Legal and Regulatory Compliance
What regulatory frameworks govern Manifest?
Manifest operates under BVI and Cayman law and complies with relevant U.S. securities laws and financial regulations. Our structure is designed to ensure compliance while maximizing accessibility and efficiency for global investors. We maintain ongoing legal and regulatory compliance monitoring to adapt to evolving regulatory landscapes.
How does Manifest handle KYC/AML compliance?
We implement comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols in compliance with BVI regulations. This includes identity verification processes for all investors, transaction monitoring, suspicious activity reporting, and other standard compliance measures. Our procedures are designed to balance security and compliance with user experience.
Are there any investor accreditation requirements?
Manifest's compliance framework addresses all relevant regulatory requirements while maximizing accessibility. The specific accreditation requirements for investors depend on their jurisdiction and the regulatory pathways we utilize for various investor categories. Our platform guides investors through the appropriate onboarding process based on their specific situation.
How does Manifest address cross-border regulatory issues?
We've developed comprehensive strategies for navigating international regulatory considerations, including country-specific compliance measures and structures designed to comply with international investment regulations. Our approach enables global investors to access U.S. private markets while respecting relevant jurisdictional requirements.
How are investor rights protected?
Investor rights are protected through multiple mechanisms:
Legal structures that protect investor interests in the underlying assets,
Transparent onchain recording of all transactions,
Compliance with relevant securities regulations,
Governance protocols that align Manifest's incentives with investor outcomes, and
Regular reporting and disclosure.
What privacy protections are in place for investors?
We implement robust privacy protections for all investor data, complying with relevant data protection regulations. Personal identifying information is securely managed with industry-standard encryption and access controls. We minimize data we collect and store to limit risks to privacy.
How are the underlying real estate assets insured?
The properties backing our HEIs are required to maintain appropriate homeowners insurance and other insurances, such as flood insurance, where required. Where necessary, insurance can be force-placed by the servicer to protect the property if the homeowner stops paying for their policy.
What legal structure underpins Manifest and $USH?
Manifest operates through a carefully designed legal structure that optimizes for regulatory compliance, investor protection, and operational efficiency. Manifest consists of three entities: Manifest Foundation, a Cayman foundation company, Manifest BVI Ltd., a BVI business company, and U.S. Asset Holding Co., a Delaware corporation. Manifest Foundation wholly owns Manifest BVI Ltd.; Manifest BVI Ltd. wholly owns U.S. Asset Holding Co. $USH is issued by Manifest BVI Ltd. to power permissionless transfer of $USH. These entities are bankruptcy remote from Villcaso Corporation which provides operational and technical services to each.
Are there any transfer restrictions for $USH?
Users are required to follow the rules for transfers that apply to the jurisdictions in which they are planning a transfer. This means, where necessary, registering a transaction or making transfers pursuant to exemptions to registration.
There are no technical restrictions on transfers after an investor receives $USH that is not subject to restricted securities status.
How does the tax-efficient structure of $USH work?
$USH benefits from two primary tax efficiencies:
The Collateral Pool of HEIs benefits from Section 1031 like-kind exchanged on HEIs that are settled. This allows the protocol to reinvest the proceeds of settled assets without paying capital gains taxes or withholding tax associated with U.S. taxes on real estate transfers.
Non-U.S. investors have the opportunity to benefit from the tax laws in their local jurisdiction and the Virgin Islands to reduce the taxes they pay versus what they would owe if they purchased the same real estate in the U.S. directly.
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