Define: Know Your Client

UK Accounting Glossary

Definition: Know Your Client



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Full Definition of Know Your Client


Know your client, or “KYC”, are the ethical and practise guidelines for investment advisors to make detailed assessments about their clients’ risk tolerance. Know your client rules are also called suitability rules because they are concerned with the suitability of securities investment for each specific customer. Similar to KYC for brokers, know your client for investment advisors go beyond appropriateness and know your client requires investment advisors to assess investment clients’ knowledge as well as financial position, tax status, and suitability criteria. Know your client forms are completed by clients who want to be eligible as sophisticated investors for private investments and know your client rules protect investment advisors in this way. NASD’s know your client suitability rule is rule 2310. The NYSE’s know your client is rule 405. Brokerages and other regulators have additional know your client policies and rules. The SEC has enforcement power over brokerages that require them to maintain know your client policies. Know your client rules require the collection of suitability information both at account opening and with periodic updates.


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https://payrollheaven.com/define/know-your-client/
Modern Language Association (MLA):
Know Your Client. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 02, 2020 https://payrollheaven.com/define/know-your-client/.
Chicago Manual of Style (CMS):
Know Your Client. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/know-your-client/ (accessed: April 02, 2020).
American Psychological Association (APA):
Know Your Client. PayrollHeaven.com. Retrieved April 02, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/know-your-client/

Definition Sources


Definitions for Know Your Client are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.