In a range of contexts, it is important to know who your client is.
In most professional service contexts, the identity of the client is the starting point to providing advice. If it is not clear who the professional advisor is advising, this can cause issues as to who the professional owes a duty of care to, and whether the duty has been effectively discharged.
In cases such as conveyancing, the conveyancing rules require representatives to take reasonable steps to verify the identity of each client. The process is essential to reduce the risk of fraud.
From a compliance and risk management perspective, knowing who your client is reduces potential risks. Effective communication is facilitated by properly understanding your client.
Knowing your client also assists in addressing issues as to capacity and understanding.
Confirming the client’s identity also assists in financial arrangements and ensuring that the professional is paid for time spent.
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