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How Your Assets Are Protected

Strength and Stability

Understanding the Protection of Client Assets

BNY MELLON’S PERSHING: STRENGTH, STABILITY AND FOCUS

BNY Mellon’s Pershing has been a leading global provider of financial business solutions for more than 80 years and serves many of the world’s most respected financial organizations. We remain committed to the safekeeping, servicing, segregation and reporting of our global client assets.

The Protection of Client Assets Remains at the Center of Our Focus

Pershing’s core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon, is a global investments company dedicated to helping its clients manage and service their financial assets and is one of the world’s largest global custodians. 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 MELLON’S PERSHING

Over $2.0 trillion in global client assets1
Net capital of over $2.0 billion2—well above the

minimum requirement

BNY MELLON

$37.3 trillion in assets under custody and/or administration $2.0 trillion in assets under management

1 Pershing LLC and its global affiliates 2 Pershing LLC


SEGREGATION AND CONTROL 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, 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 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 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.

SECURITIES INVESTOR PROTECTION CORPORATION (SIPC®) COVERAGE

Pershing is a member of the SIPC, which protects securities’ customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at 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, 2021
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.

©2020 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Pershing does not provide investment advice. Affiliated investment advisory services, if offered, are provided by Lockwood Advisors, Inc. (Lockwood), a Pershing affiliate and an investment adviser registered in the United States under the Investment Advisers Act of 1940. Trademark(s) belong to their respective owners.

pershing.com

One Pershing Plaza, Jersey City, NJ 07399 PER_1819_OVW_0620 OVR-PER-SSF-2Q20-06-20

Understanding the Protection of Client Assets

Pershing remains focused on the safekeeping, segregation and reporting of assets held in custody.