November 19, 2015

Money funds take spotlight at tax and regulatory forum

‘Extraordinary’ period of change under the spotlight at BNY Mellon’s inaugural US Tax & Regulatory Forum

Money market reform, FATCA, risk and liquidity management and future SEC mandated regulatory change were among the topics discussed at BNY Mellon’s inaugural US Tax and regulatory Forum, held this week in New York.

A key session was a seminar entitled Regulatory Developments on the Horizon, which highlighted SEC and other regulatory initiatives for mutual funds and investment advisers, including measures such as enhanced reporting proposals, liquidity management programs, portfolio stress testing and derivatives.

Another session looked at key developments around the US tax reporting and withholding regime,  with a specific focus on the Internal Revenue Service’s section 871(m) regulations covering withholding on certain notional principal contracts, derivatives and other ‘equity-linked instruments’;  deemed dividends on convertible debt under section 305(c); and payments relating to notional principal contracts under Reg 1.446-3T.

The event opened with a panel discussion involving a number of BNY Mellon’s tax experts on the Common Reporting Standard and FATCA . Other morning panel sessions focused on evolving regulatory activity in the ETF space and the possible implications for the industry, and on developments flowing from money market fund reform.

Another panel session looked at tax considerations on investments in complex markets, and brought together BNY Mellon’s subject matter experts with panelists from EY and ICI; a subsequent session on key European Union tax developments looked at tax transparent pooling among other topics, with the participation of Deloitte on the panel.

Market infrastructure developments – including US T+2 settlement, T2S in Europe, Shanghai-Hong Kong Stock Connect, and an update on Saudi Arabia – were the subject of another panel debate. Sessions on regulatory risk and liquidity management for insurance companies, and on the BEPS project and double tax treaty conventions – which included contributions from BlackRock and ICI – completed the day’s program.

“These are extraordinary times in terms of the sheer volume of tax and regulatory changes that is impacting financial services, and managing those changes and achieving compliance is of the utmost priority for our industry,” says Mariano Giralt, head of Global Tax Services at BNY Mellon. ”This event allows us to connect our clients and BNY Mellon’s experts to discuss the many developments now in play, and share insights into our services and solutions as we look to support them in shaping their future strategies.”

Linda Pizzuti, Global Product Manager, Asset Servicing Global Product Management at BNY Mellon, adds: “Clients are increasingly looking to us to help them navigate a global financial markets environment that is ever more interconnected, whether in respect of global cooperation and oversight across regulatory bodies and related entities, the harmonization of financial market best practices and reporting standards, or the emerging emphasis on securities market data collection and analysis.”




Mike Dunn
+1 212 635 8176