Asset Management Discussion Post 6 Coursework Example | Topics and Well Written Essays - 250 words

Asset Management Discussion Post 6 - Coursework Example For purposes of recording keeping, a broker may inquire about the customer’s name, address, and date of birth, driver’s license, employment status, annual income, and net worth. This information helps to verify identification of the client and check whether the client appears in any known or suspected terrorists groups or agencies. Other questions would be whether a brokerage firm and their annual income employ them. Details of telephone number and account investment objectives are also crucial questions. This information must be obtained in good faith but if the customer neglects to provide such information then a broker can break the rule of good faith in obtaining such information. As a broker, questions asked must be periodically repeated to check accuracy over a certain period. According to the SECs, rules every brokerage firm is required to send information obtained from a client periodically for verification (Markham, 2014). There are certain characteristics that a client must possess for the investment to make sense. The main characteristic of the client is the suitability for investments. The broker might inquire about the income of the client and their net worth. The broker may inquire about security holdings, risk tolerance, and investment objectives of the client. All this is contents that must be there for one to be deemed suitable to create a portfolio in any