Acronyms Flashcards
AAR
Account Activity Review team
- reviews adverse media & sanctions of high risk clients
ABS
Asset Backed Securities -
Type of investment that is collateralized by an underlying pool of assets, usually ones that generate a cash flow from debt, such as loans, leases, credit card balances or receivables
ABSs are created when a company sells it’s loans or other debts to an issue, a financial institution that then packages them into a portfolio to sell to investors
Mortgage Backed Securities (MBSs) and collateralized debt obligations (CDOs) can be considered types of ABS
AFV
Alternative Financial Vehicle or an Investment Vehicle
- is a legal entity created to fulfill a narrow, specific or temporary purpose, maintain confidentiality, or hold assets.
Common types include :
Special Purpose Vehicle
Orphan SPV
Private Investment Companies
Offshore Internal Business Corporations
Offshore operating PICs/IBCs
SPV
Special Purpose Vehicle
Entities formed to issue securities created by customers - as partnerships, trusts, corporations or other structures for a single, well defined and narrow purpose
Orphan SPV
A Special Purpose Vehicle with an “orphan” ownership structure
Is ultimately owned by a charitable or purpose trust or foundation:
- which is discretionary in nature
- with no traditional ownership structure evident
PIC
Private investment companies (PIC)
Refers to limited liability companies, corporations, and other entities that may be used for holding private investments and assist in tax and estate planning.
PICs are typically used to hold an individual’s funds and investments (although some PICS are operational); ownership can be vested through bearer or registered shares.
Offshore IBC
Offshore Internal Business Corporations (IBC)
PICs (Private Investment Companies) formed in a jurisdiction that is different from the primary country of residence of the main Ultimate Beneficial Owner.
Generally formed in offshore financial centres, which can be used to maintain confidentiality or hold assets. Offshore financial centers have limited organizational disclosure and recordkeeping requirements.
Offshore Operating PICs/IBCs
Is an Offshore Private Investment Company (PIC) where there is an operating business being conducted through the Offshore PIC.
These companies exist on paper but have no physical presence in the country in which they are incorporated; however, they are the repository for the working capital, routine transactions and income from operating entities.
(Basically just used to manage money and business activities for companies operating globally for tax and regulatory benefits) - Like holding assets - kind of Shell company
BNY’s 10 main customer types -
These customers maintain similar risk characteristics and are consequently grouped together to support and align with the Customer Risk Rating (CRR) methodology
Bank
Non-Bank Financial Institutions (NBFI)
Fund
Government
Corporations and Partnerships
Trust
Non Profit Organizations
High-Net Worth (HNW)
Mass Market Individuals (MMI)
Alternative Financial Vehicles (AFV)
AIS
Alternative Investment Services -
Providing middle and back-office services to alternative investment funds
Name 5 - Alternative Investment Funds
-Investment fund that take both long and short positions, use arbitrage, but & sell undervalued securities, trade options or bonds, & invest in almost any opportunity in any Market where it foresees impressive gains at a reduced risk.
- Only accredited investors can invest (wealthy financial savvy investors)
- Hedge Funds
- Real Estate Funds
- Private Equity Funds
- Fund of Funds
- Credit & Private Debt
Hedge Funds
- Invest in equity, Fixed income
- MAN Group / Bridgewater
Real Estate Funds
- Invest in real estate investment trusts (REITs)
- PGIM / Oak Street
Private Equity Funds
- Invest in hard to price assets (Companies, Art, etc)
- BlackRock / Neuberger Berman
Fund of Funds
- Invest in other hedge funds/mutual funds
- Grosvenor / PRISMA
Credit & Private Debt
- Invest in debt/loan products
- Alcentra
Middle Office Services - What do they include?
- Asset Pricing
- Security Lending
- Liquidity and Cash Management
- Transaction Management
- Asset Attribution
Back Office Services - What do they cover?
- Fund Accounting
- Investor Transaction Management
- Investor Accounting / Transfer Agency
- Financial Reporting
- Investor Reporting
- Custody
- Fund / Investor Regulatory Compliance
What is a ‘Public Corporation Registry’?
- U.S. State use SOS / Certificate of Good Standing.
- Cayman Islands uses a Cayman Islands General Registry
- UK - Companies House
APAC
Asia Pacific
EMEA
Europe, Middle East and Africa
LaTAM
Latin America
NYSE
New York Stock Exchange
OFAC
US Office of Foreign Assets Control
PRR
Product Risk Rating
PAC
Political Action Committee
OCC
Office of the Comptroller of Currency 💲
The board of directors of the NA (National Association?) have responsibility for management of fiduciary activities
CTOC
Corporate Trust Oversight Committee
- created by the National Association
Trust Investment Committee Overview - CSMs
Client Service Managers (CSMs) are responsible for:
- Notifying the TIC secretary of newly identified accounts
- Entering accounts into the database and ensuring investments are made post-meeting
Trust Investment Committee Overview - GMs
Group Managers (GMs) are responsible for:
- Reviewing and approving CSM entries
- Ensuring CSM staff invests their accounts properly
Trust Investment Committee Overview - GLS
Global Liquidity Services (GLS):
- Reviews the investment language to make recommendation
- Annual Investment presentation
Trust Investment Committee Overview - TIC Secretary
- Reviews all accounts pre-meeting and prepares meeting content
- Creates minutes and CTOC reports post meeting
A Bank can be categorised into the 3x following types:
- Commercial Bank or Trust - (Private Bank) - Savings and Loan association or a Building & Loan Association.
- Insured institution - (Savings Bank / Industrial Bank / Thrift Institution) - Credit Union
- Other Organisation (except a money services business) - a Bank organized under foreign law - any National Banking Association or Corporation
