Thoroughly Reviewing Client Information: Ensuring Accuracy and Completeness in Account Holder Records
- Account Holder Information: Ensuring all client details, such as name, contact information, and account type, are accurately recorded.
- Application Information: Verifying and inputting data from the client’s account application to ensure completeness and compliance.
- Meeting Details: Documenting any discussions or decisions from client meetings that are relevant to the account setup or management process.
- Know Your Client (KYC) Forms: Uploading and confirming the accuracy of regulatory documents that establish the client’s identity, financial objectives, and risk tolerance.
This phase is designed to ensure all necessary information is gathered and validated, setting the stage for a seamless transition to the next steps in account processing.
New Account Application Requests
There are three types of New Account ticket requests: Entity, Individual, and Joint. Each type varies slightly in the information and documentation required from the client.
Know Your Client Forms
The section is located in the "Servicing" panel on the New Account Application Ticket. A progress bar shows how much is complete and there are markers that will show either an "Incomplete" warning or a "Complete" confirmation for each subsection and the Client as a whole. This section varies depending on the account type, such as Cash, FHSA, TFSA, etc., with each account needing to be completed individually.
To open any of the subsections to review the information, simply click the "open" button on the right side and a panel will pop out. The information gathered in each section is detailed below.
Note: This section is to be completed for all application requests
Source of Funds
This section identifies where the money being deposited or invested in the account originates. This information is crucial for understanding the client’s financial background, ensuring compliance with regulatory requirements, and tailoring investment strategies to align with their financial situation.
Income:
- Funds generated from regular earnings such as salaries, pensions, or rental income.
- Personal savings accumulated over time from income or investments.
Inheritance:
- Funds received from the estate of a deceased individual.
Gift:
- Money or assets received as a gift from another individual or entity.
- Any additional sources of funds not covered by the above categories, such as lottery winnings or insurance settlements or transferring from another financial institution.
Intended Use of Account:
Identifying the client's goals for the account, such as retirement savings or estate planning, ensures that Optimize can design personalized investment strategies and recommend suitable financial products aligned with the client's objectives.
Saving for Retirement:
- Accumulating funds to ensure financial security during retirement years.
Funding Retirement:
- Using the account to provide income and support ongoing expenses during retirement.
- Structuring funds to efficiently transfer wealth to beneficiaries or heirs.
Education Savings:
- Allocating funds to cover future education costs for oneself or dependents.
Short-Term Savings for Specific Purchase:
- Setting aside money for an upcoming purchase or goal within a short time frame.
Long-Term Savings for Specific Purchase:
- Building a fund for significant future expenses planned over a longer period.
Liquidity Needs:
- Evaluating the client's need for accessible cash on an annual basis helps the firm balance their investment portfolio appropriately, ensuring sufficient liquidity while maximizing growth opportunities to meet short- and long-term financial goals.
Time Horizon:
Understanding how long a client plans to invest helps determine the appropriate asset allocation and investment strategies.
Less than a year:
- The client intends to use the funds within the next 12 months, requiring high liquidity and low-risk investments.
1-4 years:
- The funds will be needed in the near term, favoring moderately liquid and stable investment options.
5-10 years:
- A medium-term horizon allows for a balance between growth-oriented investments and risk management.
11-15 years:
- A longer-term outlook enables a focus on growth investments with moderate risk exposure.
More than 15 years:
- A long-term horizon prioritizes maximizing growth potential, accommodating higher-risk, higher-return investments.
Risk Tolerance:
- Identifying a client's willingness and ability to handle market fluctuations ensures that their investment portfolio aligns with their comfort level and financial goals.
- This helps manage expectations and reduces the likelihood of emotional decision-making during market volatility.
Risk Capacity:
- Risk capacity evaluates a client’s ability to endure portfolio losses without significantly impacting their lifestyle or financial obligations. This ensures the investment strategy aligns with their financial resilience.
- Understanding whether a client can handle varying levels of risk allows wealth managers to build portfolios that balance growth potential with the client's financial situation, ensuring long-term sustainability and alignment with their objectives.
-
Alignment with Financial Goals: Understanding whether the client prioritizes income, growth, or a balance of both helps tailor an investment strategy that aligns with their specific financial objectives.
-
Risk-Return Compatibility: Knowing the client's tolerance for volatility and their return expectations ensures the portfolio is designed to meet their goals without exceeding their comfort level for market fluctuations.
- Compliance and Suitability: Recording the investment objective ensures regulatory compliance by documenting that the recommended investment approach suits the client's financial situation and preferences.
Show Data Validation Warnings at the end of the submission, helps in identifying any discrepancies or missing information, allowing for immediate correction before finalizing the process. This ensures that all client data is complete, accurate, and compliant with regulatory requirements, reducing the risk of errors and enhancing the quality of the submission. By addressing these warnings, both the client and the advisor can be confident that all necessary details have been properly validated, contributing to a smoother and more efficient onboarding experience.