Quote from marketsurfer:
you are surely not talking about a hedge fund, are you? Your clients don't mind you switching PB's after the offering documents state you are using XYZ PB?
How in the world do you unwind positions, build another relationship and switch PB's in 3 days??
surf
for one, depends what sort of investors you got, HNW wldn't give a toss as long as the new PB is of equal standing... for two, my offering documents need not tie me down to one and only one PB forever, just that clients will be notified ahead of any change that may be required, manager decision, for an equal standing PB or better... take or leave
building a relationship with a new PB takes the time it takes, i've only dealt with 2nd-tier PBs for now and its lightning quick, like 48hrs to get all the paperwork done if you have the right intros... who needs UBS... but even then...
now if you weren't running on a 2 PBs setup cause your size wldn't allow it, then you do have to wait for sign-off from yr "new" PB. once you've got that, you transfer the pozzies whichever way you have to, the cash by wire, but your clients need not be involved, are not impacted in any way...
with managed accts, you need to get them one by one to sign-up to the new broker, then to transfer monies from one broker to the other... one by one... if you think thats fun... and that they all do it just like that because you ask them, and all at the same time like just the day you ask...
anyway, last, the solution i am referring to earlier... its a Cayman SPC basically... say relationships are in place with Prime X & Prime Y, anyone of the segregated portfolios / sub-funds may opt for one or the other or both... and switch in a blink...
am i missing sthg?
