know your client rules

[BRIAN5000]

Does anyone have a link to what information is actually stipulated or required by the goverment.

What do I have to provide?

If I am an executor of a will with my two brothers are they entiled to ask for my common laws wife name and information?

She will have nothing to do with the transactions within these accounts.
This is not my account the KYC is for me doing transactions on my mom's estate account, in combination with my two brothers who are also executors.

In the future this money will be kept entirely separate and will pass down to my daughter, bypassing the common law wife.

[Slippy]

Here is the link to the suggested New Account Application Form by the MFDA. I'm sure you can find something very similar off of the IDA's website.

A couple of words of caution. KYC's are designed and completed to protect the dealer and to a much lessor extent, the advisor. If you don't disclose the required information (or worse, lie), and if something goes wrong and you try to compain, you won't have a leg to stand on.

[Slippy]

Forgot the link:

http://www.mfda.ca/regulation/Policies/ ... ccount.pdf

[marty123]

Don't exclude the possiblity that the KYC goes beyond regulated requirements, just like any other company does: to upsell you and to better target clientele with specific services.

[Bylo Selhi]

Bank forms can be risky business

Investment advisers have a legal responsibility to know their clients.

Only by getting to know their clients can they recommend suitable investments.

In practice, this means that advisers will fill out a new client application form and tick off boxes with the answers they think are right...

Filling out these forms can be time-consuming and tedious. But don't rush through the process. Your responsibility as a client is to know what's on the "know your client" form.

It will become a key piece of evidence in any disputes that arise between you and your investment adviser...

Don't put too much trust in investment advisers. They're not professionals, but salespeople.

Recommendations they make are often motivated by commissions and fees they stand to earn.

You don't want to be pushed into something risky in order to fatten someone else's bottom line, rather than yours.

If you have an investment adviser, ask for a copy of the new client application form. Make sure it's accurate. This is an opportunity to review it and discuss whether changes are needed...

[Slippy]

Please allow me to cherry pick a quote as well:

"Not only did they sign a form saying they were comfortable with medium risk, but they failed to check the prospectus or their monthly investment statements."

IMO these people bear some responsibility here as well.

[Clock Watcher]

Are discount brokers exempt from the KYC rules/forms, since they do not offer any investment advise?

[squash500]

Are discount brokers exempt from the KYC rules/forms, since they do not offer any investment advise?

IMHO, it depends . I will use TDW as an example. Personally, I have a TDW discount brokerage account with no advisor. I am a Diyer. If I wanted to invest all the money I had in penny stocks then TDW couldn't stop me from doing it . I wasn't required to fill out a KYC form.

At TDW, they also provide a service called, "financial planning" where if you have $100000 or more of assets to invest then you can get a TDW "financial planner" to help you make investment decisions. The tdw planner is required to fill out a kyc form for each client they sign up for this service. The reason being is that if things go wrong, the tdw FP could be sued

So even though these "financial planning" investors are with TDW, in this example a KYC form would be required. I hope my rambling made sense .

[twa2w]

No, discount brokers are not technically exempt from the rules.
What happens is the KYC form is part of the applicaiton form and you do not even realize you are filling it out. At the same time you are signing a waiver to the KYC and a form that limits the liability of the broker and waives any action for not following the KYC rules.
If you had your account for a long time (before internet trading) you may remember that all trades were looked at from KYC POV. The discount brokers sent a letter out with a waiver that you had to sign and return to avoid being subject to the KYC rules. this happened about 10-12 years ago IIRC.
Cheers
J