Securities Lawyers Blog
The law offices of Gana Weinstein LLP represents investors in investment disputes with their financial advisors or brokerage firms, such as Pershing LLC. Many investors do not recognize financial advisor misconduct when it happens, but there are steps that can be taken to recover investment losses. There are many different types of broker misconduct, including breach of fiduciary duty, failure to supervise, misrepresentation, and churning. The attorneys at Gana Weinstein LLP can analyze your investments to determine if there was actionable misconduct by the broker or brokerage firm.
Pershing LLC is the BNY broker-dealer that provides clearing, custody, settlement, and market access services to broker-dealers, banks, and wealth management firms. Pershing is the largest U.S. clearing firm by number of broker-dealer clients and supports about 8.6 million client accounts worldwide.
Pershing LLC – By the Numbers:
- CRD #: 7560
- Regulatory Events: 74
- Arbitration Events: 32
- Broker Employees: 909
Pershing LLC – In the News:
FINRA v. Pershing LLC (Case #2020066661101) – From July 2016 to April 2021, Pershing failed to include the Non-Transaction Based Compensation (NTBC) indicator when reporting approximately 23,000 municipal securities transactions to the MSRB’s Real-Time Transaction Reporting System (RTRS) in violation of MSRB Rule G-14. During the same period, the firm also did not report the No Remuneration (NR) indicator to the Trade Reporting and Compliance Engine (TRACE) for approximately 155,000 transactions in TRACE-eligible securities, as defined in FINRA Rule 6710(a), in violation of FINRA Rules 6730(d) and 2010. Additionally, from July 2016 to May 2021, the firm failed to establish and maintain supervisory systems reasonably designed to achieve compliance with MSRB Rule G-14 and FINRA Rule 6730, in violation of MSRB Rule G-27 and FINRA Rules 3110 and 2010, respectively.
FINRA v. Pershing LLC (Case #2021073236801) – From June 1997 through June 2023, Pershing failed to report millions of fractional share trades to the FINRA/Nasdaq Trade Reporting Facility (FNTRF), the Over-the-Counter Reporting Facility (ORF), and their predecessors, in violation of FINRA Rules 6380A, 6622, and 2010, and NASD Rules 4632, 4642, 6420, 6620, and 2110. From June 1997 through July 2022, the firm failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA’s rules for reporting fractional share trades, in violation of FINRA Rules 3110 and 2010, and NASD Rules 3010 and 2110.
FINRA v. Pershing LLC (Case #2022073805701) – From January 2010 through December 2022, Pershing distributed more than one million account statements and trade confirmations that listed inaccurate interest rate information for certain variable rate securities. The firm also provided inaccurate interest rate information about those securities through the online access portals the firm provided for customers and registered representatives of the introducing firms that used Pershing’s clearing services. By making and preserving inaccurate books and records, Pershing violated Exchange Act Rule 17a-3(a)(8), NASD Rule 2340 (for conduct prior to May 8, 2019), and FINRA Rules 2231 (for conduct on or after May 8, 2019), 4511, and 2010. By making these negligent misstatements, Pershing violated FINRA Rule 2010. During the same period, Pershing failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to review the accuracy of interest rate information disseminated by the firm, in violation of FINRA Rules 3110 and 2010.
FINRA v. Pershing LLC (Case #2014043545101) – In Matter No. 20140435451, the Department of Market Regulation reviewed the firm’s compliance with FINRA rules applicable to reporting of transactions in Over-the-Counter (“OTC”) Equity Securities during the period of March 3, 2008 to December 19, 2014. During the period of March 3, 2008 through December 8, 2013, the firm failed to report to the OTC Reporting Facility (“OTCRF”) as “tape eligible” 35,303 odd-lot transactions in OTC Equity Securities. During the period of December 9, 2013 through December 19, 2014, the firm failed to media report 23,526 odd-lot transactions in OTC Equity Securities to the OTCRF, so information regarding these transactions was not made available to the public. The firm’s written supervisory procedures also failed to set forth a review process to ensure accurate reporting of odd-lot transactions. As a result, the firm violated NASD Rules 6620, 3010, and 2110 and FINRA Rules 6622, 3110, and 2010.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.