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 ?
The QI obtains the know-your-customer documentation specified in its QI agreement for such beneficiaries/owners (other than a Form W-8, Instructions for the Requesters of Forms W-8BEN, W-8ECI, W8EXP, and W-8IMY); and
A company in the business of providing fiduciary services as a trustee and subject to approved know-your-customer rules may obtain QI status.
Informally, the trade press has reported, examiners have been instructing banks for years to set up know-your-customer policies, and by now most banks are collecting information on their customers' transaction patterns and, increasingly, combining such information into "profiles" of account activity.
On the other hand, many big banks, which have generally implemented know-your-customer programs already, seem to be on board with the plan; so does the American Bankers Association.
Before that, he held numerous senior management positions during a 10-year career at The Chase Manhattan Bank, New York, where he was responsible for anti-money laundering and know-your-customer initiatives and compliance program management.
Alacra Compliance helps financial institutions employ a consistent, comprehensive and documented process for Customer Identification Programs (CIP), Know-Your-Customer (KYC) efforts and Enhanced Due Diligence (EDD).
Our partnership with LAS allows our customers to feel confident that they are fulfilling their know-your-customer requirements," said Larry Levy, president and CEO of Semagix.
Many broker-dealers currently use a highly manual approach to collect this identity-based information and manage know-your-customer certifications.
In this era of know-your-customer, compliance certification is a natural extension to Communicator's customer verification platform," observes Michael Haney, senior analyst with research and advisory firm Celent.