Series 7 - General Securities Representative Exam

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Which TWO of the following are TRUE of KYC?

It is a process that includes collecting identity documents of a customer and It is a process that involves the risk assessment of the customer
A
It is a process that includes collecting identity documents of a customer and It is a process that is only applicable to non accredited investors
B
It is a process that involves the risk assessment of the customer and It is a process that is optional for brokerages to follow
C
It is a process that involves the risk assessment of the customer and It is a process that is only applicable to non accredited investors
D

Explanations

KYC - Know Your Customer / Client is the process of identifying clients and assessing their suitability and potential risks of illegal intentions. It is mandatory for all brokerages to comply with KYC and applies to all accounts regardless of accredited or non accredited investor status

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