Client Onboarding Checklist

Document Version: 2.3
Last Updated: March 2024
Prepared By: Annabel Tan, Head of Compliance & Risk
Approved By: Greg Morrison, Managing Director

Overview

This checklist ensures consistent and compliant onboarding of new wealth management clients at Southern Cross Financial. All advisers and support staff must follow these procedures to meet ASIC requirements and internal risk management standards.

Important: This process has been updated to reflect changes from the Quality of Advice Review. Ensure you're using the latest version of all forms (v3.2 or higher).

Pre-Meeting Preparation

Initial Contact Documentation

[ ] Initial inquiry form completed (via website, phone, or referral)
[ ] Source of referral documented in CRM
[ ] Preliminary needs assessment conducted by Lisa Kwan or designated staff
[ ] Conflict of interest check performed against existing client database
[ ] Fee disclosure statement (FDS) sent within 5 business days of initial contact

Appointment Scheduling

[ ] Discovery meeting scheduled (minimum 90 minutes allocated)
[ ] Meeting confirmation email sent including:
Required documentation list
Office location and parking information
COVID-19 health protocols (as applicable)
[ ] Adviser preparation checklist completed
[ ] Client file created in Xplan with temporary reference number

Discovery Meeting (Meeting 1)

KYC Documentation Collection

Note: Physical copies preferred for high-value clients ($2M+ portfolio). Digital copies acceptable for smaller accounts but must be verified.

Individual Clients

[ ] Driver's licence or passport (current, colour copy)
[ ] Proof of address (utility bill, rates notice, bank statement - dated within 90 days)
[ ] Tax File Number declaration
[ ] Medicare card (for 100-point ID check)
[ ] Birth certificate (if required for 100-point check)

Self-Managed Super Fund (SMSF) Clients

[ ] SMSF deed (complete document, not summary)
[ ] Trust establishment documentation
[ ] ABN registration certificate
[ ] SMSF annual return (most recent)
[ ] Investment strategy (current version)
[ ] Trustee identification for all trustees

Corporate Clients

[ ] ASIC company extract (dated within 30 days)
[ ] Constitution or replaceable rules
[ ] Director identification (all current directors)
[ ] Authorised signatory matrix
[ ] Beneficial ownership register (if applicable)

Risk Profiling & Fact-Finding

Financial Position Assessment

[ ] Asset register completed (include all property, shares, super, business interests)
[ ] Liability schedule (mortgages, loans, credit facilities, guarantees)
[ ] Income verification (payslips, tax returns, business financials)
[ ] Cash flow analysis completed using standardised template
[ ] Insurance coverage review (life, TPD, income protection, general insurance)

Investment Experience & Risk Assessment

[ ] Risk profiling questionnaire completed (use updated version 2.4)
[ ] Investment experience verification (previous portfolios, trading history)
[ ] Risk capacity assessment (separate from risk tolerance)
[ ] Behavioural finance questionnaire (helps identify bias tendencies)
[ ] Environmental, Social, Governance (ESG) preferences documented

Goals & Objectives Documentation

[ ] Short-term goals identified and prioritised (1-3 years)
[ ] Medium-term goals documented (3-10 years)
[ ] Long-term objectives established (10+ years)
[ ] Estate planning considerations discussed and noted
[ ] Tax planning objectives identified
[ ] Retirement planning timeline established

Compliance Requirements

General Advice vs Personal Advice Determination

[ ] Advice type determined and documented in file notes
[ ] Best interests duty explanation provided to client
[ ] Safe harbour steps explained (if providing personal advice)
[ ] Conflicts of interest disclosed (including remuneration arrangements)

Fee Disclosure

[ ] Fee structure explained (initial, ongoing, performance fees)
[ ] Fee disclosure statement provided and acknowledgment signed
[ ] Ongoing fee arrangements documented (consent required annually from 2024)
[ ] Payment options discussed (fee for service vs commission arrangements)

Note: Remember that ongoing fee consent requirements change from July 2024 under the new legislation. Ensure all new arrangements comply with updated requirements.

