The paperwork to open the account asks for our incomes and our net worth. My wife told the agent that she was not providing that information as she did not see why they needed it. This is what Merrill sent in response:
Is it true that the SEC has this requirement? I can actually kind of understand it, as it would supposedly help keep an agent from recommending inappropriate investments. But my wife considers this to be a privacy issue and would rather not provide the information. If the requirement is real, is there a way around it?Know Your Customer Rule 2090
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. The SEC requires that a new customer provide detailed financial information that includes name, date of birth, address, employment status, annual income, net worth, investment objectives and identification numbers before opening an account.