What is a financial services company?

by | Jul 9, 2013 | Lawyer

A company that provides financial services in Aberdeen is an institution that offers a variety of financial services and products to the public, both business and individual. The financial services offered can be quite varied and consist of loans, leases, money transfer, insurance, savings and checking accounts and many others. A financial services company can be a brokerage house, an insurance company, an investment bank or a commercial bank. Not all financial services are available from each type of organization or institution, their offering depends on the company structure and government regulations.

The most easily recognized financial services provider in Aberdeen is a commercial bank. The high street bank offers customers savings and checking accounts, offer loans, wire money and a host of other services. These commercial banks operate on a for-profit basis and must operate in accordance with laws set by the central banking system.

An investment bank on the other hand specializes in underwriting the issue of equity securities. The typical investment bank is organized as groups of brokers and dealers with many agents operating in stock exchanges both domestically and round the world. Often, an investment bank is called upon to offer their services to private investment groups or high net worth individuals who are looking to purchase large blocks of equity securities.

Investment banks are often brought in at the time of mergers between companies or the acquisition of a company by another, they are also used when the company is restructuring. To offer brokerage services, a license is required.

A common corporation offering financial services is a credit union who offers banking and lending services to its member base. The credit union is normally 100% member owned and operated. Monies that are deposited in the credit union represent partial ownership of the organization; credit unions are often formed by labour unions, educational institutions, the police and military and other formal organizations.

Insurance companies offer policies to their clients which are designed to insulate them from future loss of capital. This financial services company may offer policies to corporations, individuals or to groups of people, most often group plans are presented to employees as a benefit of employment and perhaps include life, health and disability plans.

In the event you are buying your first home and you require certain financial services you are invited to discuss your needs in an impartial manner with Peterkins Solicitors Aberdeen.

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