1.1
Rules 4.15.2(a) and (b) state that prior to opening a customer account, a Trading Member shall satisfy itself that it has (a) obtained adequate particulars of each customer, and (b) verified the identity of each customer, and in the case of a non-individual customer verified that it is validly constituted and that the person opening the account has the requisite authority to do so, and in the case of an agency customer, verified the identity of the principal and the customer's authority to trade for its principal.
Added on 3 June 20193 June 2019.
1.2
This Practice Note sets out some of the ways in which a Trading Member may comply with its obligations under Rule 4.15.2(a) and (b).
Added on 3 June 20193 June 2019.
2.1
The particulars that a Trading Member may obtain include the following:
Added on 3 June 20193 June 2019.
2.2
If the customer does not open the account in person, a Trading Member should take suitable steps to verify the customer's identity. The Trading Member may employ one or more of the following means to establish the customer's identity:
Added on 3 June 20193 June 2019.
3.1
The particulars that a Trading Member may obtain include the following:
Added on 3 June 20193 June 2019.
4.1
A Trading Member is encouraged to explore the use of digital signatures for online identification and verification. The identification and verification procedures for acceptance of digital signatures must be at least as rigorous as those which a Trading Member would normally have employed.
Added on 3 June 20193 June 2019.