One thing I notice a lot when reviewing suitability reports from a compliance perspective is that the client objectives do not always sound like they came from the client – when really, they should. The FCA rules (COBS 9.2.2, for example) are clear that we need to evidence suitability, and client objectives are a big part of that. Well-written objectives show you have had a real conversation with the client rather than just ticking a box.
Here are my 4 top tips for writing better suitability reports.
Too often suitability reports feel adviser-led, a bit generic, and sometimes tied more to the product being recommended than the client’s actual goals.
Take this example:
“The client would like to obtain tax efficient growth, and have flexible access at retirement.”
On the surface, there is nothing wrong with it. But does it really tell us much about the person behind it? Not really. It doesn’t give any sense of their background, their priorities, or what they are hoping to achieve by taking advice.
Now compare it with this: “Mr XYZ would like an income of around £3,000 per month in the early years of his retirement. He told me, ‘What I would like to achieve is financial security in my retirement, and to know I have enough money to be able to travel.’
Context is what separates a generic objective from a real one. Compare "the client would like to obtain tax efficient growth" with a fuller example "Mr XYZ would like an income of around £3,000 per month in the early years of his retirement... to know I have enough money to be able to travel. I want to visit Sydney to see my son and grandchildren."
The difference is context: the reasons behind the goal, not just the goal itself.
Breaking them down into short, medium, and long-term goals also helps keep the advice holistic. If your recommendations are ever challenged later, you have something concrete to point back to: this is what the client told us they wanted, and this is how we thought it could be best achieved.
Compare "the client would like to obtain tax efficient growth" with a new example: "Mr XYZ would like an income of around £3,000 per month in the early years of his retirement... to know I have enough money to be able to travel and take a trip to Sydney to see my son and grandchildren. In the short term, I would like to cut down to four days a week at work.”
Too often suitability reports feel adviser-led, a bit generic, and sometimes tied more to the product being recommended than the client's actual goals. Keep product wording out of it – the objective should describe what the client wants, not what you're recommending to get them there.
And just as importantly, it makes the value of advice clearer to the client. They can see their goals reflected back at them and understand that the service is not just about buying a product, it is about helping them achieve what matters most to them. This is a powerful message at annual review time!
Objectives do not need to be lengthy or complex. They just need to demonstrate that you have listened, that you understand the client, and that the advice represents good value in helping them achieve their personal goals! When written clearly and personally, they not only strengthen the suitability report but also remind the client what advice is really about: supporting them to achieve their wider goals, now and in the future.
• Use the client’s own words wherever possible
• Add context: why do they want this outcome?
• Split goals into short, medium, and long term where it makes sense
• Keep product wording out of it
If a client really does just want to focus on growth and does not want to explore wider goals, record that on file.
You can summarise objectives in the report, but keep evidence of the full discussion on file
Looking for support with suitability reports? We can help – organise a quick chat with the team. We can help you with anything from simple templates to a much more in-depth assessment.
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