Suitability Assessment Process. Through conversations with you and a review of the information provided by you on the Application, your Advisor will gain an understanding of your financial situation and life circumstances. The information you provide is broadly referred to as “Know Your Client” (KYC) information and will be used by your Advisor to determine whether a given investment is suitable for you. You will be provided with a copy of your KYC information at the time of account opening and each time there is a material change to your KYC information. The KYC information and other factors that guide us in our decision as to an investment’s suitability include what we understand to be your current: Financial situation - What financial assets (e.g. deposits, investments etc.) and liabilities (e.g. debt, mortgage etc.) you have and the sources and amount of your income. We will consider the size of any transaction compared to the overall value of your net financial assets (assets minus liabilities). Investment knowledge - Whether you consider yourself, or we understand you, to be a novice at investing, have some knowledge or feel you understand more complex financial products. Investment objectives - What you tell us are your specific financial goals. This will help us determine how to balance the desire to earn income and/or increase your capital through growth in the market value of your holdings/Account. Time horizon - When you expect to withdraw a significant amount of your Account. For example, to buy a house or pay for education. In retirement, this may also include consideration of tax requirements to withdraw minimum amounts. Risk tolerance - Your willingness and ability to assume risk and incur fluctuations and/or losses in the value of your investments in pursuing your investment goals. For example, an investor with a high risk tolerance has an above average willingness and ability to risk losing money to get potentially better results. In addition, other pieces of financial or personal information will have to be collected, including name, address, telephone number, email address and certain information concerning family, employment and financial status. This information will be used to confirm your identity and determine your investor profile. Our understanding of your profile is critical. Some of the above factors are relatively easily answered by providing a number or simply answering “yes” or “no”. However, some factors are more complex, particularly your risk t...
Suitability Assessment Process. Through conversations and a review of the information I provide on the Application, my Representative will gain an understanding of my financial situation and life circumstances. The information I provide is broadly referred to as “Know Your Client” (“KYC”) information and will be used by my Representative to determine whether a given investment is suitable for me. I will be provided with a copy of my KYC information at the time of account opening and each time there is a material change to my KYC information. The KYC information and other factors that guide my CFIS Representative as to an investment’s suitability include what my Representative understands to be my current: • Financial situation - What financial assets (e.g. deposits, investments etc.) and liabilities (e.g. debt, mortgage etc.) I have and the sources and amount of my income. My Representative will consider the size of any transaction compared to the overall value of my net financial assets (assets minus liabilities). • Investment knowledge - Whether I consider myself, or you understand me, to be a novice at investing, have some knowledge or feel I understand more complex financial products. • Investment objectives - What I tell my CFIS Representative are my specific financial goals. This will help my CFIS Representative determine how to balance the desire to earn income and/or increase my capital through growth in the market value of my holdings/Account. • Risk profile -The lower of my risk tolerance (i.e. my willingness to accept risk) and my risk capacity (i.e. my ability to endure potential financial loss in pursuing my investment goals). For example, an investor with a high risk profile has both the willingness and ability to risk losing money to get potentially better results. • Time horizon - When I expect to withdraw a significant amount of my Account. For example, to buy a house or pay for education. In retirement, this may also include consideration of tax requirements to withdraw minimum amounts. In addition, other pieces of financial or personal information will have to be collected, including name, address, telephone number, email address and certain information concerning family, employment and financial status. This information will be used to confirm my identity and determine my investor profile. Your understanding of my profile is critical. Some of the above factors are relatively easily answered by providing a number or simply answering “yes” or “no”. However, some factors...
