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solvency-and-protection

solvency-and-protection research topics and source records from World Firm Ledger. Institutional comparison of statutory investor compensation schemes, daily client-asset segregation rules, and multi-dimensional counterparty risk scores across World Firm Ledger's 2026 coverage universe.

A named author is recorded on some briefings in this hub, including Wei-Lin Tan, CAIA, CFA . Reviewer records and automated-check status appear on each briefing when available.

Key Institutional Takeaways — solvency-and-protection

  • Statutory investor compensation varies dramatically by contracting jurisdiction — from $500,000 (US SIPC), CAD 1M (Canada CIPF), and £85,000 (UK FSCS) to $0 at offshore-only entities.
  • Daily client-money segregation (FCA CASS 7, SEC Rule 15c3-3, MiFID II, MiCA Art. 70) is the primary legal barrier protecting client equity during firm insolvency.
  • Cohort C scorecards on World Firm Ledger separate Risk Control from Brand Size so large but poorly supervised venues cannot mask compliance weaknesses.
  • Early counterparty distress typically appears in withdrawal delays and abnormal execution slippage before formal regulatory revocation occurs.
  • Combining World Firm Ledger dossier verification, statutory register checks, and multi-venue diversification minimizes single-point custody risk.

All solvency-and-protection Research Briefings (1)

Institutional Directories & Regulatory Registers

Knowledge Graph Entity Index →Regulated Institutions & Counterparties →Supervisory Authorities & Licences →

Frequently Asked Questions — solvency-and-protection

Does investor compensation (like FSCS or SIPC) cover market trading losses?

No. Statutory schemes such as UK FSCS (£85,000), US SIPC ($500,000), and EU ICF (€20,000) only trigger when an authorised firm becomes insolvent and cannot return segregated client money or securities.

What is client-money segregation and why does it matter when choosing a broker or exchange?

Client-money segregation requires an institution to hold customer deposits in ring-fenced statutory trust accounts at independent banks or qualified custodians, preventing creditors from seizing client assets if the firm fails.

How does World Firm Ledger reflect withdrawal blocks or slippage complaints in its ratings?

Verified regulatory warnings, withdrawal-blocked dockets, and execution manipulation complaints directly penalize the 25%-weighted Risk Telemetry dimension in World Firm Ledger's 6D Compliance Score.

Are offshore brokerage subsidiaries covered by UK FSCS, US SIPC, or EU ICF?

Generally no. Even if a parent financial group holds an FCA, SEC, or CySEC licence elsewhere, accounts opened under an offshore subsidiary (e.g., Seychelles, Mauritius, BVI, or St. Vincent) do not qualify for onshore statutory compensation.

Where can I download World Firm Ledger's counterparty risk and licensing tables for internal research?

Machine-readable CSV and JSON snapshots are published under CC-BY-4.0 at https://worldfirmledger.com/datasets, alongside live comparative matrices at https://worldfirmledger.com/benchmarks.

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