When obtaining a new client, what is an important item for a broker-dealer firm?

In the context of a broker-dealer firm, obtaining a new client involves several critical steps to ensure compliance, suitability, and accuracy in managing the investment relationship. The correct response emphasizes that performing all the listed actions is essential.

Completing the account suitability and investment objective is crucial for understanding the client's financial goals, risk tolerance, and investment preferences, aligning the firm’s services with the client's needs. This process helps in making informed recommendations and maintaining fiduciary responsibility.

Setting up client information accurately in the system is vital for maintaining accurate records. This involves capturing all relevant data, including personal information, investment history, and preferences, which aids in the smooth operation of account management and compliance with regulatory requirements.

Verifying the identity of the client is an important step in preventing fraud and adhering to anti-money laundering regulations. This process helps to establish the legitimacy of the client, ensuring that the firm is dealing with genuine customers and appropriately managing risks.

Therefore, the necessity of completing all of these processes—suitability assessments, accurate information entry, and identity verification—highlights the multifaceted approach that broker-dealer firms must adopt when onboarding new clients. This comprehensive strategy ensures not only regulatory compliance but also the foundation for a successful client relationship.