After assessing the risk tolerance, a formal KYCstock-taking report is generated which records all details and choices. This document can be signed by the client and it can be used to open a new account.

The first step in finishing the KY process is the client’s confirmation of the risk profile choice. Before confirming the choice, the client is presented with the selected risk profile and multiple outcomes of scenario analysis using this profile. Included are important details such as:

  1. The gross return that is expected for the calculations;
  2. The maximum losses within a single year;
  3. Insight into the chance of meeting the target on the horizon date;
  4. Insight into what happens in a bad market, in relation to the minimum target or bottom limit selected by the client.

After confirming the risk profile, the client stock-taking report is generated. This is a complete oversight of all gathered client data, the decisions made by the client, and the consultation report of the adviser documenting various components of the consultation. This document is meant as a concluding report and is to be signed by the client and the investment manager.