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: sian.lloyd@cisi.org.ukPhone: 44 (0) 207 645 0696