Situation
An aspiring Manager, who wanted to set up his own business, examined the different ways to start his own business.
The solution he original favored was a managed account structure, as he needed a solution with a fast time-to-market as well as low costs. Especially since he wanted to set up his asset management business from scratch.
At second glance, however, he found a lot of disadvantages: on the one hand, this account structure was only suitable for a very small number of clients. On the other hand, onboarding was very complicated as he would always need a proxy. MIFID 2 and the new reporting requirement posed another problem because it would create a potential administrative nightmare for the manager and could be very time consuming. Worse yet, with a managed account structure, he would not have been able to produce a proven track record over time.
Solution with iMaps
When he approached us to learn more about the alternative structure we offered – the ETI Solution – he was quickly convinced of the benefits. The ETI is a publicly traded security and can be purchased by the client’s broker via DVP or on the stock exchange. This setup is suitable for many new customers and the ETIs can be offered publicly with a minimum investment of € 1,000 or through private placement.
Upon request, we will prepare the yearly PRIIPS required for distribution to private customers. This means that the manager is deprived of the entire administrative nightmare. Since the ETI is a certified structure, the manager can build up a proven track record. Now, with iMaps ETIs, the manager has a very competitive and cost-effective solution and can focus on managing and selling his product.
