Rule 1-14-6.21 - Segregated AccountsAn investment adviser shall at all times keep its customers' securities and funds in trust and segregated from its own securities and funds.
A. All financial transactions between the investment adviser and its clients are to be effected through one (1) or more bank accounts, each to be designated "special account for the exclusive benefit of clients of [name of investment adviser];" each shall be separate from any other bank accounts of the investment adviser and shall at no time be used directly or indirectly as security for a loan to the investment adviser by the bank and shall be subject to no right, lien, or claim of any kind in favor of the bank or any persons claiming through the bank; and each shall be separate from any other bank account used by the investment adviser to pay operating and administrative expenses.B. Immediately after accepting custody or possession of funds or securities from any client, an investment adviser must notify such client in writing of the place and manner in which such funds and securities will be maintained, and thereafter, if and when there is any change in the place or manner in which such funds or securities are being maintained, must give such client written notice thereof.Miss. Code Ann. §§ 75-71-411(c)(1), -411(f) (2020).