Pershing has been sentenced to pay a total penalty of $40,000 for breaching client money provisions by transferring sale proceeds from international trading in clients’ securities into its general bank account; failing to ensure client money was held in segregated trust accounts; and failing to transfer a sum into a trust account.
Pershing is the first company in Australia to be convicted of criminal offences for breaching client money provisions.
“This outcome sends a strong message that client money breaches are serious. Client money obligations protect investors, bolster investor confidence and underpin the integrity of Australian financial markets,” said ASIC commissioner Cathie Armour. “If licensees don’t take them seriously, they risk criminal conviction.
“ASIC will continue to closely supervise compliance with these laws and take action against any breaches.”
Pershing has also accepted additional conditions imposed by ASIC on its AFSL.
