The KYP (Know-Your-Product) is a regulatory mandate requiring financial advisors and firms to possess comprehensive knowledge of the financial products they offer. In this article, we will guide you on how to review fund and model alternatives to meet your KYP requirements on the platform.
Please note that the following enhancements are available to our existing enterprise customers and may not be currently available in your environment as each environment has a customized experience.
Comparing Fund Alternatives
In the Portfolio Builder
When creating a portfolio, the portfolio builder serves as a dynamic environment for reviewing fund alternatives. After adding funds to your client’s portfolio, click on "Compare alternatives" to review fund alternatives.
The suggested fund alternatives will appear alongside the original fund for review, and a confirmation message will appear when the comparison is successfully completed.
This action updates the product’s status from a grey check mark (On Shelf) to green (On Shelf & Compliant), satisfying the KYP requirements for that fund for the next 12 months.
In the Comparison Screen
When bringing your portfolio into a comparison, you may encounter a message stating “Portfolio holding(s) require Alternative Review”.
To proceed, open the portfolio editor by selecting “Modify portfolio”. For imported portfolios locked from editing, choose the option to "Copy portfolio".
In the portfolio editor, click on "Compare alternatives" to bring in the fund alternatives.
The suggested fund alternatives will appear alongside the original fund for review, and a confirmation message will appear when the comparison is successfully completed.
In the Fund Screener
You can also complete KYP steps independently of a client comparison. To do so, click on “Search” at the top of the page and use the search bar to locate the fund by entering its fund code or name.
Once located, click the fund name to display its metrics on the right. There, you’ll find the “Compare Alternatives” button.
Clicking this will bring up suggested fund alternatives from the system and a confirmation message will appear when the comparison is successfully completed.
Comparing Model Alternatives
Beyond fund-level comparisons, reviewing model alternatives aligned to a risk profile helps ensure alignment with your client’s risk tolerance.
To access the risk profile, toggle over to the Risk Profile tab above the hypothetical graph from inside a comparison. Here, you can add your contact's risk profile or create a new one to add to the comparison.
By adding a risk profile to your comparison, the platform will automatically display model alternatives that correspond to the same risk tolerance.