Strength and Stability

Financial Strength
June 30, 2024
 

BNY Pershing's core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY, is a leading provider of financial services for institutions, corporations and high-net-worth individuals. While financial strength does not protect against loss due to market fluctuation, our internal controls and regulatory oversight help maintain our stability and focus.

BNY Pershing

• Over $2.5 trillion in global client assets*
• Net capital of over $2 billion—well above the minimum requirement

BNY 

• $49.5 trillion in assets under custody and/or administration
• $2 trillion in assets under management

Segregation and Control of Assets

BNY 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, helps to monitor controls that are in place. In addition, a Service Organizations Control report conducted by an independent audit firm provides additional evaluation of the design and operating effectiveness of BNY Pershing’s internal controls.

Clients’ fully paid-for 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 BNY Pershing’s failure and liquidation.

BNY Pershing is a FINRA member broker-dealer registered with the U.S. Securities and Exchange Commission, in all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions.

Securities Investor Protection Corporation (SIPC®) Coverage

BNY Pershing is a member of SIPC. Securities in your account are protected up to $500,000. For details, please see sipc.org.

Excess of SIPC Coverage through Underwriters at Lloyd's and other Commercial Insurers

In addition to SIPC protection, BNY Pershing provides coverage in excess of SIPC limits from certain underwriters in Lloyd's insurance market and other commercial insurers. The excess of SIPC coverage is valid through February 10, 2025, for Pershing LLC accounts. It provides the following protection for Pershing LLC's global client assets:

• An aggregate loss limit of $1 billion for eligible securities—in total for all client accounts custodied at BNY Pershing
• A per-client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion

SIPC and the excess of SIPC coverage do not protect against loss due to market fluctuation.

An excess of SIPC claim would only arise if BNY Pershing failed financially and client assets for covered accounts—as defined by SIPC—cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of client securities, or to maintain the special reserve bank account required by applicable rules.