KYC (Know Your Client)

Students learn how to understand the total wealth picture of clients and how to use this information to ascertain investment appropriateness and to verify that clients meets the firm's standards and can cause no harm to the firm’s reputation.

This introductory course provides participants with a basic understanding of financial information as presented in financial statements. Students learn key financial concepts and how to use balance sheets and income and cash flow statements received from their clients to make decisions. Participants also learn how to ask key questions to solicit information necessary to complete KYC requirements, especially from non-US clients where reporting is not as regulated as in the US.

The program integrates two client cases in small team exercises that allow participants to practice their skills in real life scenarios.

No sessions currently available. Contact client services to get the next available date.
New Private Bankers, New Wealth Advisors, Brokers who are going to cover broader wealth solutions, Portfolio Managers and other Product Specialists requiring an in-depth overview of wealth management, Individuals working in the finance arena
No advance preparation required.
Students will be able to:
  • Explain the nature and role of financial management
  • Describe and interpret key financial statements
  • Interpret key balance sheet and income statement and cash flow statement terms
  • Capture the results of the above activities in a qualitative and quantitative manner for KYC documentation
Pre-requisites: Wealth Management program or equivalent experience
  • Financial Statement Analysis - Day
  • Financial Statement Analysis - Evening
  • Demystifying Cash Flow
    • Understanding forms of business and financial reporting
    • Business structures and the limitations of financial reporting for various structures, including: Public and private corporations, Partnerships, LLCs, Sole proprietorships

    Interpreting Key Financial Statements

    • Balance sheet overview
    • Assets, liabilities and stockholders’ equity
    • Key terms relating to the balance sheet
    • Using financial statements to extract key KYC information
    Exercise: Using provided Client Case One with accompanying financial statements; demonstrate key elements of Balance Sheet.

    Income Statement

    • Income statement overview
    • Key terms relating to the income statement
    • Revenues, expenses, and profitability measures
    Exercise: Divide group into small teams. Using provided Client Case One income statement, extract information needed to complete provided KYC form and identify information still needed to complete KYC assessment. Discussion: Additional Financial Statement sources for KYC information.

    Key components of the Cash Conversion cycle

    • The cash conversion cycle and its various components
    • Overview of cash flow statements
    • Following the flow of funds: Income or salary, including commissions and bonuses, Investment gains and losses (Dividends, Stock appreciation, Interest income and expense, Options)
    • How items affect the balance sheet and income statements
    Exercise: In small teams, and using provided Client Case One cash flow statement, extract information needed to complete provided KYC form and identify information still needed to complete KYC assessment. Discussion: What questions would you ask to obtain the remaining KYC information?

    Using Financial Statements

    • Quality of financial reporting
    • Timing of revenue and expense recognition
    • Notes to financial statements
    • Audited compiled, reviewed statements
    • Management discussion and analysis
    • Quantifying and valuing the risk/return factors related to the company or individuals’ financial activities and investments
    Exercise: In small teams, and using provided Client Case Two and accompanying financial statements, extract information needed to complete provided KYC form. Identify information still needed to complete KYC assessment. Indicate what additional documentation would provide the information. Create a list of probing questions for client relationship managers to obtain this information.

                        This is an elective module in the Wealth Management Program

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.