IOSCO has published its final report on regimes for the protection, distribution and/or transfer of client assets. The report looks at differences in treatment of client assets in various regimes. It looks at:

  • distinctions between fully-paid and margin securities;
  • distinctions between securities securing debts of a client to the investment firm and those that serve as a performance bond against possible future debts; and
  • protections available before and after the insolvency of an investment firm.

(Source: Survey of Regimes for the Protection, Distribution and/or Transfer of Client Assets, Report of the Technical Committee of IOSCO)