KYC Update - Important To Know

Learn some important information about KYC Update

PURPOSE

The below are guidelines for what would be considered reasonable within a KYC but are in no way the limits. They are meant to provide the reader with what is likely and reasonable, not what is exclusively permitted. It is important to note that this document is not a comprehensive list of all information and actions required for New Account Application requests and gathering KYC data, but rather specific items that should be kept in mind. Finally, please ensure that all client data is gathered and entered in proper case and sentence structure.

TOMBSTONE INFORMATION

Personal Profile

1. First Name, Middle Name, Last Name

• Client First, Middle, and Last Name must be their legal name which matches their ID (ie. not their ‘nickname’).
• If there is a Middle Name or Initial provided on the Client’s ID, it must be inputted, even in the scenario where it is just a middle initial. 

2. Phone Number and Mobile Number 

• Must be nine digits long.

3. Email

• Each Client must have their own separate email address. Email addresses may not be shared amongst spouses.
• Please ensure the email address entered is in an appropriate email format such as .com, .ca, .net, etc…
• In instances where a Power of Attorney (‘POA’) is in place for the Client, the email provided should be the POA’s email address, not the client’s. TOMBSTONE INFORMATION John William Doe P.

4. Date of Birth

• The Client’s Date of Birth entered must match the Date of Birth listed on their ID.

5. Marital Status

• Pay close attention to the Client’s Marital Status and ensure the appropriate response is selected.
• A marital status of ‘Single’ means the Client does not have a spouse, is not legally married nor are they living common-law with another person. A Client in a relationship but one which is not considered common-law is considered ‘Single’.
• Married means that the Client has a spouse. If the client indicates that they are separated but still living with their (former) spouse, their marital status is still considered ‘Married’).
• A Client’s marital status is ‘Common-law’ when the Client is living in a conjugal relationship with a person who is not their married spouse, and at least one of the following conditions applies to this person:
  • The Client has been living with the person in a conjugal relationship for at least 12 continuous months, OR
  • This person is the parent of the Client’s child by birth or adoption, OR
  • This person has custody and control of the Client’s child.
• The marital status of ‘Separated’ means that the Client has been living apart from their spouse or common-law partner because of a breakdown in their relationship for a period of at least 90 days.

• The marital status of ‘Divorced’ means a marriage has legally ended. The marital status of ‘Widowed’ means the Client’s spouse has passed away and the Client has not remarried.

6. Number of Dependants

• Ensure the correct number of Dependants are inputted. Generally, a dependent is someone who relies on the Client for financial support, care, or protection.
• A Dependent may also refer to a spouse or common law partner to the Client who is entitled to support payments in the event of separation or divorce.
• A Dependent can also refer to an elderly parent who relies on the Client for financial or physical support.

Spouse Information

7. First Name, Middle Name, Last Name

• The Spouse’s First, Middle and Last Name must be their legal name which matches their ID (ie. not their ‘nickname’).
• If there is a Middle Name or Initial provided on the Spouse’s ID, it must be inputted, even in the scenario where it is just a middle initial.

8. Employment Status of Spouse

• The Spouse’s Employment Status of ‘Employed’ refers to a Spouse who is considered an employee of a company and is actively working for the company. This would also include a Spouse who may only be working part-time.
• The Spouse’s Employment Status of ‘Self-Employed’ refers to a Spouse working for oneself rather than for an Employer. A ‘Self-Employed’ individual typically operates their own business, provides goods or services, and is responsible for managing their work, finances, and business operations independently.
• The Spouse’s Employment Status of ‘Retired’ refers to a Spouse who has stopped working and has instead chosen to enter their retirement stage by way of relying on savings, investments, pensions, or other sources of income to sustain their lifestyle for the balance of their retirement.
• The Spouse’s Employment Status of ‘Not Employed’ refers to a Spouse who is not employed by an Employer, not Self-Employed, nor are they Retired. Common examples of a Spouse who is considered ‘Not Employed’ would be a Student or Homemaker, despite how hard they are working for their family or for their academic career. This would also include a Spouse who may not be working currently but is actively seeking employment or someone who was recently laid off.

9. Name of Current Employer of Spouse

• If the Spouse’s Employment Status is ‘Employed’, the Spouse’s ‘Name of Employer’ should reflect the Spouse’s current Employer.
• If the Spouse’s Employment Status is ‘Self-Employed’, the Spouse’s ‘Name of Employer’ should be the Spouse’s Legal Name or their Company’s Trade Name (ie. ‘John Smith Landscaping’).

9. Name of Former Employer of Spouse

• If the Spouse’s Employment Status is ’Retired’, the Spouse’s ‘Name of Former Employer’ should be the name of the Spouse’s Former Employer.
• If the Spouse’s Employment Status is ‘Not-Employed’ and they are a ‘Homemaker’, then select ‘Homemaker’ in the ‘Reason’ Field.
• If the Spouse’s Employment Status is ‘Not-Employed’ and they are a ‘Student’, then select ‘Student’ in the ‘Reason’ Field.
• If the Spouse’s Employment Status is ‘Not-Employed’ and they used to have a working career and are not a ‘Homemaker’ or a ‘Student’, select ‘Other’ in the ‘Reason’ Field.

10. Current Occupation of Spouse

• If the Spouse’s Employment Status is ‘Employed’, the Spouse’s ‘Occupation’ should be as specific as possible. For example, if the Spouse is a Consultant, please specify the type of Consulting (i.e. IT Consultant). Another example would be if the Spouse is a Manager, please indicate what type of department they oversee (Manager, Operations).
• If the Spouse’s Employment Status is ‘Self-Employed’, the Spouse’s Occupation should simply be ‘Owner’.

10. Former Occupation of Spouse

• If the Spouse’s Employment Status is ‘Retired’, the Occupation should reflect their last Occupation prior to Retirement. Please be as specific as possible. For example, if the Spouse was a Consultant, please specify the type of Consulting (i.e. IT Consultant). Another example would be if the Spouse was a Manager, please indicate what type of department they oversee (Manager, Operations).

• If the Spouse’s Employment Status is ‘Not-Employed' AND ‘Other’ is selected in the ‘Reason’ Field, please provide the Name of their Former Employer and their Former Occupation in the ‘Additional Details’ Field.

