Define the Difference between an Omnibus Account and a Segregated Wallet in Custody.
An omnibus account pools the assets of multiple clients together under the custodian's name, simplifying management but obscuring individual ownership to third parties. A segregated wallet holds the assets of a single client, legally and technically separated from the custodian's and other clients' assets.
Segregated custody offers a higher level of client protection in case of custodian insolvency, as the assets are clearly identifiable.
