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Opening your Investment Account

When you decide to open an account, you and your advisor will complete a new account application.

This application will require you to provide personal information as well as ask you to make certain decisions about your account. Your advisor will use this information to learn about you and your financial needs and to meet regulatory obligations.

This information sheet sets out the basic information that will be collected from you on account opening and explains why it is necessary to open and operate your account.

Suitability and Know-Your-Client Requirements

Securities legislation and MFDA Rules require that each recommendation your advisor makes be suitable for you in relation to your investment objectives, risk tolerance and other personal circumstances. In order to meet this requirement, your firm and advisor need to understand your financial situation, investment needs and objectives, and tolerance for risk. This is referred to as the "Know-Your-Client" (KYC) Rule under securities law. This Rule requires your firm and advisor to collect the following information from you:

For certain types of investment strategies, you may be asked for more detailed information on your income, expenses, and net worth.

Your firm and advisor will assist you in understanding what these terms mean and how they relate to the specific investments recommended to you.

After you open your account, you need to notify your advisor of any significant events that may change your investment objectives, time horizon, investment knowledge, risk tolerance, income and net worth. For example, your advisor needs to know about:

Other Information Requirements

In addition to information requirements under the MFDA KYC Rule, your firm and advisor must also comply with obligations under other legislation and regulations. Your firm and advisor may be restricted from opening your account if you do not provide this information.

If your account is jointly owned by two or more persons, some of this information may need to be collected with respect to each owner. If your account is owned through a corporation, trust or other type of legal entity, there may be additional information your advisor will need to collect in order to operate the account and ensure that all investments are suitable.

When providing this information, be as accurate as possible, as your firm and advisor will use this information to understand your financial needs and determine what investments are suitable for you. Read the application and the accompanying agreements and other documents your firm gives you carefully and ask questions about anything you do not understand.