Broker Check

Understanding the protection of client assets


The Bank of New York Mellon Corporation (BNY Mellon) is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Advisor Solutions, which is the brokerage services business of Pershing Advisor Solutions LLC and/or the bank custody solutions business of BNY Mellon, N.A., works

The protection of client assets remains at the center of our focus.

behind the scenes on behalf of your advisor to provide operational, technology and client-related support and provides access to a combined brokerage and bank custody technology solution through a single integrated service model. Its affiliate Pershing LLC (Pershing) provides clearing, brokerage custody and other related services and BNY Mellon, N.A. provides bank custody services. We remain committed to the safekeeping, servicing, segregation and reporting of our global client assets.

Segregation and control of assets

Brokerage custody: pershing

Pershing’s core financial strength provides the first measure of protection for our global client assets. Pershing’s parent company, BNY Mellon, is one of the world’s largest global custodians. While financial strength does not protect against loss due to market fluctuation, Pershing’s internal controls and regulatory oversight help maintain its stability and focus.Pershing protects client assets through rigorous internal control measures. An annual audit by a major independent audit firm and the audit team at our parent company, BNY Mellon, helps to monitor controls that are in place. In addition, a Service Organization Control report conducted by an independent audit firm provides additional evaluation of the design and operating effectiveness of Pershing’s internal controls.Clients’ fully paid-for physical assets are segregated from our own, with quarterly vault inspections conducted. In addition, we segregate cash and/or qualifying securities in special reserve bank accounts for the exclusive benefit of clients, to protect clients’ funds in the unlikely event of Pershing’s failure and liquidation.Pershing is a FINRA member broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) in all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions.

Bank custody: bNY mellon, N.A.

BNY Mellon, N.A.’s structure requires clients’ securities be segregated from the securities of the bank, and from those of other clients. The securities in a client’s account with BNY Mellon, N.A. are the property of that client and are held in nominee name. As clients’ assets and accounts are separately accounted for, creditors of The Bank of New York Mellon Corporation and those of BNY Mellon, N.A., and their subsidiaries do not have any rights to the securities in client accounts. Shares of money market mutual funds, as investment securities, also fall within this rule. Any asset, of course, is subject to losses or gains from an investment perspective.There are also established regulatory controls that cover our institution. As a publicly traded company, The Bank of New York Mellon Corporation periodically files publicly available reports with the SEC. In addition, as a financial holding company, it is regulated by the Board of Governors of the Federal Reserve System. BNY Mellon, N.A. is regulated by the Office of the Comptroller of the Currency, which is part of the U.S. Department of the Treasury

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