Client Data Gathering

What this video covers

• Why the Know Your Customer (KYC) rule is a mandatory FINRA regulatory requirement, not a best practice or guideline
• The specific identity and background data points required under KYC: legal name, date of birth, tax identification number (Social Security number or Employer Identification Number), address, citizenship, and employment
• What standardized questionnaires are designed to capture: risk tolerance, investment goals, time horizon, financial situation, and investment experience
• Why interviews are required alongside questionnaires to capture nonfinancial factors like values, emotional attitudes, and behavioral inconsistencies
• Why a recommendation that ignores any single profile factor (goals, risk tolerance, time horizon, financial situation, nonfinancial factors) is unsuitable
• Why a recommendation based on outdated client information is automatically unsuitable, even if it was appropriate when the profile was built
• How each profile component maps to its gathering method, and how those inputs feed the adviser's suitability determination