The MFDA has published a discussion paper on the use of investor questionnaires to improve the Know-Your-Client (KYC) process.
“The 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 financial advisors,” says an MFDA press release.
“Measuring risk tolerance is complex and as a result risk profiling is not an exact science. Nevertheless, a well-designed questionnaire can make an important contribution to the KYC process.”