Client’s file folder
CUSTOMER FILES & DOCUMENT RETENTION
In order to comply with the requirements for creating and maintaining a complete client file, you must adhere to the following guidelines:
Collect customer data from the customer themselves and refrain from disclosing it to third parties unless you have obtained the customer's prior consent.
Privacy laws grant customers certain rights of access to their files. Only keep data in your files that is relevant and required for your business relationship with customers.
Collect and retain only the information required to perform your duties, i.e., information used to determine your client's needs, recommend appropriate products, and provide ongoing service. You are personally responsible for the information entered into the files. Do not retain any information that is not necessary to perform the above tasks.
Recueillez et conservez uniquement les renseignements requis dans l’exercice de vos fonctions, soit ceux qui servent à déterminer les besoins de votre client, à lui recommander les produits adéquats et à lui fournir un service continu. Vous êtes personnellement responsable des renseignements versés aux dossiers. Ne conservez aucun renseignement non nécessaire pour accomplir les tâches précitées.
Keep customer files in a secure location and ensure that information remains confidential. Do not leave personal customer data in plain sight. Use a shredder when disposing of documents containing personal customer information.
Conservez les dossiers des clients en lieu sûr et assurez la confidentialité des renseignements. Ne laissez pas de données personnelles sur les clients à la vue d’autres personnes. Utilisez une déchiqueteuse lorsque vous vous départissez de documents faisant état de renseignements personnels sur les clients.
Contents of the client file - mandatory
Client file content [cite: 6]
The following list contains the documents that must be added to the client file and those that are good practice to include in the file[cite: 7]. Regulatory obligations regarding file content apply to firms, companies, and independent representatives[cite: 8]. Since a large part of client files is initially compiled by the advisor who is in direct contact with the clients, the advisor who carries out their activities on behalf of a firm or an independent company must comply with its rules and transmit the relevant information they collect on the client to it[cite: 9].
Client file content - mandatory [cite: 10]
- Basic information about the client (name, date of birth, contact details, email address, marital status, dependents, etc.)[cite: 11].
- Client authorizations (creation of a client file, information sharing, powers of attorney, etc.)[cite: 12].
- Information on the client's objectives, personal and financial situation (financial statement, budget, debts, current investments and insurance, etc.)[cite: 13].
- Questionnaire establishing the investor profile (segregated funds, universal life insurance, etc.)[cite: 14].
- Financial needs analysis (life, living benefits, retirement, etc.)[cite: 15].
- Financial planning mandate, if applicable, dated and signed by the financial planner[cite: 16].
- Financial planning reports[cite: 17].
- Projections, retirement planning, asset allocation report, or any other relevant document, if applicable[cite: 18].
- Duly documented recommendations and warnings[cite: 19].
- Insurance illustrations and auxiliary sales materials used during recommendations[cite: 24].
- Insurance proposals submitted to the client during the review of their file[cite: 25].
- Proposals for insurance and savings, investment, and income products (segregated funds, universal life insurance, etc.)[cite: 26].
- Summary of the insurance policy or a legible document indicating[cite: 27]:
- whether the insurance costs payable under the contract are guaranteed and, if applicable, for how long they are and whether they can fluctuate[cite: 28];
- whether the returns on the money invested for an insurance product are guaranteed or not[cite: 29];
- whether the underwritten insurance capital is guaranteed or if it can fluctuate[cite: 30];
- the specific exclusions affecting the underwritten contract[cite: 31];
- whether surrender charges or penalties are payable in the event of a withdrawal[cite: 32].
- Method and date of payment for the products sold or services rendered[cite: 33].
- Documentation supporting the leverage loan, if applicable[cite: 34].
- Copy of the notice of replacement, completed and signed by the advisor and the client[cite: 35].
- Annual statements[cite: 36].
- Any other information or document arising from the products sold or services rendered to the client, or collected from them[cite: 37].
Good practice [cite: 38]
As a good practice, the following documents should ideally be found in each client's file to facilitate follow-ups with them, ensure a good understanding of the file, and justify recommendations, for example, in the context of an investigation[cite: 39]. These documents could also be required by the company or firm for which the advisor works[cite: 40]. (This list is not exhaustive) [cite: 41]
- Proof of disclosure of the names of the insurers whose products the advisor is authorized to offer and their business relationships[cite: 42].
- Proof of disclosure that the advisor acts for a firm that is an insurer or a firm that is bound by an exclusivity contract with a single insurer[cite: 43].
- Proof of clear and simple disclosure of information regarding the use and circulation of their personal information (objectives, means, right of access and rectification, right to withdraw consent, etc.)[cite: 48].
- Proof of delivery of a copy of the document containing the information collected on the client that was used to analyze their situation[cite: 49].
- Acknowledgment of receipt of the policy, the modification, and/or the in-force illustration signed by the policyholder at the time of delivery[cite: 50].
- Proof of sending to the insurers and giving the client the notice of replacement[cite: 51].
- Proof of delivery of the financial planning mandate to the client[cite: 52].
- Proof of delivery of the financial planning report[cite: 53].
- When remuneration is required in addition to that already received, proof of disclosure of this remuneration, such as a commission, a commission from a sharing of commissions or a client referral, if applicable[cite: 54].
- Reasons for the client's decision not to follow the recommendations, if applicable[cite: 55].
- Legible and understandable summary of discussions and meetings with the client (date, time, duration, location, content of the exchanges, people present, etc.)[cite: 56].
- Notes relating to any attempt to communicate with the client (date, time, duration, reason for the call, etc.)[cite: 57].
- Any correspondence with the client[cite: 58].
- The next steps agreed upon with the client, the date of the next meeting, as well as the follow-ups to be done[cite: 59].
Note that it is possible to keep a specimen cheque, unless otherwise indicated by the company or firm for which the advisor works, only if it is necessary for the exercise of the advisor's activities[cite: 60]. The cheque must include the word "specimen" or a distinctive mark clearly identifying it as a specimen[cite: 61].
IN FRENCH, PLEASE!
New Requirements Regarding the Use of French
In June 2022, legislative changes regarding the use of French, particularly for businesses, were introduced. The Government of Quebec passed Law 14, formerly known as Bill 96, which protects and promotes French as the official language in Quebec.
Since June 2023, it is essential that businesses comply with these new requirements.
Essentially, the main provisions affecting you relate to the language in which documents must be provided to a client:
- When dealing with a contract of adhesion (standard form contract) and related documents, they must be provided in French. A person signing a mandate or obtaining services from you must first receive a French copy of the mandate and related documents (pertaining to the mandate or the services offered) and may then receive the documents in English if they wish.
- Internal communications between you and the client do not have to be in French if the client wishes to communicate in another language. (The client must make a request to receive documents in English, and the advisor must record the client's communication preference for future correspondence).
Updates for Your Anglophone Clients in Quebec
- Contracts and other related documents will first be presented in French, and subsequently in English.
- New clients must confirm that they have received the necessary documents in both French and English, and that they choose to proceed in English. This information will be recorded in the client’s file for future communications.
Furthermore, we recommend implementing an acknowledgment of receipt document for each client, to be kept in their records. This will demonstrate that the French documents were duly provided to the client in accordance with the law.