Under Canadian regulations, Dealer Members are exempt from providing relationship disclosure and suitability determinations to institutional clients. Which obligation remains mandatory for institutional clients?
3 attempts · 33.3% correct
The Dealer Member must still determine the investment objectives and risk profile of the institutional client every 36 months.
Institutional clients are exempt from all Know-Your-Client (KYC) requirements once their identity has been initially confirmed.
Dealers must still verify the identity of the institutional client and comply with anti-money laundering (AML) requirements.Correct
Dealer Members are only required to establish the creditworthiness of an institutional client if they are also a retail client.
Why
Exemption from RDI and suitability does not exempt a firm from core KYC obligations like identity verification and AML compliance.
