Central Asset Account Law and Legal Definition
A central asset account is a securities brokerage account with key banking features. It gives the investor easy access to all brokerage account funds by granting check writing, credit card, and debit card privileges. It is designed to encourage brokerage clients to consolidate their financial assets at the brokerage firm that otherwise would be in separate banking accounts, probably at other financial institutions.
“Most central asset account funds have lower charges on return items, several have more advantageous sweep, and most charge shareholders for issuance of additional checks. A few charge shareholders for checking services if the account balance falls below a stated minimum.” [Krinsk v. Fund Asset Management, Inc., 715 F. Supp. 472, 497 (S.D.N.Y. 1988)].