CIPR 5.3.3 Investment intermediation and investment advice for retail customers — “know your customer”

(1) An authorised firm must take reasonable steps to ensure that the information that it has about a retail customer is accurate, complete and up-to-date.
(2) For rule 5.3.2 (1) (a), the information that an authorised firm obtains about a retail customer must include all of the following (to the extent appropriate to the customer's investment experience, the nature and extent of the service to be provided and the type of product or transaction envisaged, including its complexity and the risks involved):
(a) the customer's financial situation (for example, the source of his or her income, his or her financial commitments, savings, property and investments, loans or mortgages, and pensions);
(b) the customer's personal situation and plans (for example, his or her marital status, children, security of employment or term of employment contract, and future plans, including retirement plans);
(c) the customer's investment objectives, investment horizon and attitude to risk;
(d) the customer's knowledge of, and experience in, the relevant investment field;
(e) the nature, volume and frequency of the customer's transactions and the period over which they have been carried out;
(f) the customer's level of education and his or her profession or former profession.
(3) If the firm asks the customer for personal or financial information and the customer refuses to give it, the firm must warn the customer in a durable medium that failure to give the information may adversely affect the quality of the service that the firm provides. The firm must retain a record of the customer's refusal.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).