Settlements
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
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The day to day workings of the financial markets relies heavily on efficient market based settlement flows across international stock markets. Working in a settlements team, you would be responsible for ensuring that when an investment client either buys or sells a particular stock that the correct shares or money is transferred to where the buyer and seller have agreed. This flow of money and stock is increased in complexity due to the large amounts of money and volume of transactions occurring daily, and also due to the large number of international markets and cross-border investment activities.
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 benefits and additional benefits. Salaries will vary considerably based on location and employer.
- Reconciling investment instructions accurately to market transactions
- Maintaining and storing up-to-date records of assets together with monies owed or to be claimed from traders or investors
- Arranging for settlement of the purchase and/or sale of assets, conducting settlement within set timescales
- Ensuring process payments instructions are accurate and within permitted time limits
- Preparing accurate settlement reports with agreement from the appropriate authority
- Ensuring records of transactions accurately detail the number and title of securities to be registered in the investor’s name and are complete and accurate
- Sharing information relating to the acquisition of stocks and shares and balances promptly with the relevant people
- Identifying, investigating and resolving errors or discrepancies promptly
- Storing entitlement documents in the correct location
- Identifying and responding to actual or potential instances of non-compliance with regulations, where appropriate reporting them to the relevant authority
- Liaising with the stockbroker, the dealer who executed the trade and the global custodian, often communicating across the world in different time zones
- Compliance with legal requirements, industry regulations, organisational policies and professional codes
- Efficient and ethical
- Diligence, accuracy and strong attention to detail
- Problem solving skills and initiative
- Business communication skills, presenting information clearly and concisely
- Hard working
- Team work
- Enthusiastic, with good ownership skills
- Enjoy working in a target driven environment
- Customer service focus
- Good IT skills
A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:
- Sound basic knowledge of financial services and the financial markets
- Organisational procedures for the settlement of securities transactions
- The legal and regulatory requirements for reconciling securities transactions
Working in settlements 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 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, Scotland, Wales and Northern Ireland)
- Level 3 Apprenticeship in Providing Financial Services, Investment Operations pathway (England, Scotland, Wales and Northern Ireland)
The most recognised qualifications for settlements professionals are:
- Chartered Institute for Securities & Investment (CISI) Level 3 Investment Operations Certificate (IOC)
- ICMA Centre / University of Reading Operations Certificate Programme
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
Some of the professional qualifications will enable progression to degree level study. CISI offers a Masters programme leading to Chartered status.
Settlements is a vital part of the investment transactional process. Increased regulation implies the continuing expansion of this role. Typical employers include investment management companies, private banks and banks with an investment function. London, Manchester and other large financial centres, including Edinburgh, Glasgow and Cardiff are where most jobs are concentrated. Scotland continues to grow as a centre for investment operations.
