Northern Trust Operating Services Interview Questions, Process, and Tips

Transfer refers to moving assets from one account to another, while switches involve changing investments within the same account.

• Transfer involves moving assets from one account to another, typically between different financial institutions.

• Switches involve changing investments within the same account, typically within the same financial institution.

• Transfer may involve transferring funds, securities, or other assets.

• ...read more

CASS stands for Client Assets Sourcebook and GDPR stands for General Data Protection Regulation.

• CASS is a set of rules and regulations in the UK that govern the protection of client assets held by financial institutions.

• GDPR is a regulation in the European Union that aims to protect the personal data and privacy of EU citizens.

• CASS ensures that client assets are properly segregated and protected in case of insolvency o...read more

Client account is a financial account held by an individual or entity, while operating account is used for day-to-day business transactions.

• Client account is used to hold funds and assets on behalf of clients.

• Operating account is used for managing the daily financial activities of a business.

• Client accounts are typically used in financial institutions like banks and brokerage firms.

• Operating accounts are essential for ...read more

Stock transfer refers to the process of transferring ownership of shares from one party to another.

• Stock transfer involves the movement of shares from the seller's account to the buyer's account.

• Requirements for stock transfer include a properly executed stock transfer form, relevant supporting documents, and payment of any applicable fees.

• The stock transfer form typically includes details such as the names of the buye...read more

FCA stands for Financial Conduct Authority, a regulatory body in the UK. Suspicious activity refers to potentially illegal or fraudulent actions.

• FCA is the regulatory authority responsible for overseeing financial markets and firms in the UK.

• It sets standards for conduct and ensures compliance with regulations.

• Suspicious activity refers to actions that raise concerns about potential illegal or fraudulent activities.

• Exa...read more

The responsibility of a transfer agent is to facilitate the transfer of securities between buyers and sellers.

• Processing and recording transactions related to the transfer of securities

• Maintaining accurate records of ownership

• Issuing and canceling certificates

• Distributing dividends and interest payments

• Providing customer support and resolving inquiries

• Ensuring compliance with regulatory requirements

• Coordinating with ot...read more

Mutual funds and hedge funds are both investment vehicles, but they differ in their structure, strategies, and regulations.

• Mutual funds are open-end investment companies that pool money from multiple investors to invest in a diversified portfolio of securities.

• Hedge funds are private investment partnerships that typically have a limited number of high-net-worth investors and employ more complex investment strategies.

• Mu...read more

Transfer Out refers to moving funds or assets from one account to another, while Stock Transfer specifically refers to the transfer of shares or stocks.

• Transfer Out involves the movement of funds or assets from one account to another, such as transferring money from a savings account to a checking account.

• Stock Transfer specifically refers to the transfer of shares or stocks from one shareholder to another.

• Transfer Out...read more

The two key check points for redemption transactions are investor eligibility and fund availability.

• Investor eligibility: Ensuring that the investor meets the criteria for redemption, such as minimum holding period or minimum investment amount.

• Fund availability: Checking if there are sufficient funds available in the fund to fulfill the redemption request.

• Example: If an investor wants to redeem their investment in a mu...read more