Onboarding speed and KYB for small-cap funds
Curious if others are seeing increased friction with KYB/onboarding for smaller prop shops or emerging funds looking to establish direct broker relationships. Specifically, the lead time for getting fully verified and active, particularly for those with less than, say, $5M AUM. It feels like many prime brokers have really tightened up, making the process onerous for anyone not clearing substantial volume from day one.
We've had instances where even with clear due diligence, the legal and compliance hurdles seem disproportionately high, leading to significant delays in launching strategies. Is this a general trend, or are certain regions/broker types more amenable? Looking for insights, particularly regarding those specializing in multi-asset class access without demanding institutional-tier entry capital.