from the assets of the company holding or administering them. The exact legal and operational arrangements vary depending on the asset, custodian and jurisdiction.
Why it matters to you
One of the most important questions in custody is what happens if the custodian, issuer or another service provider fails. Keeping client assets appropriately segregated can help distinguish those assets from the company's own property, although the actual protection depends on the legal structure and applicable law.
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