Darrell S. van Amen is the executive vice president (EVP), chief investment officer (CIO) and treasurer of HomeStreet, Inc. and HomeStreet Bank. He joined HomeStreet Bank in 2003 and, since 2010, has served as EVP and treasurer of HomeStreet Bank. Since 2012, he has served as the company's EVP, CIO, and treasurer. Prior to his current position with HomeStreet Bank, he was the vice president, asset/liability manager and treasurer of HomeStreet Bank from 2003 to 2010. Mr. van Amen is also a director of Habitat for Humanity Seattle/King County and serves on the Seattle University Advisory Board. He holds a bachelor’s degree in economics from Weber State University and a master’s degree in economics from Claremont Graduate University.
Impact of Latest Developments in Investment Management
I believe the changes in investment management that relate to a demand for higher returns and lower risk will ultimately result in poor performance. The increased use of technology and the lack of review of its output will ultimately be detrimental to the industry.
Experiences from One of the Projects You Were Recently Involved In
Most of our projects that relate to investment management and hedge performance have been directed toward simplifying the analysis and output. Whereby we can more effectively see the outcomes of our investment decisions.
Challenges within Investment Management Unresolved by Current Services
I think the most significant challenge today is the integration of technology and human interaction. We often rely too heavily on technology when communication or interaction with a human would result in a much more favorable outcome.
"The increased use of technology and the lack of review of its output will ultimately be detrimental to the industry"
Role of Technology in Enhancing Internal Control Environment
Technology has allowed us to be more effective in pre-trade compliance. We no longer have to rely upon several different types of trade capture for trade tickets. We are now able to more quickly and accurately align trading outcomes with best execution expectations.
Internal Control Mechanisms to Safeguard Company Assets and Prevent Fraud or Misuse
We use technology to manage and monitor trading limits and broker-dealer approvals. This has eliminated any trading limit breaches and execution trades with unapproved broker-dealers.
Internal Controls Integrated into Day-to-Day Operations to Ensure Compliance with Regulatory Requirements
The internal controls we have deployed help manage compliance where the middle office and the traders utilize the same trading and settlement system. Which is ultimately the bank's compliance architecture; this is then overlaid with regulatory requirements; in fact, as we are monitoring and managing the banks, internal compliance, policies and procedures, we are also complying with the regulatory environment.
Advice to Professionals in the Investment Sector
My advice is to deploy technology to help bring about efficiencies in calculation and trade execution. However, you need to employ bright and forward-thinking financial or economic professionals to interpret and properly execute the results of highly sophisticated technology and its models.
