«Investors are more aware today than ever of the risks associated with regulatory non-compliance»

On Tuesday, 12.11.2024, I made another visit to MRB Fund Partners AG in their representative offices between Paradeplatz and Lake Zurich. This time, a discussion on «Regulatory Aspects» was planned. I prepared several questions, which I put to Markus Töllke, Volker Varnholt and Peter Vrkljan. And I was very impressed by the service package on offer. It allows fund managers to concentrate fully on their daily work – which is what they like to do and do best -, i.e. managing capital and maintaining contact with their existing and new clients. Until this half-hour conversation, I didn’t realise how easily and professionally all this can be outsourced. Thomas J. Caduff, CEO, Fundplat LLC

• Caduff: Gentlemen, for most clients, MRB operates as a «regulatory host». What is it and how does it work?

Assuming full regulatory and operational responsibility for different types of investment vehicles is the core part of what MRB does. Peter Vrkljan

Vrkljan: Assuming full regulatory and operational responsibility for different types of investment vehicles is a large part of what MRB does. To our clients, this function should feel like working with a trading desk or middle office. From a more formal standpoint, MRB acts as the «regulatory host». In this role, MRB assumes full regulatory responsibility in portfolio management, providing non-licensed business partners the environment to operate safely in a FINMA compliant set-up that MRB provides. This includes risk management, compliance, reporting and a fund’s life-cycle management.

• Caduff: What are the benefits of «regulatory hosting»?

Varnholt: We are witnessing increasing regulatory scrutiny everywhere in financial markets. As a result, investors are more aware today, than ever of the risks associated with regulatory non-compliance. MRB’s partnering investment managers are embedded into a robust, compliant and scalable institutional framework. The benefits of «regulatory hosting» are obvious against this backdrop. Investment managers can concentrate on what is most important to them and increase efficiency massively.

• Caduff: Is fund marketing impacted when using a «regulatory host»?

The investment manager remains 100 percent in the spotlight. Markus Töllke

Töllke: The investment manager remains 100 percent in the spotlight. Our clients have their own white labelled fund, may develop their own brand, may have their own website, their own newsletter and their own presentation materials all of which are visually unrelated to MRB. So, presentation-wise, MRB clearly stays in the background as a service provider. The main purpose of «regulatory hosting» is to give investment managers full confidence to operate in a regulatory compliant framework while they can focus on the essentials – lean and efficiently.