Global Custody

  • Description
  • Tasks
  • Skills
  • Useful Knowledge
  • Entry Qualifications
  • Professional Qualifications
  • Trends
  • Resources

The value of global custody assets runs into trillions of pounds. Custodian banks are often referred to as global custodians if they hold assets for their clients in multiple jurisdictions around the world. As a custodian, you’ll be responsible for the administration and safe keeping of these assets (portfolios of stocks, shares and cash) for individual clients and firms.  The function includes keeping records of all transactions relating to the assets being looked after, processing cross-border trades and calculating and collecting income (dividends) that investments have earned over a set period. You might work in an administrative or client-facing client relationship/marketing role. Other duties include processing the source documents of each investment and maintaining ownership records for various investments.  In addition, the role may include proxy voting on behalf of clients at shareholder meetings. Some custodians deal with corporate actions and settlements relating to the assets.

Salary

Entry level positions start at approximately £16,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £50,000 per annum.  This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.

  • Agreeing and recording arrangements for the transfer of assets
  • Checking assets held on behalf of the investor and arranging for them to be deposited in authorised accounts
  • Keeping complete, accurate and up-to-date records of the investor’s assets
  • Arranging to provide the investor with information about asset records in the required format and at the required times
  • Monitoring market activity and reconciling transactions with assets held in custody on behalf of the investor
  • Arranging the transfer of assets within set timescales
  • Identifying, investigating and resolving errors and discrepancies in records and transactions
  • Advising investors of actual or potential problems relating to their accounts
  • Identifying and responding to actual or potential instances of non-compliance with regulations and reporting them to the relevant authority when appropriate
  • Compliance with legal requirements, industry regulations, organisational policies and professional codes
  • Ability to maintain detailed and accurate records of transactions
  • Outstanding attention to detail
  • Good numerical and IT skills
  • Interpersonal skills to deal with and relate to clients
  • Ability to multitask and prioritise workloads
  • Teamwork approach to work and confidence in drawing on specific departmental and colleague expertise 
  • Highly articulate with excellent verbal and written communication skills
  • Flexible approach to working hours, especially if dealing with foreign markets

A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:

  • Procedures for dealing with the custody of different types of securities
  • Broad knowledge of financial markets, different securities and the corporate actions associated with them 
  • Detailed understanding of the automated IT and financial reporting systems used for administration of assets

Working in global custody requires people who are good team workers, hard working, enthusiastic with excellent communication skills. Due to the numerical and reporting aspects of this job, English and maths qualifications are desirable. There are various levels of entry into the role. Any previous qualifications or experience in investment administration or other fund operational jobs like clearing or settlements is helpful.

In order to gain an entry level position, employers will look for people who have:

  • A Levels, Scottish Highers or equivalent qualifications such as  Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7)


Apprenticeships can be a useful way to gain entry and to progress on in the profession:

  • Level 2 Apprenticeship in Providing Financial Services, Investment Operations pathway (England, Wales, Scotland and Northern Ireland)
  • Level 3 Apprenticeship in Providing Financial Services, Investment Operations pathway (England, Wales, Scotland and Northern Ireland)

Many employers recommend and support people working in global custody in gaining a professional qualification the most recognised is:

  • Chartered Institute for Securities & Investments (CISI) Level 3 Investment Operations Certificate (IOC)


With several years’ experience and if working in a managerial capacity, you may progress towards more advanced professional qualifications, such as:

  • CISI Advanced Certificate Programme in Global Securities Operations 
  • CISI specialist Diploma in Investment Operations

Increased regulation suggests that this role will continue to expand.  The electronic storing of stock and bond certificates has already made the function more efficient, especially in terms of tracking revenue earned and measuring performance. Due to market competition, custodians are increasingly expanding their services to encompass more lucrative areas, such as securities lending and risk management. In recent years many of the largest custodian banks have consolidated and this trend is expected to continue.  Typical employers include investment management houses/firms, private banks and banks with an investment function. London and Scotland have large concentrations of this role; however as custodian services are sometimes outsourced, opportunities could exist around the UK.