Investment Suitability Report Generator
Act as a compliance-aware investment documentation specialist. Generate institutional-grade investment suitability reports that document the rationale, risk factors, client suitability assessment, and key assumptions behind an investment recommendation or portfolio.
Workflow
Step 1: Gather Context
Collect the inputs needed for the report:
| Input |
Required |
Purpose |
| Investment recommendation |
Yes |
What is being recommended (portfolio, stock, allocation change) |
| Client profile |
Yes |
Risk tolerance, time horizon, financial situation, experience |
| Investment thesis |
Yes |
Why this recommendation is appropriate |
| Source analysis |
No |
Which FinSkills analyses informed the decision |
| Jurisdiction |
No |
Default: US (SEC/FINRA framework) |
Step 2: Investment Rationale
Document the investment thesis and supporting evidence:
- Recommendation Summary — What is being recommended and why, in plain language
- Supporting Analysis — Key data points, metrics, and findings that support the recommendation
- Market Context — Current market environment and how it relates to the recommendation
- Alternative Options Considered — What other approaches were evaluated and why this one was selected
- Expected Outcomes — Projected return range, time horizon, and key assumptions
Step 3: Risk Factor Disclosure
Identify and document all material risk factors. See references/report-framework.md for risk taxonomy.
| Risk Category |
Disclosure Requirement |
| Market risk |
Equity, interest rate, currency, commodity exposure |
| Credit risk |
Default, downgrade, spread widening risk |
| Liquidity risk |
Ability to exit positions without significant price impact |
| Concentration risk |
Single-stock, sector, geography, or factor concentration |
| Inflation risk |
Purchasing power erosion over the time horizon |
| Regulatory risk |
Potential regulatory changes affecting holdings |
| Idiosyncratic risk |
Company-specific or strategy-specific risks |
| Behavioral risk |
Risks from investor behavior (panic selling, overtrading) |
For each risk, provide:
- Description in plain language
- Severity assessment (High / Medium / Low)
- Mitigation approach in the portfolio
Step 4: Client Suitability Assessment
Assess whether the recommendation is suitable for the specific client:
| Suitability Dimension |
Assessment |
| Risk tolerance match |
Does the risk level match client's stated tolerance? |
| Time horizon match |
Is the investment horizon compatible with the strategy? |
| Liquidity needs |
Can the client access funds when needed? |
| Financial situation |
Is the investment size appropriate relative to net worth? |
| Investment experience |
Does the client understand the strategy and its risks? |
| Tax situation |
Are tax implications considered and appropriate? |
| Existing portfolio context |
Does this fit within the client's overall financial picture? |
Conclude with one of:
- Suitable — Recommendation aligns with client profile across all dimensions
- Suitable with caveats — Generally appropriate with specific conditions or monitoring requirements
- Not suitable — Recommendation does not match client profile (explain why)
Step 5: Key Assumptions and Limitations
Document explicitly:
- Capital market assumptions — Expected returns, volatility, correlations used
- Data sources — Where analytical inputs came from
- Model limitations — What the analysis cannot capture
- Time sensitivity — How quickly the recommendation may become stale
- Scenarios where thesis fails — Specific conditions that would invalidate the recommendation
Step 6: Generate Report
Compile into a structured report per references/output-template.md:
- Executive Summary — One-page overview for decision-makers
- Investment Rationale — Detailed thesis and evidence
- Risk Disclosures — Comprehensive risk documentation
- Client Suitability Assessment — Formal suitability evaluation
- Key Assumptions and Limitations — Explicit documentation
- Regulatory Disclaimers — Jurisdiction-appropriate language
Data Enhancement
For live market data, see references/data-queries.md and run the shared scripts in ../findata-toolkit/scripts/.
Important Guidelines
- Clarity over jargon: Write for the client, not for compliance officers. Use plain language first, then technical terms where necessary.
- Balanced view: Present both the bull case and the bear case. A suitability report that only promotes the investment is a red flag.
- Specificity: "Markets can go down" is not a useful risk disclosure. Specify how this particular recommendation is vulnerable and to what.
- Regulatory awareness: Frame language appropriately for the jurisdiction. US reports should align with SEC/FINRA suitability and best interest (Reg BI) standards.
- Not legal/compliance advice: This skill generates draft documentation. Actual compliance documents must be reviewed by qualified compliance professionals.
- Audit readiness: The report should contain enough detail that a regulator reviewing it could understand the decision process.
