CIBC Mellon

Short description: Canadian online brokerage

CIBC Mellon

Type| Joint Venture
Industry| Financial services
Founded| Toronto, Ontario, Canada (1996 (1996))
Headquarters|

Toronto, Ontario

Canada

Number of locations

| 6 Offices (2009)

Area served

| Canada

Key people

| Mal Cullen, president and CEO
Daniel J. Smith, chairman[1]
Services| Asset Servicing
Owner| 50% CIBC; 50% BNY Mellon

Number of employees

| 1,800
Divisions| CIBC Mellon Trust Company (CMTC) and CIBC Mellon Global Securities Services Company (CMGSS)
Website| CIBCMellon.com
Footnotes / references
Note that CMTC and CMGSS are in fact sister companies to each other, but operate seamlessly

CIBC Mellon was founded in 1996 as a joint venture between the Canadian Imperial Bank of Commerce (hereafter CIBC) and the Mellon Financial Corporation (now The Bank of New York Mellon) (hereafter Mellon) to offer asset servicing to institutional investors. While commonly known as CIBC Mellon, the company comprises two sister companies, CIBC Mellon Trust Company and CIBC Mellon Global Securities Services Company (Compagnie Trust CIBC Mellon and Société de services de titres mondiaux CIBC Mellon in French respectively). Based in Toronto, Ontario CIBC Mellon offers asset servicing to corporate and institutional clients.

On 16 February 2010, The Wall Street Journal reported that BNY Trust Co. of Canada would be acquiring the corporate trust assets of CIBC Mellon.[2]

On 28 July 2010 it was reported that Pacific Equity Partners would acquire CIBC Mellon Trust Company's issuer services business (stock transfer and employee share purchase plan).[3]

In 2016, the company expanded into Mississauga, adding 150 roles.[4]

## Contents

* 1 Offices
* 2 History
* 2.1 Pacific Corporate Trust Company
* 2.2 Felcom Data Services acquisition
* 2.3 Sale of issuer services business to Canadian Stock Transfer Company, Inc.
* 3 Structure
* 3.1 Leadership team
* 3.1.1 Past presidents and CEOs
* 3.2 Boards of directors
* 3.2.1 Chairmen
* 4 Securities investigations
* 4.1 Pay Pop Inc.
* 4.2 Privacy breach
* 4.3 Related party transactions with Enron
* 5 References

## Offices

CIBC Mellon's head office is in Toronto at 1 York Street. CIBC Mellon holds the lease from the fifth to tenth floor.

There are satellite offices in Canada:[5][4]

* Calgary, Alberta - 6th floor Dome Tower
* Halifax, Nova Scotia
* London, Ontario - 8th Floor, 255 Queens Ave.
* Mississauga, Ontario - 55 Standish Court, Suites 1200 and 1000
* Montreal , Quebec - Suite 650, 1 1001 de Maisonneuve Blvd. West
* Vancouver , British Columbia - Suite 1670 Oceanic Plaza (1066 West Hastings Street)

## History

CIBC Mellon was founded in 1996 after CIBC joined with Mellon Financial Corporation in a 50-50 joint venture named CIBC Mellon Global Securities Services (CMGSS).[6] The following year, 1997, CIBC purchased a 50% stake in The R-M Trust Company from Mellon, which would become CMGSS's sister company, CIBC Mellon Trust Company (CMTC).[7] CIBC Mellon acquired the Pension and Institutional Trust businesses from Canada Trust in 1997[8] and the global custody business from the Bank of Montreal in 1999.[9] In 2002 CIBC Mellon acquired, from TD Financial Group, their third party investment fund custody business.[10]

### Pacific Corporate Trust Company

In 1998 it seemed that CIBC Mellon would be acquiring the Pacific Corporate Trust Company of Vancouver , British Columbia. That deal eventually fell through, and it was subsequently acquired by Computershare Limited in 2005.[11][12]

### Felcom Data Services acquisition

On October 8, 2009, CIBC Mellon announced the acquisition of the unitholder recordkeeping and fund administration business of Felcom Data Services Inc., a wholly owned subsidiary of Jovian Capital Corporation, for a purchase price of approximately C$4.2 million. CIBC Mellon indicated that they would offer employment to the majority of employees involved in the business lines acquired.[13]

### Sale of issuer services business to Canadian Stock Transfer Company, Inc.

On November 1, 2010, CIBC Mellon sold its issuer services business (stock transfer and employee share purchase plans) to Canadian Stock Transfer Company, Inc.[14]

## Structure

CIBC Mellon is a 50-50 joint venture between CIBC and BNY Mellon. CIBC Mellon operates independently from both of its "owners".

