The Know Your Customer onboarding street
Each asset manager has its own onboarding process and has interpreted and shaped the substantive details as it sees fit. This can result - unintentionally, of course - in fines from the authorities for the asset manager's failure to comply with laws and regulations. Working with Wijnstekers Financial Law, we made the onboarding process as correctly compliant as possible with MiFID, MiFID II and the AVG.
the onboarding street
The MiFID and MiFID II regulations stipulate that various details of an individual must be recorded in order to provide appropriate investment advice based on them.
The know your customer onboarding street laid out in the SCOPE KYC Cloud Portal was created in collaboration with Wijnstekers Financial Law, to best comply with MiFID and MiFID II.
In addition to MiFID and MiFID II, the new data protection legislation, the AVG (General Data Protection Regulation) is also in effect. By making the software accessible to both the asset manager and the client, much of the AVG has been fulfilled.
Personal situation
First, the personal situation of the client is recorded. In addition to NAW data, the family situation is also asked, as this can also influence the course of the assets.
Objectives
As part of the financial situation, goals are also set. For example: how much return does the client want in twenty years. It is calculated whether these objectives are achievable and in which investment profile they should be invested.
Knowledge and experience
Knowledge and experience are also requested. This step records education, as well as knowledge and experience with financial products such as bonds and stocks.
Risk tolerance
Based on the financial situation and the investment objective(s), the EPI-Engine performs Monte Carlos simulations to understand what may happen to the assets in different stock market climates. In addition, the SCOPE KYC Cloud Portal includes a psychometric risk tolerance test to estimate what risk the client considers acceptable.
financial situation
The financial situation is obviously important to choose a good investment strategy. Possessions, debts, income and expenses are recorded.
capture
The final step is to choose a risk profile and a matching investment strategy. Then all the steps are converted to a PDF document, which can be signed by both parties.
The demo videos below explain step by step how the inventory works
Continuously testing the KYC question
