An unregulated clients account without a compensation scheme is about as much real protection as a chocolate tea pot.
It is only the integrity of the individual Yacht Broker that prevents him from freely borrowing money from the so called clients account.
I hope anyone reading this thread has now deduced that the integrity of some Yacht Brokers is not all it should be.
If there was compulsory regulation including legislation surrounding clients accounts then the Yacht Broker would be breaking the law if he borrowed from it, a temporary loan would in effect become theft, of course that still wouldnt be a great deal of use if there wasnt a compensation scheme in place.
In the mean time if the Yacht Brokers associations held the client money it would be out of temptation from the Yacht Brokers/employees/administrators (whom have a duty to look for errors in the trust and split it between other creditors).