Know Your Client & suitability

• QuestionWhat is "Know Your Client (KYC) and Know Your Product (KYP)"?Tap to revealAnswerKnow the client and know the product — suitability lives where the two meet, and KYC must stay current.
• QuestionIn "Know Your Client (KYC) and Know Your Product (KYP)", explain:Tap to revealAnswerKYC = the client facts behind a recommendation; KYP = understanding the products.
• QuestionIn "Know Your Client (KYC) and Know Your Product (KYP)", explain:Tap to revealAnswerSuitability lives where KYC and KYP meet.
• QuestionIn "Know Your Client (KYC) and Know Your Product (KYP)", explain:Tap to revealAnswerKYC is a continuing duty — keep it current as life changes.
• QuestionIn "Know Your Client (KYC) and Know Your Product (KYP)", explain:Tap to revealAnswerUpdate KYC at reviews and life events, not just at onboarding.
• QuestionWhat is "Risk profiling: capacity vs tolerance"?Tap to revealAnswerProfile both the ability and the willingness to take risk — and when they clash, the lower one wins.
• QuestionIn "Risk profiling: capacity vs tolerance", explain:Tap to revealAnswerCapacity = objective ability to absorb loss; tolerance = willingness to.
• QuestionIn "Risk profiling: capacity vs tolerance", explain:Tap to revealAnswerThey can disagree — generally let the lower of the two govern.
• QuestionIn "Risk profiling: capacity vs tolerance", explain:Tap to revealAnswerA portfolio the client abandons at the bottom is the real risk.
• QuestionIn "Risk profiling: capacity vs tolerance", explain:Tap to revealAnswerProfile through conversation and past behaviour, not just a quiz score.
• QuestionWhat is "The financial needs analysis"?Tap to revealAnswerThe needs analysis turns goals and facts into a right-sized, defensible plan — and it's your best sales tool.
• QuestionIn "The financial needs analysis", explain:Tap to revealAnswerThe FNA captures goals, horizons, assets, debts, income, coverage, and dependents.
• QuestionIn "The financial needs analysis", explain:Tap to revealAnswerIt right-sizes recommendations and makes them defensible.
• QuestionIn "The financial needs analysis", explain:Tap to revealAnswerIt surfaces forgotten facts (group benefits, a spouse's pension).
• QuestionIn "The financial needs analysis", explain:Tap to revealAnswerIt reframes the conversation from 'product' to 'solving your problem.'
• QuestionWhat is "Suitability and the client's best interest"?Tap to revealAnswerRecommend what's best for this client — weigh alternatives and cost, put their interest first, and document why.
• QuestionIn "Suitability and the client's best interest", explain:Tap to revealAnswerSuitability: the recommendation must fit this specific client.
• QuestionIn "Suitability and the client's best interest", explain:Tap to revealAnswerCFR requires putting the client's interest first and addressing conflicts in their favour.
• QuestionIn "Suitability and the client's best interest", explain:Tap to revealAnswerWeigh cost, risk, and available alternatives — and document the basis.
• QuestionIn "Suitability and the client's best interest", explain:Tap to revealAnswerSuitability is ongoing — reassess at life events and reviews.

1. 1Separate capacity from tolerance

   Create~20 min

   Write three short interview questions that reveal a client's risk CAPACITY and three that reveal their TOLERANCE, and explain how you'd reconcile a conflict between them.

   Done when: Your questions clearly target each dimension and your reconciliation rule (take the lower) is stated and justified.

   Re-read the source concept

Why this matters. Reading + quizzing prove recall; applying it in a real situation is the only evidence of transfer. Treat at least one of these as non-negotiable before you move on.