While both CMTC and CMGSS physically occupy the same space, and in essence operate as one company, each has a separate board of directors which overlap the other. The executive management team, however, has authority over both companies.

### Leadership team

The current leadership team (as of 2022) comprises the following:[15]

* Mal Cullen, president and chief executive officer
* Richard Anton, senior vice president and chief operations officer
* Rob Ferguson, senior vice president, capital markets and shareholder relations
* Brian Lee, chief financial officer
* Ash Tahbazian, chief client officer
* Bill Graves, chief technology and data officer
* Paul Cunliffe, head of corporate communications and marketing
* Kelly Hastings, chief risk officer
* Tedford Mason, general counsel
* Maple Tam, chief human resources officer
* Catherine Thrasher, strategic client solutions and global risk solutions, CIBC Mellon and BNY Mellon

#### Past presidents and CEOs

* Douglas Nowers, 1996–1998
* Thomas C. MacMillan, 1998–2009
* Thomas Monahan, 2009–2016[16]
* Steven Wolff, 2017-2022

### Boards of directors

The current board of directors (as of 2018) comprises the following:[17]

* Daniel Smith, chairman, CIBC Mellon boards of directors and executive vice president, head of Americas asset servicing, BNY Mellon

CIBC Mellon Global Securities Services Company

* Anne-Marie Dunn, senior vice-president, talent acquisition and development, human resources, CIBC
* John Ferren, senior vice-president and CFO, Canadian personal and small business banking, CIBC
* Jeffrey Graham, partner, Borden Ladner Gervais LLP
* Daniel Kramer, executive vice president, BNY Mellon Investment Services, and global head of client service delivery, BNY Mellon
* Susan Rimmer, managing director and head, global corporate banking, CIBC World Markets Inc.
* James Slater, executive vice president and global head of securities finance, BNY Mellon
* Geoffrey Weiss, senior vice-president, deposits and product analytics, CIBC

CIBC Mellon Trust Company

* Thaddeus Duchnowski, managing director, global client management, BNY Mellon
* Anne-Marie Dunn, senior vice-president, talent acquisition and development, human resources, CIBC
* John Ferren, senior vice-president and CFO, Canadian personal and small business banking, CIBC
* David Gillespie, senior vice president of capital markets and wealth management operations, CIBC
* Jeffrey Graham, partner, Borden Ladner Gervais LLP
* Daniel Kramer, executive vice president, BNY Mellon Investment Services, and global head of client service delivery, BNY Mellon
* Susan Rimmer, managing director and head, global corporate banking, CIBC World Markets Inc.
* James Slater, executive vice president and global head of securities finance, BNY Mellon
* Geoffrey Weiss, senior vice-president, deposits and product analytics, CIBC
* Mal Cullen, president and CEO, CIBC Mellon

#### Chairmen

* Richard E Venn, until 2009
* Thomas C. MacMillan, until 2012
* Samir Pandiri, until 2018

## Securities investigations

CIBC Mellon has been the subject of two securities investigations. The first, in 1998, involved the now defunct Pay Pop Inc. The second, in 2004, involved the disclosure of custodial information to an outside source.

### Pay Pop Inc.

In 1998, Alnoor Jiwan, a manager in CIBC Mellon's Vancouver office, was approached by Pay Pop Inc. and asked whether CIBC Mellon could issue Pay Pop Inc. shares without the required disclaimer which stated that the securities were not registered with the SEC.

It was alleged by the SEC, in the subsequent investigation, that Mr Jiwan knew that the securities were not registered, but agreed to act as the transfer agent (in order to issue the stock certificates) in return for 820,000 Pay Pop shares. The SEC subsequently cited CIBC Mellon for acting as an unregistered broker and transfer agent, and for offering to sell unregistered securities in addition to alleging that the company was uncooperative in the investigation.

Alnoor Jiwan was subsequently terminated for cause from CIBC Mellon, following the company's discovery of the transactions, and simultaneously ceasing all dealings with Pay Pop Inc.[18]

CMTC agreed to pay a civil monetary penalty of US$5 million and disgorgement of $889,773 and prejudgment interest of $140,270.

