separate customer(redirected from Separate Customers)
Method of allocating insurance by the Securities Investor Protection Corporation. Each account that is under the name of a different person or group of people is entitled to maximum protection.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The way that the Securities Investor Protection Corporation treats each account. The Securities Investor Protection Corporation is a not-for-profit organization mandated under American law to insure investors against the potential bankruptcy of a broker-dealer. According to the SIPC's rules, each account is treated as a separate customer, even if multiple accounts have the same owner. This insures each account and not just the owners personally.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
For purposes of insurance coverage by the Securities Investor Protection Corporation, an account entitled to full insurance coverage. A husband and wife, each with individual accounts and also a joint account, are viewed as three separate customers for insurance purposes. Each one of the accounts, including the joint account, is covered in full.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.