for instance the difference between a non-custody swapshop. vs a custodial portfolio manager investment firm. is that the second version would need some CONSUMER PROTECTION INSURANCE
Juts like banks.
I don't have much money at banks, but I'm happy to know that if one of my banks goes bankrupt, I won't lose my funds, because there's a safety net to protect me. That safety net also includes substantial requirements for banks (well, not substantial enough in my opinion), to prevent bank managers from using customer's money to play Russian roulette with stocks.