SIAA Securities & Managed Investments study guide
SIAA Securities & Managed Investments · Work through your exam, one topic at a time.
The SIAA Securities & Managed Investments exam is a multiple-choice certification assessment for candidates working in, or preparing to enter, client-facing securities and investment management roles. It tests whether you can apply practical knowledge across the full advisory workflow: how markets and intermediaries operate and are regulated, how equities, fixed income instruments, collective schemes and derivatives are structured and priced, how portfolios are built and risk-managed, how suitability and client relationships are handled, and how market conduct, ethics and anti-money-laundering obligations apply in day-to-day business. The SIAA Securities & Managed Investments study guide has 8 sections and about 2,696 words.
01Securities Markets: Structure, Functions and Mechanics
Securities markets channel savings into issuers and give holders liquidity. Distinguish the primary market (new issuance: IPOs, rights issues, bond launches, where proceeds go to the issuer) from the secondary market (trading among investors, where proceeds go to the seller).
320 words, about 2 min02Market Participants and the Regulatory Framework
Map the ecosystem: issuers , investors (retail, institutional, professional/eligible counterparties), intermediaries (brokers, dealers, investment advisers, fund managers, custodians, transfer agents), market infrastructure (exchanges, clearing houses, central securities depositories) and regulators . Know the objectives of regulation: investor protection, market integrity, financial stability, transparency and fair competition.
297 words, about 1 min03Equities and Equity-Linked Products
Equities represent residual ownership : dividends are discretionary, and shareholders rank last on liquidation but typically hold voting rights. Understand ordinary vs preference shares , cumulative and participating preferences , treasury shares , and rights and bonus issues (rights raise cash and dilute; bonuses capitalise reserves with no cash).
312 words, about 2 min04Fixed Income Securities and Money Market Instruments
A bond is a loan: the issuer pays coupons and repays principal at maturity. Know price–yield inverse relationship , clean vs dirty price (dirty includes accrued interest), yield to maturity , current yield , and duration as a measure of price sensitivity (modified duration ≈ percentage price change per 1% yield move).
295 words, about 1 min05Collective Investment Schemes, Funds and Managed Investments
Collective schemes pool investor money under professional management. Distinguish open-ended funds (units created and redeemed at NAV) from closed-ended funds (fixed capital, traded on exchange, may trade at a premium or discount to NAV).
299 words, about 1 min06Derivatives, Structured Products and Alternative Investments
Derivatives derive value from an underlying. Know forwards, futures, options and swaps .
296 words, about 1 min07Portfolio Construction, Asset Allocation and Risk Management
Portfolio construction starts with the investment policy statement : objectives, risk tolerance, time horizon, liquidity needs and constraints. Know strategic asset allocation (long-term target weights) versus tactical asset allocation (short-term deviations).
289 words, about 1 min08Investment Advice, Suitability and Client Relationship Management
Advice must be suitable for the client. The process begins with know-your-client (KYC) : financial situation, investment objectives, risk tolerance, knowledge and experience, time horizon and liquidity needs.
588 words, about 3 min