The suitability report is where advice is evidenced — and where the client either understands the recommendation or quietly gives up trying. A good report does two jobs at once: it satisfies the regulator and it genuinely helps the client. Plenty of reports manage the first and fail the second.
So what separates a good suitability report from one that merely ticks the boxes? This guide covers what the FCA actually requires, the hallmarks of a strong report, a section-by-section look with examples, and the pitfalls that drag a report down.
What the FCA actually requires
The baseline is set out in the FCA Handbook. Under COBS 9 (and COBS 9A for MiFID business), a suitability report must, as a minimum, set out the client’s demands and needs, explain why the recommendation is suitable for them, and explain any possible disadvantages. The report also has to be fair, clear and not misleading, and — for investment advice — outline how the recommendation meets the client’s objectives and personal circumstances.
Two things are worth stressing. First, the report is only part of the picture: in a complaint or review, the whole advice file is examined, and the report is judged against the fact find and research behind it. Second, the minimum is not the same as good. Since the Consumer Duty raised the bar on clear communication and evidencing good client outcomes, a report that is technically complete but impenetrable no longer passes muster.
The hallmarks of a good suitability report
It is about this client, not any client. The FCA’s finalised guidance on assessing suitability is explicit that firms should capture a client’s specific objectives and the underlying motivation behind them, rather than leaning on generic objectives repeated across every report. A good report tells the client’s story.
It is readable. As the Personal Finance Society’s suitability report writing guide puts it, the report should translate technical research into something simple to read, not give the client an education in financial jargon. Short paragraphs, plain English and a clear structure do more for suitability than length.
It is balanced. A good report explains the disadvantages, risks and trade-offs, not just the benefits — and shows that alternatives were considered.
It is justified. There is an explicit line drawn from the client’s needs to the recommendation, so anyone reading it can see why this advice, for this person.
It is consistent with the file. Nothing in the report contradicts the fact find, the risk profile or the research.
Section by section, with examples
A good report generally follows a logical order. Here is a typical structure, with a weaker and a stronger example for each part.
Purpose and scope. Set out what the client asked for and what the report covers. Weaker: “This report sets out my recommendation.” Stronger: “You asked me to advise on consolidating your three pensions to simplify your planning before you retire in 2029. This report covers that recommendation only and does not review your protection arrangements.”
Circumstances and objectives (demands and needs). Be specific, and capture the why. Weaker: “You want growth.” Stronger: “Your objective is to grow your pension savings to support retiring at 62. This matters to you because you intend to reduce your hours from 60 and want the flexibility to stop earlier if your health changes.”
Attitude to risk and capacity for loss. Link the two and connect them to the recommendation. Weaker: “You are a balanced investor.” Stronger: “You described yourself as a medium-risk investor. Your capacity for loss is moderate: a temporary 20% fall would not affect your day-to-day income, as your essential spending is met by your defined benefit pension. The recommended portfolio’s risk level reflects this.”
The recommendation and why it is suitable. State the advice and tie it back to the need. Weaker: “I recommend the Balanced fund.” Stronger: “I recommend consolidating your pensions into [plan] because it meets your need to simplify and reduce cost, its charges are lower than your existing arrangements, and its risk level matches your medium attitude to risk.”
Costs and charges. Make them clear and comparable. FCA good practice includes using comparative cost figures so the client can see the effect of the recommendation over time.
Risks, disadvantages and alternatives. Never omit these. Weaker: (left out entirely) Stronger: “The main disadvantage is that you would give up the guaranteed annuity rate on your existing plan. I considered leaving your pensions where they are, but this would not meet your objective of simplifying your arrangements before retirement.”
Next steps. Tell the client plainly what happens now and what they need to do.
Common pitfalls
The reports that cause problems tend to share the same faults: generic boilerplate that could describe anyone; dense jargon; a focus on benefits with the risks buried or missing; a disconnect between the report and the fact find; and sheer length that obscures the key points. Because the whole file is assessed if advice is ever questioned, an eloquent report sitting on top of a thin file is a weakness, not a strength.
Doing this well, consistently
The real challenge is not writing one good report — it is writing every report to this standard, across new recommendations and a rolling cycle of annual reviews, without the quality drifting when the team is busy. Consumer Duty asks for more personalised clarity; volume pushes the other way. That tension is exactly why a consistent, well-designed template matters, and why many firms now use AI to hold the structure and tone steady while the professional supplies the judgement.
Where Ammonite fits
This is the problem Ammonite built Planbot to solve. Planbot turns a firm’s own good-practice template into an AI-powered document, so every suitability report follows a consistent, client-ready structure and a clear house tone — while the paraplanner or adviser reviews and edits each one and keeps responsibility for the advice. Firms can work from their own master templates or adapt ready-made ones as a starting point, which is a practical way to embed the hallmarks above into every report rather than hoping for them.
It is a perspective grounded in the work: Ammonite was founded by Caroline Duff, a Chartered Financial Planner, and Rob Harradine, a Chartered Member of the CISI and former adviser, who between them have written thousands of suitability reports.
You can see how Planbot works, read about the team behind it, or explore more in Ammonite’s Insights.
Frequently asked questions
What must a suitability report include under FCA rules?
As a minimum, COBS 9.4 requires it to set out the client’s demands and needs, explain why the recommendation is suitable, and explain any possible disadvantages. It must also be fair, clear and not misleading, and — for investment advice — show how the recommendation meets the client’s objectives and circumstances.
What makes a report “good” rather than just compliant?
Personalisation and clarity. A good report captures this client’s specific objectives and the reasons behind them, explains the recommendation and its risks in plain language, and draws an explicit line from the client’s needs to the advice — so it reads like a client-specific explanation, not a product brochure.
How long should a suitability report be?
There is no set length. The aim is to be complete but readable: cover the required ground clearly, keep paragraphs short, and move supporting detail into appendices rather than padding the main report. Consistency and clarity matter more than length.
Can AI write a good suitability report?
AI can produce a strong, consistent first draft from a firm’s own template and source material, which the adviser or paraplanner then reviews and edits. The judgement — whether the advice is suitable and whether the report truly reflects the client — remains with the professional, who stays responsible for it.
Next Step
Writing suitability reports takes time, especially when your team needs to maintain consistent wording and formatting.
Ammonite AI offers Planbot to help financial advice firms create documents around their existing processes.
If you are exploring AI for paraplanners, see how it could support your team’s day-to-day work. You can also explore suitability report writing software for a closer look at report creation, or discover how paraplanning software fits into a wider financial planning workflow.
Take a look at the pages most relevant to your firm and book a demo to see Planbot in action.
