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The Know Your Customer on boarding process

Each asset manager has its own onboarding process and has interpreted and designed the substantive details as he sees fit. This can - of course unintentionally - result in fines from the authorities when the asset manager does not comply with the laws and regulations. In collaboration with Wijnstekers Financial Law, we have made the onboarding process as compliant as possible with MiFID, MiFID II and the AVG. 

The onboarding process

The MiFID and MiFID II regulations stipulate that various details of a person must be recorded in order to be able to provide appropriate investment advice. 

The know your customer on boarding process that is documented in the SCOPE KYC Cloud Portal, is constructed in collaboration with Wijnstekers Financial Law, in order to comply with MiFID and MiFID II as closely as possible. 

Besides MiFID and MiFID II, the new regulation for data protection; the GDPR (General Data Protection Regulation) is also an important factor to consider. By making the software accessible to both the asset manager and the client, a large part of the GDPR has been fulfilled. 

Which data is stored?

  • Personal situation

    First the personal situation of a client is documented. In addition to name and address details, the family situation is also requested, as this can also affect the development of the assets.

  • Knowledge and experience

    It is also important to consider the knowledge and experience of the client. In this step, education is recorded, as well as knowledge and experience with financial products such as bonds and shares.

  • Financial situation

    The financial situation is of course important for choosing a good investment strategy. Assets, debts, income and expenses are recorded.

  • Goals

    Objectives are also set as part of the financial situation. For example: how much return of investment does the client want in twenty years. It is calculated whether these objectives are feasible and in which investment profile investments must be made.

  • Risk tolerance

    Based on the financial situation and the investment objective (s), the EPI-Engine performs Monte Carlos simulations to provide insight into what can happen to the assets in different stock market climates. In addition, the SCOPE KYC Cloud Portal contains a psychometric risk tolerance test to estimate which risk the client considers acceptable.

  • Documenting

    The final step is to choose a risk profile and an appropriate investment strategy. Then all steps are converted to a PDF, which can be signed by both parties.

The demo videos below explain step by step how the inventory works

Continuously test the KYC questions

Noëlle Wijnstekers is the legal expert for the necessary KYC knowledge and testing the SCOPE KYC Cloud solution against the applicable regulations. We will continue to consult Wijnstekers Financial Law in the future for the legal aspects of the SCOPE KYC Cloud solution and we will have the product tested regularly.