Onboarding Friction for Small/Medium Funds - KYB/AML Grind
Anyone else hitting a wall with KYB/AML when trying to onboard new prime brokerages or even just expanding PSP relationships? It seems like every new entity wants the complete operational genome, which I get for compliance, but the repetition is insane. We're a small fund, established, clean, but the paperwork/data request load feels disproportionate. It's not just the initial intake, it's the constant follow-ups, the specific formatting, the deep dives into UBOs that haven't changed in years. We've spent more time this quarter chasing down attested documents and re-explaining our ownership structure than actually trading. It's becoming a real bottleneck for expanding liquidity options and diversifying our counterparties. Any tips for streamlining this? Is there a sweet spot for the size of fund where this burden lessens, or does it just get worse the larger you get due to complexity?
Oh, absolutely. It's like they've all outsourced their onboarding to a single, overzealous AI that thinks every fund manager is secretly a Bond villain laundering a small country's GDP. You'd think after the third time providing the same ultimate beneficial owner's utility bill, someone would catch on.