Influencing Change Within Your Company and UPPO

Presented by:

Cindy Nisley, President

Georgeson Securities Corporation

Kendall Houghton, Partner

Alston & Bird LLP

David Westmark

Sr. Counsel Operations Law

Thrivent Financial for Lutherans

UPPO Presentation Disclaimer

Use of the Unclaimed Property Professionals Organization, Inc., (UPPO) name of copyrighted

materials in this presentation does not constitute an endorsement by UPPO of a member, vendor, product or service. The content represents the

opinion of the author and not necessarily those of UPPO. This information is not intended as legal

advice and should not be used to replace the advice of legal counsel.

UPPO Antitrust Statement UPPO has a policy of strict compliance with federal antitrust laws.

UPPO members and/or meeting attendees cannot come to understandings, make agreements, or otherwise concur on positions or activities that in any way tend to raise, lower or stabilize prices or fees. Members and/or attendees can discuss pricing models,

methods, systems, and applications, as well as certain cost matters that do not lead to an agreement or consensus on prices or fees to be charged. However, there can be no

discussion as to what constitutes a reasonable, fair or appropriate price or fee to charge for any service or product.

Information may be presented with regard to historical pricing activities so long as such information is general in nature and does not include data on current prices or fees being

charged in any trade area. Any discussion of current or future prices, fees, discounting, and other terms and conditions of sale, which may lead to an agreement or consensus on prices

or fees to be charged, is strictly prohibited.

Any questions about UPPO’s antitrust policy should be directed to UPPO’s Executive Director.

Today’s Agenda • Thrivent: A Case Study In Changing Organizational

Thinking and Action • How Individual Companies Can Support Change: Case

Studies in Raising Awareness • UPPO’s Government Relations and Advocacy

Committee: A Case Study in Member-Driven Advocacy Initiatives

• Gaining Action & Support for Legislation/Regulatory Advocacy • Research and Evaluate the Impact • Unfreeze – Create the Sense of Urgency • Sell the Value Proposition • Find partners where interests align

Motivating and Advocating Change

The Thrivent Experience: We value our relationships, so we will: Be Trustworthy in character and competence, and Act like owners and treat each other as owners, and Live balanced and generous lives. Conclusion of “The Thrivent Way” (mission statement)

Motivating and Advocating Change

The Thrivent Experience: • Membership Organization

• Protect Member Assets • Reputation and Trust

• Traditional approach • Head Down/Stay Low • Legal Requirements & Compliance • Trade Association Involvement • Government Relations

Motivating and Advocating Change

The Thrivent Experience: • Unclaimed Property Audits

• Audit Criteria Validity • Financial Risks • Reputational Risks

• Engagement Mechanisms • Regulators/Legislators • Trade Organizations • Individually

Motivating and Advocating Change

The Thrivent Experience: • Initial Responses

• Distrust/Hiding Something

• Ultimate Responses • Trustworthy/Ethical • Compliant

• Ethisphere Institute/Ratings • 5th year - World’s Most Ethical Company • A.M. Best - A++ (highest) • Fitch - AA+ (second highest)

What Can Individual Companies do to Influence Change?

• We want to help but……… • What is the cost-benefit analysis? • Advocating for change costs time

and money – how do we justify it? • Will it reduce or increase risk? • Will it reduce cost? • Short-term • Long-term

Costs and Potential Risks of Taking Action

• Out-of-pocket expenses • Time and opportunity cost • Will we create ill-will with the

states/auditors which could make our company a target for increased risk of audit/penalties?

How Do I Dollarize the Benefits?

