Know Your Client - KYC


DEFINITION of 'Know Your Client - KYC'

A standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance , investment knowledge and financial position.

BREAKING DOWN 'Know Your Client - KYC'

KYC forms protect both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and can not include in their client's portfolio.

  1. Client Facing

    A type of business role where the employee interacts directly ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence ...
  3. Churning

    Excessive trading by a broker in a client's account largely to ...
  4. Private Banking

    Personalized financial and banking services that are traditionally ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Retail Banking

    Typical mass-market banking in which individual customers use ...
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  1. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  2. When are mutual funds considered a bad investment?

    Mutual funds are considered a bad investment when investors consider certain negative factors to be important, such as high ... Read Full Answer >>
  3. What fees do financial advisors charge?

    Financial advisors who operate as fee-only planners charge a percentage, usually 1 to 2%, of a client's net assets. For a ... Read Full Answer >>
  4. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  5. Can you buy penny stocks in an IRA?

    It is possible to trade penny stocks through an individual retirement accounts, or IRA. However, penny stocks are generally ... Read Full Answer >>
  6. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>

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