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 Custody
Investment
Administration
Valuation and
Performance Measurement
Operational
Risk
Qualifications & Career Entry
Investment Industry Basics
The UK Investment Management Industry has over £4
trillion under management which is roughly split into:
2/3 institutional, pension fund & insurance mandates, and
1/3 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
Clients pay a small percentage fee for each service:
investment management, custody, asset servicing and
reporting, and trading.
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.
Operational Activities
Decision & Trade Execution
Transaction Processing
Global Custody & Asset Servicing
Investment Administration
Risk Management
Data Management
Pre & Post Trade Compliance
IT & Systems Management
Reconciliation, Reporting & Analysis
Transaction Processing
Decision & Trade Execution
(investment manager or trader)
Broker
Investment Operations
Clearing House
Global Custodian
(client’s bank)
Matching & confirmation, implementing margin (if derivatives),
settlement, registration of ownership, notification & reporting
Risk Management
Data Management
Pre & Post Trade Compliance
Systems Management
Reconciliation, Reporting & Analysis
Global Custody
Global Custodian
(client’s bank)
Clearing Houses, Exchanges
Investment Operations
Clients
Portfolio accounting; cash management; safe custody of assets;
stock lending; corporate action & income processing; reporting
to regulators, clients and investment management firms
Risk Management
Data Management
Pre & Post Trade Compliance
Systems Management
Reconciliation, Reporting & Analysis
Investment Operations
Investment
Operations
Investment
Managers
Clients
Global Custodian
(client’s bank)
Internal transaction processing; portfolio valuation & fund
accounting; liquidity management; reconciliation with
custodian’s records; performance measurement & analysis;
daily internal reports; periodic regulatory & client reports
Risk Management
Data Management
Pre & Post Trade Compliance
Systems Management
Reconciliation, Reporting & Analysis
CISI Qualifications: Operations
Qualifying
Advanced
QCA Levels 3-4 / EQF Levels 4-5
EQF Level 6/7
Investment Operations Certificate (IOC)
Advanced Certificate in Global
Securities Operations
Introduction to Investments
+ Regulatory Module
+ 1 technical module:
Global Securities Operations
Advanced Global Securities Operations
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 Operational Risk
Operational Risk
Advanced Operational Risk
IT in Investment Operations
Introduction to Investments
Regulatory Module
IT in Investment Operations
Diploma in Investment
Operations
1 Advanced Certificate
+ Global Operations Management
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 FCSI
Email: sian.lloyd@cisi.org.uk
Phone: 44 (0) 207 645 0696