Careers in Investment Operations Siân Lloyd MBA ASIP Chartered FCSI Senior Adviser Step into Financial Services, London: 27 th June

Discussion Points Overview of Investment Operations Transaction Processing Global Custody & Asset Servicing Global Custody Investment 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, 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 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 ManagementData 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 ManagementData ManagementSystems 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 ManagementData ManagementSystems 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 ManagementData ManagementSystems 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 Qualifying QCA Levels 3-4 / EQF Levels 4-5 Advanced EQF 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 Risk Operational 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 (Banking, Securities & Investment) (work experience)

Questions later on please! Sian Lloyd MBA ASIP Chartered FCSI Phone: 44 (0)