What should be included in a client suitability report?

A client suitability report is a comprehensive document that provides an overview of a client's financial situation, investment objectives, and tailored recommendations. Including the client's financial profile is essential as it encompasses their assets, liabilities, income, and other key financial details that inform decision-making. This foundational information helps advisors assess the client's current standing and future needs.

Recommended strategies are critical to the report because they outline specific actions that can be taken to achieve the client’s goals. These recommendations should be crafted based on the client’s unique circumstances and align with their risk tolerance and long-term objectives.

Investment objectives clearly delineate what the client aims to achieve through their investments, such as capital preservation, growth, or income generation. Understanding these objectives allows wealth managers to provide advice that is aligned with the client’s aspirations and comfort with risk.

By combining all these elements—financial profile, recommended strategies, and investment objectives—the report becomes a holistic tool that guides the client toward informed financial decisions. Each aspect plays a crucial role in ensuring that the wealth management strategies proposed are suitable for the client's situation.