Residential Address

11. Street

• Please indicate both the street number or the unit number along with the street name.
• Please note that the Client’s Street Address cannot include a P.O. Box. If the mailing address should include a P.O. Box, please add the P.O. Box and the remainder of the mailing address as a separate note in the ’New Account Application’ ticket.
• Please note that the Client’s street address must not contradict what is written on the ID and/or Void Cheque which they are submitting.

12. City

• Please provide the ‘City’ which should reference the actual city name and not the community or the municipality.
• Please note that the Client’s city must not contradict what is written on the ID and/or Void Cheque which they are submitting.

13. Province

• Please indicate the Province from the dropdown menu.
• Please note that the Client’s province must not contradict what is written on the ID and/or Void Cheque which they are submitting.

14. Postal Code

• Please provide a valid Postal Code in the proper format (ie. six alphanumeric characters with a space in between, e.g. M2N 1T5).
• Please note that the Client’s postal code must not contradict what is written on the ID and/or Void Cheque which they are submitting.

15. Country

• Please provide the Client’s country of residence Please note that the Client’s country must not contradict what is written on the ID and/or Void Cheque.
• Please note that the Client’s country must not contradict what is written on the ID and/or Void Cheque which they are submitting.

Employment Profile

16. Employment Status

• The Client’s Employment Status of ‘Employed’ refers to a Client who is considered an employee of a company and is actively working for the company. This would also include a Client who may only be working part-time. Please note that if a Client owns the business which they work for and the business is incorporated as opposed to a sole-proprietorship, then their Employment Status should be ‘Employed’ not ‘Self-employed’.
• The Client’s Employment Status of ‘Self-Employed’ refers to a Client working for oneself rather than for an Employer. A ‘Self-Employed’ individual typically operates their own business, operates under a sole proprietorship, provides goods or services, and is responsible for managing their work, finances, and business operations independently. Please note that if a Client owns the business which they work for and the business is incorporated as opposed to a sole-proprietorship, then their Employment Status should be ‘Employed’ not ‘Self-employed’.
• The Client’s Employment Status of ‘Retired’ refers to a Client who has stopped working and has instead chosen to enter their retirement stage by way of relying on savings, investments, pensions, or other sources of income to sustain their lifestyle for the balance of their retirement.
• The Client’s Employment Status of ‘Not Employed’ refers to a Client who is not employed by an Employer, not Self-Employed, nor are they Retired. Common examples of a Client who is considered ‘Not Employed’ would be a Student or Homemaker, despite how hard they are working for their family or for their academic career. This would also include a Client who may not be working currently but is actively seeking employment or someone who was recently laid off. 

17. Name of Current Employer

• If the Client’s Employment Status is ‘Employed’, the Client’s ‘Name of Employer’ should reflect the Client’s current Employer.
• If the Client’s Employment Status is ‘Self-Employed’, the Spouse’s ‘Name of Employer’ should be the Client’s Legal Name or their Company’s Trade Name (ie. ‘John Smith Landscaping’).

17. Name of Former Employer

• If the Client’s Employment Status is ’Retired’, the Client’s ‘Name of Former Employer’ should be the name of the Client’s Former Employer.
• If the Client’s Employment Status is ‘Not-Employed’ and they are a ‘Homemaker’, then select ‘Homemaker’ in the ‘Reason’ Field.
• If the Client’s Employment Status is ‘Not-Employed’ and they are a ‘Student’, then select ‘Student’ in the ‘Reason’ Field.
• If the Client’s Employment Status is ‘Not-Employed’ and they used to have a working career and are not a ‘Homemaker’ or a ‘Student’, select ‘Other’ in the ‘Reason’ Field

18. Current Occupation

• If the Client’s Employment Status is ‘Employed’, the Client’s ‘Occupation’ should be as specific as possible. For example, if the Client is a Consultant, please specify the type of Consulting (i.e. IT Consultant). Another example would be if the Client is a Manager, please indicate what type of department they oversee (Manager, Operations).
• If the Client’s Employment Status is ‘Self-Employed’, the Client’s Occupation should simply be ‘Owner’.

18. Former Occupation

• If the Client’s Employment Status is ‘Retired’, the Occupation should reflect their last Occupation prior to Retirement. Please be as specific as possible. For example, if the Client was a Consultant, please specify the type of Consulting (i.e. IT Consultant). Another example would be if the Client was a Manager, please indicate what type of department they oversee (Manager, Operations).
• If the Client’s Employment Status is ‘Not-Employed’ AND ‘Other’ is selected in the ‘Reason’ field', please provide the Name of their Former Employer and their Former Occupation in the ‘Additional Details’ Field.

Additional Questions

19. Employee, Officer, Director of Securities Broker

• Indicate whether the Client is an Employee, Officer, or a Director of a Securities Broker. A Securities Broker is a firm that facilitates the buying and selling of securities (such as stocks, bonds, and mutual funds) on behalf of investors. Securities Brokers are registered with the relevant regulatory authorities, such as the Investment Industry Regulatory Organization of Canada (IIROC) or provincial securities commissions (ie. OSC). Securities brokers provide investment advice, execute trades, and help clients manage their investment portfolios.

20. Reporting Insider

• Indicate whether the Client is considered a Reporting Insider. A Reporting Insider refers to a Client who would have access to material information about a publicly traded company and are required by securities regulations to report their transactions involving securities of that company. Reporting insiders typically include senior officers, directors, and significant shareholders of the company, as well as any other individuals or entities that have access to material nonpublic information about the company's affairs.

21. Foreign Politically Exposed Person (FPEP)

• Indicate whether the Client is considered a Foreign Politically Exposed Person. A Foreign PEP refers to a Client who holds or has held prominent public positions or functions in a foreign country, as well as their immediate family members and close associates. These positions may include heads of state, government ministers, senior political party officials, senior judicial or military officials, or senior executives of state owned enterprises.
  

