Regulations & ConductQuestion 119 of 125
Commingling a customer's funds or securities with the firm's own assets is:
a.Prohibited; customer assets must be properly segregated
b.Permitted with verbal consent
c.Required by FINRA
d.Allowed for margin accounts only
Explanation
Firms must keep customer funds and fully paid securities segregated from the firm's own assets to protect customers, particularly in the event of firm insolvency. Commingling customer property with firm property is a prohibited practice and violates customer protection rules.
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