LICENSING &CERTIFICATION
Twelve ways to lose marks on this element
  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

Twelve ways to lose marks on this element

  1. Treating low tolerance as proof of low capacity, or the reverse. They are separate tests.
  2. Using a product's risk rating as a complete .
  3. Giving a authority to trade, instruct or see the account.
  4. Calling an unsolicited order an order execution only relationship.
  5. Answering a conflict question with disclosure alone, skipping avoidance and control.
  6. Presenting an annual KYC review as a regulatory requirement.
  7. Treating a signed KYC form as proof the information is true.
  8. Assuming a sophisticated client is automatically exempt from suitability, without the written instruction and the account conditions.
  9. Forgetting that holding a position is an investment action.
  10. Answering "managed account" for a client who wants to approve each trade.
  11. Describing the Canadian Investor Protection Fund as protection against market loss.
  12. Assuming the firm's product approval discharges the representative's know your product duty.
PreviousNext: Fifteen terms to own
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