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Investment Reconciliations

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Reconciliation is the process that ensures the accounting figures tally with the investment transactions, enabling reconciliation professionals to identify and immediately address any discrepancies.  In the investments sector, when the transaction cannot be matched to the records it is left open and referred to as an ‘exception’.  Reconciliations professionals help to control the financial flow from funds and assist in the processing of transactions completed during a business day. The reconciliations completed may relate to specific areas of work such as currency, unit trusts, securities and pensions. Strict regulations apply when working on client accounts. Most fund positions are reconciled daily to reduce risk. Some may be reconciled weekly or monthly.

Salary

Trainee positions such as a reconciliations assistant 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 £70,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.

  • Reconciling accurately all records of stock or monetary transactions, account balances and details of assets held by clients
  • Prioritising the reconciling of individual accounts or areas of work according to your employer’s procedures
  • Investigating and resolving discrepancies or issues identified during the reconciliation
  • Referring discrepancies that cannot be reconciled to the appropriate authority and line managers
  • Identifying and responding to instances of actual or potential non-compliance with regulations, reporting these to the relevant authority when appropriate
  • Accurately preparing general client ledgers and reports relating to investment holdings and funds
  • Strong numerical skills
  • Attention to detail / accuracy 
  • Problem solving ability
  • Good planning and organisation skills
  • Business communication and interpersonal skills
  • Time management and ability to adjust priorities to meet reporting deadlines
  • Confidence using IT and databases
  • Awareness of risk management issues
  • Teamwork

Employers will usually expect candidates to acquire knowledge in the following areas, through training and relevant professional qualifications:

  • Regulatory deadlines and FSA requirements
  • Basic accounting procedures
  • Trading transaction procedures

There may be some opportunities to join in entry position such as a reconciliations assistant or in an administrative role in a reconciliations team, but most positions are likely to be at an experienced or graduate level. Individuals will need an understanding of numbers and to be able to communicate with people and produce written reports.

For entry level positions, employers will require candidates to have either:

  • 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)
  • For graduate training schemes, usually ask for a 2:1 degree or higher.


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 reconciliation professionals to gain a professional qualification. Most relevant to this role is:

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


With several years’ experience, reconciliation professionals may progress towards more advanced professional qualifications, such as:

  • CISI Advanced Certificate Programme Administration, Global Securities Operations and Operational Risk
  • CISI specialist Diploma in Investment Operations

 

Opportunities for reconciliation professionals exist mainly with investment management companies, banks and other financial institutions where trading activities occur. Jobs can be found in all major UK financial centres, such as London and Manchester. Scotland, particularly Edinburgh, is a large and growing employer for investment operations support roles.