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Recruitment Brochure 2008
                           TABLE           OF    CONTENTS

The Bank of New York Mellon – Introduction                                    p 03

The Bank of New York Mellon – Business Network                                p 09

The Bank of New York Mellon – Transaction Process                             p 10

The Bank of New York Mellon – Organization Brussels                           p 11

The Bank of New York Mellon – The Departments

01) Securities Operations - Transaction Processing
      Instructions Verification Center                                       p 12
      Instructions                                                           p 13
      Settlement                                                             p 14

02) Securities Operations - Portfolio Services
      Corporate Actions                                                      p 16
      Tax Reclaims                                                           p 19

03) Cash & Credit Operations
      Money Transfer                                                         p 21
      Treasury Support & Treasury Desk                                       p 22

04) Control & Investigations, Administration, Compliance
      Control & Investigations                                               p 24
      Account Administration                                                 p 27

05) Client Services                                                           p 28

06) Broker Dealer Services – Global Clearing & Global Collateral Management   p 29

07) Relationship Management                                                   p 31

08) Global Product Management                                                 p 32

09) Global Network Management                                                 p 33

10) Subcustodian Fees Group                                                   p 34

11) Project management /Contingency, Data Security & Queue Monitoring         p 35

12) Technology                                                                p 36

13) Audit                                                                     p 37
The Bank of New York Mellon

Today's Bank of New York Mellon was formed in July 2007 through a merger between The Bank of New
York Company, Inc. and Mellon Financial Corporation of Pittsburgh. Together, the two institutions have
created the world's largest securities servicing provider and a top asset management firm globally — a
financial services growth company without peer.

Today The Bank of New York Mellon has 40,000 employees, more than one quarter of which is located
outside the United States. The Company serves more than 100 markets through a global presence in 37
countries establishing it as a truly global provider to a truly global clientele. The Bank of New York Mellon is
positioned to deliver world-class service to clients, provide superior performance to shareholders and create
more and better opportunities for the people who keep the company strong — all while sustaining a
commitment to the communities in which it operates.

Our Brussels branch focuses on Asset Servicing like Global Custody and therefore serves only institutional
clients. We strive to act as a true partner, helping to navigate the complexities of the global markets and
unlock the full potential of our clients' assets and enterprises.

Our Vision and Brand

The new company also demanded from us, to think about our values and vision, which both should be
communicated with a new brand. The Bank of New York Mellon is positioned to deliver world-class service
to clients, provide superior performance to shareholders and create more and better opportunities for the
people who keep the company strong — all while sustaining a commitment to the communities in which it
operates. The Brand reflects the combination of our People and working approach based on Partnership to
deliver an exceptional service and long-term value.

Our Values

With the launch of our new company, The Bank of New York Mellon has adopted ambitious aspirations and
made critical promises to our clients, shareholders, communities and employees. Our success in being the
very best provider, exceeding investor expectations and supporting an environment where everyone can
thrive and excel, requires us to adopt a set of core values — and a shared commitment to living those
values each and every day.

Each of the following four values is fundamental to our sustained ability to win, grow and achieve our
personal and professional objectives:

    Client Focus: Being our clients' "partner of choice" by delivering the world's best client service

    Trust: Acting with the highest standards of integrity and openness to ensure the trust of those we serve

    Teamwork: Fostering diversity and collaboration, and empowering employees to deliver our very best

    Outperformance: Consistently exceeding the expectations of our clients, employees, communities and

In sum, The Bank of New York Mellon is a client-focused, trusted financial institution driven by an
empowered global team dedicated to outperforming in every market it serves.

The Services of the Bank of New York Mellon

On a worldwide scope the Bank of New York Mellon is offering a full range of financial services to help
clients managing and moving their assets. These services include:

            Asset Management                              Broker-Dealer & Advisor Services

            Asset Servicing                               Wealth Management

            Issuer Services                               Treasury Services

The Brussels Branch of the Bank of New York Mellon engages mainly in Asset Servicing, Treasury Services
and Broker-Dealer Services.

What is Asset Servicing and Global Custody?

BNY Mellon Asset Servicing offers a full suite of services — combined with global capabilities and premium
technology — that help enhance the management, administration and oversight of the investment process.
Our talented experts work to provide a flexible approach; are focused on delivering powerful and innovative

solutions and recognizes that one product or solution does not fit all. With this approach the client gets
provided with the right tools and information to help them to make better decisions throughout the entire
investment process. The client benefits stem from our many strengths: the experience of our professional
staff; our ongoing commitment to systems and training; our flexible and customized service approach; and
our strategic focus on the securities business and needs. As leader in the industry we provide trust, custody
and value-added products and services to help institutional clients to improve critical back-to-front-office
investment activities and better process, monitor and measure investment data around the world. So they
can better compete and succeed in today’s highly competitive globally focused business environment.

BNY Mellon Asset Servicing has a rich and long history of providing custody and investment services. We
have well-trained individuals around the world who devote 100 percent of their time to institutional custody
and accounting services. Global Custody refers to the administrative management of (large) institutional
investors’ securities portfolios. Our clients are for example banks, insurance companies, pension funds,
investment funds or broker/dealers. The administrative management does NOT involve any investment
decision and/or investment strategy: this is the responsibility of the investor’s (external and/or internal)
investment managers. However, Global Custody executes all these investment decisions on behalf of the
decision makers.

We provide timely information for better decision-making and transform custody data into meaningful
information that supports the investment process. Our Technology-based information system offers
reporting, inquiry and trade instruction capabilities, and is easily customizable to suit the clients needs. As
Securities servicing is our core business we want to prove our commitment and expertise. To achieve this
we consequently invest heavily in technology and allocate substantial resources to ensure that we stay
ahead of institutional investors' evolving needs. We offer a straight-through-processing solution — from the
receipt of trade instructions to the communication of settlement to the depositories and Subcustodians,
through our custody, accounting and online systems. With operations centers and offices in 33 countries,
our industry experts work with clients in their local markets and languages to formulate customized servicing
solutions, while our understanding of different markets, global regulatory issues and local tax laws ensures
that we maintain consistent securities standards for our clients worldwide.

What is meant by Administrative Management?

Our core custody platform includes traditional asset servicing in over 100 markets, online multicurrency
reporting, portfolio accounting, corporate actions servicing, proxy services, tax reclamation, pricing,
derivative services and short-term cash management. In addition, we can provide integrated delivery of
related services including securities lending, performance measurement, compliance monitoring, cash
management and foreign exchange. The administrative management of a portfolio therefore consists of
three main parts:

 Transaction Processing

Whenever an investment manager decides to buy or to sell securities, an instruction is sent to the Global
Custodian. The Global Custodian initially verifies the data and then sends the instruction to the local market.
The instruction is usually sent to the clearing house where it is matched with the counterparty’s instruction.
If the matching is successful, then the transaction is settled. At this point, the securities are legally in the
client’s portfolio.

