Essential Facts About Customers and Customer Relationships

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Chapters in this video

  1. 0:00 Why KYC is the gate before any recommendation
  2. 1:47 The four buckets of essential facts
  3. 2:42 The ferret racing test: disclosures are not optional
  4. 3:41 KYC as an ongoing obligation, not a one-time form
  5. 4:21 Power of attorney and the beneficiary's risk tolerance
  6. 5:52 Rapid-fire exam recap

What this video covers

  • What the know-your-customer (KYC) rule actually requires: reasonable diligence to know and retain essential facts on every customer
  • Why essential facts are not a fixed checklist, and how customer-volunteered disclosures get folded into the investment profile
  • The four buckets of essential facts: financial information, personal circumstances, relationship context, and customer disclosures
  • Why KYC is an ongoing obligation, not a one-time account-opening task, and what triggers a suitability reassessment
  • How "customer" and "customer relationship" function as two separate dimensions on the exam
  • Whose objectives and risk tolerance apply when a customer holds power of attorney (POA) or acts as a trustee for a beneficiary
  • Why one person trading their own account and a related fiduciary account requires two distinct suitability analyses

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