Trade Finance Consultancy and Portfolio Management refers to a business activity that involves providing expert advice and services to clients in the realm of trade finance and managing investment portfolios. Trade finance consultancy entails assisting companies with their international trade transactions by offering guidance on financing options, risk assessment, compliance with regulations, and optimising cash flow. Portfolio management, on the other hand, involves overseeing and optimising investment portfolios on behalf of clients, ensuring diversification, risk management, and potential for returns. In combination, this business activity aims to support businesses in effectively navigating trade finance challenges and maximising their investment opportunities.
The business activities that fall under Trade Finance Consultancy And Portfolio Management are:
Investments consultancy (6619.11)
This activity is closely related to managing investment portfolios within the context of trade finance. Trade finance encompasses the financial instruments and services used in international trade, such as letters of credit, bank guarantees, and export/import financing. When businesses engage in cross-border trade, they often require expert advice on how to allocate their financial resources effectively and mitigate risks associated with international transactions. Investment consultancy, in this context, offers guidance on investment strategies, asset allocation, risk assessment, and portfolio optimization specifically tailored to the trade finance industry.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.11 must meet this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.11 is exempt from this requirement.
Compliance consultancy (6619.12)
This activity plays a vital role in ensuring adherence to regulatory requirements and industry standards within the trade finance and investment landscape. Trade finance transactions involve various regulations and compliance obligations, such as anti-money laundering (AML), know your customer (KYC), and sanctions screening. Compliance consultancy offers guidance and support to businesses in navigating these complex regulations, developing robust compliance frameworks, conducting risk assessments, and implementing effective control measures. Similarly, in portfolio management, compliance is crucial to ensure adherence to legal and regulatory frameworks governing investments.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.12 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.12 is exempt from this requirement.
Financial advisory and financial analysis (6619.13)
This activity provides essential guidance and analysis in the areas of trade finance and investment portfolios. Financial advisory services offer expert advice on various financial matters, including trade finance options, capital structuring, risk management, and investment opportunities. In the context of trade finance consultancy, financial advisors assist businesses in understanding the financial implications of international trade transactions, optimising cash flow, and identifying suitable financing options. Additionally, financial analysis is crucial in portfolio management to assess the performance and potential risks of investment portfolios, conduct market research, and make informed investment decisions.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Securities and Commodities Authority (SCA).
- Filing of Economic Substance Return: Business activity 6619.13 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.13 is exempt from this requirement.
Financial consultancy (6619.14)
This encompasses a broad range of financial services that are relevant to both trade finance and portfolio management. Financial consultancy involves providing expert advice and guidance on financial matters, including financial planning, risk management, capital budgeting, and investment strategies. In the context of trade finance consultancy, financial consultants assist businesses in understanding and optimising their financial operations related to international trade, such as structuring trade finance facilities, managing foreign exchange risks, and evaluating the financial viability of trade transactions. Moreover, financial consultancy is also integral to portfolio management as it offers insights and expertise in areas like asset allocation, risk assessment, and performance evaluation of investment portfolios.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.14 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.14 is exempt from this requirement.
Financial Consultation & Financial Analysis (6619.89)
Financial consultation involves providing expert advice and guidance on various financial matters, including trade finance strategies, risk management, financial planning, and investment decisions. In the context of trade finance consultancy, financial consultants assist businesses in understanding and optimising their financial operations related to international trade, ensuring efficient cash flow, evaluating financing options, and managing risks associated with trade transactions. Financial analysis, on the other hand, is crucial in portfolio management to assess the performance and potential risks of investment portfolios, conduct market research, and make informed investment decisions.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Securities and Commodities Authority (SCA).
- Filing of Economic Substance Return: Business activity 6619.89 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.89 is exempt from this requirement.
Banking Consultant (6619.90)
This activity involves providing specialised expertise and guidance in banking services related to trade finance and portfolio management. Banking consultants offer advice on various banking products and services, such as letters of credit, bank guarantees, cash management, and trade financing options. They assist businesses in navigating the complex banking landscape, optimising financial transactions, and mitigating risks associated with international trade. Additionally, banking consultants play a crucial role in portfolio management by providing insights into banking relationships, investment banking services, and advising on the selection of appropriate banking partners.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.90 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.90 is exempt from this requirement.
Financial Instruments Quotation Services (6619.91)
This provides essential support in obtaining accurate and up-to-date pricing information for various financial instruments relevant to both trade finance and portfolio management. These services involve providing quotations for financial instruments such as stocks, bonds, derivatives, currencies, and commodities. In the context of trade finance consultancy, having access to reliable and timely quotations for financial instruments is crucial for evaluating trade finance options, managing risks, and optimising cash flow. Similarly, in portfolio management, accurate pricing information is essential for valuing investment instruments, assessing portfolio performance, and making informed investment decisions.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.91 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.91 is exempt from this requirement.