 Portfolio services

The Global Custodian has several tasks:

    a. To ensure that the (yearly) interest and/or dividends are deposited in the client’s account.

    b. Most countries deduct a certain amount of withholding tax. However, there are double taxation
         agreements that provide a partial or full exemption of this withholding tax according to the client’s
         status. The Global Custodian must ensure that the client receives a refund of the withholding tax
         should it be overpaid.

    c.   To follow up on all corporate actions applicable to the client’s holdings (i.e. any event that affects
         the securities). One example of a corporate action is the merger of two companies. In such case the
         companies can offer an exchange of shares. The Global Custodian has to inform the shareholders
         of this event and ask the client whether he accepts the transaction. The Global Custodian will then
         send the client’s instruction to the company involved.

    d. To ensure that clients receive their money back when a bond reaches its maturity date.

 To make and follow-up on all payments that are connected to the above mentioned transactions: each
  security transaction (purchase / sale) causes a money flow in the client’s account. The Global Custodian
  is responsible for these receipts and / or payments. As the clients invest all over the world, these money
  transactions result in foreign exchange transactions.

Why do investors use the services of a Global Custodian?

Large institutional investors spread their investments globally to avoid potential investment risks. This
means that they should know all the legal, fiscal, monetary and other administrative rules of all the markets
that they invest in. They need this in order to be able to execute a transaction. This is obviously a difficult
task. In fact, this implies that the investor needs to have a local representative in each country who can
inform him of the changes in the rules that impact the way a transaction should be executed.

The task of remaining informed of all changes/events in the global market is increasingly left to the expertise
of a Global Custodian. Through their network of correspondent banks (Subcustodians) in the local markets,
the Global Custodian executes all securities transactions in the markets on behalf of their clients. This helps
the client to safe a lot of time and money. The Bank of New York Mellon currently has a network of more
than 100 markets worldwide.

When do investors use the services of a Global Custodian?

Operating as a Global Custodian, we have clients all over the world; consequently we have to:

 be able to provide a service 24 hours a day on weekdays. We only have two legal holidays, on which the
  Bank of New York Mellon is closed: Christmas Day and New Year’s Day. Of course everyone has a
  normal holiday entitlement.

 be available for our clients on all other legal holidays. For example, the 1 of May is not an official public
  holiday all over the world. Therefore, on that day, some markets are open and the clients have to receive
  a service and selected staff will be asked to work on those days.

Where do investors use the services of a Global Custodian?

As the client’s residence and the markets in which they invest are located all over the world, we are obliged
to find a solution to the ‘time zones problem’. The Bank of New York Mellon has three operational centers;
Brussels is the hub for the European, African and Middle-East clients and markets; Singapore handles the
so-called ‘early markets’ in the Far East, Australia, New Zealand. Finally, New York handles the ‘late
markets’ found on the American continent.

Who works in Global Custody?

Global Custody is a relatively new concept in the financial world and is expanding rapidly. The business
volume grows yearly by about 30%. Belgian universities currently do not offer a course of study on Global
Custody. Consequently we employ people who do not necessary have a university degree to work in the
Brussels branch. However, around 50% do have such a degree, but not all of them have an economic or
commercial profile. We are looking for dynamic people who are willing to work in an environment that is
evolving rapidly and where language and PC skills form the biggest requisites to build a successful career.

Who are our Subcustodians?

We look for the best local financial institution in each market (except for the UK and the US where we act for
ourselves) that can deliver the best service. We are then sure that our clients are being served by the best
Subcustodian. These institutions act under the supervision of The Bank of New York Mellon. In Belgium, for
example, we work together with ING.

The future of our services?

All the elements are in place to precipitate the further expansion of Global Custody. Due to the ageing of the
world’s population, the quantity of pension funds is increasing. More and more (small, private) investors
choose several kinds of investment funds because the interest rates on classic savings systems remain low.
Also, more and more financial institutions (for instance pension funds or investment funds) wish to
specialize in a limited quantity of activities. Therefore, they delegate some of them, like the administrative
management of securities portfolios, to specialists - the Global Custody.

In addition, the definition of Global Custody is evolving constantly:

Besides the ‘classic’ services that we offer such as transaction processing, portfolio services and
cash/foreign exchange, clients are now requesting more derived services. The profitability of their holdings
can be further increased beyond their rising (hopefully) value by lending out their holdings to other
investors, this service is met by the Securities Lending Program. Clients also request that we handle the
securities transactions from beginning to end, as such we now offer a brokerage service. Cash
Management for higher returns and Risk Analysis are also available.

Institutional investors request that we review the performance of the fund managers they employ to manage
their portfolio. Also, more and more investment fund managers request that we take care of their
administration and fund accounting. The business of Global Custody is growing and therefore, is now more
appropriately referred to as Securities Processing. More opportunities are constantly being opened up at
our Brussels branch.

Your future in the Bank of New York Mellon

The typical profile we are looking for is someone who has a high level of concentration; most actions involve
very large amounts of money and can be quite complex. Good communication skills are essential (English
is our working language) as well as being able to learn new tasks quickly and of course, we are looking for
excellent team-players. The Bank of New York Mellon believes the world of finance can be open to anyone
having determination and enthusiasm. We also believe that personal qualities and motivation can make up
for any lack of professional experience.

 The Bank of New York Mellon – Business Network
The high quality of our service relies on a business model that involves a lot of different departments,
processes, teams and individuals.


Our Relationship Managers are establishing the commercial relationship with the client. First of all, one or
more accounts are opened in the Brussels Accounting Administration Department to enable our clients to
execute their investment decisions. The Network Management on the other hand is maintaining our network
of local Subcustodian Banks, our partners on the individual markets.

The Client Services Department is the daily focal point of the communication between the client and our
operational departments. Our operational departments are taking care of the execution of Securities and
Cash Instructions and of the Settlement of those transactions. Next to that they also handle Corporate
Actions, tax issues and income payments (the latter is not located in Brussels). All of the Operations are in
steady contact with the Subcustodian Banks to either release information to the local markets, or to receive
information to be forwarded to the client.

The Reconciliation is taking care of Control & Investigation tasks. They observe all processes which are
handled in the operational departments and booked on the accounts of the clients at The Bank of New York
Mellon and on the Subcustodian accounts.

The Bank of New York Mellon – Transaction Process
To ensure the timely execution of the client’s investment Instructions and the accurate Settlement of their
securities transactions, a well defined transaction process has to be followed. The investment decision is
taken in the front office, usually based on the advice of investment managers.

                            Local Broker
                                                                               Local Broker
 Investment     RECEIVE/SEND                                                            RECEIVE/SEND
   Manager         ORDER                            FRONT OFFICE                           ORDER

                            CLIENT                                         Counterparty

                  INSTRUCTION                                                              INSTRUCTION
                                                    BACK OFFICE
                    BANK OF NEW YORK MELLON                            Counterparty’s global custodian

                  INSTRUCTION                                                              INSTRUCTION

                     Subcustodian in local market                       Subcustodian in local market

                         INSTRUCTION                                            INSTRUCTION
                                                      Clearing house

When the client fixed a deal at the stock exchange, he will send us an instruction on an automated or non-
automated way of communication, to execute this deal. The Bank of New York Mellon will firstly check the
authenticity of this instruction and then release it to the Subcustodian bank in the local market, where the
investment should take place. If our client’s instruction is matched by the Clearing House with the
counterparty’s instruction, the Settlement can take place. With this final step, our client’s account will be
debited and the securities will be booked in his account (in case of buying securities).

