Transfer Agency Administration and Oversight Quiz 06

Last Updated: June 2024

Table of Contents

Transfer Agency Administration and Oversight
Element 5
– The UK CASS Regime
On completion, the candidate should:
– know the principles and activities covered within CASS 6, CASS 7, CASS 8 and CASS 9 and their impact upon transfer agencies
– know the relevance of the following CASS features:
• CASS mandate definitions and purpose
• cash models
• DVP exemption
– know the relevance of the following CASS features:
• prudent segregation and record keeping
• client money reconciliation methods
• client money statements, frequency and content
• intraday cleared funds
– know the relevance of the following CASS features:
• CASS oversight and SMF 18/22
• the role of the auditor
• Financial Reporting Council (FRC) audit standards
• preparing for audits
• CASS resolution pack
• policy documentation

– Registration
On completion, the candidate should:

– know regulation and best practice in relation to powers of attorney
– know the management of deceased investors, including small estates
– know the registration process with respect to trusts
– understand the entitlement to inspection

– Settlement
On completion, the candidate should:

– know the regulatory requirements for settlement
– understand the different methods of settling investor transactions
– know the causes and implications of late and failed trades
– know the use and management of cheques plus other methods of payment and the pros and cons of each
– understand the application of FinTech to settlement and payment processes
– know the correct treatment of dormant assets
– understand the components of the post-settlement phase:
• reconciliation
• inventory management
• margin/collateral monitoring
– know key controls associated with the post-settlement phase
– Corporate actions
On completion, the candidate should:
– know:
• types of corporate actions and events
• the process required to execute corporate actions
• the role of the various parties involved
• client communications & proxy voting
• the risks and regulatory requirements associated with corporate actions

– Order Management
On completion, the candidate should:

– know the methods for direct and intermediary dealing
– understand the operational risks associated with:
• direct dealing
• intermediary dealing
– know different methods of dealing communication and associated benefits and risks:
• straight through processing (STP)
• telephone dealing
• fax
– know the application of switches and in-specie transfers
– understand the consequences of dealing errors and their impact upon profit/loss
– understand the difference between right and best price
– understand the difference between single and dual price dealing

Transfer of Title
On completion, the candidate should:
– understand the processes and information requirements relating to transfers by the holder, in favour of the AFM, and by the operation of law
– know the requirements for transfers:
• by the holder
• to the AFM
• to third parties
• by operation of law
• by electronic transfer
• via TISA exchange (TeX)

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