This lesson details the critical, regulated process of taking on a private client, from first contact to establishing the service foundation.

2.1 Client Acquisition and Referrals
Client relationships are often built on trust, discretion, and referrals from existing clients or professional networks (lawyers, accountants). The acquisition process is less about advertising and more about establishing credibility and trust, often within a “closed” network. The “Know Your Customer” (KYC) process begins here .

2.2 Understanding the Client
The core of the service is a deep understanding of the client. This involves creating a comprehensive client profile that details financial goals, constraints, risk tolerance, family dynamics, and personal values . This is often the most important phase of the relationship, as mismatched expectations are a primary cause of client attrition. A system approach is used to profile the client and manage their wealth, with investment strategies aligned accordingly .

2.3 The KYC and Onboarding Process
Onboarding is the formal process of collecting and verifying client identity and source of wealth, a critical regulatory and compliance step. It involves rigorous due diligence to prevent money laundering and meet global tax reporting requirements. This includes understanding complex corporate structures and beneficial ownership . Institutions have a formal risk classification and acceptance process to determine the viability of a new client relationship.