22. Domestic Politically Exposed Person (DPEP)

• Indicate whether the Client is considered a Domestic Politically Exposed Person. A Domestic PEP refers to a Client who holds or has held prominent public positions or functions within Canada. This includes individuals such as heads of state, government ministers, senior political party officials, senior judicial or military officials, and senior executives of state-owned enterprises who are Canadian citizens or residents.

23. Head of an International Organization

• Indicate whether the Client is the Head of an International Organization. A Client who is the Head of an International Organization typically refers to an individual who holds a senior leadership position within an international organization recognized by the Canadian government. This can include organizations such as the United Nations, World Bank, International Monetary Fund, World Health Organization, and various other intergovernmental or non-governmental organizations with an international mandate. The Head of an International Organization may hold titles such as Secretary-General, President, Director-General, Executive Director, or similar high-ranking positions.

Financial Profile

24. Employment Income

• If the Client has an Employment Status of ‘Employed’ or ‘Self-Employed’, please provide the annual employment income they receive from their Employer.
• Please note: If the Client has an Employment Status of ‘Retired’, please do not include any amount for Employment Income.
• Please provide the Client’s Employment Income on an annualized basis, even though the Client may only work during their summers (as is the case of a Client who is a student). If the Client has an Employment Status of ‘Employed’, the amount included as Employment Income should approximately match the income amount recorded on their T4.
• Please note: that if the Client has an Employment Status of ‘Employed’ but owns the Corporation in which they work for, the amount included as Employment Income should be the amount reported on their T4, and any additional income drawn from the corporation should be imputed in the ‘Other Income’ Field with the appropriate note (ie. Draw of Dividends, Repayment of Loan to Corporation) detailed in the ‘Source of Other Income’ Field.
• General Rule of Thumb: Typical Employment Incomes are in the range of $65,000 to $85,000 per year, with very few incomes being less than 40,000 per year or more than $500,000 per year, as a general rule of thumb.

25. Disability or Employment Insurance

• If the Client receives Disability payments or Employment Insurance payments, then please input the amount on an annualized basis.
• If a Client is receiving Employment Insurance Income, please ensure their Employment Status has been specified as ‘Not-Employed’.
• Please note: that if the Client is receiving Disability Income, ensure your suitability note references the Client’s disability, and whether or not it is a physical disability or a mental disability, to determine whether the Client is capable of making their own financial decisions or a whether a POA should be put in place.
• General Rule of Thumb for Disabled or Unemployed Clients: Typical Disability payments or Employment Insurance amounts are typically $15,000 per year, with very few being more than $20,000 per year, as a general rule of thumb.
  

26. Company Pension

• If the Client has an Employment Status of ‘Retired’ please include any pension amounts which the Client receives from their former employer.
• Please note: If the Client has an Employment Status of ‘Employed’,’Self-Employed’, or ‘Not-Employed’, please do not include any amounts for Company Pension Income. Please provide the Client’s Company Pension on an annualized basis.
• Please note: that if the Client splits the Pension income with their spouse for tax purposes, the total annualized Pension Income received by the Client should be reported and not just the net amount after income splitting.
• General Rule of Thumb for Retired Clients Receiving Company Pension Income Please note that Company Pensions are typically $36,000 per year for employees who have worked at their company for 20 plus years, with very few more than $100,000 per year, as a general rule of thumb.

27. Canada Pension Plan (CPP)

• If the Client has an Employment Status of ‘Retired’, please include the amount which the Client receives from the CPP.
• Please note: If the Client has an Employment Status of ‘Employed’,’Self-Employed’, or ‘Not-Employed’, please do not include any amounts for CPP Income.
• Please note: that CPP is usually only received after the age of 60. Please provide the Client’s CPP payments on an annualized basis.
• General Rule of Thumb for Retired Clients Receiving CPP Payments: Please note that annual CPP amounts are typically $9,000 per year, with the maximum amount being approximately $16,000 per year, as a general rule of thumb.
  

28. Old Age Security (OAS)

• If the Client has an Employment Status of ‘Retired’, please include the amount which the Client receives from OAS payments.
• Please note: If the Client has an Employment Status of ‘Employed’,’Self-Employed’, or ‘Not-Employed’, please do not include any amounts for OAS Income.
• Please provide the Client’s OAS payments on an annualized basis.
• Please note that OAS is usually received after the age of 65.
• General Rule of Thumb for Retired Clients Receiving OAS Payments: Please note that annual OAS amounts are typically $6,000 per year, with the maximum amount being approximately $8,500 per year, as a general rule of thumb.

29. Withdrawals from Bank Accounts

• If the Client has an Employment Status of ‘Retired’, please include the amount which the Client currently withdraws directly from their Bank Account for the purposes of Funding their Retirement Needs.
• Please note: If the Client has an Employment Status of ‘Employed’,’Self-Employed’, or ‘Not-Employed’, please do not include any amount for ‘Withdrawals from Bank Accounts’.
• Please provide the Client’s Bank Withdrawal Amount on an annualized basis.
• Reasonability Alert: Please ensure that the amount is reasonable (ie. less than $10,000 per year) and proportional (ie. less than 10% of the amount recorded as Cash for the Client).
• General Rule of Thumb for Retired Clients Withdrawing from their Bank Accounts to Fund Retirement: Please note that annual amounts are typically ZERO dollars per year with most cases being less than.

30. Withdrawals from Investment Accounts

• If the Client has an Employment Status of ‘Retired’, please include the amount which the Client currently withdraws from their Investment Accounts for the purposes of Funding their Retirement Needs.
• Please note: If the Client has an Employment Status of ‘Employed’,’Self-Employed’, or ‘Not-Employed’, please do not include any amount for ‘Withdrawals from Investment Accounts’.
• Please provide the Client’s Investment Accounts’ Withdrawal Amount on an annualized basis.
• Please provide the Client’s Investment Accounts’ Withdrawal Amount across ALL of their Financial Assets, both at Optimize and outside of Optimize.
• General Rule of Thumb for Retired Clients Withdrawing from their Investment Accounts: Please note that annual Withdrawal Amounts from Investment Accounts should be 5 to 7% of their Investment Accounts, as a general rule of thumb.