      The Bank of New York Mellon – Organization Brussels Branch

                                                           Management Committee

                                                   Internal Audit

                                                               General Manager

                     Securities Operations                                          Control & Investigations
                                                                    Cash & Credit                               Singapore
             Transaction              Portfolio                                        Administration/          Operations
             Processing               Services                                           Compliance

               Instructions           Corporate                         Money               Control &
               Verification            Actions                         Transfer           Investigations

                                                                      Treasury             Account
               Instructions                  Tax                      Support            Administration

                                                                                          Project Mng
               Settlement                                                                 Data Security


Product Relationship                 Network            Corporate       Treasury/ BDS,Global
                         Client                                                                   Financial    HR   Techno-   Legal
Manage-  Manage-                     Manage-            Communi-          Forex   Clearing &
                        Services                                                                                      logy
 ment      ment                       ment               cations          Desk     Collateral

The Bank of New York Mellon – The Departments

1) Securities Operations - Transaction Processing
The Transaction Processing Services consist of three different departments who together take care of the
complete flow of a transaction beginning with the Instruction of a client until the Settlement on the agreed
date. First the instructions are checked for their authenticity by the Instructions Verification Center (IVC) and
dispatched to the relevant team of the Instructions department. The Instructions Agent releases the
information to the local market, i.e. the Subcustodian. The last step and completion of the Transaction takes
place in the Settlement department.

A) Instructions Verification Center
The Bank of New York Mellon has strict rules and procedures where verification of instructions is necessary
to avoid money laundering schemes, theft and fraud. A secure area is therefore necessary to ensure that
the instruction received is a valid one and that it was sent by the person/client entitled to send it.

IVC has been created to centralize all incoming manual messages and instructions (non-electronic/non-STP
such as faxes, free formatted swifts, telexes) to authenticate these before distribution to the relevant

The role of IVC within the Bank is to apply these strict procedures, to be aware of suspicious behavior from
clients and to act accordingly to avoid these situations for the benefit of the Bank as well as for the clients.


The majority of the messages received in IVC are faxes that will require, depending on the instruction type
i.e. securities, cash or corporate actions, one or two authentication checks.

Signature lists sent by the clients are updated into a database and used to check the signatures on the
faxes. Depending on the instruction, a callback is also performed with the clients to confirm the details of the
instructions sent.

Faxes sent by the client arrive in a system called LANE. This system allows an efficient processing of the
instructions to the Operations. Faxes are dematerialized and can be processed on-screen. They are
therefore dispatched to the relevant department via a system of queues. This enables volumes of
instructions to be sent out at a more efficient rate and enables a paperless environment.

Swifts and telexes are messages sent electronically and therefore do not require manual authentication.
These messages can be addressed to a wide range of departments within the Bank, not only for Brussels.
The IVC agent must go through the content of each message to determine where it should be dispatched,
taking into account the different time frames and deadlines.

Summarized these are IVC’s main tasks:

-   check and verify all non authenticated incoming messages such as faxes, free formatted swifts and
-   distribute these messages to the relevant processing area within deadlines

Therefore, the IVC agent is:

-   risk alert, precise and cost cautious

-   multi-task capable i.e. multi-skilled/polyvalent

-   very well organized and able to prioritize

-   a good communicator

-   an excellent team-player

-   stress-resistant

-   flexible and eager to learn

-   adaptable to changes


BNY- Brussels branch is the first branch of The Bank of New York Mellon that had a centralized area for the
receipt of messages. This is mainly due to the fact that BNY Mellon Brussels is an operational branch that
receives high volumes of messages and instructions from internal and external clients for processing. A
similar department exists also in London and is currently being created in New York.

B) Instructions

Brussels Securities Instructions is part of the European Global Custody Operations business with the
specific responsibility to ensure all instructions received from our clients are released to the market
promptly, accurately and in the required format to ensure settlement of the trade.

Brussels is responsible for the processing of instructions received from clients located in the European,
Middle East and Africa countries. However, being a global operation, we also assist our other main
operation centers in New York, Singapore and London, to process instructions from their client base.

The majority of client’s instructions pass through the Bank’s electronic systems without the need for any
manual intervention (Straight Through Processing or STP – instructions which are automatically captured in
BNY systems). However, due to several influencing factors, this does not always occur and requires the
repair or modification by an instruction agent, before the instruction can be released successfully to the

Clients are also requesting more specialization from our global processing product, due to the complexity of
today’s investment markets. As such, the department now provides customized servicing as well as the
existing global processing service.

The department employs approximately 75 people. The management team consists of a Head of
Department, a Deputy Head and three Operation Managers. The operations teams are categorized either
as market teams or service teams. Within each team there is a team leader (reporting to an operation
manager), a controller and several senior and junior agents.

The market teams are structured around the market locations: Europe North, Europe South, Americas, Far
East and the Euro-markets of Euroclear Bank and Clearstream Luxembourg.

The service teams consist of:

-   Outsourcing (providing outsourcing services to several key clients)

-   Customized Services (providing specialized servicing to key clients)

-   Masterfile (providing securities and counterparties setup services)

-   Quality Control Group (providing business analysis, project support & application development)

-   Training (providing Induction training, support for newcomers and ongoing training )


The main tasks of the department are as follows:

-   Process all non-STP instructions, modify or repair as necessary same-day:

-   Follow-up with other departments, including client services, for all instructions that cannot be repaired
    same day and require client amendment:

-   Prioritize workload with respect to client and market deadlines for the receipt and release of the

-   Identify recurring operational issues that prevent STP.

In order to achieve these tasks certain skills are fundamental to success.

-   Communication and teamwork are essential, particularly when operating under a short deadline.

-   Ability to work accurately and efficiently, able to prioritize the workload taking into account time

-   Risk awareness by way of understanding the impact of an action taken by an agent; on the client, the
    market and the Bank of New York:

-   Continuously learning and improving market and industry knowledge.

C) Settlement


Settlement is the completion of a transaction, wherein the seller transfers securities (or financial
instruments) to the buyer against a determined cash amount.

Organization: working for settlements

Settlement Agents’ main task is to have clients’ trade settled on the agreed contractual settlement date.
This requires to identify problems and to use our expertise on markets to propose proactive solutions. To
achieve this goal, collaboration with The Bank of New York Mellon local appointed agent banks
(subcustodians) and other departments is critical. Settlement department offers you the opportunity to
broaden and deepen your knowledge of the securities world and the global custody business. Besides
securities transaction processing, Settlement Agents’ tasks include the writing and review of procedures
and markets related documents, the assessment of Subcustodians’ performances, the investigation of asset
breaks, the drafting and analysis of statistics and the reporting to Management or Client Services.

Here are a few Settlement Agents’ traits and skills:

    - Communication skills are essential to work in Settlement. Verbal communication: Settlement Agents
      spend a lot of time on the phone, solving problems together with Subcustodians and determining
      appropriate responses to client representatives’ queries. Interpersonal skills are crucial to build a
      loyal and trustworthy relationship with them. The importance of this relationship can result in the
      Subcustodian providing extra services for Settlement to exceed our clients’ expectations. Written
      communication: Settlement role is also to strive for simplicity and use terminology clients understand
      to help them navigate in complex procedures. The aim is to inform and provide our clients with
      consistent, comprehensive information.

