Handbook of Investment Administration

Kevin Rothwell has spent his entire working life within the Financial Services Industry and his hands-on experience has given him a detailed knowledge of such areas as private client investment management, investment administration and dealing, settlement and custody. He has held senior posts in both front office and back office positions with and has undertaken a varied portfolio of investment projects.  More recently Kevin has set up his own company that excels in providing specialised and bespoke consultancy and training for a number of large financial institutions both at home and abroad. Already a Fellow of the Securities and Investment Institute, he was delighted to have been made a Senior Technical Advisor for them. As well as teaching towards the Securities and Investment Institutes post-graduate Diploma in Investment Operations, Kevin is also the author of International Certificate in Financial Advice Workbook which is published by the SII.

• About the Author xiiiIntroduction xvPart I: Introductory Elements 11 Wealth Management 31.1 Introduction 41.2 Wealth management market 51.3 Types of business 71.4 Investment services and products 111.5 Investment firms 191.6 Investment administration 27Part II: Investment Administration 312 New and Closing Business 332.1 Introduction 342.2 New business 352.3 Client types 382.4 Know your customer 422.5 Agreements 462.6 Account opening 472.7 Money laundering 492.8 Validating the assets 522.9 Transferring assets 552.10 Raising assets 572.11 Closing business and transfers 592.12 Death of a client 673 Trading 773.1 Introduction 783.2 Stock market developments 793.3 Equity trading 813.4 Bond trading 943.5 Regulation 1004 Settlement 1074.1 Introduction 1084.2 Fundamentals of settlement 1084.3 Settlement process 1234.4 UK settlement 1294.5 International settlement 1455 Corporate Actions 1515.1 Introduction 1525.2 Corporate actions industry 1525.3 Types of event 1545.4 Private client corporate action processing 1605.5 Corporate events 1725.6 Income events 190Part III: other Considerations 2076 Custody 2096.1 Introduction 2106.2 Protection of client assets 2106.3 Segregation of safe custody assets 2116.4 Use of a custodian 2126.5 Nominee companies 2136.6 Global custodians 2156.7 Selecting a custodian 2166.8 Custody agreements and SLAs 2186.9 Reviewing the suitability of custodians 2217 Tax 2257.1 Introduction 2267.2 Income tax 2267.3 Tax treatment of dividends 2317.4 Capital gains tax 2387.5 Residence and domicile 2477.6 Withholding tax 2507.7 EU savings directive 2568 Powers of Attorney 2598.1 Introduction 2608.2 Background 2608.3 Parties and terminology 2618.4 Enduring power of attorney 2638.5 Receiverships 2698.6 Mental capacity act 2005 2738.7 Administration 2759 Outsourcing 2859.1 Introduction 2869.2 Development of outsourcing 2879.3 Risks associated with outsourcing 2899.4 Regulatory principles 294Part IV: Investment Accounts And Products 30310 Individual Savings Accounts (isas) 30510.1 Introduction 30610.2 Development of ISAs and PEPs 30610.3 Organisation and regulation 30810.4 Individual savings accounts 31410.5 Allowable investments 31810.6 New and closing business 31910.7 Voids and repairs 32610.8 Residence 32910.9 Investor reporting 33210.10 Reform of the ISA regime 33611 Collective Investment Schemes 33911.1 Introduction 34011.2 Regulation of UK funds 34111.3 Types of UK funds 34411.4 Fund administration 34911.5 Pricing 35011.6 Dealing and settlement 35511.7 Share register 35711.8 Dividend and interest distributions 35811.9 Investor reporting 36012 Trusts 36312.1 Introduction 36412.2 Development of trusts 36412.3 Fundamentals of trusts 36712.4 Investment administration 38613 Charities 39913.1 Introduction 40013.2 What is a charity? 40013.3 Legal background to investment by charities 40213.4 Trustee investment powers and duties 40613.5 Investment policy 41113.6 Appointing an investment manager 41313.7 Common investment funds 41513.8 Use of nominees and custodians 41614 Self-invested Personal Pensions 41914.1 Introduction 42014.2 Development of SIPPs 42114.3 What is a SIPP? 42314.4 Setting up a SIPP 42514.5 Eligibility and contributions 42614.6 Permitted investments 42614.7 Benefits 42815 Derivative Products 43115.1 Introduction 43215.2 Types of derivatives 43315.3 Uses of derivates 43815.4 Derivatives markets 44015.5 Structured products 44415.6 Covered warrants 45115.7 Exchange traded commodities 45715.8 Contracts for difference 459Glossary 463Bibliography 481Reading Material 483Index 487