|
Article 27
|
A securities firm shall thoroughly get to know a customer before it may agree to open an account for the customer.
A securities firm shall adopt principles for the acceptance of customers and working procedures for know-your-customer reviews. The securities firm shall keep a customer's basic information on record, including the customer's identity, financial background, income and source of funds, risk preference, past investment experience, and investment objectives and demands, and give overall consideration to the following items, to distinguish a customer's risk tolerance rating:
- The customer's funds utilization status and professional competence.
- The customer's investment attributes, understanding of risk, and risk tolerance.
- Suitability of customer services and suitable range of investment recommendations.
The content of a customer's basic information and the results of the analysis under the preceding paragraph shall be presented to the customer for their confirmation, and the same shall be done when there is any change thereto.
When there is any change to a customer's basic information under paragraph 2, the securities firm shall reevaluate the customer's risk tolerance rating.
The securities firm shall fulfill its duty of due diligence with respect to the basic information on record for a customer. When necessary, it may require the customer to provide relevant supporting documents.
|