Pershing has been hit with a $3 million fine from FINRA for supervisory failures and violating the SEC's Customer Protection Rule.
"Clearing firms have a fundamental responsibility to protect customer assets and must ensure that their supervisory systems are compliant with the Customer Protection Rule," Brad Bennett, FINRA's executive vice president and chief of enforcement said in a statement. "Customers' assets were at risk because Pershing failed to establish systems to vet procedural changes with material impact to the reserve and possession and control positions."
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