What is Suitability Report?
A suitability report is a document produced by a financial adviser that explains why a specific product or recommendation is appropriate for a client’s individual circumstances. It outlines the client’s objectives, financial situation and risk profile, then sets out the adviser’s reasoning, any alternatives considered and the associated costs. Suitability reports provide transparency for clients and evidence for regulators that advice is tailored, compliant and in the client’s best interests.
Suitability Report in financial services
For advice firms, the suitability report is a central piece of regulatory evidence: it records why a recommendation fits the client. Producing reports that are accurate, consistent and clear takes significant adviser and paraplanner time, which is why many firms look to technology to draft them for review.