Hello,

As we prepare for the enhanced KYC requirements under Client Focused Reforms (“CFRs”), we are pleased to provide you with the HCI IPQ as an important tool to assist you in guiding your client with understanding their comfort and capacity to withstand risk. The IPQ has been designed to capture the client’s risk profile, but it also maps directly to key KYC information including Income, Net Worth, Time Horizon, Risk Tolerance, and Investment Objectives.

Integrating the IPQ into your practice will prompt meaningful discussion with your clients in determining their KYC and serve as an excellent reminder of the discussion you had in establishing their risk profile, investment plans and product recommendations. It’s easy to complete and will clearly demonstrate the process you went through to understand their needs and complete the KYC. The IPQ is an important document to meet your heightened KYC obligations under CFRs, defend a client complaint, legal and/or regulatory concerns. While the IPQ is not mandatory, we strongly encourage you to integrate it into your practice.

Investor Profile Questionnaire "Online" (fillable) | Investor Profile Questionnaire "Manual" (non-fillable)

Plan Level IPQ
Most often, you will only need to complete one IPQ per client and the information will apply to all their plans as selected, however, there may be circumstances when you may require the client to complete an IPQ for a particular plan if they have different objectives, risk, time horizons or other considerations specific to the plan. For example, you may need the client to complete an IPQ specific for a RESP, or when saving to purchase a home, etc. 

IPQs for Joint Accounts
For joint accounts, each account holder should complete an IPQ. The results of each IPQ should be reviewed and the most conservative of the IPQs will guide the KYC process, investment plans and product recommendations. For example, if you have joint clients and one of the account holders doesn’t have the capacity to withstand risk, then the investment for that joint account should be directed to guaranteed investments; or you if you have one joint owner that is not as comfortable with risk, then a balanced fund may a more appropriate investment than an equity fund.

Updating IPQs
IPQs should be revisited as client circumstances change over time and may need to be updated. It should be reviewed in client meetings, when updating KYCs, or when you are aware of important changes in the client’s’ life such as employment, dependents, retirement, etc.

IPQ Document Management
The IPQ is signed by you and the client(s) and a copy should be maintained in the client file. The form does not need to be provided/scanned along with KYCs or KYC updates, but it does form part of the client file and we encourage you to upload the IPQ into to the client documents area in RepVision.

If you have any questions regarding the IPQ, please reach out to your Regional Compliance Officer.

Regards,

Cheryl Hamilton
Vice President Risk Management and Chief Compliance Officer