31. Other Income

• This income represents all other sources of income not captured in the above income type fields such as:
• Rental Property Income Spousal Support Draw of Dividends / Dividend Income Repayment of Loan to Corporation If the Client receives multiple sources of Other Income, please input the summation of all such incomes.
• Please provide the amount on an annualized basis.
• General Rule of Thumb: It is rare that this amount equates to a large portion of the Client’s total income and would be expected to be less than $20,000 per year, as a general rule of thumb.
  

32. Source of Other Income

• If the Client receives ‘Other Income’, please note the types of ‘Other Income’ as applicable by specifying one or more of the following in the ‘Source of Other Income’ Field and whether All of the ‘Other Income’ is derived from that ‘Source of Other Income’ or a certain amount is derived from that ‘Source of Other Income’, as follows:
  • All from OR $$$ from Rental Property Income
  • All from OR $$$ from Spousal Support All from OR $$$ from Draw of Dividends / Dividend Income

  • All from OR $$$ from Repayment of Loan to Corporation

Net Worth

33. Cash

• ‘Cash’ refers to the amount the Client expects to keep in cash at their Bank Account for an extended period of time.
• Please note: that if there are any Bank Account(s) held in joint name with their Spouse or someone else at Optimize, only the amount accounted for in their share should be reported (e.g. 50% of the Bank Account if held jointly with their Spouse).
• General Rule of Thumb: The amount in Cash would be expected to be less than $10,000, as a general rule of thumb. 
  
  

34. Registered Investments

• ‘Registered Investments’ refers to the amounts which the Client holds across all their registered accounts at Optimize such as their RRSP, RRIF, TFSA, RESP, RDSP, LSRP, LIRA, LIF and FHSA.
• Verification Check: Registered Investments should be at least the total market value of Registered Investments held across the Client’s Optimize Accounts, which is indicated in HubSpot for existing clients, or at least the total market value of Registered Investments currently being transferred to Optimize for New Clients.
• General Rule of Thumb: The amount of Total Registered Investments a client would have between their registered investments held inside Optimize and outside Optimize, would be expected to be the following, by age group, using information provided by Stats Canada:
  • <35 yrs: $100,000
  • 35 to 45 yrs: $200,000
  • 45 to 55 yrs: $250,000
  • 55 to 65 yrs: $325,000
    

35. Non-Registered Investments

• ‘Non-Registered Investments’ refers to the amount which the Client holds in their Cash Account(s) at Optimize.
• Please note: that if there are any Cash Account(s) held in joint name with their Spouse or someone else at Optimize, only the amount accounted for in their share should be reported (e.g. 50% of the Cash Account if held jointly with their Spouse).
• Please note: that Assets reported as part of the Client’s Non-Registered Investments should only capture personal assets. Furthermore, this should not include share ownership in corporations or a projection of the sale of a business. The assets from the sale of a business should only be captured once the transaction has closed and the Client has received the funds personally.
• Please also note: that a corporation is a separate entity and therefore, assets of the corporation should be captured in an Entity’s Net Worth and not in the Client’s ‘Non-Registered Investments’.
• Verification Check: Non-Registered Investments should be at least the total market value of Cash Accounts held in the Client’s Optimize Accounts (100% of their Sole Cash Account(s) and 50% of their Joint Cash Account(s)), which is indicated in HubSpot for existing clients, or at least the total market value of Non-Registered Investments currently being transferred to Optimize for New Clients.
• General Rule of Thumb: The amount of Total Non-Registered Investments a client would have between their non-registered investments held BOTH inside Optimize AND outside Optimize, would be expected to be the following, by age group, using information provided by Stats Canada:
  • <35 yrs: $25,000
  • 35 to 45 yrs: $50,000
  • 45 to 55 yrs: $100,000
  • 55 to 65 yrs: $200,000
  • >65 yrs: $300,000
    
    

36. Fixed Assets

• ‘Fixed Assets’ refers to the total amount which the Client holds across all Real Estate holdings such as their principal residence, cottage and rental properties.
• Please note: that if the property(ies) is/are held in joint name with their Spouse or someone else, only the amount accounted for in their share should be reported (e.g. 50% of the Property if held with a Spouse).

General Rule of Thumb: The amount of Fixed Assets a Client owns can obviously vary based on factors such as whether or not they live in a rural or urban setting, which urban setting, and their age. The below are the average Real Estate holdings held by Canadians, by age group:

• • <35 yrs: $500,000
  • 35 to 45 yrs: $650,000
  • 45 to 55 yrs: $750,000
  • 55 to 65 yrs: $850,000
  • >65 yrs: $1,000,000

37. Mortgages and Other Liabilities

• ‘Mortgages and Other Liabilities’ refers to the amount that the Client has in current outstanding debts across all of their mortgage(s), credit card(s), and other debt.
• Please note: that if the mortgage(s) is/are held in joint name with their Spouse or someone else, only the amount accounted for in their share should be reported (e.g. 50% of the Mortgage if held with a Spouse).
• General Rule of Thumb: The amount of Mortgages and Other Liabilities a Client currently owes can obviously vary based on a number of factors such as the value of their home and their age. The below are the average ‘Outstanding Mortgage and Other Liabilities’ held by Canadians, by age group:
  • <35 yrs: $400,000
  • 35 to 45 yrs: $450,000
  • 45 to 55 yrs: $500,000
  • 55 to 65 yrs: $550,000
  • >65 yrs: $500,000

38. Assets at Other Financial Institutions

• Select ‘Yes’ if the Client has Investment Assets at other financial institutions which they will not be transferring to Optimize.

39. Location of Other Assets

• If the Client plans on holding Investment Assets outside of Optimize, specify all of financial institutions or investment firms where the external assets are held.
• Please avoid acronyms and instead provide the full name of the financial institution where the account(s) are held.

