Investing 101
Duty to Update - Material Changes
Financial advisors must update their and their dealer's records with the most up-to-date know your client information for their clients. This means that financial advisors must regularly ask their clients for updated information about their address, contact information, and other relevant details.
Examples of "other relevant details" in
Financial advisors must update their and their dealer's records with the most up-to-date know your client information for their clients. This means that financial advisors must regularly ask their clients for updated information about their address, contact information, and other relevant details.
Examples of "other relevant details" include information about the investor’s: assets; liabilities; income/risk to income; expenses; employment/years-to-retirement/retirement; marital status; children/grandchildren/other dependents; health that may impact these factors; and any other information that could be relevant to the investor’s investment decisions.
These updates help to protect investors are essential to a financial advisor fulfilling their duty to recommend suitable investments.
NOTE: Updating the New Client Application Form is not evidence of the financial advisor knowing investors. Updating this form is the result of in-depth and regular (yearly) interview of investors.
In-depth interviews are never done in social or other public including bars and restaurants. If a financial advisor discusses your personal information in a public setting, then they are risking breaches in your confidentiality, exhibit an absence of both professionalism and common sense; and should be reported to their dealer and their regulator.