An unusual asset class is not a reason to relax the controls. If anything it is the reason to tighten them — particularly around custody, valuation and the ability to actually sell.
Applied consistently, whatever the asset happens to be.
Where does the asset physically or legally sit, in whose name, and what happens to it if the counterparty fails?
Who values it, on what method, how often, and is that party independent of the person recommending it?
What is the honest time to sell in a poor market, and what is the discount to the carrying value in that scenario?
How the asset is characterised in each relevant jurisdiction, since the answer often differs and drives the reporting.
An asset whose safekeeping cannot be described precisely is not administered, whatever its expected return.
There is no third option. An unlabelled internal mark is not acceptable in a trust account.
They are far harder to impose after an asset has performed well.
Non-standard assets attract non-standard provenance questions. See the AML & KYC Policy.
Scope note. Navicella Investment Trust is a Liechtenstein trusteeship. The capability described on this page is exercised only within the terms of an individual mandate deed. Nothing here is an offer, a solicitation, or investment, legal or tax advice, and no advisory relationship arises from reading this page.
The useful first conversation is about what the structure must achieve.
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