Regulatory Disclosures

1. Regulatory Registration

MADAXA operates as a registered investment advisor (RIA) in multiple jurisdictions. Our regulatory status and filings are publicly available through the following authorities:

Copies of our Form ADV (for US clients) and equivalent regulatory filings are available upon request.

2. Fiduciary Duty

As a registered investment advisor, MADAXA operates under fiduciary duty, which means:

• Best Interest Standard: We are legally obligated to act in your best interest at all times
• Duty of Care: We must provide advice based on thorough analysis and professional judgment
• Duty of Loyalty: We must prioritize your interests above our own financial gain
• Full Disclosure: We must disclose all material conflicts of interest

3. Fee-Only Compensation Model

This compensation structure is intentionally designed to eliminate conflicts of interest and ensure our recommendations serve only your objectives.

4. Potential Conflicts of Interest

While our fee-only model minimizes conflicts, we disclose the following potential areas:

4.1 Service Provider Relationships

We maintain professional relationships with various service providers (attorneys, tax advisors, custodians). While we do not receive compensation for referrals, these relationships could theoretically influence our recommendations. We mitigate this through:

• Maintaining relationships with multiple providers in each category
• Regular competitive assessments of provider capabilities and pricing
• Client freedom to select alternative providers

4.2 Family Relationships

In rare cases where we advise multiple members of the same family, potential conflicts may arise if family members have divergent interests. We address this through:

• Clear disclosure of all family client relationships
• Separate engagement agreements for each party
• Information barriers when appropriate
• Declining engagements where conflicts cannot be properly managed

4.3 Asset-Based Fees

Our percentage-based fees on assets under advisement create a theoretical incentive to recommend strategies that increase total assets. We mitigate this through:

• Fixed retainer fees that reduce the impact of asset-based components
• Regular independent reviews of our recommendations
• Transparency about how fee changes would result from recommended actions

5. Risk Disclosures

5.1 Investment Risks

All investments carry risk. Key risks include:

• Market Risk: Investment values fluctuate with market conditions
• Liquidity Risk: Some investments cannot be quickly sold without price concessions
• Concentration Risk: Large positions in single assets increase portfolio volatility
• Currency Risk: Multi-currency portfolios face exchange rate fluctuations
• Regulatory Risk: Changes in tax laws and regulations can impact investment outcomes
• Manager Risk: Third-party managers may underperform or engage in inappropriate conduct

5.2 Alternative Investment Risks

Private equity, venture capital, and other alternative investments present additional risks:

• Limited liquidity and long holding periods
• Lack of daily pricing and valuation uncertainty
• Complexity and limited transparency
• Higher fees that may impact returns
• Potential for total loss of invested capital

5.3 Cross-Border Risks

International wealth structures involve specific risks:

• Complex and changing tax treaty provisions
• Political instability in certain jurisdictions
• Varying levels of legal protection and enforcement
• Currency controls and capital movement restrictions
• Differing accounting and reporting standards

6. Professional Qualifications

Our advisory team holds various professional designations and licenses:

• Certified Financial Planner (CFP®)
• Chartered Financial Analyst (CFA®)
• Certified Public Accountant (CPA)
• Licensed attorneys in relevant jurisdictions
• Chartered Alternative Investment Analyst (CAIA®)

All professionals are subject to continuing education requirements and professional codes of conduct.

7. Privacy and Data Security

We maintain comprehensive policies to protect client information. For details, please refer to our separate Privacy Policy. Key commitments include:

• Encryption of sensitive data both in transit and at rest
• Multi-factor authentication for all system access
• Regular security audits and penetration testing
• Employee confidentiality agreements and background checks
• Compliance with GDPR, CCPA, and other privacy regulations

8. Business Continuity

We maintain comprehensive business continuity plans to ensure uninterrupted service:

• Redundant data centers with real-time backup
• Remote work capabilities for all critical functions
• Regular disaster recovery testing
• Succession plans for key personnel
• Insurance coverage for professional liability and cyber incidents

9. Anti-Money Laundering (AML) Compliance

MADAXA maintains robust AML programs in compliance with applicable laws:

• Customer identification and verification procedures
• Enhanced due diligence for high-risk clients or jurisdictions
• Ongoing transaction monitoring
• Suspicious activity reporting to appropriate authorities
• Regular staff training on AML requirements

10. Client Rights and Complaint Procedures

10.1 Your Rights

As a MADAXA client, you have the right to:

• Receive clear explanations of our recommendations
• Question any advice or decision
• Decline any recommended strategy without penalty
• Terminate the advisory relationship at any time
• Access all records related to your account
• File complaints with regulatory authorities

10.2 Complaint Process

If you have concerns about our services:

1. Contact your primary advisor to discuss the issue
2. If unresolved, escalate to our Chief Compliance Officer at compliance@madaxa.org
3. If still unsatisfied, you may file complaints with relevant regulatory authorities listed above

11. Regulatory Updates

Regulatory requirements evolve continuously. We will update these disclosures as necessary and notify clients of material changes. The most current version is always available on our website and through our client portal.

12. Contact Information

For questions regarding these regulatory disclosures or to request additional information:

MADAXA Compliance Department
Email: compliance@madaxa.org
Offices: New York | Paris | Dubai | Singapore