    - Willingness, eagerness and ability to learn;

    - A fair dose of dynamism and organization ;

    - Excellent team spirit and personal responsibility;

    - Stress-resistance is another prerequisite for Settlement Agents. Working with close deadlines and
      ensure last minute settlement of trades involving large amounts of money requires a Settlement
      Agent to anticipate needs and options, measure risks and respond with the utmost sense of urgency.


Settlement is handled in four processing centers across The Bank of New York Mellon offices: New York
(American markets), Singapore (Asian markets), London (UK market) and Brussels. Brussels Settlement
Department is responsible for European, African and Middle East locations (about 52 countries) as well as
for the Euromarkets (Euroclear Bank and Clearstream). Each agent is responsible, either individually or in a
team, for one or several countries depending on trading volume and complexity.

2) Securities Operations – Portfolio Services

A) Corporate Actions

The Corporate Actions department handles some of the most interesting aspects of the securities
operations business and offers a large variety of challenging opportunities in terms of financial knowledge
and the banking process.

Companies can take specific decisions regarding the securities they issue by announcing corporate action
events. In this sense, a corporate action is anything that happens to a company’s securities that affects the
description, value or characteristics of our client’s portfolio. Corporate events therefore depend on the
company’s situation and strategy and are decided at the company’s General Meetings. Corporate actions
are defined as “mandatory” or “elective” events:

   Mandatory events affect securities characteristics and the holders have to accept the changes
    imposed by the issuing company. They affect the security holders without giving them any choices.
    Examples: name change, redemption stock dividend, assimilation …

   Elective events not only mean a change in the nature of securities but also offer the impacted security
    holders the possibility of choosing between several options in relation to the result of the corporate
    action. Elective events imply that we receive client responses before a specific deadline. Examples:
    right issue, optional dividend, final exercise of warrant, tender offer

                                                                        Security /Portfolio
                                         Corporate                      Changes:
                                                                            -   Description
           Issuing                                                          -   Value
                                                                            -   Characteristics

                           Mandatory                     Elective
                            Event            or           Event


The process of these corporate events requests regular contacts with the main BNYM business partners i.e.
clients and Subcustodians. It also implies various processing and control tasks in the SMDB and PSS
systems as well as in numerous applications used across the bank (GSP, IMMS, DIMS, SIS…). Every CA
expert can consequently reach a level of knowledge and experience considered as highly valuable within

As soon as the company decision (1) is made public through a local agent (2), our Subcustodians (3) i.e.
our local correspondents in the countries where the shares are held, advise the Corporate Actions
department (4) of the event details. We are therefore in charge of announcing the event to our impacted
clients (5) and processing the corporate action. Our processing actions are driven by 3 main missions:

      We first need to relay the corporate action announcement to the company’s shareholders holding a
       position through BNYM

      In case of elective events, we collect the responses sent by the shareholders and send them on to
       the Subcustodians which will in turn send these responses to the company’s local agent.

      We finally have to reflect the corporate action result and show how it is affecting our clients’ portfolio
       by creating and following up the transactions on the clients’ accounts.


The Corporate Actions business is part of the portfolio services beside Tax (Brussels and Manchester)
and Income (New York and Manchester). CA events are handled worldwide by three processing centers:
New York (US Market), Manchester (UK and Irish markets) and Brussels (all other markets).

Our Brussels processing center is divided into several teams - “processing” or “support” teams:

                                                                 Corporate Actions

                                      Support & Control

                  CA Response                   CA Response                     PSS / SMDB
    CA Contact     Processing      Control        Contact      CA Dispatch       Support &           Processing
                     (MSG)                       (Chasing)                        Training             Groups

                                                                               SMDB             PSS           Lending /
                                                                               1,2,3,4         1,2,3,4       CA Ongoing

Processing Teams

      SMDB (1, 2, 3, 4): Collect and challenge information received from the Subcustodians in order to
                          define the corporate actions announcements in the SMDB system
      PSS (1, 2, 3, 4):        Process corporate actions (monitor the event impact/entitlement, follow up
                                client responses and transactions) in the PSS system

                         SMDB                                 Announcement
                                                                                             Corporate Actions Process
                  Information Gathering                          pushed
                                                                                              (entitlement calculation,
                 Information Comparison
                                                                                              client response process,
                 Announcement Definition
                                                                                              creation of transactions)

Next to these teams dealing with the core processing of events, other groups focus on more specific parts of
the CA business

      Lending:        Process corporate actions for lent securities
      CA Ongoing: Process unsolicited instructions and brokerages
      Outsourcing: Process corporate actions for clients using BNYM as an interface (middle-office)
                    between them and other custodians
Support Teams

      CA Contact : Respond to clients’ queries related to corporate actions, client services dedicated to the
                    corporate actions department
      Response Processing: Input manual client responses to elective events
      Response Contact: Chase clients who have not replied on time to elective events or who have sent
                         wrong instructions
      Dispatch: Send incoming messages to the corresponding CA teams in case they are not directly captured
                 by SMDB or PSS
      Control: Assign asset and cash breaks resulting from CA events to the impacted PSS team
      Support: Solve technical problems and monitor new developments in PSS and SMDB
      Training: Organize trainings for CA team members

B) Tax

As investors continue turning towards foreign markets to optimize the return of their portfolio, obtaining
favorable tax rates on their investments becomes increasingly important. It is the tax department’s role to
ensure that our global clients obtain the most advantageous tax rate possible on their income. This income
consists of dividends in the case of equities or interest in the case of bonds.

The tax department is focusing on withholding tax paid on the income of our clients. Withholding tax is:

    - Withheld at the moment of the income payment

    - Withheld by the paying agent

    - Paid to the fiscal authorities

The favorable tax treatment of foreign investors is generally based on the following criteria:

-   Double Taxation Agreement: treaty signed between two countries determining the tax rates which apply
    for investors of one country on their income received in the other country.

-   Internal laws of the country of investment

-   The residence for tax purposes and status of the investor: the residence and status for tax purposes of
    the final beneficiary will determine its entitlement to a potential tax reduction or exemption. Often,
    entities such as charities, pension funds or government agencies receive a special treatment.

-   The security type: the type of security is a determining factor for the tax rate to be applied on an income
    payment. E.g. A corporate bond can have another tax treatment as a government bond.

Organization – offered services
Next to the four market-driven criteria already mentioned above, there is one other factor which might
influence the service provided by The Bank of New York Mellon: the client’s tax service. Based upon the
service chosen and the possibilities in the market, clients might be entitled to specific procedures.

There are three procedures through which a foreign investor can obtain a favorable tax rate. Depending on
the country of investment, all three procedures might be available.

-   Relief at Source: In this procedure, the beneficiary receives his income correctly taxed at the most
    favorable tax rate on payment date.
-   Quick Refund: On payment date, the income of the beneficiary is taxed at the maximum applicable
    withholding tax rate. However, shortly after payment date he receives a refund of the amount that was
    not due.
-   Standard Reclaim: On payment date income is taxed at the maximum withholding. A standard reclaim
    file will have to be introduced in order to recover the taxes. Delays to obtain the refund vary from a few
    months to several years depending on the market.


Market Groups

There are four different Market Groups, each taking care of the tax processing in a number of countries.
The people in these groups are responsible for the timely follow up of the different tax procedures.

