Customer Property Protection Act

Key Points

• This bill changes the rules for what happens when a company that trades commodities goes bankrupt. It aims to make sure regular customers get their money back even if the company did not set enough aside.
• If a broker goes out of business and there is not enough customer money left to pay everyone, the government can take the broker's own company cash and investments to help pay back the customers.
• This protection specifically helps public customers, which generally means everyday investors and businesses rather than the broker's own partners or other large financial institutions.
• The bill still respects certain legal rights of lenders. If a bank or clearinghouse has a specific legal claim on the broker's property, they might still be able to collect that money before it goes to customers.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.