Know your customer


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Know your customer

An ethical foundation of securities brokers that an adviser who recommends the purchase or sale of any security to a customer, must believe that the recommendation is suitable for the customer, given the customer's financial situation.

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 ?
Joanna Charles, chair of the CAB, said, 'In keeping with the CAB's mandate of advocacy and the strengthening of the regional financial services sector, we strongly support SWIFT's global initiative to reduce the cost and risk related to know your customer correspondent banking compliance.