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The Globe and Mail Highlights the Business Innovation Hub at CIBC Mellon

February 07, 2017

Straight Talk - February 7, 2017

The Globe and Mail Highlights the Business Innovation Hub at CIBC Mellon

By Richard AntonThree weeks ago, we announced that CIBC Mellon and the Ted Rogers School of Management at Ryerson University are collaborating as part of the Business Innovation Hub, bringing together a talented and diverse group of CIBC Mellon employees and Ryerson University students, equipped with new ideas, backgrounds and perspectives. While the company continues to work through its existing processes and systems to address change and take advantage of opportunities to better serve our clients, the hub program is an opportunity for the company to have a group freed up from day-to-day business needs, focused exclusively on identifying key challenges and developing fresh ideas.

This initiative is an example of how we are discovering ways to innovate our client experience in a controlled manner, as we continuously seek to further enhance accuracy, operational efficiency and consistency. Additionally, the Business Innovation Hub helps to reinforce CIBC Mellon as a great place for young people to launch their careers in financial services. Through this program, we are continuing to invest in the potential of young people, and their energy, enthusiasm and diverse ideas.

If you missed it in yesterday's print edition, read the The Globe and Mail’s coverage online. For more information about innovation at CIBC Mellon, see our recent Trade Talk article, “Innovation Driving CIBC Mellon and Advancing the Client Experience.”

In This Edition

  • The Ontario Securities Commission Launches New CRM2 Reports Website for Investors
  • IIROC CEO Provides Remarks at Recent International Conference
  • Changes to Operating Schedule Due to Family Day Holiday in British Columbia on February 13, 2017
  • Family Day Holiday in Ontario and Alberta on February 20, 2017 - Change in Operating Schedule
  • BNY Mellon Update – U.S. Internal Revenue Service Revises Regulations on 305(c) Convertible Debt Withholding

Ontario Securities Commission Launches New CRM2 Reports Website for Investors

The Ontario Securities Commission (OSC) recently launched a new website, InvestmentReporting.ca, which is intended to help investors navigate new annual reports introduced as part of the Canadian Securities Administrators’ (CSA) Client Relationship Model – Phase 2 (CRM2) initiative. The reports aim to provide greater transparency about the performance of an investor’s account over specific time periods and the fees paid to the investor’s firm. The OSC’s intention is to help investors better understand their progress towards their financial goals, and make more informed financial decisions.  

The OSC notes that the new annual performance reports, which stem from CRM2, looks at the overall performance of an investor’s account, giving an overview of how changes in the value of the investments within the account have affected the total value of the account over the past year. The new annual report on charges and fees breaks down for investors the fees that they are paying on their account, clarifying the account’s performance and the value of the advice and services that their firm has provided.

For more information, see the OSC’s news release.

IIROC CEO Provides Remarks at Recent International Conference

The Investment Industry Regulatory Organization of Canada’s (IIROC) President and Chief Executive Officer, Andrew J. Kriegler, recently provided remarks at the International Conference on Certification and Capacity Building in Financial Markets in Mumbai, India.

In his talk, Mr. Kriegler provided a brief view of some of the issues that IIROC is dealing with in Canada’s securities markets and mentioned some of the organization’s responses to the challenges discussed. Mr. Kriegler noted rapidly changing environments, and cited drivers of change such as demographics and rapid technological advancement. Underlying his message was the great need for investors to have confidence in the system (such as political, economic and financial) that supports them.

For more information, view Mr. Kriegler’s full remarks.

CDS Gives Notice of Change in Operating Schedule for Family Day Holiday in British Columbia on February 13, 2017

The Canadian Depository for Securities (CDS) has advised Canadian deposit participants that Monday, February 13 is an industry holiday in British Columbia. CDS, trust companies, and banks will be closed in British Columbia on this date, as well as CIBC Mellon’s local office in Vancouver.

CDS reminds participants that CDSX, Depository Trust and Clearing Corporation (DTCC), Canadian and U.S. exchanges, Large Value Transfer System (LVTS), and Fedwire will be fully operational.

See the attached CDS bulletin for more information and to find out which services will be affected by the holiday.

Family Day Holiday in Ontario and Alberta on February 20, 2017 - Change in Operating Schedule

On February 20, 2017, CIBC Mellon offices located in Ontario and Alberta will also be closed for Family Day. The TMX Group confirms the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montreal Exchange will be closed on Monday, February 20 for Family Day. We will report on the related CDS holiday schedule in a forthcoming Straight Talk.

Please contact your Service Director or Account Manager if you require additional information.

BNY Mellon Update – U.S. Internal Revenue Service Revises Regulations on 305(c) Convertible Debt Withholding

On February 1, 2017, BNY Mellon released a NetInfo® bulletin with an update on 305(c). The U.S. Treasury Department and Internal Revenue Service (IRS) recently issued new proposed regulations under Internal Revenue Code (IRC) section 305(c) pertaining to tax withholding requirements on deemed dividend distributions made to non-U.S. recipients.

As noted in the bulletin, BNY Mellon and CIBC Mellon expect to implement current notification and withholding on 305(c) deemed dividends in 2017. Over the past year, BNY Mellon has continued to evaluate its approach to withholding and reporting on deemed dividends under IRC section 305(c). BNY Mellon and CIBC Mellon had previously announced our intention to begin withholding during 2016. Due to the proposed regulations not being issued in final form, and continued discussion among industry participants concerning implementation of the proposed regulations, BNY Mellon and CIBC Mellon had not begun withholding during the year 2016, as originally had been planned.

In its bulletin, BNY Mellon announced that it has made a determination of its approach to 305(c) for the 2016 tax year. BNY Mellon has been collecting Form 8937 to support the withholding and as of January 31, 2017, will use those forms to calculate witholdable amounts. BNY Mellon will start to withhold, for the 2016 tax year during the week of February 13, 2017 and its clients will be given notice through normal channels of the amount being debited to their accounts.

BNY Mellon and CIBC Mellon clients should make any changes in alignment of convertible debt instrument as soon as possible. Please refer to the bulletin for more details.

For more information, refer to our paper on 871(m) or contact your Service Director or Account Manager.




Straight 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, nor do any of them take any responsibility for third parties to which reference may be made.  Readers should be aware the content of this publication should not be regarded as legal, accounting, investment, financial, tax or other professional advice nor is it intended for such use.