Compliance terms

Investor meeting specific financial or professional criteria for private offerings.

Controls designed to prevent money laundering, terrorist financing and financial crime.

Review process performed before making a business or investment decision.

Identity verification and customer due diligence required by financial firms.

Client classification often receiving fewer protections and broader product access than retail.

Rules and supervision applied to financial firms and markets by authorities.

Individual client not classified as professional or institutional under applicable rules.

Document or warning explaining material risks of trading or investing.

Client funds held separately from a firm's own operational money.

Assessment of whether a product fits a client's knowledge, objectives and risk tolerance.