3202. Know Your‐Client

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    1. Dealer Member must take reasonable steps to learn and remain informed of the essential facts relative to every order, account and client it accepts, and to: 
      1. establish the identity of a client and, if the Dealer Member has any cause for concern, make reasonable inquiries as to the reputation of the client,  
      2. establish whether the client is an insider of a reporting issuer or any other issuer whose securities are publicly traded, 
      3. ensure it has collected sufficient information regarding all of the following to enable it to meet its obligations under Rule 3400:  
        1. the client’s:  
          1. personal circumstances, 
          2. financial circumstances,  
          3. investment needs and objectives, 
          4. investment knowledge,
          5. risk profile, and  
          6. investment time horizon, and 
      4. establish the creditworthiness of the client if the Dealer Member is financing the client’s acquisition of a security.  
    2. Dealer Member must complete an account application for each new client in accordance with the requirements set out in Rule 3200.  
    3. Within a reasonable time after receiving the information collected under subsection 3202(1), a Dealer Member must take reasonable steps to have a client confirm the accuracy of such information. 
    4. Concurrently with taking the reasonable steps under clause 3202(1) a Dealer Member must take reasonable steps to obtain from the client the name and contact information of a trusted contact person, and the written consent of the client for the Dealer Member to contact the trusted contact person to confirm or make inquiries about any of the following:  
      1. the Dealer Member’s concerns about possible financial exploitation of the client, 
      2. the Dealer Member’s concerns about the client’s mental capacity as it relates to the ability of the client to make decisions involving financial matters, 
      3. the name and contact information of a legal representative of the client, if any, 
      4. the client’s contact information.   
    5. Subsection 3202(4) does not apply to a Dealer Member in respect of a client that is not an individual.  

    There is no history log for this rule.

    There is no history log for this rule.