The company sets rules and limits in terms of accepting a client. Indeed, for ethical, legal and commercial reasons, the company must, before accepting a client, know her identity, her intentions and the origin of her funds. The following document describes the policy and procedures in place to "screen" the clients that the company will accept.
The company's client acceptance policy is based on the following principles:
Alignment of the client with the company's management strategy
The company ensures that the client is fully committed to its investment strategy. In particular, the client must buy into the company's passive investment view that no one can beat the market over the long term. The client also understands why the company does not support the tactics of stocks picking or asset classes picking , nor of market timing . The company would rather turn down a client who is not aligned with its management strategy than generate frustration for all parties later in the relationship.
Belief that the management of the company can help the client
The firm must be satisfied that its portfolio management approach meets the needs and interests of the client, taking into account the suitability test. For example, if a client wishes to invest a large portion of her assets in a risk profile that is too high for an investment horizon that is too short compared to what the company believes is reasonable, the company may refuse to serve the client.
Finalization of all the company's onboarding procedures
The client must finalize all onboarding procedures set up by the company including the suitability assessment questionnaires. The client must also sign all account opening documents and agreements.
Honorability of the client and the origin of his funds
The client must be of good character and the origin of the funds must be legal. It is no question for the company to accept funds originating from money laundering activities or that could be used to finance terrorist activities.
Governance, evaluation and updating
Clients are accepted on the recommendation of the commercial department and finally approved by the AML committee, which consists of the AML, compliance and risk management managers. The Executive Committee may review and update this policy and procedures.
The Executive Committee may review and update this policy and procedures as required by the business and in compliance with regulatory requirements.