LICENSING &CERTIFICATION
What the account-opening file needs
  1. 1. Know-your-client (KYC) & Suitability
  2. Calculators and Scratch Paper
  3. The Relationship the Rules Describe
  4. Clients Who Live Somewhere Else
  5. What KYC Has to Cover
  6. Tolerance, Capacity and Need
  7. Business Structures and Why They Change the Answer
  8. Writing It Down, and Having the Client Confirm It
  9. The Trusted Contact Person, and the Temporary Hold
  10. Who Owns KYC, and How Current It Has to Be
  11. What the Client File Holds
  12. Account Appropriateness
  13. The Account Types You Have to Compare
  14. What the Account-opening File Needs
  15. The Relationship Disclosure Document
  16. Keeping Confidential Information Contained
  17. The Welcome Package
  18. Product Due Diligence and Knowing the Product
  19. The Suitability Determination
  20. Unsolicited and Unsuitable Instructions
  21. Investment Actions
  22. Why Appropriateness and Suitability Are Separate Tests
  23. Monitoring, Triggering Events and Change
  24. Conflicts of Interest
  25. Outside Activities
  26. Personal Financial Dealings with Clients
  27. Standards of Conduct
  28. A Client, Worked End to End
  29. Twelve Ways to Lose Marks on This Element
  30. Fifteen Terms to Own
  31. One Item From CIRO's Practice Exam

Retail Securities • Chapter 1

Know-Your-Client (KYC) & suitability

What the account-opening file needs

How much a dealer collects at account opening, and what kind of detail, follows from three facts about the dealer: its business model, the products and services it offers, and the kind of relationship it forms with the client.

A self directed dealer that offers no advice collects what an order execution only relationship needs, which is narrower than a full advisory KYC record. A full service dealer collects the full picture, because it is going to make recommendations.

One KYC record can serve several accounts in defined circumstances, and the conditions are what the exam tests. It works when the accounts belong to the same client, when the information is still accurate for each of them, and when nothing about the second account changes the picture. A client opening a second cash account with the same money and the same objectives does not need a second interview. A client opening a corporate account alongside a personal account does, because the circumstances differ.

PreviousNext: The relationship disclosure document
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