[Company Logo] Industry Liaison Elizabeth Menzies-Gabb September 17, 2008 Vision The BDUG Industry Liaison is the conduit for communication between our members and the industry
Download ReportTranscript [Company Logo] Industry Liaison Elizabeth Menzies-Gabb September 17, 2008 Vision The BDUG Industry Liaison is the conduit for communication between our members and the industry
Slide 1
[Company Logo]
Industry Liaison
Elizabeth Menzies-Gabb
September 17, 2008
Slide 2
Vision
The BDUG Industry Liaison is the conduit for communication between
our members and the industry
Discuss and find best practices and solutions to Industry challenges and
concerns on issues affecting Custody Banks.
Share knowledge and information on Industry trends from and with our
members
Change Advocate
1
Slide 3
Role
Represent BDUG on Industry issues impacting Custody banks
Duties include:
Identify industry “hot items” and influence solutions through member
participation
Coordinate / draft responses to white papers
Communicate regulatory changes
Participate in other industry working committees
Present “The Year in Review” at the BDUG annual meeting
2
Slide 4
Current Initiative
Class Actions
2007 Annual meeting generated the topic “Class Actions”
• Three major industry concerns identified
o Closed accounts
o Standardized reporting
o Responsibility
• Created Class Actions focus group
o Appointed chair and co-chair
o Created Committee responsibilities
• Held three (3) focus group meetings YTD
o Invited Claims administrator
o Over 28 member banks / 70 members
• Invited Class Actions speakers to the 2008 annual meeting
• Break Out session at Annual meeting to continue discussions
3
Slide 5
Challenging Year for the Financial Industry
Shift in Client Behavior
Our clients are paying close attention to their Service Providers and closely
scrutinizing our performance regarding their Securities handling.
Why ?
•Financial markets have tightened
o
o
o
o
o
Market volatility
Regulatory oversight
Securities Quality and Servicing
Increase in risk
New products
o Unknown effects
4
Slide 6
Industry Issues and Trends
Examples:
•Variable Rate Demand Obligation
•Mortgage Failures
•Auction Rates Failure
•Lack of standardization
•Demand for clear, concise and timely information
5
Slide 7
Regulatory Changes
Tax Code Section 302 & 304
Perceived
Weakness
In Tax Code
1)
6
Certain CA events
seem to give
loophole for tax
avoidance. Self
Tenders and
Consents
Initial
Impact
1)
Industry confusion
in interpretation
2)
Process inefficiencies
3)
Foreign client
complaints
Regulatory
Oversight
1)
Seek to capture
NRA tax on self
tenders and Consent
payments to clients
Regulatory
Implementation
1)
IRS implemented
new codes 302/304 to
cover participation of
foreign holders in self
tenders and Consent
offers
Slide 8
Going Forward
•Continue to build cooperative working relationships with other industry groups
•Promote continuous flow of generative ideas
•Create workshops /committees to address issues and concerns
•Create partnerships and strategic links
•Communicate through round table discussions, conference calls and webinars
•Implement end results
7
Slide 9
Your Contributions
To be successful, to add value and to make a difference on industry issues
and concerns
Feedback
Changes
Participation
Direction
Solution
8
Slide 10
Contact information:
Liz Gabb
Telephone: 813-604-1149
Tampa, Florida
Email: [email protected]
9
[Company Logo]
Industry Liaison
Elizabeth Menzies-Gabb
September 17, 2008
Slide 2
Vision
The BDUG Industry Liaison is the conduit for communication between
our members and the industry
Discuss and find best practices and solutions to Industry challenges and
concerns on issues affecting Custody Banks.
Share knowledge and information on Industry trends from and with our
members
Change Advocate
1
Slide 3
Role
Represent BDUG on Industry issues impacting Custody banks
Duties include:
Identify industry “hot items” and influence solutions through member
participation
Coordinate / draft responses to white papers
Communicate regulatory changes
Participate in other industry working committees
Present “The Year in Review” at the BDUG annual meeting
2
Slide 4
Current Initiative
Class Actions
2007 Annual meeting generated the topic “Class Actions”
• Three major industry concerns identified
o Closed accounts
o Standardized reporting
o Responsibility
• Created Class Actions focus group
o Appointed chair and co-chair
o Created Committee responsibilities
• Held three (3) focus group meetings YTD
o Invited Claims administrator
o Over 28 member banks / 70 members
• Invited Class Actions speakers to the 2008 annual meeting
• Break Out session at Annual meeting to continue discussions
3
Slide 5
Challenging Year for the Financial Industry
Shift in Client Behavior
Our clients are paying close attention to their Service Providers and closely
scrutinizing our performance regarding their Securities handling.
Why ?
•Financial markets have tightened
o
o
o
o
o
Market volatility
Regulatory oversight
Securities Quality and Servicing
Increase in risk
New products
o Unknown effects
4
Slide 6
Industry Issues and Trends
Examples:
•Variable Rate Demand Obligation
•Mortgage Failures
•Auction Rates Failure
•Lack of standardization
•Demand for clear, concise and timely information
5
Slide 7
Regulatory Changes
Tax Code Section 302 & 304
Perceived
Weakness
In Tax Code
1)
6
Certain CA events
seem to give
loophole for tax
avoidance. Self
Tenders and
Consents
Initial
Impact
1)
Industry confusion
in interpretation
2)
Process inefficiencies
3)
Foreign client
complaints
Regulatory
Oversight
1)
Seek to capture
NRA tax on self
tenders and Consent
payments to clients
Regulatory
Implementation
1)
IRS implemented
new codes 302/304 to
cover participation of
foreign holders in self
tenders and Consent
offers
Slide 8
Going Forward
•Continue to build cooperative working relationships with other industry groups
•Promote continuous flow of generative ideas
•Create workshops /committees to address issues and concerns
•Create partnerships and strategic links
•Communicate through round table discussions, conference calls and webinars
•Implement end results
7
Slide 9
Your Contributions
To be successful, to add value and to make a difference on industry issues
and concerns
Feedback
Changes
Participation
Direction
Solution
8
Slide 10
Contact information:
Liz Gabb
Telephone: 813-604-1149
Tampa, Florida
Email: [email protected]
9