Investment Administration Qualification

Modules

To achieve the IAQ™ you must pass three modules. It is recommended that you take the Introduction to Securities & Investment (ISI) module plus one of the regulation modules (FSA Financial Regulation or Principles of Financial Regulation) and a technical module.

Core modules

Technical modules

Core modules

  • Introduction to Securities & Investment (ISI)
    The aim of this module is to provide individuals looking for a career in the financial services industry with an understanding of the breadth of the industry, the regulatory framework, how the industry functions and the basics of the various financial instruments.

    The subject matter is broken down into various chapters, the first of which looks at an overall introduction to financial services and the economic environment. The material then goes into more detail about different asset classes in particular distinguishing the features between equity (shares) and debt (bonds). It then proceeds to look at a series of financial products (such as loans and mortgages), derivatives (such as futures and options), pooled investment funds (such as unit trusts) and investment wrappers (such as ISAs). We then conclude with a basic review of both financial services regulation and an examination of the taxation and trust system in the UK.

  • FSA Financial Regulation
    This module considers the regulatory environment in the UK and the background that led to the creation of the Financial Services Authority (FSA) as the sole regulator. The role of the FSA is considered as well as the content of the FSA Handbook. The material also looks at the detail of The Financial Services and Markets Act 2000 (FSMA), defining regulated activities and specified investments, the authorisation process for firms and the approval process for individuals performing controlled functions.

    Thereafter, we consider other sources of regulation including measures designed to prevent financial crime as well as considering a number of European Union (EU) Directives, with special emphasis on the Markets in Financial Instruments Directive (MiFID).

    The next part of the syllabus is extremely important since it considers the FSA’s Conduct of Business Rules (COBS) and Client Assets Rules. MiFID has had a dramatic impact on these rules and this underlines the fact that regulation is increasingly being determined at the European level.

  • Principles of Financial Regulation (PFR)
    This module considers the regulatory environment in the UK and the background that led to the creation of the Financial Services Authority (FSA) as the sole regulator. Whereas the FSA Financial Regulation course covers rules that relate to both the wholesale as well as the retail side of the business, the course on the Principles of Financial Regulation concentrates only on matters affecting the wholesale side of the business.

    The role of the FSA is considered as well as the content of the FSA Handbook. The material also looks at the detail of The Financial Services and Markets Act 2000 (FSMA), defining regulated activities and specified investments, the authorisation process for firms and the approval process for individuals performing controlled functions.

    Thereafter, we consider other sources of regulation including measures designed to prevent financial crime as well as considering a number of European Union (EU) Directives, with special emphasis on the Markets in Financial Instruments Directive (MIFID).

    The next part of the syllabus is extremely important since it considers the FSA’s Conduct of Business Rules (COBS) and Client Assets Rules. MiFID has had a dramatic impact on these rules and this underlines the fact that regulation is increasingly being determined at the European level.

Technical modules

  • Asset Servicing
    The aim of this module is to ensure that candidates have a sound understanding of the fundamentals of asset servicing as far as this relates to the needs of operations and administration staff. By heightening candidates' understanding of the core and surrounding areas of work which impact on their day-to-day role, this subject aims to educate staff, thereby reducing the risk to the firm, and ultimately, the consumer.

    Subjects covered in this technical module include capital instruments and transactions, legal and compliance issues, the life cycle of an event, mandatory as well as voluntary events, initial public offerings, proxy voting, who the participants are, aspects of taxation and operational risk and controls.

  • Collective Investment Schemes Administration (CISA)
    The aim of this module is to ensure that candidates have an introduction to Collective Investment Schemes Administration as it relates to operations and administration staff.

    Following an introduction to CIS's, the material will look at regulatory controls, constitution of schemes, roles and responsibilities of the players involved and investment and borrowing powers. It will also look at the buying and selling of units or shares, registration and settlement, distribution of income, investor communications and of course, the taxation of collective investments.

  • CREST Settlement

    The aim of this module is to ensure that candidates have an understanding of CREST settlement as it relates to the needs of operations and administration staff.

    In order to achieve the above objectives the material looks at the scope and operational fundamentals of CREST, key concepts, the dematerialised settlement of domestic securities, the settlement of certified securities, stock lending and collateral, international settlement links, corporate actions and claims processing.

  • Exchange Traded Derivatives Administration (ETDA)
    The aim of this module is to ensure that candidates have an understanding of exchange-traded derivatives as they relate to the needs of operations and administration staff.

    To capture an overall picture of this subject the material goes into the history and development of derivatives markets, gives an introduction to futures and options, examines the use of derivatives, looks at the role of both the derivatives exchange and the clearing house, studies the basics of margining, clearing and settlement, derivatives regulation and compliance as well as operational risk and control.

  • Global Securities Operations
    The aim of this module is to ensure that candidates have an introduction to global securities services and administration as far as this relates to the needs of operations and administration staff.

    To gain an appreciation of this subject we will need to study the characteristics of securities, examine who are the main industry participants, understand settlement characteristics and have knowledge of other investor services. Finally, it will also be necessary to have a grasp of those aspects of taxation and risk that affect global securities operations.

  • ISA Admin
    Information on this module will be available shortly. Please read the news section of our website for information on changes to the ISA & PEP Administration unit.

  • ISA & CTF Admin.
    Information on this module will be available shortly. Please read the news section of our website for information on changes to the ISA & PEP Administration unit.

  • NEW IT in Investment Operations
    The aim of thid module is to ensure that candidates have an understanding of how the role of IT relates to investment operations.

    It contains nine elements covering information technology in the securities industry. It examines IT and the functional flow of financial instruments, the role of IT in the front office, the pre-settlement phase, the settlement and post-settlement phases. It then goes on to discuss the impact of IT on financial control. The module would not be complete without looking at IT management, the delivery of IT services and the increasingly important aspect of the globalisation of IT services. You can read the release notes for this module in our news section

  • Operational Risk
    The aim of the examination is to ensure that candidates have an understanding of operational risk as it relates to the needs of operations and administration staff.

    After a brief introduction to the subject, this technical module will investigate what exactly is credit, market and operational risk. It will look at the causes and effects of operational risk and the operational risk cycle. It will then go on to study support and control functions, integrated risk management as well as achieving common standards and protection.

  • OTC Derivatives Administration
    The aim of this module is to ensure that candidates have an understanding of OTC derivatives administration as it relates to the needs of operations and administration staff.

    The subject is introduced and the material then examines forward rate agreements (FRAs) and swaps, OTC options and other principal derivative products. The material then looks at pricing considerations and risk theory. It then concludes by looking at finance, accounting and regulation issues as well as operations as they relate to the product.

  • Private Client Administration
    The aim of this module is to ensure that candidates have an understanding of private client administration as it relates to the needs of operations and administration staff.

    This technical module is made up of ten elements starting with an introduction. The material then goes on to look at client assets, data and record keeping, settlement and corporate actions. It looks at collective and tax incentivised savings schemes and reviews the taxation position as it relates to private clients. It concludes by looking at other types of client account, overseas investment and closing accounts, covering wills, probate, legacies etc.

    For full details of the IAQ syllabus, exam fees and to find out about exemptions please visit www.sii.org.uk

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