Customer Protection Rule

The Customer Protection Rule is a regulation that ensures brokerage firms safeguard their clients' securities and cash. It requires firms to regularly account for all customer assets, keep them separate from the firm's own possessions, and promptly deliver any securities or funds owed to clients. The goal is to prevent loss or misuse of customer assets due to fraud, errors, or the firm’s financial issues. Essentially, it helps protect investors’ holdings and ensures they can access their investments when needed, fostering trust and stability in the securities market.