Documentation Groups

There are two documentation teams: a generic and a market specific documentation team. Both teams are
responsible for the collection of tax documents from our clients. They also monitor the account set up of
clients in the different markets of investment and make the necessary adjustments if necessary.

Cash & Control

The actual payment to our clients of tax refunds received is treated by this group. Before crediting a client,
the relevant files are controlled. This group also investigates eventual cash reconciliation problems and
controls the Tax Department’s internal accounts. Finally, they also check a number of reports linked to the
operational side.

Asset Control Group

This group is responsible for the investigation of asset breaks, the transfer of assets, the maintenance of the
taxation tables and the producing of tax matrices showing rates and procedures available to a certain type
of investor in a particular country.

Client Contact Team

This team is the single contact point in the tax department for clients who wish to address tax-related
questions. They handle tax-related queries received by phone or e-mail and ensure a complete feedback to
the client within a timely manner.

Project & Training Team

This group is in charge of some specific tax related projects, i.e. IT & Product projects (e.g. implementation
of new tax system, set up of new tax service, etc…). This team is also responsible for any training needed
in the tax department.

3) Cash & Credit Operations

A) Money Transfer

The Money Transfer Processing area is responsible for handling cash instructions on behalf of global
custody clients.

The department handles an average of 5,000 instructions a day. Its main tasks are handling cash
instructions and positioning cash entries. Two Money Transfer team members act as STIF fund liaisons.
They are in charge of investing BNY Mellon clients’ money into Short Term Investment Fund companies on
a daily basis. The goal of STIF movements is to transfer clients’ leftover cash to generate higher yield.

The instructions are received from the clients directly, from Client Services and from the New York and
London Foreign Exchange departments by different communication means (Swift, Microcash,
PaymentWorkstation, Laser, Fax, Telex...). 45% of the instructions have to be keyed in manually in the
Money Transfer system, Montran. The remaining 55% are interfaced directly with Montran.

The Montran system posts accounting entries to IMMS, the bank’s multi currency cash system, and creates
SWIFT messages. Funds are positioned based on the entries posted to IMMS. The Bank of New York
Mellon holds accounts with one or more banks in most countries (so called subcustodians or
correspondents) who will effect our payments on the market.

Clients need to pre-advise incoming funds. Funds are credited to the client’s account according to their
posting type. The different posting types are actual (posting of credit in client account upon receipt of credit
confirmation) and contractual (posting of credit in client account on pre-advised value date if the pre-advise
is received within the published deadlines).


There is a Money Transfer Processing group. The department works in shifts, starting at 6.30 AM and
finishing at midnight. A control group is in charge of organizing the workflow and handling questions from
other departments. Another group is responsible for the quality of the instructions received.

Beside the processing of instructions, a team of 20 people handles all investigations linked to the
processing of the cash. These people are constantly in contact with Client Services and correspondent
banks all over the world.

Finally we have a team that support the outsourcing part of our business. They mainly handle all queries
with the third party custodians and the middle office in London.

B) Treasury Support & Treasury Desk


The Treasury Support Department consists of a Forex & Money Market Support Team and Liquidity Support
Team. Both teams are “supporting” the traders (or “Front Office”) in their activities at the Treasury Desk. To
understand the role of the both teams, first an explanation of the Front Office needs to be provided.

Treasury Desk or Front Office (Treasury Management Services):

One of the many important services provided to Global Custody clients is the opportunity to convert foreign
currencies on their accounts to and from the currency of their choice.

These Foreign Exchanges or FX can be done with the Treasury Desk on Negotiated or Non Negotiated
basis. This simply means that a Custody client basically has 3 options:

    - call the traders directly to instruct their FX (negotiated FX);

    - send their instructions by Fax, Swift, Workstation (non-negotiated FX);

    - set up automatic instructions (Standing Instructions) to convert certain currencies (non-negotiated
      FX), or incorporate the FX instruction in their DVP/RVP instruction (embedded instruction).

The traders earn money by buying/selling from the client and selling/buying on the actual market while
taking a small margin. This margin is called the spread.

The Treasury Desk also provides prices for Money Market transactions done by our clients, i.e. the
placements of their excess cash in time deposits, or the funding of their cash shortage through term loans.
This can also be done on a negotiated or non-negotiated basis. However, there is no Standing Instruction
for deposits and loans. Loans are subject to credit facilities granted to the client by Credit Department.

Lastly, The Treasury Desk manages the overall liquidity of the bank. This means maximizing the interest
revenue derived from cash positions given by the Liquidity Support to the traders (see Liquidity Support job
description on page 20). This is done by placing our excess cash and borrowing our shortfall via short term
(usually 1 day) placements with or borrowings (deposits taken) from market counterparties).

The profit is made by the margin between the rate given to the client (on their cash accounts, deposits or
loans) and the funding cost or interest earned by the Treasury Desk in the market. For loans to clients, the
bank also adds a credit spread to the base rate, in order to remunerate its credit risk.

All deals done by the traders are input in the Front Office system called Wall Street Systems (WSS).

Foreign Exchange & Money Market (FX & MM) Support

The role of the FX & MM Support team is to verify and account for all deals executed by the traders.

More specifically:

    - To verify and book the entries in the accounting system of the Bank;

    - To check the accuracy of the deals (Client, amount, value date, etc.);

    - To process the payments accordingly, within the currency market deadlines;

    - To check Counterparty, Broker and/or Client confirmation;

    - To reconcile and investigate discrepancies originating from FX & MM deals.

Other assignments:

    - Perform a control function over the Traders’ activity. Traders must work within and respect certain
      limits (e.g. currency trading limits, Counterparty credit limits, market rates variance, etc.). Through a
      number of reports, the FX & MM Support team issues treasury risk reporting to Management.

    - Offer a customized non-negotiated FX service to Clients in order to fund their Global Custody activity.
      Apply specific restricted market procedures to Foreign Exchange transactions related to securities
      transaction. The system used to capture and instruct non-negotiated FX is called DIMS (Deal Input
      Management System).

Liquidity Support

The Liquidity Support determines on a daily basis how much money The Bank of New York Mellon has
through its Global Custody activity. Thanks to that estimation, the bank will invest its money in order to:

    - Maximize the interests we can receive from the use of this money.

    - Minimize the cost of financing any shortage.

    - Offer competitive interest condition on our clients accounts.

The Liquidity Support calculates its position based on the Projection Engine. The projected position is built
up from the sum of all projected movements that are processed in the Global Custody securities and cash

Once the projected position is defined at the treasury deadline, the Treasury Desk places or covers the
positions in the Interbank Market. In the best scenario, our projected position should coincide with the cash
position (cash held by BNY Mellon at our subcustodians). If it is not the case, the Liquidity Support must be
able to explain the discrepancy between the projected position and the cash position.

In the Liquidity support team, there are several market specialists and 1 supervisor to carry out their tasks.

4) Controls & Investigations, Administration,

A) Control and Investigations


The Control and Investigation department is composed of 4 groups :

    -   Nostro (or Cash) Reconciliation
    -   Nostro (or Depository) Investigation and Bankwide proving
    -   Compensation Claims Unit
    -   Asset Reconciliation

a. Nostro (or Cash) Reconciliation


Nostro Reconciliation is responsible for verifying the accuracy of the cash balances and movements
recorded in the Subcustodians’ books on the BNY Mellon accounts (called ‘Statement’ side) against BNY
Mellon’s own records of cash balances and movements (called ‘Ledger’ side).


