ICS® for Institutional Investors

July 2016


BNY Mellon Capital Markets offers a variety of short-term products for the institutional investor. ICS® is our newest product.

More than ever, institutional investors are seeking short-term investments that provide a return without sacrificing credit quality. For these investors, ICS® offers several benefits. Learn more by watching our video.



This video relates to products and services offered in the U.S. and is intended for clients based in the U.S. Not all products and services are offered at all locations.

Placement of your funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements you enter into with us, including the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. ICS and Insured Cash Sweep are registered service marks of Promontory Interfinancial Network, LLC.

BNY Mellon Capital Markets, LLC (“Capital Markets”) is a full service registered broker-dealer and an indirect wholly owned non-bank subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”). BNY Mellon and its affiliates lend and provide other products and services to issuers and others, and provide and receive related fees and compensation. Capital Markets is a member of FINRA and SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at http://www.sipc.org. SIPC does not protect against loss due to market fluctuation. SIPC protection is not the same as, and should not be confused with, FDIC insurance.

This material is for reference purposes only and not intended to be a recommendation with respect to, or solicitation or offer to buy or sell, any particular financial instrument, including but not limited to BNY Mellon stock, or to participate in any particular trading strategy and is not tax, legal, investment or accounting advice. Nor is it an offer or solicitation in any jurisdiction in which such an offer or solicitation would be illegal. Capital Markets does not make representations as to the actual value to be received in connection with a transaction. Although information is from sources believed reliable, there is no undertaking as to accuracy and opinions and information contained herein are subject to change without notice. Difficulties in the mortgage and broader credit markets have led to a substantial decrease in the availability of credit. The extent and duration of any future continued weakening of U.S. and global credit and financial markets, higher costs of borrowing, and disruptions in debt and equity markets potentially make it more difficult to liquidate an investment, or determine the impact, if any, on the performance and prospects of particular issuers or securities. A client should not enter into any transactions unless it has fully understood all risks and that not all investments will be suitable, and has independently determined that such transactions are appropriate, for the client. Prices may fluctuate and it is possible that such fluctuations may be substantial in response to many factors including, without limitation, general market and market sector conditions, U.S. and global, in addition to company specific conditions. Past performance is not a guide to future performance of any instrument, transaction or financial structure, and a loss of original capital may occur.

Fixed Income Securities. Fixed income investments, including municipal bonds, are subject to various risks including changes in interest rates, call features, credit quality, possible default, difficulty in market valuations, liquidity, prepayments, early redemption, tax ramifications, inflation and other factors.

Not acting as Municipal Advisor, Financial Advisor or Fiduciary: Capital Markets is providing the information contained in this document for discussion purposes only in anticipation of serving as an Underwriter, Broker-Dealer, CP Dealer or Remarketing Agent to the addressee and is not recommending any action to the addressee. The primary role of Capital Markets, as Underwriter, is to sell and purchase securities, as applicable, to and from investors, in arm's length commercial transactions; Capital Markets has financial and other interests that differ from those of the addressee. As such, Capital Markets is not acting as a municipal advisor, financial advisor or fiduciary to the addressee or any other person or entity in connection with the information provided. The information provided is not intended to be and should not be construed as "advice" within the meaning of Section 15B of the Securities Exchange Act of 1934 or the rules thereunder. The addressee should consult with its own financial and/or municipal, legal accounting, tax and other advisors, as applicable, to the extent it deems appropriate. If the addressee would like a municipal advisor in a transaction that has legal fiduciary duties to the addressee, then the addressee is free to engage a municipal advisor to serve in that capacity. Notwithstanding the foregoing, Capital Markets is registered as a municipal advisor with the Municipal Securities Rulemaking Board and may, from time to time, act as a municipal advisor with respect to municipal issuers and their investments. Issuers should contact their Capital Markets representative to discuss an engagement with Capital Markets as a municipal advisor.

No Tax, Legal or Accounting Advice. Capital Markets does not provide tax, legal, or accounting advice. You should independently and carefully consider whether any information or investment instruments are suitable for your particular investment objectives and financial position and, if you believe it appropriate, seek professional advice, including tax, legal and accounting advice.

Past Performance is not Indicative of nor a Guarantee of Future Performance and a Loss of Original Capital may Occur. You should not enter into any transactions unless you have fully understood all risks, that not all investments will be suitable, and you have independently determined that such transactions are appropriate, for you. Investing in securities involves risk, including loss of the principal amount invested. Additional information is provided on FINRA's Web site at http://www.finra.org/Investors/ProtectYourself/index.htm.