40. Amount of Other Investments

• 'Amount of Other Investments’ refers to the amount in BOTH Registered and Non-Registered Investments which the Client holds outside of Optimize and which the Client will not be transferring to Optimize.
• Please note: that if there are any Investment Account(s) held in joint name with their Spouse or someone else, only the amount accounted for in their share should be reported (e.g. 50% of the Cash Account if held jointly with their Spouse).
• Please also note: that Assets reported as part of the Client’s Other Investments should only capture personal assets. Furthermore, this should not include share ownership in corporations or a projection of the sale of a business. The assets from the sale of a business should only be captured once the transaction has closed and the Client has received the funds personally.
• Please also note: that a corporation is a separate entity and therefore, assets of the corporation should be captured in an Entity’s Net Worth and not the Client’s ‘Amount of Other Investments’.
• General Rule of Thumb: The amount of Total Registered and Non-Registered Investments a client would have BOTH inside Optimize AND outside Optimize, would be expected to be the following, by age group, using information provided by Stats Canada:
  • <35 yrs: $125,000
  • 35 to 45 yrs: $250,000
  • 45 to 55 yrs: $350,000
  • 55 to 65 yrs: $525,000
  • >65 yrs: $650,000

41. Description of Financial Assets

• The Client’s ‘Description of Financial Assets’ held at outside financial institutions, should be as specific as the following:
  •  $50,000 at TD Evergreen in Mutual Funds
  • $200,000 at RBC in GICs
  •  $100,000 in Bonds at Questrade
• Please note: that the ‘Description of Financial Assets’ should not contradict the Client’s investment experience noted further on and should be considered when assessing suitability. For example, if it is noted in this Field that the client holds mutual funds or GICs outside of Optimize, then the Client’s investment experience must, at a minimum, include ‘mutual funds’ and ‘Bonds’ as part of their past investment experience.

42. Total Net Worth

General Rule of Thumb:

• Although the Client’s ‘Total Net Worth’ is a calculated value based on the inputs provided while completing the Client’s KYC, it is a great opportunity for you to assess the Reasonability of the KYC information you have provided. One such metric to be cognizant of is to review the ‘Client’s Calculated Net Worth’ as a multiple of the ‘Client’s Income’, which would be expected to be the following, by age group, using information provided by Stats Canada:
  • <35 yrs: The Client's Net Worth is generally at least 1 to 4 times the Client’s Annual Income.
  • 35 to 45 yrs: The Client's Net Worth is generally at least 2 to 7 times the Client’s Annual Income.
  • 45 to 55 yrs: The Client's Net Worth is generally at least 3 to 10 times the Client’s Annual Income.
  • 55 to 65 yrs: The Client's Net Worth is generally at least 3 to 14 times the Client’s Annual Income.
  • >65 yrs: The Client’s Net Worth is generally at least 4 to 15 times the Client’s Pre-Retirement Annual Income OR 15 to 20 times the Client’s Current Retirement Annual Income.

Investor Profile

43. Investment Knowledge

• General Rule of Thumb:
  • Moderate - as this implies they have been investing for some time and have experience in various market cycles.

Very Rare Choices: 

• • None or Beginner- as how could they have investments which they are transferring to  Optimize and yet have no investment knowledge?
  • Advanced - as this implies they are comfortable trading options or high volume trading which tends not to be clients to work with wealth management firms 
  • Expert - as this implies that they have the same knowledge as a Fund Manager

44. Investment Experience

• General Rule of Thumb:
  • ALL Three of the Below Options: 
• Stocks
• Mutual Funds
• Bonds
  • Why? Clients who work with Wealth Management firms tend to have had this type of investing experience with previous firms and/or advisors.
• Very Rare Choices:
  • None - as how could they have investments which they are transferring to Optimize and yet have no investment experience?
  • Real Estate - The Client needs to have invested in Real Estate Funds or own Rental Properties to make this selection correct
  • Derivatives, Options, Futures, or Currency Trading - as this implies they trade assets such as currencies and options which tends not to be clients to work with wealth management firms
• Please note: The Client’s Investment Experience must not contradict with the responses provided for the ‘Description of Financial Assets’ as it relates to their ‘Other Investments’ in their Net Worth KYC Section. For example, if the ‘Description of Financial Assets’ states that the Client has “$100,000 in Mutual Funds” then the Mutual Fund option must be selected for the Client’s ‘Investment Experience’.

45. Vulnerable Client

• Select ‘Yes’ to the Question of whether or not the Client is Vulnerable ONLY if you consider the Client to be an individual who is at a significant risk of experiencing harm, exploitation, or disadvantage due to various personal, social, economic, or environmental factors. These factors can include age, disability, illness, language barriers, financial instability, social isolation, or lack of access to necessary resources or services.
• Significance Note: If a Client has been identified as a Senior and Vulnerable Client, a Trusted Contact Person must be appointed AND additional compliance monitoring will be provided on the client’s account(s).

46. Trusted Contact Person

• You must ask the client whether or not they would like to appoint a Trusted Contact Person(TCP) AND if you select ‘Yes’ then you need to obtain all of the contact information for the Client’s TCP.

What is a TCP and why is it important?

• A trusted contact person (TCP) is an individual designated by a Client to be contacted by financial institutions or other relevant organizations in specific circumstances. The role of a trusted contact person is to help protect the client’s financial well-being, particularly if there are concerns about the client’s mental capacity, financial exploitation, or other issues that may affect their financial interests. This person is typically someone the client trusts, such as a family member, close friend, or another individual who is familiar with the client's personal situation.

• Please note: that if you have selected ‘Yes’ to the client being ‘Vulnerable’, then you must appoint a Trusted Contact Person (TCP). Please also note: Even if you selected ‘No’ to the client being Vulnerable’, then you must still ask the Client if they would like to appoint a TCP.

• Please also note: If you have selected ‘Yes’ to the client having a TCP, then you must provide ALL of the following information as it relates to the TCP:

• • First Name
  • Last Name
  • Email Phone Number
  • Street Address
  • City
  • Province
  • Postal Code

Tax Residency Profile

47. Canadian Citizen

• Indicate whether or not the Client is a Canadian Citizen. A Canadian citizen is a person who holds citizenship in Canada, which entails specific rights, responsibilities, and privileges as outlined by Canadian law. The definition and criteria for Canadian citizenship are governed by the Citizenship Act. The key aspects which would help determine whether a Client is considered a Canadian Citizen are:
  • By Birth and Born in Canada
  • By Birth and Born Abroad to Canadian Parents
  • By Naturalization and are considered Permanent Residents
  • By Naturalization and meet the residency requirements of filing Canadian tax returns for three out of the last 5 years

48. U.S. Citizen

• Indicate whether or not the Client is a U.S. Citizen. A U.S. citizen is an individual who holds citizenship in the United States of America. U.S. citizenship entails specific rights, privileges, and responsibilities as outlined by the U.S. Constitution and federal law. The key aspects which would help determine whether a Client is considered a US Citizen are:
  • By Birth and Born in the United States
  • By Birth and Born Abroad to U.S. Citizen Parents
  • By Naturalization and meet the eligibility requirements which generally requires being at least 18 years old, having lawful permanent resident status (a green card) for a specific period (typically five years, or three years if married to a U.S. citizen), and meeting other criteria such as continuous residence and physical presence in the U.S.

