Add fields to comply with the "know your client" FINRA requirements
Right now about 1/3 of the necessary fields are there and if we could get them all there, easier to document for our records and can be used by virtual assistants.
This suggestion is remaining open and can continue to gather votes and comments!
To the extent the KYC info is standardized across FINRA covered BD's, it would helpful for virtual assnt to easily reference AND for them (anyone) to complete new account forms.
As a follow up to my first post...For our b/d, the information for suitability is not a numerical field, but ranges. The format of the data is going to be important.
For example, Annual income:
1) under $25,000
2) $25,000 - $50,000
Assets held: (to total 100%), for example, stocks ___%, bonds ___%, mutual funds ___%, annuities ___%, etc.
I would be happy to give you more information - just email me if you need.
I added a comment in another submission with the same request. We need suitability information added, such as annual income, net worth, etc. as well as % of assets (to total 100%), for example, stocks, bonds, mutual funds, annuities, etc.
In addition, our broker/dealer has suitability information in ranges. For example:
1) under $25,000
2) $25,000 - $50,000
3) $50,001 - $100,000
5) $250,000 - $500,000
6) Over $500,000
We need this format for Annual Income, Estimated Net Worth, Investable Liquid Assets, Federal Tax Bracket, etc.
In addition, it would be helpful if there was a break down of percentage of assets (totaling 100%). For example:
Mutual Funds __%
This information is required by FINRA and included in our new account opening documents.
Thanks for the idea, Andrew!
We'll take a look at some of the New Account forms we can get a hold of to survey what should be added.
RT- just ask advisor's from a few different broker dealers to submit a copy of a "New Client Account Form", and you will see all of the information that FINRA is looking for us to gather. You should see pretty much the same information required from each firm with some minor differences.
Jennifer Vancura commented
We'd love to know which additional fields you'd like added. From initial research, I've found that FINRA requires information about a client's:
financial situation and needs, which might include questions about annual income and liquid net worth;
tax status, such as marginal tax rate;
investment objectives, which might include generating income, funding retirement, buying a home, preserving wealth or market speculation;
investment time horizon, such as the expected time available to achieve a particular financial goal;
liquidity needs, which is the customer’s need to convert investments to cash without incurring significant loss in value; and
risk tolerance, which is a customer’s willingness to risk losing some or all of the original investment in exchange for greater potential returns.
In addition, the SEC requires firms to attempt to obtain a customer’s:
tax identification number,
date of birth,
net worth (excluding primary residence),
and investment objectives regarding certain accounts.
We have fields for all of these requirements in each Contact's record! Are there additional fields that should be added, or existing fields that should be changed?
What are the additional fields you want added? Just curious because I'm not subject to FINRA...only state/SEC requirements.
Debbie Menke commented
Such fields include Investment experience specific to each of the following categories: Employer sponsored plans, Stocks, Bonds, Mutual Funds, Annuities, Options, Alternative Investments, Managed accounts and "Other". Also, Annual Expenses, and Special Expenses which include the amount anticipated and their projected timeframe