101 - Client Fund Segregation Rules: Fiat and Crypto

<p><span style="font-weight: 400;">After noticing that there is a lot of confusion around the difference between client fund segregation and deposit protection schemes, I decided to clear that up in today’s episode by diving into what exactly client fund segregation is, why it exists, and how to approach it! </span></p> <p><span style="font-weight: 400;">If you found value in this episode, I would really appreciate if you could leave a review! My mission is to help and support as many FinTech startups as possible, and when you leave a positive review, more people can find this podcast and help their companies!</span> <span style= "font-weight: 400;">If you are on Apple, just </span><a href= "https://podcasts.apple.com/ch/podcast/compliance-that-makes-sense/id1535160531"><strong>click here to review</strong></a><span style="font-weight: 400;">, select “Ratings and Reviews” and “Write a Review” and tell me what your favorite part of the podcast is. </span></p> <p> </p> <p><strong>Today's episode:</strong></p> <p><span style="font-weight: 400;">[00:40] The inspiration behind today’s topic</span></p> <p><span style="font-weight: 400;">[01:35] The reason that client fund segregation requirements exist. </span></p> <p><span style="font-weight: 400;">[04:18] Why deposit protection schemes are made redundant by fund segregation. </span></p> <p><span style="font-weight: 400;">[05:34] The types of funds that need to be segregated. </span></p> <p><span style="font-weight: 400;">[06:18] When to segregate clients’ funds.</span></p> <p><span style="font-weight: 400;">[08:47] Examples of special rules relating to fund segregation in unusual cases. </span></p> <p><span style="font-weight: 400;">[11:04] How to manage a case of unallocated funds. </span></p> <p><span style="font-weight: 400;">[12:51] Dealing with prepaid/settlement accounts.</span></p> <p><span style="font-weight: 400;">[14:20] Find out whether you are able to invest client funds.</span></p> <p><span style="font-weight: 400;">[15:48] Client fund segregation: fiat