Investor Glossary-know your clientInvestor Glossary-know your clientInvestor Glossary-know your clientInvestor Glossary-know your clientInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Know Your Client

The HTML to link to this page
 

Know your client, or "KYC", are the ethical and practice guidelines for investment advisors to make detailed assessments about their clients' risk tolerance. Know your client rules are also called suitability rules because they are concerned with the suitability of securities investment for each specific customer. Similar to KYC for brokers, know your client for investment advisors goes beyond appropriateness and know your client requires investment advisors to assess investment clients' knowledge as well as financial position, tax status, and suitability criteria. Know your client forms are completed by clients who want to be eligible as sophisticated investors for private investments, and know your client rules protect investment advisors in this way. NASD's know your client suitability rule is rule 2310. The NYSE's know your client is rule 405. Brokerages and other regulators have additional know your client policies and rules. The SEC has enforcement power over brokerages that require them to maintain know your client policies. Know your client rules require collection of suitability information both at account opening and with periodic updates.



Rate this Know Your Client definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, required rate of return, per diem, debt service coverage, phantom income, open position, labor relations, covered put, APR, deferred revenue, annual return, balance sheet, ex-dividend, FICO score, implied volatility, irrevocable trust, 144a, dividends payable, LIBOR, real GDP, current ratio, VIX, quality assurance, Zero Cost Collar, option premium, class C shares, wholly-owned subsidiary, EBITDA, command economy, deferred tax, 1031 exchange, FTSE, stock split, 1035 exchange, ex-dividend date, inflation, retained earnings, minority interest, stock market close, Key Rate Duration, average price per share, cancelled check, risk management, diluted share, margin rate, limit order, 401a, liquidity ratio, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use