Pershing protects client assets through rigorous internal control measures. An annual audit by a major independent auditing firm and the audit team at its parent company, BNY Mellon, helps to monitor controls that are in place. In addition, an Annual Service Organizations report (as required) by a major independent auditing firm provides additional evaluation of the design and operating effectiveness of Pershing’s internal controls related to account transfers, billing, clearance and settlement, confirmations and cash management functions, corporate actions, foreign exchange and prime brokerage controls, interest, margin monitoring, order and trade processing, physical custody, pricing and statements.
Clients’ fully paid-for assets are segregated from Pershing’s, with quarterly vault inspections conducted. Pershing maintains enough liquid assets, net of any liabilities, to protect clients’ fully paid-for assets in the unlikely event of Pershing’s failure and liquidation.
Pershing is a broker-dealer registered with the U.S. Securities and Exchange Commission, all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions