Overseas Investment Accounts
One of the ways that corporations and individuals, regardless the country in which they reside, have been able to maximize their profits, do their business privately and further grow their assets has been by maintaining overseas investment accounts.
An overseas investment account is an account held in an overseas investment bank that offers services that enable customers to raise funds and assets from capital markets internationally.
Due to this, an overseas investment account serves as a means by which products are traded (bought and sold) via what is referred to as proprietary trading. This type of trading through an overseas investment account is conducted by a certain trading group or group of traders who normally would not directly be in contact with the principal risk or the holder of the overseas investment account.
To complement the trading facilities for overseas investment accounts, the banks in which such account is opened provides numerous complex facilities and transactions such as forex exchange platforms, pension management, equity securities trade, merger consultancy, hedge and mutual funds, acquisitions , divestment and commodity and derivatives. Overseas investment accounts thus provide a platform for investing internationally in an environment that is specially designed for this type of business.
Within the framework of international banking, overseas investment accounts are ideal for obtaining merchant banking and sales and trading services, structuring and research, strategy planning and managing investments; investment and corporate operations that are placed into two major groups, to include corporate finance and mergers/acquisitions. These overseas investment operations that can be accessed through an overseas investment account are usually located at what is referred to as the ‘front desk’, forming part of the marketing and sales department of the institution. Other services that can be integrated into an overseas investment account include risk and financial management, which is supervised by the financial services department or ‘middle office’ of an overseas investment bank.
Overseas investment accounts are different from regular overseas accounts held in commercial banks since deposits are not normally accepted since the main function is to provide customers with retail loans that are intended for use in trading and investment projects internationally. An overseas investment account can also be opened with investment service providers such as moderate to large firms established by trained professionals who specialize in the areas f technical analysis, trading bonds and counseling in mergers and acquisitions. These types of firms which may also help with the maintenance and management of an investment account overseas are called ‘boutiques’.
This said, however, an overseas international account does not necessarily have to be kept with an investment bank because banks nowadays have grown to be such complex institutions that a wide scope of services and products are made available in addition to overseas international accounts to the international public. Special departments would be established to deal with overseas investment accounts, securities trading, trustee services, the demands of international business companies private companies and asset management.
Opening an overseas investment account can be done via the internet and may not require any travel since documents can be faxed, scanned and emailed or mailed by international courier to the bank. Similarly, documents and forms can be downloaded via the internet and all requisites, terms and conditions for opening an overseas investment account can be calmly read through.