49. U.S. Resident

• Indicate whether or not the Client is a U.S. Resident. A U.S. Resident refers to a Client who is a lawful permanent resident, a conditional resident, a non-immigrant visa holder, or a tax resident under U.S. law.

50. Other Citizenship

• Indicate whether the client is a citizen of a country other than Canada or the U.S. and if so, select the country from the list.

51. Other Residency

• Indicate whether the client is a resident of a country other than Canada or the U.S. and if so, select the country from the list.

Application Information

52. Are you opening New Accounts under an Existing Root?

Application Type

• Please indicate whether the Client wants to open a new account(s) for a ‘New Root’ or for an ‘Existing Root’.
• A ‘New Root’ would be for a New Client OR for an Existing Client in those rare instances when they need to open a second account of the same account type (e.g. The Client already has a LIRA account but needs to open a second LIRA with alternate legislation).
• An ‘Existing Root’ would ONLY be for an Existing Client who is looking to open an investment account which they do not already have open (e.g. The Client already has a LIRA account but needs to open a second LIRA with alternate legislation).
• Please note that if you do open a ‘New Root’ for an existing ‘Client’, the accounts under that New Root will not be shown on their Online Account Access automatically. You will need to submit a Service Request to link the accounts for Client’s Online View.

53. What types of Accounts are you opening?

• Please indicate the types of account(s) being opened.

54. A Few Final Details

• Please confirm that the account types being opened are being correctly displayed.

Meeting Details

55. Where did the meeting take place?

• Please indicate whether the meeting occurred over the phone or in person.
• General Rule of Thumb: Phone
• If in person, please provide the full address of where the meeting took place.

56. Was a Wealth Planner who is not the acting Portfolio Manager or Associate Portfolio Manager present during the Meeting?

• Please indicate if a ‘Wealth Planner’ was present aside from yourself.
• General Rule of Thumb: Yes
• If a ‘Wealth Planner’ was present, please provide the full name of the Wealth Planner or Wealth Planner’s Assistant.

57. Was there anyone else present during the meeting besides yourself, the Wealth Planner and Client?

• Please indicate whether there was anyone else present during the meeting aside from yourself, the Wealth Planner or Wealth Planner’s Assistant, and the Client.
• General Rule of Thumb: No
• If someone else was present, please ensure that the full name of that person is inputted.

58. How will the Onboarding Documents be provided to the Client?

• Please indicate whether the Onboarding Documents will be delivered ‘Electronically’ or ‘In Person’ during the Meeting.
• General Rule of Thumb: Electronically

59. Please select the disclosures which were reviewed with and will be provided to the Client following the Meeting

• Please confirm which of the following documents were discussed and will be sent to the Client following the meeting:
  • Wealth Planner Acknowledgement
  • Conflict of Interest
  • Relationship Disclosure Information
  • Portfolio Management Agreement
  • Optimize Fund Disclosure

60. Please select the additional Family Office Services that you discussed with the Client, which will be available to them as Clients of Optimize.

• Please select which of our Family Office Services were discussed with the Client:
  • Financial Planning
  • Will Preparation
  • Tax Preparation
  • Insurance
  • Mortgages

61. Were there any additional questions which were asked by the Client during the Meeting?

• Please indicate whether or not the Client asked any other questions during the meeting which may be relevant to their Client File.
• General Rule of Thumb: No
• If the Client did ask any questions, provide a summary of the question and your response to any such questions.
• Please make the summary clear and concise as it will be reviewed by Compliance.

62. Please confirm the below

• Please ensure that you do and certify to the following actions with the Client: The Client will be provided the Wealth Planner Acknowledgement and any questions related to the Acknowledgement were addressed.
• You have reviewed the Private Client Program with the Client and discussed the risks of investing.
• The risks of investing have been explained, markets do fluctuate, and past performance is not indicative of future performance.

Bank Account Details

63. Account Holder

• Please provide the Name of the Client as it appears on their Bank Account. 

64. Bank Name

• Please provide the Full Name of the Bank. Please avoid the use of acronyms for the Bank Name.

65. Street Address

• Please provide the number and street name of the Bank Branch.
• Please verify the Bank Address by conducting an online search using the Bank Number and Transit Number to ensure the addresses match what you have provided.

66. City

• Please provide the City of the Bank Branch which should reference the actual city name and not the community or the municipality.
• Please verify the Bank Address by conducting an online search using the Bank Number and Transit Number to ensure the addresses match what you have provided. 

67. Province 

• Please indicate the Province of the Bank Branch from the dropdown menu. Please verify the Bank Address by conducting an online search using the Bank Number and Transit Number to ensure the addresses match what you have provided. 

68. Postal Code

• Please provide a the Postal Code of the Bank Branch which should be a valid Postal Code in the proper format (ie. six alphanumeric characters with a space in between, e.g. M2N 1T5).
• Please verify the Bank Address by conducting an online search using the Bank Number and Transit Number to ensure the addresses match what you have provided.

69. Bank Number

• Please provide the Institution Number of the Bank. This number must be 3 numeric digits long with no spaces in between.

70. Transit Number

• Please provide the Transit Number of the Bank. This number must be 5 digits long with no spaces in between.

71. Account Number

• Please provide the Client’s Account Number. This number should be between 7-12 digits long with no spaces in between.

