Recommendation
The Principal Debt and Credit Investments group recommend the appointment of State Street Bank and Trust Company (“State Street”) to perform investment accounting, loans support and custodial services for the benefit of PSP Investments Holding USA LLC and PSP USA LLC (“PSP USA”). However, the recommendation is conditional to the achievement of an acceptable result following the due diligence of State Street control environment.
Background
In order to secure certain tax benefits and mitigate related tax risks, some measures that give PSP USA the proper level of autonomy over its activities must be adopted. Among other things, PSP USA must be sufficiently capitalized and autonomous to carry on its activities (including treasury and accounting functions) independent of PSPIB.
In that context, taking into consideration the small number of PSP USA employees, and the fact that we are in inception phase, outsourcing treasury and accounting functions are the preferred options. …show more content…
The rationale for selecting State Street is supported by a desire to regroup within the same firm all of the investment support services required for PSP USA. In addition, PSPIB will also benefit from engaging in a formal business relationship with State Street as this will facilitate benchmarking of expertise, technological platform and quality of servicing vs. our current custodian (CIBC Mellon). In the event where PSP USA would prefer insourcing these activities, the mandate of State Street can be terminated within a 90 days’
The Principal Debt and Credit Investments group recommend the appointment of State Street Bank and Trust Company (“State Street”) to perform investment accounting, loans support and custodial services for the benefit of PSP Investments Holding USA LLC and PSP USA LLC (“PSP USA”). However, the recommendation is conditional to the achievement of an acceptable result following the due diligence of State Street control environment.
Background
In order to secure certain tax benefits and mitigate related tax risks, some measures that give PSP USA the proper level of autonomy over its activities must be adopted. Among other things, PSP USA must be sufficiently capitalized and autonomous to carry on its activities (including treasury and accounting functions) independent of PSPIB.
In that context, taking into consideration the small number of PSP USA employees, and the fact that we are in inception phase, outsourcing treasury and accounting functions are the preferred options. …show more content…
The rationale for selecting State Street is supported by a desire to regroup within the same firm all of the investment support services required for PSP USA. In addition, PSPIB will also benefit from engaging in a formal business relationship with State Street as this will facilitate benchmarking of expertise, technological platform and quality of servicing vs. our current custodian (CIBC Mellon). In the event where PSP USA would prefer insourcing these activities, the mandate of State Street can be terminated within a 90 days’