Bank of New York Mellon Corp

Recent accounting developments

The following accounting guidance issued by the Financial Accounting Standards Board (“FASB”) has not yet been adopted as of June 30, 2024.

ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”). In addition, disclosure will be required of the title and position of CODM, and how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources.

This ASU is effective for annual periods beginning after Dec. 15, 2023 and interim periods beginning in 2025, with early adoption permitted. BNY is currently evaluating this guidance and the impact on the business segment disclosures.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires a company to disclose, on an annual basis, additional disaggregated information related to the existing disclosures for the effective income tax rate reconciliation and income taxes paid.

This ASU is effective on a prospective basis, with a retrospective option, for annual periods beginning after Dec. 15, 2024, and interim periods within fiscal years beginning after Dec. 15, 2025. BNY is currently evaluating this guidance and the impact on the income tax disclosures.

Recent regulatory and other developments

For a summary of additional regulatory matters relevant to our operations, see “Recent regulatory developments” in our Form 10-Q for the quarter ended March 31, 2024, and “Supervision and Regulation” in our 2023 Annual Report. The following discussion summarizes certain regulatory, legislative and other developments that may affect BNY.

SEC Amendments to Regulation S-P

On May 16, 2024, the SEC adopted amendments (the “S-P Amendments”) to Regulation S-P, which governs the safeguarding, treatment and disposal of customer records and information by certain financial institutions, to enhance the protection of customer financial information and establish a federal minimum standard for data breach notifications to affected individuals by brokers, dealers, investment companies, registered investment advisers and transfer agents (“S-P covered institutions”). The S-P Amendments: (i) extend certain requirements of Regulation S-P to transfer agents registered with the SEC or another appropriate regulatory agency; (ii) require S-P covered institutions to develop, implement, and maintain written policies and procedures for an incident response program that is reasonably designed to detect, respond to, and recover from unauthorized access to or use of customer information; (iii) set forth a data breach notification requirement that requires S-P covered institutions to notify affected individuals whose customer information was, or is reasonably likely to have been, accessed or used without authorization (subject to certain exceptions) within 30 days after the S-P covered institution becomes aware that unauthorized access to or use of customer information has, or is reasonably likely to have, occurred; (iv) broaden the group of customers whose information is protected; (v) address the use of service providers by S-P covered institutions; and (vi) codify an existing statutory exemption to the requirement to provide annual privacy notices to customers. The S-P Amendments are effective as of Aug. 2, 2024 and BNY will have 18 months to come into compliance. BNY is evaluating the impact of the S-P Amendments.

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EU Basel 3.1 Implementation: CRR3/CRD6

On June 19, 2024, the texts of the Capital Requirements Regulation (“CRR”) III and Capital Requirements Directive (“CRD”) VI, were formally published in the Official Journal of the EU. Through these regulations, the EU will implement the Basel 3.1 standards, which affect the capital and liquidity requirements of European banking entities, including The Bank of New York Mellon SA/NV, and will restrict the provision of prescribed core banking services (including lending, the provision of guarantees and commitments, and the taking of deposits or other repayable funds) by non-EU entities to EU customers, except where these services are provided through an authorized EU branch or where an exemption applies. The new regime will enter into force in phases beginning July 9, 2024 through to Jan. 11, 2027. BNY is assessing the impact of the rules.

EU Corporate Sustainability Due Diligence Directive

On May 24, 2024, the Council of the European Union formally adopted the Corporate Sustainability Due Diligence Directive (“CSDDD”). CSDDD applies to large EU companies and non-EU companies with significant EU activity. In-scope companies will be required to comply with due diligence obligations for their operations and for their upstream chains of activities and to adopt a transition plan for climate change mitigation. In addition to penalties for non-compliance, CSDDD will subject in-scope companies to potential civil liability, including potential injunctive relief and monetary damages. Publication of CSDDD in the Official Journal of the EU and entry into force is expected in or around the third quarter of 2024. CSDDD will apply on a phased-in basis starting three years after CSDDD’s entry into force, dependent on a company’s number of employees and net worldwide or EU turnover. BNY is assessing the potential impact of CSDDD on its business.

FDIC Amendments to Resolution Planning Rules

On June 20, 2024, the FDIC issued a final rule amending its resolution planning rule applicable to covered insured depository institutions (“IDIs”). The amended rule: (i) adjusts the frequency of resolution plan submissions by IDIs affiliated with a U.S. global systemically important banking organization (“US GSIB”), including The Bank of New York Mellon, from a 3-year cycle to a 2-year cycle; (ii) expands resolution plan content requirements; (iii) requires

IDIs to provide the FDIC with notice within 45 days of certain “extraordinary events”; and (iv) revises certain definitions to be more consistent with similar concepts and approaches under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). The final rule will be effective Oct. 1, 2024. We are evaluating the impact of the final rule.