Structured Products are not suitable for all investors. Structured Products are subject to special risks and considerations. All relevant offering documents including, but not limited to, term sheets and prospectuses should be consulted and understood prior to investing. Investors should understand characteristics, risks, and potential rewards. Investors should contact their own accounting, tax or legal advisors to review the suitability of any investment.


Rates of return. You should compare the rates of return and other features of ICS deposits to other available investments before deciding to place your funds using the ICS service. The rates paid with respect to ICS deposits may be higher or lower than the rates on deposits available directly from the Insured Institutions at which deposits are placed using ICS.

Limits on FDIC insurance. If you have or will have money on deposit (such as a savings account or certificates of deposit outside ICS) at the same Insured Institution at which your ICS deposits are placed, the total value of your deposit accounts could be higher than the amount of FDIC insurance to which your deposits (including ICS deposits) are entitled. In such cases, if the Insured Institution fails, some of your deposits could be uninsured. FDIC deposit insurance coverage applies to the principal and accrued interest on all ICS deposits and other deposit accounts maintained by you in the same insurable capacity at a single Insured Institution. You are responsible for monitoring the total amount of deposits that you hold with each Insured Institution in order for you to determine the extent of FDIC deposit insurance coverage available to you on deposits at that Insured Institution, including the ICS deposits. You could be required to provide documentation to the FDIC in addition to the documentation that Capital Markets and The Bank of New York Mellon provide before insurance payments would be released to you. No interest is earned on deposits from the time an Insured Institution is closed until insurance payments are received.

All funds may not be invested on placement date. All your funds may not be placed on an order placement date, in which case unplaced funds will be returned to you, and you may resubmit them for placement through ICS on another day on which Promontory performs its allocation service. Your ICS deposit will not be issued until the issuing Insured Institution receives and accepts your funds. ICS deposits will be issued on the business day immediately following Promontory’s order allocation date. Although you may direct us not to place funds at any one or more proposed or alternate proposed Insured Institution, you cannot direct us to place funds at a specific Insured Institution or specify the amount to be placed at any Insured Institution.

Payment dates. If the withdrawal date is not a business day, payment will be made on the next business day. Each ICS deposit will earn interest from the day your funds are deposited at the Insured Institution, up to, but not including, the day your funds are withdrawn.

Reinvestment risk. If an ICS deposit is paid due to an insolvency of the Insured Institution, you may not be able to re-invest the interest you are paid at an interest rate as favorable to you as the interest rate paid on your ICS deposit.

No right to compensation or reimbursement. If an Insured Institution were to approach insolvency or become insolvent, the Insured Institution may be placed in a regulatory conservatorship or receivership in which the FDIC is typically appointed as conservator or receiver. The FDIC may thereafter pay off such Insured Institution’s deposits or transfer the deposits to another Insured Institution. If the ICS deposits were transferred at the same rate, there would be no action that you would need to take; however, if ICS deposits were to be offered at a lower rate, you would have a choice of retaining the ICS deposits at the lower interest rate or having the ICS deposits paid off. Neither The Bank of New York Mellon, Capital Markets nor Promontory will be obligated for a loss you might incur as a result of, or to advance funds to you in the event of, (i) a delay in insurance payouts applicable to an ICS deposit (there is no specific time by which the FDIC must make such payments), (ii) your receipt of a decreased interest rate on an investment replacing an ICS deposit that is repaid, or (iii) payment in cash of the principal and accrued interest of an ICS deposit in connection with the liquidation of an Insured Institution or the assumption of all or a portion of its deposit liabilities. You are solely responsible for any uninsured losses resulting from placement of funds ineligible for deposit insurance.

Read the ICS Deposit Placement Agreement carefully before investing. Placement of your funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements you enter into with us, including the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. Specific additional information about ICS deposits is discussed in the ICS Deposit Placement Agreement, which you should read carefully before participating in ICS.

No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Capital Markets

©2016 BNY Mellon Capital Markets, LLC. All rights reserved. Trademarks, service marks and logos are the property of their respective owners.

Securities Products: Not FDIC-Insured – Subject to Loss in Value – Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may be used as a generic term to reference the corporation as a whole and/or its various subsidiaries generally. Products and services may be provided under various brand names in various countries by duly authorized and regulated subsidiaries, affiliates, and joint ventures of The Bank of New York Mellon Corporation.

This material may not be reproduced or disseminated in any form without the express prior written permission of BNY Mellon. BNY Mellon will not be responsible for updating any information contained within this material and opinions and information contained herein are subject to change without notice. BNY Mellon assumes no direct or consequential liability for any errors in or reliance upon this material. Trademarks, service marks, logos and other intellectual property marks belong to their respective owners.

© 2016 The Bank of New York Mellon Corporation. All rights reserved.