The Statement movements are processed by the Subcustodians. Each Statement movement should have
a corresponding entry on the Ledger side. That Ledger entry is processed by the operational department
responsible for the handling of the cash Statement movement (e.g. Money Transfer, Tax, Corporate
Actions, etc.). The system in which BNY Mellon processes all the Ledger entries is called ‘IMMS’. The
IMMS accounts that are used to mirror the Statement entries and in which the Ledger entries will be booked
are called ‘Nostro’ accounts.

On a daily basis, Subcustodians are sending electronic cash accounts Statements to BNY Mellon showing
yesterday’s activity on the BNY Mellon accounts (opening balance, movements, closing balance). These
statements are loaded into the Nostro Reconciliation application (called ‘Winnar’) and compared to
yesterday’s Ledger activity on the related IMMS Nostro accounts.

The Nostro Reconciliation department:

    - ensures that all Statements and Ledgers have been received & loaded
    - reviews movements that do not match (briefly, a Statement matches with a Ledger only if they are
      booked on the same account, for the same amount, for the same date and the narratives relate to the
      same topic) in order to identify the operational department that will need to investigate these non-
      matching items (called ‘Breaks’)
    - sends reporting to operational departments to advise on the balances and breaks

Outsourcing business
A dedicated team within the department is taking care of this. The duties are the same, but they are run on
behalf of a client. This means that the reconciliation that is performed is in fact the one of our client and as
such, the client visibility, sensitivity and need for responsiveness are immediate.

b. Nostro Investigation and Bank Wide Proving


Depository Investigation is responsible for

    - the investigation of the nostro cash breaks originating from securities trades

    - gathering the progress status from all operational departments on breaks considered as risk (called
      ‘Risk Items’) and provide Management with results. These risk criteria are based on the amount and
      age of the breaks

    - producing the Brussels BWPA reporting (Bankwide Proving and Ageing), which highlights all the risks
      within the Branch (nostro reconciliation, internal accounts, errors generating costs, etc.) based on a
      specific amount and age criteria. This report is widely distributed to Management


The nostro cash breaks caused by securities trades are detected by the Nostro Reconciliation department
and reported twice a day to Nostro Investigation. The investigation is usually taking place with the help of
the Settlements and Client Administrators departments.

In certain circumstances, securities trades also generate Ledger entries on internal/suspense accounts.
These are also investigated.

On a weekly basis, Nostro Investigation will chase all the operational departments in order to receive a
status update on Risk Items, and to report the details to Management. They obviously have to explain their
own breaks highlighted as Risk Items. The list of Risk Items to chase is provided by Nostro Reconciliation.

On a monthly basis, Nostro Investigation is producing:

    - the Brussels BWPA reporting (a dedicated team within the department is taking care of this task and
      is chasing all operational departments to explain the risk items to be reported).

    - the Risk Review reporting which is discussed in a meeting with representatives from all operational
      departments and Senior Management

c. Compensation Claims Unit


Compensation Claims is responsible for the treatment of:

    - claims received from clients via client administrators & relationship managers
    - claims sent to clients in relation to interest compensation

There are 2 types of claims:

 claims received : about claims received against the Bank of New York Mellon - they will be validated or
  rejected. If rejected, the reasons will be explained to the client administrator or relationship manager in
  order to inform the client. If validated, the operational department that has made the mistake will be
  contacted and requested to take ownership of the claim, i.e.:

    - fill in a CIE form (Cost Incurring Error)

    - have the CIE form signed by the departmental manager

    - ensure the root cause is identified, remedied and actions have been taken to avoid repetition

    The CIE form will then be returned to the Claims department who will have it signed by Senior
    Management based upon the amount involved.

 claims issued : about claims issued by the Bank of New York Mellon against the clients, they relate to
  interest compensation and they are known as VDMs (Value Date Mismatch). VDMs are resulting from
  situations where the client received money in his cash account, while the Bank did not receive the money
  yet from the Subcustodian. If the non-receipt of the money by BNY is due to a client error, then the client
  will be claimed (fax with details) for the interest compensation. The Claims group reviews the VDMs
  (based on information residing in the Nostro Reconciliation application, i.e. Winnar), validates the
  information (is the client at fault or not ?), provides the client administrator with the ability to review the
  claim, issues the claim to the client and ensure the money is collected.

d. Asset Reconciliation


Asset Reconciliation is responsible for verifying the accuracy of

    - the securities positions recorded in the Subcustodians’ books on the BNY Mellon accounts (called
      ‘Statement’ side)
    - against BNY Mellon’s own records of securities positions (called ‘Ledger’ side)


Each Statement security position should have a corresponding position on the Ledger side. That Ledger
security position is made up of securities trades processed by operational departments (e.g. Settlements,
Corporate Actions). The system in which BNY Mellon processes all the securities trades is called ‘GSP‘.

Based on the reconciliation frequency (daily, weekly or monthly), Subcustodians are sending electronic
Statements to BNY showing the securities positions as of a certain date on the BNY Mellon accounts.
These statements are loaded into the Asset Reconciliation application (called ‘ASR’) and compared to the
Ledger securities positions on the related GSP accounts.

The Asset Reconciliation department:

    - ensures that all Statements and Ledgers have been received & loaded
    - reviews positions that do not match (briefly, a Statement matches with a Ledger only if they are
      booked on the same account, for the same security, for the same position amount, for the same date)
      in order to identify the operational department that will need to investigate these non-matching items
      (called ‘Breaks’)
    - sends reporting to operational departments and Management to advise on the breaks

Outsourcing business

A dedicated team within the department is taking care of this. The duties are the same, but they are run on
behalf of a client. This means that the reconciliation that is performed is in fact the one of our client and as
such, the client visibility, sensitivity and need for responsiveness are immediate.

B) Account Administration


The Account Administration department looks after the opening of the Global Custody related client
accounts in BNY Mellon master-files. Accounts are opened for our worldwide client-base which makes the
job varied, interesting and challenging (without accounts our clients cannot trade !).

We deal with Relationship Managers located in the various BNY Mellon offices (London, NY, Singapore, ...)
and we are in contact with all the departments of the Bank.

We work in a dynamic environment influenced by the new services that are regularly offered to our clients
and that are translated in new systems and tables to maintain.


Through his Relationship Manager or Client Service representative, the client may request to open, amend
or close accounts related to his Global Custody business. We process these requests and confirm related
information back to the Relationship Manager or Client Service representative.

Our main tasks are as follows:

    - Opening and maintenance of Global Custody related accounts in the BNY Mellon master-files

    - Opening of related segregated securities accounts at BNY Mellon subcustodians

    - Safekeeping of core legal and tax documentation related to Global Custody accounts


The Global account opening function is centralized in Brussels, i.e. we are opening accounts for all BNY
Mellon Global Custody clients worldwide.

5) Client Services

Each and every client is assigned a Client Services Representative (CSR) who interacts with the
operational departments of BNY Mellon worldwide to resolve problems and more importantly, pro-actively
identify potential issues.


