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VMby u/varga_maja·8hDiscussion

KYB Friction with Multiple Prop Firms – Anyone Else?

Been looking at expanding into another prop firm lately to diversify capital and risk, but the onboarding process, specifically the Know Your Business (KYB) checks, seems to have gotten increasingly convoluted. I'm talking about providing notarized documents for beneficial ownership, proofs of address for every single director, and sometimes even bank statements for the corporate entity itself – and all this for firms that are essentially just providing simulated capital. It's not the individual KYC that's the issue, it's the corporate layer for those of us operating through an LLC or similar. It feels like an unnecessary hurdle given the nature of the service, and the time sink is becoming a genuine deterrent. Is anyone else encountering this level of friction across multiple firms, or have I just picked a couple of particularly stringent ones recently?

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1 Comments

STu/sofia_t·4h

It's not just you. The KYC/KYB landscape has definitely tightened up across the board, likely due to increased regulatory scrutiny after some of the recent industry shake-ups. It's a pain, but understandable from their risk management perspective.

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