Physical Receipt, Delivery, and Safeguarding of Cash, Checks, and Securities

What this video covers

• Why the SEC Customer Protection Rule requires broker-dealers to maintain physical possession or control of fully paid and excess margin securities
• What segregation means in practice, and why commingling customer assets with firm assets is a zero-tolerance violation
• How the Special Reserve Bank Account works: exclusive benefit of customers, the reserve computation, and what it holds during insolvency
• The three-step FINRA transmittal flow for moving customer funds or securities: verify, confirm, document
• Why a general trading authorization is NOT sufficient to draw a check from a customer's account, and what specific prior written authorization actually requires
• The distinction between cash and cash equivalents (currency, cashier's checks, money orders), checks, and physical securities under safekeeping procedures
• Why the Customer Protection Rule is an SEC rule even though FINRA enforces it through internal inspections