careers in investment operations siân lloyd mba asip chartered fcsi senior adviser step into...
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Careers in Investment Operations
Siân Lloyd MBA ASIP Chartered FCSI
Senior Adviser
Step into Financial Services, London: 27th June 2012
www.cisi.org
Discussion Points
Overview of Investment Operations
Transaction Processing
Global Custody & Asset Servicing
Global CustodyInvestment Administration
Valuation and Performance Measurement
Qualifications & Career Entry
Operational Risk
The UK Investment Management Industry has over £4 trillion under management which is roughly split into:
2/3 institutional, pension fund & insurance mandates, and1/3 retail assets (e.g. ISAs, unit trusts) & private wealth. Managers are expected to make the money grow!
Efficient operational activities, robust and flexible reporting systems, and good risk management can make huge differences to performance, reputation and client retention
Investment Industry Basics
Operational activities may be conducted in: investment firms (often in a separate location); third party administrators; global custodian banks; broking firms; clearing houses; stock exchanges. Many are located outside London.
Clients pay a small percentage fee for each service: investment management, custody, asset servicing and reporting, and trading.
Operational Activities
Decision & Trade Execution
Transaction Processing
Global Custody & Asset Servicing
Investment Administration
Risk Management Data Management IT & Systems Management
Pre & Post Trade Compliance Reconciliation, Reporting & Analysis
Transaction Processing
Decision & Trade Execution (investment manager or trader)
Global Custodian (client’s bank)
Investment Operations
Risk Management Data Management Systems Management
Pre & Post Trade Compliance Reconciliation, Reporting & Analysis
Broker
Matching & confirmation, implementing margin (if derivatives), settlement, registration of ownership, notification & reporting
Clearing House
Global Custody
Global Custodian (client’s bank)
Investment Operations
Risk Management Data Management Systems Management
Pre & Post Trade Compliance Reconciliation, Reporting & Analysis
Portfolio accounting; cash management; safe custody of assets; stock lending; corporate action & income processing; reporting
to regulators, clients and investment management firms
Clearing Houses, Exchanges
Clients
Investment Operations
Global Custodian (client’s bank)
Investment Operations
Risk Management Data Management Systems Management
Pre & Post Trade Compliance Reconciliation, Reporting & Analysis
Internal transaction processing; portfolio valuation & fund accounting; liquidity management; reconciliation with
custodian’s records; performance measurement & analysis; daily internal reports; periodic regulatory & client reports
Investment Managers
Clients
CISI Qualifications: Operations
QualifyingQCA Levels 3-4 / EQF Levels 4-5
AdvancedEQF Level 6/7
Investment Operations Certificate (IOC)
Introduction to Investments
+ Regulatory Module
+ 1 technical module:Asset Servicing (Corporate Actions) - Collective Investment Schemes Administration - CREST Settlement - Exchange-Traded Derivatives Administration - Global Securities Operations - IT in Investment Operations - Operational Risk - OTC Derivatives Administration - Private Client Administration - Risk in Financial Services - ISA Administration
Advanced Certificate in Global Securities Operations
Global Securities Operations
Advanced Global Securities Operations
Advanced Operational RiskOperational Risk
Advanced Operational Risk
Diploma in Investment Operations
1 Advanced Certificate
+ Global Operations Management
IT in Investment Operations
Introduction to Investments
Regulatory Module
IT in Investment Operations
CISI Qualifications
What do Operational Staff learn about?
• Financial markets, instruments, products, systems
• Overview of investment & economics theory
• Role- ready knowledge of investment processes & risk management
• Portfolio accounting and performance measurement
• Where and how specific roles fit within the wider business
• Industry rules and regulations
• Clients: investment agreements and reporting requirements
• Supervision and project management skills
Careers in Investment Operations
What do I need?
• Good A-levels and/or a degree in Maths, Business, Finance, IT, Accounting, Economics or another relevant related discipline
• Professional, service- orientated attitude• Good reputation for “getting things done” (despite fluctuating
workloads, conflicting priorities and tight deadlines)• Excellent communication skills• Appetite for analytical problem-solving• Adaptable team player• Interest in how systems, processes and people interact
Willingness to progress through widening experience, professional qualifications and other training (e.g. project management, soft skills)
Careers in Investment Operations
Where to start?
• Some firms recruit graduates in Business, Finance, Accounting, Economics, IT or another relevant discipline
• Others have apprenticeship schemes for school leavers
• Work experience programmes – 2-3 month contracts that can lead to a permanent position
• http://www.insidecareers.co.uk (Banking, Securities & Investment)
• www.apprenticeships.co.uk
• http://www.directions.org.uk/careers/ (work experience)
Questions later on please!
Sian Lloyd MBA ASIP Chartered FCSIEmail: [email protected]: 44 (0) 207 645 0696