(iv) A derivatives clearing house shall deposit client futures funds only with a depositary which shall promptly and directly accept, at any request from the Director of the Clearing and Risk Division or the Director of the Swap Dealer and Intermediate Supervision Division or a successor department or the directors appointed by such directors for the confirmation of account balances or the provision of other information relating to or in relationship with an account. to respond. The written confirmation shall include the authorisation given by the derivatives clearing-houser to the depositary to enable it to respond promptly and immediately in accordance with this paragraph, without further notice or consent of the derivatives clearing-houser. Individual investors can open various other types of accounts that can be opened and managed as a separate account. For example, many brokers offer self-managed trading accounts that can be managed through an online platform. The main purpose of separating the assets of a brokerage firm is to prevent clients` investments from mixing with the company`s assets so that when the company leaves the company, clients` assets can be returned immediately. It also prevents companies from using the content of customer accounts for their own purposes. (ii) Written confirmation shall include the approval of the Dealer of the Futures Commission to the Depositary to grant direct, read-only electronic access to information on futures transactions and accounts receivable balance to the Director of the Supervisory Service for Dealers and Swap Intermediaries or to the Director designated by that Director without further notice or consent of the Dealer of the Futures Commission. (2) A Futures Commission Trader may not mix the Futures Client Funds with the money, securities or property of such Futures Commission Trader or with an account owning such Futures Commission Trader or use such Funds to secure or guarantee the futures Commission Trader`s obligation or credit to this Trader of the Futures Commission or credit to this Trader of the Futures Commission. awarded; provided, however, that a forward commission dealer can deposit own funds in segregated accounts as permitted in ยง 1.23. Separate account management ensures that the decisions made are in line with the client`s risk tolerance, needs and objectives. Where funds are pooled or mixed and not separated, as in the case of a mutual fund, investment decisions are made by the portfolio manager or investment firm.
On the other hand, the individual investor makes decisions on his account with a broker-dealer. 3. No person, including a derivatives clearing house or a custodian, who has received funds from term clients for deposit into a separate account in accordance with this Section may hold, alienate or use those funds belonging to any person other than the term client of the futures dealer who deposited those funds. (i) A derivatives clearing house must obtain written confirmation from each depositary before or simultaneously with the opening of a term client fund account. provided, however, that a derivatives clearing organization is not required to obtain written confirmation from a Federal Reserve bank with which it has opened a term client currency account. (i) A trader of the Futures Commission deposits funds of clients futures only with a depositary that agrees to provide direct, read-only electronic access to transaction and account balance information for term accounts receivable to the Director of the Broker and Intermediary Supervisory Service or a successor department or to persons designated by such Director. In addition, Individual Retirement Accounts (IRAs) are ADMs used by individuals to save for retirement. Current accounts and savings accounts with banks also fall into this category. When considering whether or not to open a separate account, investors should inquire about the fee structures of professional asset managers. Although their pricing structures vary, they can be very expensive. RIAs and fees for portfolio managers typically range from 1% to 3% of assets under management (AUM). The terms of this written agreement remain binding on the parties, their successors and assigns and, for the avoidance of doubt, regardless of any change in the name of either party.
This written Agreement supersedes and supersedes all prior agreements between the parties in connection with the Accounts, including, but not limited to, a prior confirmation agreement, to the extent that such prior agreement is inconsistent with the terms of this Agreement. In the event of any conflict between this Written Agreement and any other agreement between the parties in connection with the Account(s), this Written Agreement shall govern matters specific to Section 4d of the Act and the provisions of the TCRC contained therein, as amended from time to time. 4. A futures dealer shall deposit the funds of clients of futures only with a depositary which undertakes to provide the Commission and the futures dealer`s self-regulatory body designated by the futures dealer with a copy of the written confirmation signed no later than three working days after the opening of the account or the execution of a new written confirmation for an existing account, where applicable. .