Summit Brokerage Services, Inc. formed a strategic relationship with Pershing LLC to execute, clear and custody the assets of our advisor's clients. Collectively as a strong partner with Pershing, Summit is able to deliver innovative products and services to our professional financial advisors and clients throughout the United States.
Pershing’s 75 year history and financial stability as a subsidiary of BNY Mellon, provides Summit with the comfort, assurance and strength in being affiliated with one of the leading financial institutions in the world.
You want your business to achieve its maximum potential. That is why Summit looked to a partner who can deliver maximum support—a partner like Pershing, committed to helping you grow your business without limits.
Pershing is the industry's largest global business solutions provider, with more customers who clear with Pershing than with any other clearing firm. Pershing offers unequaled experience built over seven decades of serving financial organizations of every size and business model.
You can gain confidence from Pershing’s financial position. Pershing has over $1.5 trillion in global client assets* held in custody, and their parent company, The Bank of New York Mellon Corporation, has $30.5 trillion in assets under custody and administration.
Pershing's market leadership enables them to make an exceptional investment in our advisors success. Pershing offers state-of-the-art technology, a highly reliable and scalable infrastructure, and a host of innovative products and services.
Pershing exclusively serves financial organizations, money managers, and registered investment advisors, and registered representatives with no retail lines of business to distract them, and no proprietary trading for their own book of business.
Pershing’s story begins and ends with people. Pershing invests in a high-touch, dedicated service model, and takes a consultative approach to helping Summit succeed. Pershing’s long associate tenures lets them build lasting relationships with experienced professionals who know the business.
Pershing is the industry's largest global outsourcing provider, serving more than 300 international financial organizations and doing business in more than 60 markets. They are also nationally recognized as a one-stop, full-service global solution with integrated, multicurrency clearing and execution, plus a full range of global resources.
Strength and Stability
Pershing LLC has been a leading global provider of financial business solutions for over 70 years and serves many of the world’s most respected financial organizations, remaining committed to the safekeeping, servicing, segregation and reporting of assets held in custody.
Financial Strength—September 30, 2016
Pershing’s core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon, 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 provide stability and focus.
• Over $1.5 trillion in global client assets*
• Net capital of over $2 billion—well above the minimum requirement
• $30.5 trillion in assets under custody and/or administration
• $1.72 trillion in assets under management
Evaluation and Segregation of Assets
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, an Annual Service Organizations report (as required) by a major independent audit firm provides additional evaluation of the design and operating effectiveness of Pershing's internal controls related to account transfers, billing, clearance and settlement, confirmations and cash management functions, corporate actions, foreign exchange and prime brokerage controls, interest, margin monitoring, order and trade processing, physical custody, pricing and statements.
Clients' fully paid-for assets are segregated from our own, with quarterly vault inspections conducted. We maintain enough liquid assets, net of any liabilities, to protect clients' fully paid-for assets in the unlikely event of Pershing's failure and liquidation.
Pershing is a broker-dealer registered with the U.S. Securities and Exchange Commission, all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions. Pershing is also a member of the Financial Industry Regulatory Authority, every major United States securities exchange and the Municipal Securities Rulemaking Board.
Pershing is a member of the Securities Investor Protection Corporation (SIPC). As a result, securities in client accounts are protected up to $500,000 (including a maximum of $250,000 for claims for uninvested cash awaiting reinvestment). For details, please see www.sipc.org.
Excess of SIPC Coverage Through Underwriters at Lloyd's and Other Commercial Insurers
In addition to SIPC protection, 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, 2017 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-over all client accounts
• 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 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.
Lloyd's currently holds an A+ rating from Standard & Poor's® (S&P®), an A rating from A.M. Best and an AA rating from Fitch. These ratings are based on the financial strength of the company and are subject to change by the rating agencies at any time.** For more information about Lloyd's, please see lloyds.com.
*Pershing LLC and its global affiliates as of September 30, 2016
**Ratings and assets as of Septemeber 2016