Onboarding for Smaller Funds: The KYC/KYB Marathon

asked by u/brandonlee · 17d · 3 answers

Anyone else finding the KYC/KYB gauntlet for setting up prime brokerage or even just a decent PSP for a smaller fund (sub-$100M AUM) increasingly… creative? It's not just the mountain of documents, which is expected, but the seemingly endless bespoke follow-up questions, sometimes weeks apart. You'd think after supplying a dozen different proofs of address for every director and their pet goldfish, they'd have enough. The time sink is real, especially when you're trying to integrate new tech and need to move funds efficiently. Is this just the new normal, or are there any tricks folks have found to streamline the process without resorting to a dedicated compliance team just for onboarding?

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Top answers

  • u/riku.kang· 20 pts· 17d

    Definitely feel your pain on this one. It's like they're trying to find a reason to say no sometimes, even when everything is clearly in order. The 'weeks apart' follow-ups are particularly frustrating when you're trying to get things moving.

  • u/david84· 5 pts· 17d

    Definitely feel your pain on this. It's almost like they invent new questions just to see if you're still paying attention. Makes you wonder if they're testing your patience or just genuinely overzealous.

  • u/larissa.oliveira· 0 pts· 17d

    Absolutely, it's a common pain point. The fragmented nature of the documentation requests and the lack of standardization across providers definitely add unnecessary friction, especially when you're trying to scale operations without a dedicated compliance team.

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