Segregated Account
/ˈsɛɡrəˌɡeɪtɪd əˈkaʊnt/
Definitions
- (n.) A separate account maintained to segregate assets or funds legally from those of other accounts, protecting them from claims against the general assets of the entity.
The investment firm established a segregated account to safeguard client funds from creditors.
- (n.) An accounting mechanism used by insurance companies, mutual funds, or other fiduciaries to isolate assets related to specific contracts or policies.
The insurer used a segregated account to ensure liabilities under a particular policy were clearly funded.
Forms
- segregated account
- segregated accounts
Related terms
See also
Commentary
Segregated accounts are critical in legal and financial contexts to prevent commingling of assets and ensure creditor protection; drafting should specify the scope and legal effect of segregation clearly.
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.