MFDA publishes sample investor questionnaire to assist with KYC process
In July 2014, the MFDA published a “Discussion Paper on the use of Investor Questionnaires” to help with the KYC process, including a sample investor questionnaire to guide and document this discussion with clients. Use of the questionnaire is not mandatory and your dealer may have adopted a different or similar questionnaire.
The MFDA notes: The know-your-client (“KYC”) process is one of the most fundamental obligations under securities legislation and one of the most important elements of investor protection. However, the process can be challenging for both clients and Approved Persons. Investors may not always understand the industry terminology used on KYC forms and research reveals that many investors do not understand the relationship between risk and return. Approved Persons face the challenge of trying to engage clients in the KYC process while recognizing that clients may have significantly different backgrounds, levels of education and degrees of openness when it comes to discussing their personal financial situation and attitude towards risk.
IFB has put a link to the Discussion Paper in the Compliance Tools section of the IFB website, www.ifbc.ca, or
Click here to go to the Discussion Paper and the sample investor questionnaire.