At BNY Mellon Wealth Management, we take the safety and security of your assets seriously. For more than 200 years, we've safeguarded the wealth of some of the most successful individuals and families around the world through times of prosperity, uncertainty and possibility. As one of the world's largest custodian banks, asset protection is at the core of what we do.
The economic and market conditions resulting from the COVID-19 pandemic, while concerning, are precisely the kind of disruption that our organization is designed to withstand. Our historical strength, solid financial foundation, experienced team of professionals and regulatory protections make BNY Mellon a safe harbor in tough times.
A Solid Foundation
BNY Mellon is built on a solid foundation that provides stability against financial stress:
- We are well-capitalized, with meaningful buffers that exceed the government's regulatory requirements.
- Our balance sheet is liquid and low risk; we maintain a strong liquidity profile, managing both the quality of our investment portfolio and intraday liquidity
- With sufficient deposits on hand, we are always ready to meet our payment and settlement obligations
We consistently receive high ratings from the four major credit rating agencies, a testament to our strength as an organization:
Our reputation as a safe, secure organization is one of the reasons we were named master custodian of the government's Troubled Asset Relief Program (TARP) during the 2008 financial crisis. In times of turmoil, we are a bastion of stability.
At BNY Mellon, your securities are your securities. They are segregated from the securities of the bank, and from those of our other clients. As clients' assets and accounts are separately accounted for, creditors of The Bank of New York Mellon Corporation, and its subsidiaries, do not have any rights to the securities in client accounts.
This is true regardless of whether the account is a trust account, investment management account or custody account. Shares of money market mutual funds, as investment securities, also fall within this rule. Any asset, of course, is subject to losses or gains from an investment perspective.
This may not be the case at all institutions. Investors should consider carefully where they place their assets, as regulations and business practices vary between companies.
While the circumstances of the COVID-19 pandemic are virtually unprecedented, our business resiliency and continuity planning ensured we were prepared to respond quickly and effectively:
- BNY Mellon is fully functional and operating at normal levels
- The majority of our global workforce has seamlessly shifted to working remotely or at alternate sites
- Our client service have adjusted their processes to suit client needs while respecting the advice and recommendations of public health and government officials
Furthermore, we have begun to proactively address client questions and concerns regarding the impact of COVID-19 as it relates to client portfolios and wealth plans. This includes:
- Thought leadership content around market volatility, gifting techniques, wealth-planning and tax strategies, and other topics relevant to the current market environment
- Weekly calls for clients, in which we discuss the short- and long-term investment outlook, as well as the latest developments in the spread of and fight against the COVID-19 virus
We strive to keep our clients informed, prepared and ready to navigate what lies ahead.
We use the strongest and most up-to-date encryption technology to safeguard your data. Our dedicated security team actively monitors all network traffic and systems to detect and block any unauthorized access to your accounts. Additionally, our login process utilizes multiple authentication steps, and includes fraud technology that proactively identifies suspicious activity.
We employ the following systems in this effort:
- RSA Solution
- 256-Bit Encryption, TLS 1.2
- Advanced Database Encryption
- Application Security Manager
- Routine Data Access Reviews
You should feel assured by the regulatory controls and oversight that apply to BNY Mellon, including to our parent company, The Bank of New York Mellon:
- As a publicly traded company, The Bank of New York Mellon Corporation periodically files publicly available reports with the U.S. Securities and Exchange Commission
- As a financial holding company, it is regulated by the Board of Governors of the Federal Reserve System
- Our national bank— BNY Mellon, N.A.—is regulated by the Office of the Comptroller of the Currency, which is part of the U.S. Department of the Treasury
- Our state banks and trust companies—The Bank of New York Mellon and BNY Mellon Trust of Delaware—are regulated by their respective state banking departments
This oversight is designed to add a level of transparency to our operations as well as reveal any business practices that may potentially jeopardize the security of client assets.
The safety of client securities is of paramount importance to us at BNY Mellon Wealth Management. We hope that our long record of security and stability, and the details about our ongoing efforts to address the present challenges we face, provides you with the peace of mind necessary to feel confident that your assets are in good hands.
*All figures as of March 31, 2020