Know Your Partner
The combined verification process for asset managers.
What KYP is:
Everything required to onboard you as a counterparty to the platform and the institutional custodian. It covers:
- KYC on principals
- KYB on the firm
- AML and sanctions screening on both
- Operational due diligence on trading infrastructure and controls
- Documentation of regulatory licences or exemptions
This isn't separate from onboarding. It is onboarding.
Why KYP exists:
Two reasons.
The partner relationship. MakeBanc is made possible by the connectivity of sophisticated partner solutions, each bound by specific serviceability requirements for specific individuals and businesses. MakeBanc is obligated to review both Investors and Partners to ensure compliance with their requirements.
Platform integrity. Investors allocate based on the asset manager information displayed. If that information is inaccurate (wrong principals, fake licences, unverifiable track record), the platform has failed. KYP prevents that.
What's collected:
Five categories. Each is detailed in the Infrastructure Agreement.
Corporate. Constitutional documents. Certificates of good standing. Recent registry records. Beneficial ownership records for all natural persons holding 25%+ economic or voting interest.
Personal. Government ID, address verification, and AML/sanctions screening for principals and key personnel: anyone running the firm or with trading authority.
Regulatory. Copies of licences, registrations, or exemptions. Where you operate under an exemption, evidence of it.
Financial. Source of funds and source of wealth for the firm. Financial statements or audited accounts where available. Where audited accounts aren't available, alternative evidence of standing.
Operational. Trading infrastructure details (exchanges, API connections, monitoring tools). Operational controls (trade approvals, key access, decision review). Continuity arrangements (what happens if a key person is unavailable).
How documentation is shared:
Through the platform's onboarding flow: upload, encryption, and routing.
Your information is shared with service providers (custodian, banking partners, regulated entities the platform connects to) to the extent reasonably required. Service providers maintain confidentiality consistent with the platform's own obligations to you.
The platform restricts internal access to personnel with a legitimate operational need and retains documentation for legal, audit, and dispute-resolution purposes only.
Ongoing obligations:
KYP is not one-time.
You must notify the platform of material changes within ten business days: new principal, beneficial ownership change, regulatory status change, new investigation or enforcement action.
Annually, you provide a written attestation that you remain in compliance with operational security requirements and that KYP information on file is accurate. Short and standardised.
If material discrepancies emerge between your KYP records and actual operations, the platform may pause SMA access pending clarification. This is documented in the Infrastructure Agreement.
Audit rights:
The platform can audit your compliance with the Infrastructure Agreement, including your strategy's operating terms and operational security requirements. Once per year at most, or more frequently with reasonable basis to suspect a material breach.
Ten business days written notice. Conducted by the platform team or a third-party firm under confidentiality obligations. Investor data outside explicit consent arrangements is not subject to access.
You bear your own audit costs unless the audit identifies a material breach, in which case you reimburse the platform's reasonable costs.
Industry-standard language. It exists for cases that should never happen.