Loans & Overdues Rescheduling Services (6619.92)
This directly addresses the management and restructuring of loans and overdue payments within the realms of trade finance and portfolio management. These services involve assisting businesses in renegotiating loan terms, rescheduling payments, and managing arrears. In trade finance, businesses often encounter challenges in meeting repayment obligations due to factors like fluctuating cash flows or unforeseen circumstances. By providing loans and overdues rescheduling services, consultants can help businesses navigate these difficulties, minimise financial risks, and ensure the continuity of trade operations. Moreover, within the portfolio management context, managing loans and addressing overdues is essential for optimising the performance and risk profile of investment portfolios.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.92 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.92 is exempt from this requirement.
Real Estate Mortgage Consultancy (6619.94)
This activity intersects with both trade finance and portfolio management in relation to real estate investments. Real estate mortgage consultancy involves providing expert advice and guidance on obtaining mortgage financing for real estate transactions, assessing mortgage options, and navigating the complex mortgage market. In trade finance, real estate plays a significant role as collateral for financing and investment purposes. Additionally, within portfolio management, real estate investments can be an integral part of a diversified portfolio.
Please note that this activity can only be combined with other Group 3 RERA business activities.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Real Estate Regulatory Agency (RERA).
- Filing of Economic Substance Return: Business activity 6619.94 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.94 is exempt from this requirement.
E-Banking (6619.95)
This represents the digitalization of banking services, including online banking, electronic fund transfers, and electronic payment systems. E-Banking plays a significant role in trade finance by providing efficient and secure platforms for conducting international transactions, managing trade financing, and facilitating cross-border payments. It enables businesses to streamline their financial operations, access real-time information, and execute trade finance activities more effectively. Moreover, in portfolio management, e-banking platforms offer convenient access to investment accounts, portfolio tracking, and online trading, enhancing portfolio management efficiency and providing timely updates on investment performance.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Central Bank of the UAE.
- Filing of Economic Substance Return: Business activity 6619.95 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.95 is exempt from this requirement.
Real Estate Mortgage Broker (6619.96)
This combines expertise in real estate financing and portfolio management. Real estate mortgage brokers specialise in helping individuals and businesses secure mortgage financing for real estate transactions. In the context of trade finance consultancy, real estate plays a significant role as collateral for financing and investment purposes. Real estate mortgage brokers assist businesses in identifying suitable mortgage options, negotiating terms, and obtaining financing for their trade-related real estate assets. Additionally, their expertise in portfolio management allows them to provide guidance on structuring real estate investments within investment portfolios, optimising returns, and managing risks.
Please note that this activity can only be combined with other Group 1 RERA business activities.
- Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Real Estate Regulatory Agency (RERA).
- Filing of Economic Substance Return: Business activity 6619.96 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.96 is exempt from this requirement.
Collateral Management Services (6619.97)
This plays a vital role in managing and optimising collateral assets within the context of trade finance and portfolio management. Collateral management services involve assessing, monitoring, and administering collateral assets pledged to secure financing or investments. In trade finance, collateral assets provide security for lenders and facilitate access to financing for businesses engaged in international trade. Within portfolio management, collateral assets can be utilised to enhance the creditworthiness of investment portfolios and mitigate risks.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.97 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.97 is exempt from this requirement.
Credit Review Services (6619.98)
This involves evaluating the creditworthiness and risk associated with borrowers and their trade finance activities within the context of portfolio management. Credit review services assess the financial health, repayment capacity, and creditworthiness of individuals, businesses, or entities seeking trade finance facilities. These services play a crucial role in managing credit risk and ensuring the viability of trade finance transactions. Additionally, within portfolio management, credit review services help in evaluating the credit quality of investments, assessing the risk profile of portfolios, and making informed investment decisions.
Please note that this activity cannot be combined with other activities.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.98 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.98 is exempt from this requirement.
Financing Broker (6619.99)
This involves connecting businesses with suitable financing options for trade-related activities while considering their portfolio management objectives. Financing brokers specialise in identifying and arranging financing solutions tailored to the specific needs of businesses engaged in trade. By understanding both trade finance requirements and portfolio management goals, financing brokers can provide expert advice on financing options that align with a business’s investment strategies. They facilitate access to trade finance facilities, optimising cash flow, and managing risks, thereby serving as a crucial link between trade finance consultancy and portfolio management.
- Third-party Approval: No third-party approvals are required for this business activity
- Filing of Economic Substance Return: Business activity 6619.99 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 6619.99 is exempt from this requirement.
