Trade Talk, September 2006

Table of Contents

In this issue...

This year marks CIBC Mellon’s 10th anniversary, and the seventh time we have conducted our investment manager survey. This survey is very important to us as it allows us to statistically gauge how well we are servicing the investment manager community, and allows us the opportunity to identify areas of improvement in our service model.

The Accounting Standards Board of the Canadian Institute of Chartered Accountants (CICA) has issued new financial reporting standards that address accounting and disclosure for financial instruments. These standards include reporting on the fair value of financial instruments.

For 2005, CIBC Mellon Global Securities Services Company (CIBC Mellon) produced for its clients both a Canadian Institute of Chartered Accountants (CICA) Section 5970 and a Section 5900 independent assurance report from KPMG LLP.

With the introduction and publication of the second draft of National Instrument 24-101 (NI 24-101), Institutional Trade Date Match Rule, the Canadian marketplace is reading itself to move to a mandate where 98 per cent of institutional trades are required to be ”matched” by 7:30 p.m. on trade date by July 2008.

Implementing a currency overlay program is much like building a house.  It requires the right plan to meet your needs within an appropriate financial budget, the right materials to execute the plan and the right skills and tools to ensure efficient and smooth implementation of the plan.

Our core philosophy of commitment to client service excellence remains steadfast.  It guides us in our day to day efforts to meet, and whenever possible, exceed your expectations.

The old saw that stocks climb a wall of worry has been evident in Canada, as modest year-to-date TSX gains have paled relative to the stream of upbeat earnings news.  To set new highs, markets will have to tear down that wall of worry, one brick at a time.

On June 29, 2006, the Department of Finance released draft amendments to the Income Tax Act that would lower the income tax rate on dividends paid by large corporations.  The amendments, among other things, will impose a new obligation on every Canadian corporation that pays a taxable dividend to designate eligible dividends in writing to the dividend recipient.

This issue by:
Sheila Munro
Sandy MacDonald
Kenneth Chang
Savie Fiorini
Sharon Grewal
Thomas C. MacMillan
Avery Shenfeld
Simon Lee

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Trade Talk® is provided for general information purposes only and CIBC Mellon Global Securities Services Company, CIBC Mellon Trust Company, CIBC, The Bank of New York Mellon Corporation and their affiliates make no representations or warranties as to its accuracy or completeness. Readers should be aware the content of this publication should not be regarded as legal, tax, accounting, investment, financial or other professional advice nor is it intended for such use.