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Word of the Week - "Know your client" Rule

KNOW YOUR CLIENT RULE





Manitoba



In the investment industry, there is a well-established duty frequently referred as the “Know Your Client” [(“KYC”)] rule.

. . . . .

... in order to act in the best interests of your client, you have to know the client. The information to be obtained from the client should include financial advice which determines the client's employment status, his income, his retirement plans and his volatility ability, i.e. the closer to retirement, the volatility ability decreases especially with smaller portfolios.





Giesbrecht v. Canada Life Assurance Co. 

CarswellMan 511 (Man. Q.B.) at para. 135, 138 

Bryk J.











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