This article (i) contains some of the most important questions a client should consider in light of these lessons, (ii) raises some questions that the diligent client should ask his or her principal broker in light of these problems, and (iii) provides some practical solutions in response to the answers that the client is likely to obtain to such questions. The first-class brokerage landscape has changed dramatically since the bankruptcy of Lehman Brothers in September 2008. Hedge funds that benefited from marginal financing from Lehman Brothers were unable to withdraw their guarantees when Lehman filed insolvency protection in the United Kingdom under Chapter 11 due to the lack of asset protection rules (such as 15c3 in the United States). This is one of the many factors that led to a massive reduction in debt on the capital markets during the 2007-2008 financial crisis. The premium broker benefits by paying fees (“spreads”) for financing long and short cash and client security positions and, in some cases, by collecting clearing fees and other services. It also earns money by taking the margin portfolios of currently operating hedge funds rehypothecating and interest on securities and other investments.  Unless you operate a hedge fund or other type of high-volume securities trading operation, it is very unlikely that you will need the services of a premium brokerage. Even day merchants who act several times a day don`t really have that need, because their buying and selling tend to be fairly easy without having to finish a lot of derivatives or margin financing gobs. Prime Brokerage is the generic name for a group of services offered by investment banks, asset management companies and securities dealers to hedge funds that need the ability to borrow securities and cash to be able to invest on a network basis and achieve an absolute return. The first broker offers a central counter-risk mechanism for the hedge fund, so that the hedge fund guarantee requirements are settled on all transactions of the first broker. Both of these characteristics are beneficial to their customers. The minimum size of the account to open and obtain premium brokerage account services is $500,000 in equity, but such an account is unlikely to receive many benefits beyond what would be offered by discount brokers.