CMTC was permanently enjoined from prescribed violations of Securities Act Section 5, Exchange Act Section 10(b) and Rule 10b-5, Exchange Act Section 15(a), Exchange Act Section 17A(c)(1), and from aiding and abetting future violations of Exchange Act Section 10(b) or Rule 10b-5.

Payment was made on March 4, 2005. CMTC also consented, without admitting or denying the SEC complaint's allegations, to the entry of an SEC administrative order based on the final judgment on March 2, 2005. Pursuant to the order, CMTC was censured and agreed to an undertaking to engage an independent consultant to review its relevant businesses and procedures.[19]

### Privacy breach

In 2004, a long-term employee of CIBC Mellon was terminated, after it had been discovered that they had been disclosing institutional holdings in certain companies to unidentified parties in return for gifts. It was reported that the employee had received hockey and baseball tickets as well as up to $100 in cash for tips on big investors who owned specific stocks.

The disclosures were discovered when a temporary worker received a request for data through an email. The subsequent investigation, which included reviewing phone and email records, discovered that the employee had been disclosing information for years.[20]

### Related party transactions with Enron

In 2003, CIBC paid out $80 million in charges for complicity with its involvement with Enron. While the involvement was not related to CIBC Mellon, as CIBC is a majority stakeholder, it was required that it be reported on the TA-1 to the SEC.[19]

## References

1. ↑ "CIBC Mellon Names Daniel J Smith Chair of CIBC Mellons Boards of Directors". https://www.cibcmellon.com/en/newsroom/news/press-releases/cibc-mellon-names-daniel-j-smith-chair-of-cibc-mellons-boards-of-directors.jsp.
2. ↑ Van Hasselt, Caroline (16 February 2010). "Canada's BNY Trust to Buy CIBC Mellon's Corporate Trust Business: Sources". Wall Street Journal. https://www.wsj.com/article/BT-CO-20100216-708834.html?mod=WSJ_Deals_LEFTLatestHeadlines. Retrieved 16 February 2010. [|permanent dead link|dead link}}]
3. ↑ "CIBC Mellon and Pacific Equity Partners Sign Agreement for Purchase of Issuer Services Business". http://www.cibcmellon.com/Contents/en_CA/English/NewsRoom/BulletinsReleases/2010/PR20100728.html.
4. ↑ 4.0 4.1 "CIBC Mellon Expands into New Location, Brings 150+ Jobs to Mississauga" (in en). http://www.newswire.ca/news-releases/cibc-mellon-expands-into-new-location-brings-150-jobs-to-mississauga-590002931.html.
5. ↑ "Contact" (in EN). https://www.cibcmellon.com/en/contact/index.jsp.
6. ↑ New York Times, February 13, 1996
7. ↑ Pittsburgh Post-Gazette, June 4, 1997, pp. C8; Mellon Sells Half of Unit
8. ↑ Toronto Star, May 8, 1997, pp. D7; Canada Trust Plans Sale
9. ↑ Pittsburgh Post-Gazette, May 18, 1999, pp. F1; Also in Business
10. ↑ "Financial News - Setting the agenda for the City". http://www.efinancialnews.com/homepage/content/570779/printerfriendly/.
11. ↑ CIBC Mellon Global Securities acquires Pacific Corporate Trust Co
12. ↑ Computershare Acquires Pacific Corporate Trust Company[|permanent dead link|dead link}}]
13. ↑ "CIBC Mellon Press Release, October 8, 2009". http://cibcmellon.com/Contents/en_CA/English/NewsRoom/BulletinsReleases/2009/PR20091008.html.
14. ↑ Canadian Stock Transfer Company, Inc. Press Release, November 3, 2010
15. ↑ "Leadership | CIBC Mellon". https://www.cibcmellon.com/en/who-we-are/leadership/index.jsp.
16. ↑ "CIBC Mellon names Steven R Wolff President and CEO" (in EN). https://www.cibcmellon.com/en/newsroom/news/press-releases/cibc-mellon-names-steven-r-wolff-president-and-ceo.jsp.
17. ↑ "About Us | CIBC Mellon". https://www.cibcmellon.com/en/about-us/index.jsp#ir/boards-of-directors.
18. ↑ Toronto Star, February 17, 2005, p.D.4
19. ↑ 19.0 19.1 TA1 dated January 12, 2011
20. ↑ Toronto Star, December 9, 2004, p. C.1

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