Attach Void Cheque

• Please attach a Void Cheque from the Client
• Please ensure the Void Cheque is clear and legible. Please ensure that the Bank Number, Transit Number and Account Number entered match what is shown on Void Cheque.
• Please do not worry if the Address on the Void Cheque does not match the address on the KYC as it is possible for a Client to move and not order new cheques.
• If the Client does not have physical cheques, many institutions allow Clients to log in to their online banking and generate a PDF of the void cheque or can provide a Direct Deposit Form stamped by the Client’s branch.

ID Verification

72. Verification Method

• Please specify which of the two Verification Methods were used: ‘In Person’ or ‘Dual Verification’ Method. The ‘In Person’ method is used when the Client is present with one of the following Optimize Representatives:
  • Portfolio Manager Associate Portfolio Manager
  • Wealth Planner
  • Wealth Planner Assistant
  • All other scenarios need to be verified using the ‘Dual-Verification’ Method.

For ‘In Person’ verifications, the below information is required:

Document Used

• Please select one Government Issued Photo ID document from the below list:
  • Provincial Driver’s License
  • Passport
  • Permanent Resident Card
  • Provincial or Territorial Identity Card
  • Health Insurance Card, unless specifically prohibited by provincial legislation (ON,PEI,NS,MB)

73. Verified By

• Please provide the name of the individual who verified the identity of the Client using a Government Issued Photo ID. 

74. Verification Date

• Please provide the date the Client was identified. 76. ID Type Please provide the ID Type from the available dropdown options.

75. ID Type

• Please provide the ID Type from the available dropdown options.

76. Document Number

• Please provide the Document Number (e.g. Passport #, Drivers License #, Nexus Card #, Permanent Residence Card #, Citizen Card #, etc..)

77. Expiry Date

• Please indicate the expiry date of the document.

78. Province or State of Issue

• Please indicate the Province or State in which the document was issued.
• Please note that the Province or State should not be in its abbreviation format (ie. input Ontario not ON).

79. Country of Issue

• Please indicate the Country in which the document was issued.
• Please note that the Country should not be in its abbreviation format (ie. input Canada not CDN) Attach General Guidelines Please upload the Government Issued Photo ID.

Attach General Guidelines

• Please upload the Government Issued Photo ID.
• Please note that the ID must be valid for the next 30 days from application submission date.
• Please note that the Legal Name and Address on the ID must match what is inputted in the Client’s KYC.
• For ‘In Person’ verifications, the below information is required:

For ‘Dual Method’ verifications, the below information is required:

First Document Used

Please select one document from the below list to verify the Client’s Name and Address (Category A):

• Provincial Driver’s License
• CPP Statement
• Property Tax Statement
• Provincially issued Vehicle Registration CRA Documents
• Notice of Assessment
• Installment Reminder
• GST Refund Letter
• Utility Bill
• T4 Statement
• Investment Account Statement

Second Document Used

• Please select One Document from EITHER of the two below lists:
  • One Document from the below list to verify the Client’s Name and Date of Birth (Category B):
• Any Card or Statement issued by a Canadian Government Body
• CPP Statement of Contribution
• Original Birth Certificate Marriage Certificate
• Divorce Documentation
• Permanent Residence Card
• Temporary Drivers License (Non-Photo)
• Referring to a Credit File within the last 6 months
• Insurance Documents for Home, Auto, and Life Identification Product form a Canadian Credit Bureau
• OR, One document from the below list to verify the Client’s Name and confirm a Financial Account (Category C):
• Credit Card Statement
• Bank Statement
• Loan Account Statement
• Identification from Canadian Credit Bureau

Verified By

• Please provide the name of the individual who verified the identity of the Client using the Dual Verification Method, who can be anyone of the following Optimize Representatives:
  • Portfolio Manager Associate
  • Portfolio Manager Wealth Planner
  • Wealth Planner Assistant

Attach General Guidelines

• Please ensure that the documents being uploaded are clear.
• Please note that the documents must be dated within 6 months from application submission date.
• Please note that the Legal Name, Address and Date of Birth on the ID must match what is inputted in the Client’s KYC.

Account Information

80. Source of Funds

• General Rule of Thumb:
  • Savings - as most clients have been saving for their investments.

Very Rare Choices:

• • Gift - unless the Client has confirmed that all or substantially all of this account has been given to them OR that they have inherited the money AND that they have not saved for this money.

• • Inherited - unless the Client has confirmed that all or substantially all of this account has been given to them through an Inheritance AND that they have not saved for this money.
  • Income
  • Other: - unless the Client has confirmed that all or substantially all of this account has been provided to them by way of something besides the other available options such as Spousal Support or Winning the Lottery. In this selection, you will need to provide specific details on the ’Source of Funds’.

KYC Questions

81. Intended Use of Account

• General Rule of Thumb for Clients who are not yet Retired (<65 years old):
  • All Accounts EXCEPT for RESP Accounts: Saving for Retirement - as most clients are using their investment account to save for their Retirement in some shape or form.
  • RESP Accounts: Education Savings
• General Rule of Thumb for Clients who are ALREADY Retired(>65 yrs old):
  • Funding Retirement

General Rule of Thumb for Estate Accounts (ie. Deceased Clients):

• • Estate Planning

Very Rare Choices: 

• • Short Term Savings for a Specific Purpose: The account will be used to fund a specific purchase within the next 1-5 years. This would be applicable when clients are expecting to withdraw all or substantially all of the account in the next 1 to 5 years.
  • Long Term Savings for a Specific Purpose
  • Other

KYC Questions

82. Liquidity Needs

• General Rule of Thumb for Clients who are not yet Retired (<65 yrs old):
  • All Accounts EXCEPT for RESP Accounts: None - as most clients are using their investment account to save for their Retirement in some shape or form and so will not withdraw a large portion in any given year.
  • RESP Accounts with the Beneficiaries not attending University for at least another two to three years: None
  • RESP Accounts with the Beneficiaries currently attending University or who expect to within the next year: Moderate

• General Rule of Thumb for Clients who are ALREADY Retired (>65 yrs old):
  • Minimal or
    Minimal to Moderate 

 General Rule of Thumb for Estate Accounts (ie. Deceased Clients): 

