Definitions for "Know Your Customer"
A guideline stated or implied by various securities regulatory bodies which requires that brokers determine the suitability of investments for customers before making recommendations. also called Rule 405 or Suitability Rules.
The duty to ascertain sufficient information about a customer to enable suitable advice to be given.
An ethical foundation of securities brokers that an adviser who recommends the purchase or sale of any security to a customer, must believe that the recommendation is suitable for the customer, given the customer's financial situation.