Pershing Fined $1.4 Million for Inaccurate Interest Rate Reporting

Posted on November 4th, 2024 at 11:57 AM
Pershing Fined $1.4 Million for Inaccurate Interest Rate Reporting

From the desk of Jim Eccleston at Eccleston Law

Pershing has been fined $1.4 million by FINRA for disseminating account documents with inaccurate interest rate information. 

According to AdvisorHub, Pershing sent over a million account statements and trade confirmations with incorrect interest rate figures on certain variable rate securities between 2010 and 2022. The inaccuracies also appeared on online portals used by customers and brokers across the 450 firms that clear through Pershing. 

Despite receiving warnings from dozens of customers, Pershing corrected individual instances without investigating the broader issue, AdvisorHub reports. However, FINRA noted that Pershing did pay customers the correct market yields, not the inaccurate rates displayed.

Pershing has addressed the inaccuracies, updating its supervisory procedures with the assistance of a consulting firm.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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