What does the term "commingle" refer to in a brokerage context?

In the context of a brokerage, the term "commingle" specifically refers to the act of combining the personal funds of a broker with the funds of clients. This practice is prohibited as it can lead to conflicts of interest and mismanagement of clients' money. Maintaining strict separation between personal funds and client funds is crucial for upholding fiduciary duties and ensuring that client funds are safeguarded and used appropriately. This practice helps establish trust and compliance with legal and professional standards within the industry. Keeping client funds in a separate account is a best practice and a regulatory requirement, reinforcing the importance of transparency and accountability in the management of financial resources.