While the specific sequence and complexity can vary wildly from client to client, a robust onboarding process typically involves a structured series of steps designed to ensure regulatory compliance, client suitability, and the eventual creation of the client's investment profile within the platform.
These essential steps, which can occur in any order depending on the flow chosen, generally include:
Strong Identity Verification (eg. through a national ID provider): This initial and fundamental step establishes the client's identity.
Capture Additional Information (Anti-Money Laundering (AML), tax information, ...): Beyond basic identity, the institution must gather data necessary for ongoing compliance. This includes mandatory details for Anti-Money Laundering (AML) purposes (such as the source of funds), tax residency information, and potentially politically exposed person (PEP) status checks.
AML Checks & Approval/Denial of Client: The captured information is subjected to rigorous AML screening against sanction lists, watchlists, and adverse media. A successful check leads to the client's internal approval for proceeding with the service, while any red flags result in denial or further investigation.
Setting a Withdrawal IBAN: A crucial operational step involves defining the client's primary withdrawal account (International Bank Account Number - IBAN). This measure helps to mitigate fraud risk by ensuring that funds can only be returned to a verified, linked bank account, completing the loop for money movement compliance.
MiFID Checks (eg. ex-ante costs): For clients in regions governed by MiFID (Markets in Financial Instruments Directive), specific checks are required. This includes clearly disclosing ex-ante costs (costs before investment) and ensuring the client is fully aware of the charges associated with the service and the investment products.
Suitability Test: This is a vital regulatory requirement. The test assesses the client's knowledge, experience, financial situation, and investment objectives to ensure that the proposed investment products and portfolio are suitable for their specific profile and risk tolerance.
Legal Disclaimers: The client must acknowledge and accept various legal and regulatory disclaimers. These typically cover risk warnings, data privacy policies, terms of service, and specific disclosures related to the investment products.
Signing a Contract: The final formal step in the legal process is the execution of the contract. This legally binds the client and the financial institution to the agreed-upon terms and conditions for the provision of investment services. This process is increasingly handled through secure electronic signature solutions.
Creation of a User in InvestSuite: This step establishes the client's unique digital identity within the platform, granting them access to the client portal and linking their personal data to the operational backend.
Creation of a Portfolio in InvestSuite, with the User as owner: The final action is the establishment of the client's investment portfolio structure. This portfolio is then legally and digitally linked to the newly created user, making them the recognized owner and setting the stage for funding and subsequent investment activity.
Broadly speaking, the Onboarding process happens either outside the InvestSuite application or inside InvestSuite.
The choice between these two pathways often depends on the client institution's existing technology stack and preferred user experience.