Now that the year is drawing to an end and we reflect back on our successes and, dare I say, failures over the last year, financial advisors and brokers should take the time now to review their respective client portfolios. This review should be your standard practice as you plan for next year.
The premise of any such review is to ask yourself, do I still know my customers. If the answer is no, you may be in trouble if you do not take immediate action. This is why a year-end review makes so much sense.
As part of any year-end review, get in touch with your customers; preferably face-to-face, but at least by telephone. That review should include getting the answers to questions like the following:
- Have my clients' investment goals and objectives changed?
- Have the risk profiles for my customers changed?
- Have there been any changes to my customers' earnings, positive or negative?
- Does my client need her investments to now generate income instead of growth?
- Have there been any changes to my clients' employment status; i.e., retiree or change in job?
- Have there been any life changes that may impact my customers' investment approach; i.e., marriage, divorce, death of a spouse or partner, or health issues?
Granted, there are many more questions that could be asked, but you get the point. The year-end presents you with an opportunity to make sure that you know your customer for the coming year. By doing so, you, at the same time, have the ability to market your services to your client.
Doing a KYC analysis is not all bad. It helps you prepare for the future and show each one of your clients that you take a personal interest in them. A happy client is a client that will provide you with more assets under management; a win, win situation from my perspective.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.