Q: 'Playing defence' question of Mar 20/14 asked by yossi:
As noted in the answer this could play out in many ways.
One thing an investor can do is conduct all non-margin activity thru a 'cash' brokerage account so that all securities therein cannot be used in the brokers business. RRSP/TFSA's are already 'cash' accounts.
Secondly, set up your accounts to use a third party trustee.
Most brokerage accounts are 'self-trustee', ie they act as their own trustee. This was the same structure (no comparison intended) used by Madoff, MF Global, and Lehman Brothers to access client funds)
Publish at your discretion.
As noted in the answer this could play out in many ways.
One thing an investor can do is conduct all non-margin activity thru a 'cash' brokerage account so that all securities therein cannot be used in the brokers business. RRSP/TFSA's are already 'cash' accounts.
Secondly, set up your accounts to use a third party trustee.
Most brokerage accounts are 'self-trustee', ie they act as their own trustee. This was the same structure (no comparison intended) used by Madoff, MF Global, and Lehman Brothers to access client funds)
Publish at your discretion.