Meeting Documentation

[ ] Meeting notes recorded in Xplan (minimum 500 words)
[ ] Action items documented with responsible parties and deadlines
[ ] Next meeting scheduled (typically 2-3 weeks for strategy presentation)
[ ] Client portal access arranged (including cybersecurity briefing)
[ ] Document upload instructions provided for outstanding items

Post-Meeting Processing

Documentation Review

[ ] ID verification completed against 100-point check requirements
[ ] AUSTRAC Customer Due Diligence procedures completed
[ ] Politically Exposed Person (PEP) check conducted via World-Check database
[ ] Sanctions screening completed (DFAT consolidated list)
[ ] Source of wealth verification for high-risk clients or large initial investments

Internal Approvals

[ ] Credit check authorisation (for lending recommendations)
[ ] Investment committee review (for portfolios >$1M)
[ ] Compliance sign-off from Annabel Tan or delegate
[ ] Adviser supervisor review (Naomi Street for planning matters)

System Setup

[ ] Xplan client record fully populated with verified data
[ ] Investment platform accounts prepared (but not activated until strategy approval)
[ ] CRM tags applied for client segmentation and communication preferences
[ ] Automated compliance monitoring activated
[ ] Client portal configured with appropriate access levels

Strategy Development & Presentation (Meeting 2)

Strategy Preparation

[ ] Statement of Advice (SOA) drafted using approved templates
[ ] Product comparison analysis completed for recommended solutions
[ ] Fee calculation spreadsheet prepared showing all costs
[ ] Portfolio modelling completed using PortfolioConstruction.com tools
[ ] Tax implications analysis completed in consultation with client's accountant

Client Presentation

[ ] SOA presented with detailed explanation of recommendations
[ ] Alternative strategies discussed (to demonstrate best interests compliance)
[ ] Implementation timeline agreed upon
[ ] Client questions addressed and documented
[ ] SOA acceptance obtained in writing

Implementation Authorisation

[ ] Product Disclosure Statements provided for all recommended products
[ ] Application forms completed and signed
[ ] Direct debit authorities established
[ ] Power of attorney arrangements (if applicable)
[ ] Investment platform account opening forms submitted

Account Setup & Funding

Platform Establishment

[ ] Investment platform accounts opened and verified
[ ] Bank account verification completed for fund transfers
[ ] Initial investment processed within agreed timeframes
[ ] Portfolio construction implemented according to SOA recommendations
[ ] Insurance applications submitted (if applicable)

Ongoing Service Setup

[ ] Regular review schedule established in CRM
[ ] Reporting preferences configured (monthly, quarterly, annual)
[ ] Communication preferences set (email, phone, client portal)
[ ] Annual review date scheduled
[ ] Fee deduction authorities activated

Quality Assurance & File Completion

Compliance Verification

[ ] File review checklist completed by compliance team
[ ] Missing documentation follow-up completed
[ ] Regulatory deadlines verified and calendar entries created
[ ] Professional indemnity insurance notification (for high-value clients)

Handover to Ongoing Service Team

[ ] Client introduction to ongoing service team members
[ ] Service level expectations communicated
[ ] Emergency contact procedures explained
[ ] Annual review process outlined
[ ] Welcome pack distributed including branded materials and contact details

Special Considerations

High-Net-Worth Clients ($5M+)

Additional enhanced due diligence required
Greg Morrison approval mandatory before final account setup
Quarterly rather than annual review cycle
Direct access to investment committee reports

Resource Sector Clients

Given our specialisation in WA resource sector: - Commodity exposure analysis required - Volatility management strategies prioritised - Tax implications of resource investments highlighted - Estate planning for concentrated wealth positions

SMSF Clients

Trustee education session mandatory
Investment strategy update required before implementation
Auditor notification for significant strategy changes
Compliance calendar setup in client portal

Document Control: This checklist is reviewed quarterly by the Compliance Committee. Next review scheduled: June 2024.

For questions or clarification, contact: - Compliance matters: Annabel Tan (ext. 203) - Technical advice: Naomi Street (ext. 205) - System issues: IT Support (ext. 299)