Asset Segregation
/ˈæsɛt ˌsɛɡrɪˈɡeɪʃən/
Definitions
- (n.) The legal and financial practice of separating assets to protect them from claims against other assets.
The fiduciary implemented asset segregation to shield client funds from the firm's liabilities.
- (n.) A regulatory requirement mandating certain financial entities to keep client assets separate from their own to prevent commingling and enhance protection.
Investment advisers must comply with asset segregation rules to safeguard investor property.
Forms
- asset segregation
Related terms
See also
Commentary
Asset segregation is crucial to ensure asset protection and regulatory compliance, especially in financial and fiduciary contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.