BoNY Mellon Launches Global Depository Receipt Indexes

The Bank of New York Mellon launched The Bank of New York Mellon GDR Index and 30 global depositary receipt (GDR) subindexes.

According to a press release, The Bank of New York Mellon GDR Index comprises all GDRs traded on the London Stock Exchange. The new subindexes include one market, six regional, and 23 country GDR indexes, and serve as benchmarking tools for investors and intermediaries to track the GDR market and to benchmark specific GDR holdings.

The company also announced the launch of a broader composite index, The Bank of New York Mellon DR Index, which combines The Bank of New York Mellon GDR Index and The Bank of New York Mellon ADR Index. The Bank of New York Mellon ADR Index includes all American depositary receipts (ADRs) listed on the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and NASDAQ.

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Also launched were one market, four regional, and eight country subindexes of The Bank of New York Mellon DR Index. The 14 new DR indexes join the bank’s established DR indexes—The Bank of New York Mellon Russia Select DR Index, The Bank of New York Mellon Frontier Select DR Index, and The Bank of New York Mellon New Frontier DR Index.

The Bank of New York Mellon GDR Index, The Bank of New York DR Index, and their subindexes are capitalization-weighted and calculated on a continuous basis throughout the trading day, the announcement said.


More information is available at www.bnymellon.com/dr.

IRS to Waive 2008 Deferred Comp Code Y Reporting

The Internal Revenue Service (IRS) will waive the requirements for Code Y reporting in 2008 of amounts deferred under 409A for nonqualified deferred compensation plans (NQDC).

According to a BNA news report, Treasury Deputy Benefits Tax Counsel Helen H. Morrison said in a recent Clark Consulting Webinar that the IRS expects to issue a notice before the end of 2008 waiving the requirement for reporting this year, “and until such time as we have issued regulations on how to calculate the amount that would be included in income.”

Morrison also said the Treasury expects to soon issue proposed regulations on how to calculate amounts that would be included in income due to a failure to meet 409A requirements. The proposed regulations will also “serve as a foundation for providing guidance as to what would be reported for compliant plans,” using Code Y on Form W-2, she said.

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If a plan fails to comply with the regulations, the employer must report amounts includible in income on Form W-2 in Box 12, using Code Z. In the case of plan failure, the employee would be subject to immediate income inclusion and penalties, including an additional 20% tax and, in certain cases, an interest tax.

Addressing other year-end issues, Morrison said all plan documents and final elections as to time and form of payment must be completed and reduced to writing by the end of this year.

Regarding plan documents, Morrison said Section 409A imposes few requirements, “but they are important,” including:

  • the plan document need not be a single document;
  • the plan document must address time and form of payment and when payment will be made in accordance with the six permissible payment times;
  • elections must be made in accordance with the regulations and in writing;
  • public companies must provide for a six-month delay in payment in connection with a separation from service.

More information from the Webinar is available here.


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