• Clarifying the law and gaining consistency across states • Reduce risk of filing mistakes and

penalties • Reduce audit risk and uncertainty

around financial exposure • Reduce time/resources/cost

needed to comply with the law • “Soft” Benefits – Educating

Benefits from Changing Specific Requirements in the Law

• Record Retention – storage cost • Audit Guidelines & Estimation • Sale of Securities – market risk • Death Master File – cost and

impact to business model • B2B Exemption • Definition of Contact • ….and many others

Low-Cost, Low-Risk Activities

COST RISK BENEFITS BENEFITS COMPANY INDUSTRY

Company Newsletter • Educates • NYCB

Join UPPO and Attend Conference

Low/Med Cost, Low-Risk Activities

COST RISK BENEFITS BENEFITS COMPANY INDUSTRY

Update Co. Website • IT and Legal • Marathon Oil

Customer & Shareholder Mailings • Altria

Marathon Oil’s Company Website – FAQs About Escheatment

http://www.marathonoil.com/Investor_Center/Shareholder_Services/Keep_Your_Shares_Safe_From_Escheatment/

What causes escheatment? What property is subject to the escheatment laws?

What is the time frame for escheatment? Do I receive any kind of notice prior to escheatment?

If I reclaim my property, will it be shares or a cash value? Is there a resource to learn more?

MRO’s transfer agent, Computershare, has several good articles about escheatment:

Understanding Escheatment Fighting Escheatment of Securities for Inactivity

Keep Your Property From Being Turned Over to the State

Altria’s Outreach to Shareholders Through Company Mailings

• Enclosed article “Understanding Escheatment and How to Keep Your Property Safe” - This article does not constitute legal or tax advice.

• Dividend check mailing

• Dividend Reinvestment Statement mailing

• E-delivery for ACH

Med/High Cost, Low/Med Risk Activities

COST RISK BENEFITS BENEFITS COMPANY INDUSTRY

Active Participation in Industry • Lobbying • GRAC

Litigation • Thrivent

Motivating and Advocating Change

• UPPO GRAC Experience: • Organization’s membership shapes a consensus-based

advocacy agenda and provides expertise/resources • Government Relations and Advocacy Committee

coordinates UPPO’s advocacy program • Whether efforts have a single-state focus (e.g., PA’s

recent change in law re: IRA dormancy standard) or multistate focus (e.g., the ULC 2016 Revised Uniform Unclaimed Property Act), the advocacy process entails: • Identifying whether membership consensus exists • Prioritizing the issues to be advocated • Honing the message (what is UPPO’s special perspective?) • Follow-through after initial outreach is made, to ensure

message was heard and understood

Legislative and Regulatory Advocacy/Action: Importance and Forms of Action

• UPPO/GRAC’s work product includes:

• ULC proposals and testimony

• draft model bills

• comments on proposed regulations

• amicus briefs filed with state and federal courts

• white papers

• talking points, etc.

• Tailored to the audience, each form of action can achieve positive outcomes

UP Legislation/Policy: The Stakeholders

UP Legislation

/Policy

State Administrator

/Agency

Business Advocates

Other Parties/Audit

Firms

Legislators/

Governor

Getting Action & Support for Legislation or Regulation Advocacy

• Research the issue: Understanding the impact on your organization and industry

• Identify internal support and decision makers

• Create that sense of significance and urgency

• Find partners where interests align

Involvement in UPPO Initiatives • Stay informed

• UPPO Blogs and Monthly Newsletter • Letters sent to state legislators & regulators

• Review UPPO’s GovWatch: Weekly legislative and regulatory status reports

• Get involved in an UPPO Task Force (you do NOT need to be a GRAC member!)

• Take UPPO advocacy surveys • Create an internal communication channel for

pertinent advocacy information • Know your company’s public/govt affairs policy and

personnel • Provide govt affairs staff with information on important

issues

Thank You! Thank You!

Your Speakers Today:

Cynthia Nisley, President, Georgeson Securities Corp.

cnisley@georgeson.com

201-386-3533

Kendall Houghton, Partner, Alston & Bird

kendall.houghton@alston.com

317-577-9530

David Westmark, Sr. Counsel, Operations Law

Thrivent Financial for Lutherans

david.westmark@thrivent.com