However, the brokerage firm must also monitor whether the investments are tailored to each account, which is a rule called Know Your Client or Know Your Customer. Each of these individual accounts as a group is separate from the company`s working capital and investments. Segregation is the separation of a person or group of individuals from a larger group. Sometimes a specific treatment is applied to the separate person or group. Segregation may also involve the separation of elements from a larger group. For example, a brokerage firm could separate fund management from certain types of accounts in order to separate its working capital from client investments. The Moscow Stock Exchange and the NCC Clearing Bank offer separate accounts to members of the derivatives market (defined as “separate brokerages” in the clearing rules). There are also separate or separate accounts that have privileges and requirements that differ from those held accounts, which are generally held by a larger group. Portfolio managers, for example, often develop portfolio models that apply to most assets under management. However.B, discretionary accounts may be introduced for investors with different requirements (e.g., investment objectives and risk tolerance) that differ from other investors in the portfolio. These separate accounts are authorized deviations from the portfolio manager`s usual strategy and are separated from the larger pool. A brokerage company that retains its client`s assets may also hold securities for trading or investing. Each of these types of assets must be managed separately from the other.
Accounting must also be separate. Segregation may also apply to facilities that must be independently monitored for accounting purposes. Commission of 120 rubles is deducted monthly for writing reports (at the end of clearing) for the main register of the Segregated brokerage account. The main purpose of separating the assets of a brokerage firm is to prevent client investments from intertwining with the company`s assets, so that when the business withdraws from the business, the client`s assets can be returned immediately. It also prevents companies from using the contents of receivables for their own purposes. Separate accounts or separately managed accounts hold specific shares and/or fixed-rate securities for clients seeking to engage in Vietnam, but whose investment needs differ from our existing fund products. Fixed assets are tailored to each client`s specific investment strategies and may include listed public equity, unlisted public equity and fixed-rate instruments. Working closely with our clients, we adapt an investment strategy and portfolio that meet each client`s individual circumstances, objectives, investment horizon and risk tolerance.
Separate account management ensures that decisions made meet the client`s risks, requirements and objectives. When funds are pooled or mixed instead of separated, as in the case of an investment fund, investment decisions are made by the portfolio manager or investment company. On the other hand, the investor makes the decisions on his account with a broker-dealer.