Compliance Memo

CM_2021-05; Using the IPQ to support the KYC process

For more information, contact:

Compliance Team

Date Issued:

December 30, 2021

As you know, the Client-Focused Reforms (CFRs) initiative will come into effect on January 1, 2022.

Among the many changes, the CFRs require GP Wealth Management and its Financial Advisors to establish a documented process for assessing a risk profile for each client that includes:

  • understanding their financial circumstances including liquidity needs, debts, assets, and income
  • assessing the willingness to accept risk (Risk Attitude) and an ability to endure potential financial loss (Risk Capacity) when determining their risk tolerance
  • appropriately interpreting the responses to questions and not attributing inappropriate weight to certain answers

Most importantly, the process needs to be supportable, reliable, and repeatable.

Important Notice

To meet this requirement, the Investor Profile Questionnaire (IPQ) will be required for ALL newly opened accounts and ALL Know-Your-Client (KYC) updates beginning February 1, 2022.

Updated Investor Profile Questionnaire

With many of the new changes related to the CFR initiative, we will be updating the IPQ on W.investment to include:

  • Definitions of certain items have been expanded and certain questions have been rephrased for greater clarity
  • Sequence of questions has been changed for a better client experience
  • Modifications have been made to the questionnaire so that information collected through the IPQ aligns with the KYC information on the NAAF
  • A “notes” section has been added to allow for comments to support the investor profile

New digital Investor Profile Questionnaire

In addition, we have developed a digital version of the IPQ that you and your client can access securely online for a more convenient and simpler completion. A client can complete the questionnaire and submit the results to you for review as part of the KYC process or you can complete the questionnaire with the client and upload the results to the client’s document folder as part of the KYC process.

We expect to launch the new digital questionnaire in the next two weeks.

Updated Investor Profile Questionnaire on the GP Wealth Plan

We are also working with Equisoft to update the IPQ in the Investment module of the Wealth Plan. We expect to have the updates completed by the February 1st transition date.

Additional Training

We will be holding a series of webinars in the new year to review the new requirements and updates with the Investor Profile Questionnaire. We would encourage you to attend to receive the latest updates including some additional CFR developments.

As always, if you have questions or comments, contact the Compliance Department by email at