Monday, March 20, 2023


KYC update for seniors -Problem prevention

In order for your advisor to recommend an optimum portfolio of investments she/ he must have up to date information on your financial status and needs. Advisors are not always proactive in soliciting clients of changing conditions, resulting in stale KYC information .Stale information can result in poor outcomes and result in complaints.

Seniors should inform advisors of life changes and not wait to be approached by their advisor. Examples include:

·         Transition to retirement

·         A material change in income

·         Death of a spouse

·         A change in dependents

·         Sale of primary residence/ new address and phone number /email

·         Nomination of a Trusted Contact Person ( TCP)

·         A material change in expense profile
A material change in risk profile - tolerance, capacity  , need

·         Serious illness / decline in health A change in beneficiaries

·         Identification of POA holder

·         A change in financial objectives

·         Need for liquidity Time horizon for each account

·         Change in tax status  / tax rate Desire to change fee structure e.g. fee-based , fee only ,robo

·         Changes in life/ health insurance coverage

·         Desire to change type of account  e.g. discretionary/ non- discretionary

As a result of the changes, the financial plan will likely need to be updated.

Due to conflicts-of-interest, it is not wise to name your advisor as a TCP, POA, executor, trustee or beneficiary .