Securing Your Assets at BNY Mellon

The safety of client securities is of paramount importance to us at BNY Mellon Wealth Management.

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.

Security Safety

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.

Organizational Resiliency

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.

Cybersecurity

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

Regulatory Controls

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.

Conclusion

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

  • This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation. The Bank of New York Mellon, Hong Kong branch is an authorized institution within the meaning of the Banking Ordinance (Cap.155 of the Laws of Hong Kong) and a registered institution (CE No. AIG365) under the Securities and Futures Ordinance (Cap.571 of the Laws of Hong Kong) carrying on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The services and products it provides are available only to “professional investors" as defined in the Securities and Futures ordinance of Hong Kong. The Bank of New York Mellon, DIFC Branch (the “Authorised Firm") is communicating these materials on behalf of The Bank of New York Mellon. The Bank of New York Mellon is a wholly owned subsidiary of The Bank of New York Mellon Corporation. This material is intended for Professional Clients only and no other person should act upon it. The Authorised Firm is regulated by the Dubai Financial Services Authority and is located at Dubai International Financial Centre, The Exchange Building 5 North, Level 6, Room 601, P.O. Box 506723, Dubai, UAE. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority. The Bank of New York Mellon London Branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. The Bank of New York Mellon is incorporated with limited liability in the State of New York, USA. Head Office: 240 Greenwich Street, New York, NY, 10286, USA. In the U.K. a number of the services associated with BNY Mellon Wealth Management's Family Office Services– International are provided through The Bank of New York Mellon, London Branch, One Canada Square, London, E14 5AL. The London Branch is registered in England and Wales with FC No. 005522 and BR000818. Investment management services are offered through BNY Mellon Investment Management EMEA Limited, BNY Mellon Centre, One Canada Square, London E1C 5AL, which is registered in England No. 1118580 and is authorised and regulated by the Financial Conduct Authority. Offshore trust and administration services are through BNY Mellon Trust Company (Cayman) Ltd. This document is issued in the U.K. by The Bank of New York Mellon. In the United States the information provided within this document is for use by professional investors. This material is a financial promotion in the UK and EMEA. This material, and the statements contained herein, are not an offer or solicitation to buy or sell any products (including financial products) or services or to participate in any particular strategy mentioned and should not be construed as such. BNY Mellon Fund Services (Ireland) Limited is regulated by the Central Bank of Ireland BNY Mellon Investment Servicing (International) Limited is regulated by the Central Bank of Ireland. BNY Mellon Wealth Management, Advisory Services, Inc. is registered as a portfolio manager and exempt market dealer in each province of Canada, and is registered as an investment fund manager in Ontario, Quebec, and New Foundland & Labrador. Its principal regulator is the Ontario Securities Commission and is subject to Canadian and provincial laws. BNY Mellon, National Association is not licensed to conduct investment business by the Bermuda Monetary Authority (the “BMA") and the BMA does not accept responsibility for the accuracy or correctness of any of the statements made or advice expressed herein. BNY Mellon is not licensed to conduct investment business by the Bermuda Monetary Authority (the “BMA") and the BMA does not accept any responsibility for the accuracy or correctness of any of the statements made or advice expressed herein. Trademarks and logos belong to their respective owners. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation. ©2020 The Bank of New York Mellon Corporation. All rights reserved.