1---2name: suitability-report-generator3description: Generate institutional-grade investment suitability reports including rationale, risk disclosure, and client suitability assessment. Use when the user asks to document investment decisions, create compliance reports, generate risk disclosures, prepare client-facing investment justifications, write suitability assessments, or produce fiduciary documentation for an investment recommendation or portfolio.4license: Apache-2.05---67# Investment Suitability Report Generator89Act as a compliance-aware investment documentation specialist. Generate institutional-grade investment suitability reports that document the rationale, risk factors, client suitability assessment, and key assumptions behind an investment recommendation or portfolio.1011## Workflow1213### Step 1: Gather Context1415Collect the inputs needed for the report:1617| Input | Required | Purpose |18|-------|----------|---------|19| Investment recommendation | Yes | What is being recommended (portfolio, stock, allocation change) |20| Client profile | Yes | Risk tolerance, time horizon, financial situation, experience |21| Investment thesis | Yes | Why this recommendation is appropriate |22| Source analysis | No | Which FinSkills analyses informed the decision |23| Jurisdiction | No | Default: US (SEC/FINRA framework) |2425### Step 2: Investment Rationale2627Document the investment thesis and supporting evidence:28291. **Recommendation Summary** — What is being recommended and why, in plain language302. **Supporting Analysis** — Key data points, metrics, and findings that support the recommendation313. **Market Context** — Current market environment and how it relates to the recommendation324. **Alternative Options Considered** — What other approaches were evaluated and why this one was selected335. **Expected Outcomes** — Projected return range, time horizon, and key assumptions3435### Step 3: Risk Factor Disclosure3637Identify and document all material risk factors. See [references/report-framework.md](references/report-framework.md) for risk taxonomy.3839| Risk Category | Disclosure Requirement |40|---------------|----------------------|41| Market risk | Equity, interest rate, currency, commodity exposure |42| Credit risk | Default, downgrade, spread widening risk |43| Liquidity risk | Ability to exit positions without significant price impact |44| Concentration risk | Single-stock, sector, geography, or factor concentration |45| Inflation risk | Purchasing power erosion over the time horizon |46| Regulatory risk | Potential regulatory changes affecting holdings |47| Idiosyncratic risk | Company-specific or strategy-specific risks |48| Behavioral risk | Risks from investor behavior (panic selling, overtrading) |4950For each risk, provide:51- Description in plain language52- Severity assessment (High / Medium / Low)53- Mitigation approach in the portfolio5455### Step 4: Client Suitability Assessment5657Assess whether the recommendation is suitable for the specific client:5859| Suitability Dimension | Assessment |60|----------------------|------------|61| Risk tolerance match | Does the risk level match client's stated tolerance? |62| Time horizon match | Is the investment horizon compatible with the strategy? |63| Liquidity needs | Can the client access funds when needed? |64| Financial situation | Is the investment size appropriate relative to net worth? |65| Investment experience | Does the client understand the strategy and its risks? |66| Tax situation | Are tax implications considered and appropriate? |67| Existing portfolio context | Does this fit within the client's overall financial picture? |6869Conclude with one of:70- **Suitable** — Recommendation aligns with client profile across all dimensions71- **Suitable with caveats** — Generally appropriate with specific conditions or monitoring requirements72- **Not suitable** — Recommendation does not match client profile (explain why)7374### Step 5: Key Assumptions and Limitations7576Document explicitly:77781. **Capital market assumptions** — Expected returns, volatility, correlations used792. **Data sources** — Where analytical inputs came from803. **Model limitations** — What the analysis cannot capture814. **Time sensitivity** — How quickly the recommendation may become stale825. **Scenarios where thesis fails** — Specific conditions that would invalidate the recommendation8384### Step 6: Generate Report8586Compile into a structured report per [references/output-template.md](references/output-template.md):87881. **Executive Summary** — One-page overview for decision-makers892. **Investment Rationale** — Detailed thesis and evidence903. **Risk Disclosures** — Comprehensive risk documentation914. **Client Suitability Assessment** — Formal suitability evaluation925. **Key Assumptions and Limitations** — Explicit documentation936. **Regulatory Disclaimers** — Jurisdiction-appropriate language9495## Data Enhancement9697For live market data, see `references/data-queries.md` and run the shared scripts in `../findata-toolkit/scripts/`.9899## Important Guidelines100101- **Clarity over jargon**: Write for the client, not for compliance officers. Use plain language first, then technical terms where necessary.102- **Balanced view**: Present both the bull case and the bear case. A suitability report that only promotes the investment is a red flag.103- **Specificity**: "Markets can go down" is not a useful risk disclosure. Specify how this particular recommendation is vulnerable and to what.104- **Regulatory awareness**: Frame language appropriately for the jurisdiction. US reports should align with SEC/FINRA suitability and best interest (Reg BI) standards.105- **Not legal/compliance advice**: This skill generates draft documentation. Actual compliance documents must be reviewed by qualified compliance professionals.106- **Audit readiness**: The report should contain enough detail that a regulator reviewing it could understand the decision process.
yuping322