Annual investment income: KYC checklist

What makes the review strategic

Rather than mechanically ticking boxes in the KYC form, this meeting lets you dig deeper into the client’s current reality through sharp analytical thinking. A portfolio may perform brilliantly but still be misaligned with the client’s situation. Conversely, an average return may reflect a perfect strategy, as long as you understand the biases that are influencing the decisions.

This is an ideal opportunity to use active listening to check assumptions: Have the goals evolved? Is the investment horizon still appropriate? Is the client approaching a key moment, such as retirement, purchasing a property or starting a family? Even a simple job change can drastically change priorities. These updates fuel the KYC and forestall behavioural errors.

The review also avoids inertia thanks to attentive client focus. Without formal controls, portfolios may be full of overweighted positions, obsolete investment strategies and anchoring biases that constrict choices. The review recentres everything on current needs, transforming a regulatory obligation into a strategic implement.

Checklist: Questions to cover

Here is a simple, practical checklist to use at the meeting. It can be further adapted to the client’s profile, but this basic version covers the main points you need to remember.

1. Have the goals evolved?
Your first reflex should be to review the client’s goals. Are the priorities still the same as at the last meeting? Are the short-, medium- and long-term plans still valid? Some clients want to start travelling more, help their children, retire sooner or, on the contrary, prolong their professional activities. These changes must be reflected in the plan.

2. Has the personal or family situation evolved?
Marriage, separation, divorce, a death, a job change, a promotion, a move or the sale of a business can have major repercussions. Even a seemingly minor change can influence liquidity needs, taxation or savings goals. This question often opens the door to wider discussions about insurance, the estate or the account structure.

3. Is the risk profile still accurate?
A risk profile is not frozen in time. You have to check whether the client’s psychological tolerance and financial capacity are still the same. A client may think they tolerate volatility well but react differently when the market goes through a rough period. On the other hand, a more experienced client may have become more disciplined and want a portfolio that is better oriented for growth.

4. Does the portfolio still reflect the planned strategy?
You have to look at asset allocation, diversification, concentrations and possible deviations from the target. Ask this simple question: Does the current portfolio still reflect the agreed-on strategy or has it veered? Checking this helps maintain strict management and avoid biases related to market movements.

5. Do the investments require any adjustments?
Depending on the situation, it may be the opportune time to rebalance, simplify certain positions, adjust exposure to certain asset classes or review the risk level. The annual review also gives you the chance to discuss investments that are no longer really serving the plan. A portfolio that is too complex can hinder clarity and execution.

6. Are the fees still justified?
Fees should be evaluated based on the service, the value added and the complexity of the file. This discussion is especially useful when the client holds multiple accounts, many products or overlapping solutions. It isn’t only a matter of seeking the lowest cost but of ensuring that the structure is still effective. In fact, with Phase 3 of the Client–Advisor Relationship Model (CRM3) providing greater transparency on clients’ investment statements, we have to be prepared to provide more thorough justification of fees.

7. Has taxation been optimized?
Investments do not exist in a vacuum. You have to assess whether registered and non-registered accounts are being used appropriately, whether there are gains or losses that need to be considered and whether certain decisions could improve the portfolio’s tax efficiency. Clients often really appreciate this part of the discussion, because it gives concrete value to the annual review.

8. Are the contributions and withdrawals still appropriate?
Payment and withdrawal habits can become automatic, but they always deserve a closer look. Is the client contributing enough? Are the withdrawals sustainable? Should the pace or amounts be adjusted? This question is especially important as retirement approaches or during periods of occupational change.

9. Are the protections still adequate?
Even though the meeting focuses mainly on investments, it is still appropriate to review the protections in place. Life, disability and critical illness insurance, as well as certain patrimony protections, can become more or less relevant depending on changes in the client’s situation. A quick check can eliminate overlooked problems that may be brewing.

10. Is the retirement plan still effectively structured?
For many clients, the annual review is also an opportunity to confirm the trajectory to retirement. Is the projected income sufficient? Is the pace of savings adequate? Are the investments consistent with the disbursement schedule? A thorough discussion of retirement allows you to connect investments with a very concrete goal.

Securities training and tools

From this perspective, it’s worth noting that, since January 2026, the Institute of Financial Planning has been offering a securities training courses and tools to prepare for the Canadian Investment Regulatory Organization (CIRO) exams.

For financial planners who want to get their licence or simply expand their areas of competency, this course offers an interesting opportunity, enhancing their credibility, technical proficiency and understanding of the regulatory framework of investment products.

In practice, this is important for even experienced advisors: having a better understanding of the products, rules and responsibilities associated with securities lets you deepen the conversation with your clients and increase the quality of your recommendations. For an F.Pl., this technical knowledge is a practical addition to the advisory service.

Conclusion

The annual review is not just a control point: it is a strategic mechanism. With a clear checklist, it becomes the ultimate tool for connecting investments and life goals, while also strengthening the client relationship.

In an environment where technical competency counts just as much as listening capacity, it is in the interests of financial planners to draw on both method and empathy to structure these meetings and to always keep the client at the centre of the relationship.