Our staff has the multi-language skills required for servicing the national diversity of our clients. Each CSR
is dedicated to ensure our clients receive a high level of service, by resolving inquiries within a short

We actively monitor overdrafts, risk reporting on settlement failures and record clients’ issues for the regular
service reviews arranged by the Relationship Manager. This information is also used for meetings between
client services and the various operational department managers to continuously improve the service
provided by the Bank to its client base. The CSR will also maintain the Client Services Database with their
client contact details to ensure we have accurate and updated information on file. Special procedures are
also performed which provide a more specialized enhanced service.

The Client Services Representative is the focal point of the day to day client relationship and represents the
front line of the bank. High levels of communication are required with both the client and BNY Mellon
operations to ensure that the client’s demands are identified and met by operational departments efficiently,
benefiting both the client and The Bank of New York Mellon.


The Bank of New York has five major Client Services departments located in London, New York, Brussels,
Tokyo and Singapore. Each department provides servicing to their regional clients.
    -   London :         UK, Ireland and Channel Islands clients
    -   New York :       American clients
    -   Singapore :      Far East clients (except Japanese clients)
    -   Tokyo:           Japanese clients
    -   Brussels :       Europe, Middle-East and Africa clients

Client Services in Brussels supports the global custody & offshore business with Asset values exceeding
485 Billion USD. There are currently over 70 Client Services Representatives employed within the
department. The varied client base includes banks, insurance companies, pension funds, asset managers,
building societies and brokerage banking arms. We also serve Fund Management and Investment
Management companies who operate financially on behalf of our underlying clients.

To support each client business needs we have established three segments within Client Services:

    - Direct Group: to service Banks, Insurance Companies & Pension Funds who are direct clients.
    - Investment Manager Liaison Group: to service Fund Management/Investment companies acting on
      behalf of clients of the bank.
    - Offshore Group: to service Offshore Funds business.

6) Broker Dealer Services – Global Clearing &
   Collateral Management

Broker Dealer Services (BDS) is specifically targeted to provide client service and operational support to
international broker/dealers and principal investment managers, whose main trading activities fall outside of
normal global custody activities. The two products offered are Global Clearing client services and Global
Collateral Management. These products are also offered out of our Singapore and New York branches and
all locations work closely together to deliver a 24-hour service.

Global Clearing Client Services provides client services to medium-sized broker/dealers requiring a global
custodian to support their turnaround trading business and increasingly, as our client’s business becomes
more varied, to provide clearing, custody and collateral management support from the same servicing team.

Global Collateral Management is one of the fastest growing areas within Broker Dealer Services both in the
market place and at the Bank of New York Mellon. This product has been developed to meet the continuous
requirement by major financial investors and principal brokerage firms to improve their profit ratios. The
successful management of their collateral (securities or cash) to support this is a logical development
therefore within the securities industry.

The Bank of New York Mellon acts as an independent third party to any agreement between an Investor
(with cash or securities to lend) and a Dealer (willing to borrow cash or securities against non-cash
collateral), hence the often-used term Tri-party. As the product has grown, other types of collateral
management products have been added and combined with sophisticated collateralization systems
(developed by the Bank).


The BDS group in Brussels currently employs 43 people across the 4 teams, servicing over USD 170 billion
daily in global collateral management and handles over 100,000 per month in global clearing and collateral
management. The Bank has been voted the Number 1 Service Provider of Collateral Management Services
by Global Custodian Magazine for 2005 as well as Number 1 Tri-party Agent in ISF’s repo survey for 2005.

 Global Clearing Client Services

As with the custody client services, we have three major servicing departments with the Brussels and New
York departments handling clients located in both Europe and USA, and Singapore the Asian based clients.
There is a clearly defined hand-over of tasks (but transparent to clients) at each locations’ end of day, so
that the clients are able to benefit from an extended service to support their global clearing business,
whether in Asia, Europe, Africa, the Middle East or the Americas.

There are four main teams in Brussels organized by client location and/or business needs.

    - Global Clearing Europe: supporting mostly turnaround trading clients with some custody.
    - Global Clearing US supporting turnaround clearing and custody in global markets, particularly
    - Mixed Business Europe & US: supporting clients doing clearing and collateral management.
    - AD Clearing: supporting specific clients requiring a tailor-made service for their business needs.

The client base is made up of medium-sized broker/dealers and other financial institutions doing turnaround
trading who wish to take advantage of the Bank’s global custody and clearing experience in markets which
they themselves, do not want to run the risk and/or expense of working with directly.

 GCM Client Services

As with clearing client services we operate from the same three locations to support our GCM clients, an
Investor client or a Dealer client. In addition, a close working relationship is required with the GCM
operations and support teams here in BDS, with additional services provided by the Bank’s custody
operations departments (as GCM can be regarded as a client of the Bank also) and with the GCM
Relationship Management and Product teams located in London.

The client base is principally located in London for the Dealers and throughout Europe for the Investors; and
is representative of the top financial investment companies operating in the global markets.

 GCM Operations

GCM teams are located in Brussels, Singapore and NY and work closely with the GCM client service team.
In contrast with the custody operations teams where there are separate departments for each function,
GCM handles all aspects of processing and trade support, portfolio servicing and including analysis and
systems testing within the one department group.

 BDS Support Services

Otherwise known as the BDS Anchor Team, this department forms a central hub within GCM and is
involved in a multiplicity of tasks, ranging from simple account openings for a GCM client to complex
analysis on an asset class in order to fully examine collateral eligibly within the client’s rule-set guidelines.
Such eligibility criteria may also need to be relayed to the client directly. Additionally this team provides the
specialist client service requirements for the AD Clearing group of clients.


Communication is the cornerstone of all BDS Groups. Working as a CSA (client service administrator) you
represent the Bank in front of the external client; working in an operation role you are the facilitator yet both
roles have the same objective; to resolve the pending issue within the shortest time frame possible.
Needless to say fluency in English is also a required skill along with excellence in both verbal and written
communication standards; other languages are additionally very welcome.

Risk Aversion is the reason such clients are serviced out of specialized teams in BDS. Due to the nature of
the business, both clearing and collateral management are high-risk operations for both clients and the
Bank. As such we are organized and function in line with clearly defined procedures to minimize these risks
for all involved parties.

If communication is the cornerstone to BDS then Development is the doorway through which the business
is driven. Our clearing and collateral management clients constantly require more in-depth and specialized
service delivery. We look internally all BDS members to provide the impetus and ideas to assist the Bank to
develop the products so we can remain competitive and innovative within the clearing and collateral
management industry.

7) Relationship Management

The Relationship Manager is the primary contact for the delivery of all Bank of New York Mellon’s Investor

Relationship Managers regularly meet their clients in order to:

    - Monitor the quality, accuracy and timeliness of all services received

    - Fully understand the client’s present and future business requirements

    - Discuss industry trends and their likely impact on respective businesses

    - Ensure completeness of documentation and legal requirements

    - Co-ordinate training on products and market developments

The Client Relationship Manager is also responsible for:

    - Cross-selling other BNY Mellon products to existing clients
    - Negotiating fees and agreements

    - Passing client’s requests to the product development group

    - Escalating clients’ important issues to Senior Management

    - Monitoring client conversions with Sales and Operations


There are around 30 Relationship Managers in Europe and Brussels is the office for one of the teams.