• • Moderate to High

83. Time Horizon

• General Rule of Thumb for Clients who are not yet Retired (<65 years old):
  • More than 15 Years
• General Rule of Thumb for Clients who are ALREADY Retired(>65 yrs old and <90 yrs old):
  • 11-15 Years
• General Rule of Thumb for Clients who are ALREADY Retired(>90 yrs old):
  • 5-10 Years
• Very Rare Choices:
  • Less than a Year: We should not be taking on these accounts unless it is to buy a Money Market Fund which represents a VERY small portion of the Client’s investments with our firm.
  • 1 - 4 Years: We should not be taking on these accounts unless it is an RESP Account where the client is going to withdraw ALL of the RESP Account in the next 4 years.
  • 5-10 Years: FHSA Accounts

84. Risk Tolerance

• General Rule of Thumb for Clients who are not yet Retired (<65 years old):
  • Medium
  • Medium/High
  • High

• General Rule of Thumb for Clients who are ALREADY Retired(>65 yrs old):
  • Low/Medium
  • Medium
  • Medium/High

• Very Rare Choices:
  • Low: Accounts with a ‘Low’ Risk Tolerance are intended primarily for the Money Market Model. We should not be taking on these accounts unless it is to buy a Money Market Fund which represents a small portion of the Client’s investments with our firm.

85. Risk Capacity

• General Rule of Thumb for Clients who are not yet Retired (<65 years old):
  • Medium
  • Medium/High
  • High

• General Rule of Thumb for Clients who are ALREADY Retired(>65 yrs old):
  • Low/Medium
  • Medium
  • Medium/High

• Very Rare Choices:
  • Low: Accounts with a ‘Low’ Risk Tolerance are intended primarily for the Money Market Model. We should not be taking on these accounts unless it is to buy a Money Market Fund which represents a small portion of the Client’s investments with our firm.

86. Investment Objective

• Please specify the Client’s Investment Objective as follows:
  • A focus on generating income with lower levels of volatility
  • General Rule of Thumb: Optimize Income Portfolio
• A focus on income, and can tolerate some fluctuation in investment return (Optimize Income Portfolio, Optimize Income Balanced Portfolio)
  • General Rule of Thumb: Optimize Income Portfolio
• A focus on balancing income and growth, and can tolerate some fluctuation in investment return
  • General Rule of Thumb: Optimize Income Balanced Portfolio OR Optimize Balanced Growth Portfolio
• A focus on seeking better-than-average growth, and can tolerate fluctuation in investment return
  • General Rule of Thumb: Optimize Balanced Growth Portfolio OR Optimize Growth Balanced Portfolio
• A focus on seeking maximum asset growth, and can tolerate higher volatility in your investment return to achieve this
  • General Rule of Thumb: Optimize All Growth Portfolio

Additional Questions

87. Does anyone other than the client have financial interest in this account?

• Please indicate whether anyone other than the client has a financial interest in the account(s).
• General Rule of Thumb: No

88. Other than Optimize, does anyone other than the client (or any other person named on their jointly held accounts) have any authority to give instruction over and/or trade on this account?

• Please indicate whether anyone other than the client has any authority to give instruction over and/or trade on the account(s).
• General Rule of Thumb: No

89. Will the accounts be used by a person other than the applicant or for the benefit of a third party?

• Please indicate whether the account(s) will be used by a person other than the applicant or for the benefit of a third party.
• General Rule of Thumb: No

90. Does anyone other than this client guarantee this account?

• Please indicate whether anyone other than the Client guarantees the account(s).
• General Rule of Thumb: No

91. Does the client trade or intend to trade with other investment firms?

• Please indicate whether the Client intends to trade with other investment firms.
• General Rule of Thumb: No

92. Does the client use leverage or borrowing to finance the purchase of securities?

• Please indicate whether the Client is using leverage or borrowing to finance the purchase of securities.
• General Rule of Thumb: No

Model and Suitability Assessment

93. Client Risk Profile

• Review the Client Risk Profile summary to ensure the information captured is correct and make any necessary changes.

94. Model Portfolio

• Please assign the appropriate Model Portfolio based on your assessment and the ‘KYC and Model Portfolio Suitability Guide’.
• Please Note: If the Model Portfolio selected is outside the ‘KYC and Model Portfolio Suitability Guide’ matrix, a warning will display indicating that sufficient detail must be captured to justify the exception.

95. Suitability Assessment

• Please refer to the ‘KYC and Model Portfolio Suitability Guide’ for examples of sufficient Suitability Notes and the Protocols to follow in writing these notes

Beneficiary Information

96. Beneficiary Types

• Please designate the Beneficiary Type for any Registered Accounts as follows:
• General Rule of Thumb:
• For all Registered Accounts except for a RIF: Designate Spouse as Beneficiary (if married)
• For RIF Accounts: Designate Spouse as Successor Annuitant
• For Single People: Designate estate as beneficiary
• For Single People: Designate someone other than spouse as beneficiary
• Please note: If designating someone other than a Spouse as a beneficiary, please provide the following:
  • First Name
  • Last Name
  • Date of Birth
  • Relationship to Annuitant

Transfer Forms

97. Relinquishing Institution

• Please select the Relinquishing Institution from the dropdown menu.

98. Address

• Please provide the number and street name of the Relinquishing Institution.
• Please verify the Relinquishing Institution Address by conducting an online search using the name of the Relinquishing Institution.

99. City

• Please provide the City of the Relinquishing Institution which should reference the actual city name and not the community or the municipality.
• Please verify the Relinquishing Institution address by conducting an online search using the name of the Relinquishing Institution.

100. Province

• Please indicate the Province of the Relinquishing Institution from the dropdown menu.
• Please verify the Relinquishing Institution address by conducting an online search using the name of the Relinquishing Institution.

101. Postal Code

• Please provide a the Postal Code of the Relinquishing Institution which should be a valid Postal Code in the proper format (ie. six alphanumeric characters with a space in between, e.g. M2N 1T5).
• Please verify the Relinquishing Institution address by conducting an online search using the name of the Relinquishing Institution.

102. Relinquishing Account Number

• Please provide the Relinquishing Account Number which has been confirmed with the Client.

103. Transfer Instructions

• Indicate that the transfer will be transferred in cash.