What regulatory requirements and evaluations is Pershing subject to?
Securities regulations are designed to protect clients’ funds and fully paid-for securities when they are in custody at a registered broker-dealer, such as Pershing. The SEC requires Pershing to segregate fully-paid-for, investor-owned assets-meaning that, even if Pershing fails-investors’ assets will remain safe, separate from Pershing’s own assets. Pershing is also subject to the SEC Net Capital Rule, which requires them to maintain enough liquid assets, net of any liabilities, to ensure the return of investors’ assets in the event of firm failure and liquidation. Pershing is subject to extensive and ongoing regulatory reviews, is subjected to numerous internal and external audits, and compliance testing. On an annual basis, Pershing fulfills its regulatory broker-dealer requirements by having its financial statements audited by its independent auditor KPMG. As of December 31, 2008, Pershing operated with total net capital of $1.4 billion, which means their net capital was $1.3 billi
Related Questions
- Are residential condominiums, including multi-story condominium complexes, subject to the statutory and regulatory requirements for flood insurance?
- Is a composting (waterless) toilet subject to the regulatory requirements of Title 124?
- What regulatory requirements and evaluations is Pershing subject to?
