KYC means “Know Your Customer”. It is a process by which we obtain information about the identity and address of the customers. This process helps to ensure that services are not misused. The KYC procedure is to be completed by the while opening accounts and also periodically update the same.
Investment advisors and firms are responsible for knowing each customer's financial situation by exploring and gathering the client's age, other investments, tax status, financial needs, investment experience, investment time horizon, liquidity needs and risk tolerance.