Entire section Custom print Link Text Only Rich Text Print
  Versions

 

DA-1.3.5

Licensees providing digital financial advice to clients must record the client profile accurately and comprehensively if they are critical and to the extent needed for the algorithms underlying the client facing tool. The licensees must at a minimum:

(a) obtain information to understand the clients overall financial situation, including sources of regular income, financial returns objective, time horizon, liquidity, legal issues, taxes and any unique constraints;
(b) obtain information to make assessment of both the customers' risk tolerance, capacity and willingness;
(c) have a process in place for resolving contradictory or inconsistent responses or advice in a client profiling tool or questionnaire, if any;
(d) have a process for assessing whether investing (as opposed to saving or paying off debt) is appropriate for the client individual;
(e) establish a process for contacting customers to update changes to their profile, at least annually; and
(f) establish appropriate governance and supervisory mechanisms for the client profiling tool.
Added: April 2019