Doomsday portfolio for Dubai expat (offshore banking/brokerage option)

[liroyb]

So in case a customer holds shares/bonds with bank and took lombard loan against them the securities won't be segregated?

 

[Martin Everson]

When you take a lombard loan you are pledging your assets towards the loan in the agreement you accept so segregation is irrelevant. It is a recourse loan taking place.

 

[liroyb]

So if the bank went bust, the customers with investments and no lombard loan will have the safety of segregation while the customers that involved lombard loan will loss it all?

 

[Martin Everson]

Segregation will only work with unencumbered assets as its. Pledged assets are not unencumbered assets. You will need to read details of the pledge you agreed to during the Lombard process as to how resolution takes place.

I discussed EU banks and ring fencing custody accounts 6 years ago on here below.

2020:

2018: