Know Your Client

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Know Your Client

A form containing detailed information on the risk tolerance and investment goals of the client of a brokerage. The KYC form helps ensure that an investment adviser or broker does not make decisions that do not conform to the client's intentions. Filling out a KYC form does not mean that the investment adviser always makes correct decisions; it merely requires him/her to make decisions that will be generally accepted as sound for someone who seeks to do what is in the client's best interests. See also: Prudent-Person rule.
References in periodicals archive ?
5m is to be levied on the bank for not abiding by guidelines and instructions related to know-your-client (KYC) and anti money laundering (AML) norms.
It also increased prison sentences for money laundering to a maximum of 12 years, tightened existing know-your-client requirements and imposed stricter rules for banks and lending institutions about reporting deposits of over $10,000.