Pershing LLC is a s
ubsidiary of The Bank of New York Mellon, the oldest continuously operating bank in the United States, and one of the world's leading providers of securities services. Pershing has nearly $1 trillion in assets under administration and exclusively serve financial organization
s, money managers, and registered investment advisors, with no retail lines of business to distract us, and no proprietary trading for our own book of business.
The Financial Industry Regulatory Authority (FINRA) found that Perching violated the Customer Protection Rule Violations and Supervisory Failures by defaulting to maintain adequate reserves to meet its reserve deposit requirements with reserve deficiencies ranging from approximately $4 million to $220 million between November 2010 to August 2011. This is not the first of such regulatory breach committed by Pershing. From July 2010 through September 2011 Pershing also failed to promptly obtain and later maintain physical possession or control of certain customers' fully paid and excess margin securities.
. The Securities and Exchange Commission (SEC) rule creates requirements to protect customers' funds and securities from broker-dealer misuse and requires that assets be available for distribution in the event of the broker-dealer's insolvency.
Brad Bennett, FINRA's Executive Vice President and Chief of Enforcement, said,
"Clearing firms have a fundamental responsibility to protect customer assets and must ensure that their supervisory systems are compliant with the Customer Protection Rule. Customers' assets were at risk because Pershing failed to establish systems to vet procedural changes with material impact to the reserve and possession and control positions."