8) Global Product Management

The Product Management group has 4 main responsibilities:
    -   Market strategy
    -   Product strategy
    -   Product development
    -   Sales and Marketing support


   Market strategy

    -   Completes market segmentation
    -   Recommends business development approach
    -   Analyses impact of industry initiatives
    -   Completes competitor analysis

   Product strategy

    -   Defines product requirements
    -   Recommends product development approach
    -   Determines pricing
    -   Manages product profitability
    -   Determines product positioning

   Product development

    -   Completes cost - benefit analysis
    -   Prioritizes product development efforts
    -   Determines overall product design and articulates business requirements
    -   Ensures alignment between Technology, Operations & Business Units
    -   Takes appropriate steps to have product documentation established and distributed

   Sales and Marketing support
    -   Sets selling strategy with Business Units
    -   Participates in client meetings as “specialist”
    -   Identifies service solutions
    -   Keeps both clients and sales appraised of product development efforts

Product Management is a worldwide organization with resources located in Europe, US, and Asia. In
Brussels, around 10 people are working in the Product department.

9) Global Network Management

The Global Network Management’s tasks are to select and pro-actively manage The Bank of New York
Mellon’s global custody subcustodian network. It is also responsible for the constant monitoring of market
intelligence and the timely reporting of any significant market news to the Bank and its clients.


The Bank of New York Mellon’s network of subcustodians covers 101 markets worldwide. We continually
review our network to ensure that it meets the changing global investment needs of our clients.

Our selection criteria are compliance with worldwide regulatory requirements, general market reputation,
operational and service capabilities, financial strength, overall banking relationship with The Bank of New
York Mellon and ability to consistently meet our clients’ needs and competitive pricing. Each bank must
meet a set of stringent performance standards prior to selection, which are re-examined during bi-annual
reviews and frequent on-site visits, ensuring that our clients are uniformly provided with the best
subcustodian in each market.

The Bank’s dedicated, regional network management team monitors local economic, political, regulatory,
and industry-related events, and keeps clients apprised of the relevant changes in each securities market.


In Brussels, a team of 14 country specialists covers 66 countries in Europe, the Middle East and Africa. We
have one similar team located in Singapore for the Asian markets and one in New York for the Americas
region. The three regional group managers report to the head of Global Network Management in New York.

10) Subcustodian Fees Group

The Subcustodian Fees Group is responsible for checking and paying the invoices received from our

Upon reception of the invoices (by mail or by fax), the Subcustodian Fees group manually checks them to
validate that:

    - The reported number of transactions is in synch with GSP figures (Transactions fees)

    - The market value of the securities held by the subcustodian is correct (Safekeeping fees)

    - The various expenses reported by the subcustodians are accurate (OOPS and Other fees and that
      the correct tariffs are applied.

Once all those elements have been verified and any discrepancy investigated, the Fees group insures that
the invoices are paid in due time either by sending swift messages or allowing direct debit on our account at
the subcustodian. Entries are also manually passed in IMMS to reflect those payment instructions. At month
end, all the payments done during the course of the month are regrouped in an IMMS expense account.

In addition to the monitoring of the subcustodian invoices, the Subcustodian Fees group does also produce
MIS statistics on a monthly basis. Those statistics are produced via Access databases and Excel
spreadsheets where all the invoice details are summarized.


There is a group of people checking and paying the invoices. It is supervised by one person.

11) Project Management / Contingency & Data
  Security Administration & Queue Monitoring


The Data Security Administration group administrates the user IDs and accesses to the different
applications of the users. The Contingency Coordinator takes care of business recovery in case of a major
disaster. The Queue Monitoring team controls all the in/out flows of messages.


 Data Security Administrator main tasks are:

    - User IDs creation

    - Passwords resets

    - Violation attempts checking

    - Quarterly review of user IDs

 Contingency main tasks are:

    - Ensuring the contingency plans and user procedures are in place in case of a major disaster.

    - Organizing annual test.

    - Ensuring accuracy of call trees information.

    - Intermediary with service supplier (IBM).

 Queue Monitoring main tasks are :

    - Monitoring of the system queues

    - Detecting any problem in the queues

    - Taking the appropriate actions in order to escalate to Systems
    - Notifying Operations and Client Services areas, enabling them to limit exposure

    - Following-up of problems until fixed

    - Updating procedures with new configurations (dynamic environment)

    - Following-up all new applications in order to put new monitoring in place

The various persons who are currently working in these areas are specialists of a particular field (securities,
cash, contingency and data security).

12) Technology

This department consists of 2 groups, the Application Development Team and the Infrastructure Support

A) Application Development:

   - Team of 12 persons including project managers, application analysts and analyst developers.

   - Development and support of client/server (PowerBuilder, Sybase, Unix) and Web based (J2EE)
     applications related to Securities, Cash and Foreign Exchange processing.

   - Performs all project life cycle tasks : Project management, Functional specification, Technical Design,
     Development and System Testing, User Acceptance Testing support and Implementation.

   - Follow up of 25 applications in production deployed in Brussels, Luxembourg, London, Dublin, New
     York, San Francisco, Florida, Singapore and Tokyo.

B) Infrastructure Support:

The main objective of this group is to provide technical support to the Brussels users. The team is
composed of 3 groups.

The Brussels Data Center Operations (BDCO) handles:

   - All central printing infrastructure and issues.

   - Brussels telephony and fax related infrastructure (both technical and administrative)

   - Management of all BNY Mellon system and application failures and issues. Acts as interface between
     the Brussels users and the bank’s command and support centers in NY and London.

The Brussels Helpdesk and Desktop support team handles:

   - The End-user infrastructure (PC’s, printers, OS, applications, telecom)

   - The End-user support for the Brussels users (by phone and on site)

The LAN / Servers and Telecom support team handles:

   - Support and implementation of the technical infrastructure (servers, network, telecommunications,

   - Implementation of and technical support for the applications in use by Brussels users.

   - Technical interface to the NY support groups, both infrastructure, network and application support.

13) Audit


Internal Auditing is responsible for assessing the various functions and control systems of the Bank and for
advising management concerning their condition

Organization: working for internal audit

    - Assistance in preparing and performing the audit reviews scheduled in the annual audit plan; analysis
      of risks in the business and verifying the controls management has in place to mitigate these risks.

    - Analyzing and documenting the audit test results in an Internal Audit database.

    - Assistance in drafting the audit issues and the audit report. This will be reviewed by the Audit
      manager in Brussels and New York before publishing the final report.

    - Interaction with management at all levels.

    - Ad Hoc auditing of certain areas at the request of senior management

    - Monitoring of key business indicators and trends.

Here are a few traits and skills you should have as an internal auditor:

    - Previous experience in internal/ external audit or similar risk function is a plus.

    - Knowledge of BNY Mellon products.

    - Control minded
    - Analytical mind

    - Fluent in English (spoken and written)

    - Good interpersonal skills. The ability to communicate at all levels is a prerequisite for the role.
    - Team player and flexibility to travel overseas when necessary.


Internal Audit is based in NY, Brussels and London. The Brussels Audit team has responsibility for
Luxembourg, Frankfurt and Singapore.


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