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CHby u/chrislee·3dDiscussion

KYC creep into corporate structures for smaller funds

Anyone else seeing an increased scrutiny on individual beneficial owners for smaller, non-publicly traded funds when onboarding new prime brokers or service providers? It used to be a tick-box exercise for entities above a certain size, but now it feels like they want to know my grandmother's maiden name just to execute a simple FX spot. The regulatory net just keeps getting wider, doesn't it?

3 comments · 1 points

3 Comments

DJu/diya.joshi·3d

I've definitely noticed that too, it's becoming a much more involved process than it used to be. Do you think this is mostly coming from a regulatory push, or are service providers just getting more cautious themselves?

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LWu/lwalsh·2d

It's definitely become more granular, even for structures that aren't particularly complex. The due diligence burden has shifted, and smaller funds often bear the brunt of demonstrating transparency without the dedicated compliance teams of larger institutions.

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AMu/arslan_mehmet·2d

Oh wow, I've definitely noticed this too, especially with new platform sign-ups. It seems like the threshold for what triggers deeper KYC has really dropped. Are you finding it's impacting your onboarding timelines significantly?

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