March 01, 2015 11:27 AM ET

Capital Markets

Company Overview of Pershing LLC

Company Overview

Pershing LLC provides technology, operational, trading, investment, and practice management solutions to help financial services firms and advisors. It develops communications and data processing systems to provide financial organizations with control and access to information, including trade/order processing browse and corrections; customized compliance analysis and reporting; new account openings and changes; client information, including activity, positions, and balances; dial-up and Internet-accessible brokerage workstation; reorganization and ACAT status; commission and bond calculators; bond order entry system; real-time market data; and interactive voice response services. It also of...

One Pershing Plaza

10th Floor

Jersey City, NJ 07399

United States

Founded in 1939

Phone:

201-413-2521

Fax:

201-413-5268

Key Executives for Pershing LLC

Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Member of Executive Committee and Chief Executive Officer of Pershing Advisor Solutions LLC
Head of The Investment Services and Client Technology - BNY Mellon
Compensation as of Fiscal Year 2014.

Pershing LLC Key Developments

Pershing LLC Launches Retirement Plan Network to Help Advisors

Pershing LLC announced the rollout of its Retirement Plan Network, a new solution to help broker-dealers, investment advisors and registered investment advisors (RIAs) grow their retirement plan business. Pershing's Retirement Plan Network is an open-architecture platform that allows advisors to connect to independent recordkeepers, hold assets in custody, and to leverage an integrated suite of investment products, retirement plan tools and practice management solutions. Pershing's Retirement Plan Network will be rolled out through the first quarter of 2015. In addition to helping clients establish or expand their retirement plan business, Pershing's Retirement Plan Network is designed to help advisors address the need for greater transparency and oversight of their retirement business. What differentiates Pershing's solution in the market is that it is a conflict-free custody solution integrated into a single platform on which advisors can serve the needs of retirement plan sponsors and individual investors. Through the Retirement Plan Network, advisors have access to a host of resources that will enhance their service for retirement plans: Retirement Plan Network will enable advisors to access and leverage deep integration of independent recordkeepers through NetX360on Pershing's technology platform. Currently, recordkeepers include Allen, Gibbs & Houlik, L.C.; Aspire Financial Service; Benefit Consultants Group; DailyAccess Corporation; July Business Services; and Sentinel Benefits & Financial Group. The network will expand extensively over time to include additional regional and national recordkeepers. An open-architecture investment platform that will have a highly integrated management capability for advisors to manage investment models or access third-party asset managers. Pershing's Retirement Plan Network's menu of investment choices features mutual funds, stable value funds and exchange-traded funds through managed models. Through NetX360, advisors will have a single point of access for both individual and retirement plan businesses that will offer a range of support, including practice management and an integrated set of retirement plan tools and solutions that will enable advisors to create proposals, view plan investments, conduct investment reviews, facilitate IRA rollovers, select recordkeepers and access plan sponsor and participant education materials.

Financial Industry Regulatory Authority Fines Pershing LLC $3 Million for Customer Protection Rule Violations and Supervisory Failures

The Financial Industry Regulatory Authority (FINRA) announced that it has censured and fined Pershing LLC $3 million for violating the Customer Protection Rule and for related supervisory failures. 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. FINRA found that from November 2010 to August 2011, Pershing failed to maintain adequate reserves to meet its reserve deposit requirements with reserve deficiencies ranging from approximately $4 million to $220 million. 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. During that period, the firm’s failures caused 47 new possession or control deficits, and an increase in a significant number of existing possession or control deficits. These failures exposed customer funds and securities to risk. In addition, Pershing’s supervisory systems and procedures were inadequate and the firm failed to implement a system to review and approve procedural changes with material impact to the requirements of the Customer Protection Rule. Those deficiencies resulted in inaccuracies in the firm’s FOCUS reports between July 30, 2010 and Aug. 31, 2011.

Pershing LLC Announces the Next Generation of its Block Trading and Rebalancing Tool for Advisor-Directed Programs

Pershing LLC announced the next generation of its block trading and rebalancing tool delivered through its technology platform NetX360 which offers a series of new capabilities for advisors. The improvements will enable advisors to run drift reports at the household level, create models of models and utilize a new cash rebalancing feature. It will also allow advisors to take advantage of an improved restriction management module that provides a holistic review of all restrictions for an advisor's business. With these improved features, the tool continues to deliver a full array of functionality to help improve transparency, minimize errors and improve advisor efficiency. The tool, powered by FolioDynamix, allows advisors to maintain models, rebalance an unlimited number of accounts, add/trim security positions, liquidate accounts and/or process security replacements, in a transparent environment. This functionality applies to a variety of securities including equities, options, mutual funds and fixed income. Prior to execution, Pershing validates all allocations against its Rules Engine to ensure all orders are compliant with the rules set by the introducing broker-dealer/advisor, which eliminates post-trade correction. Also included in the Rules Engine validation are mutual fund order checks, such as fund cut-off times, fund minimums and short-term redemption fees. Firms can be fully operational and using the updated tool in fewer than two weeks. Home offices and advisors have access to a dedicated Pershing support team to assist with on boarding. Additional features of the block trading and rebalancing tool include: automatic creation of block orders, real-time allocations, positions and balance updates and trailing stop orders.

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