Collecting and Recording KYC Information

Brokers must comply with all the rules and regulations, including the “Know Your Client” and “suitability” rules, as set out under the respective provincial Securities Act and FSC Rules. Brokers shall gather and analyze as much information as he/she deem necessary to make a suitable recommendation for the client. The minimum amount of information that a Broker is required to gather is listed on the KYC Form. This represents the absolute minimum amount of KYC information required. A Broker would be expected in almost every instance to gather and analyze additional information about the client.

In describing the KYC Rule, securities legislation requires Brokers to use due diligence to:

• Learn the essential facts relevant to a client (i.e., age, net worth and earnings, investment knowledge, investment objectives) before choosing investment options and maintain and update this information on an ongoing basis;
• Learn the essential facts relevant to every investment application accepted and ensure that this acceptance is within the bounds of good practice; and Ensure that the recommendations made for an account are appropriate for the client and in keeping with his or her investment objectives.