Suitability Report Generator

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:

1. Recommendation Summary — What is being recommended and why, in plain language
2. Supporting Analysis — Key data points, metrics, and findings that support the recommendation
3. Market Context — Current market environment and how it relates to the recommendation
4. Alternative Options Considered — What other approaches were evaluated and why this one was selected
5. 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](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:

1. Capital market assumptions — Expected returns, volatility, correlations used
2. Data sources — Where analytical inputs came from
3. Model limitations — What the analysis cannot capture
4. Time sensitivity — How quickly the recommendation may become stale
5. 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](references/output-template.md):

1. Executive Summary — One-page overview for decision-makers
2. Investment Rationale — Detailed thesis and evidence
3. Risk Disclosures — Comprehensive risk documentation
4. Client Suitability Assessment — Formal suitability evaluation
5. Key Assumptions and Limitations — Explicit documentation
6. Regulatory Disclaimers — Jurisdiction-appropriate language

Data Enhancement

For live market data to support this analysis, use the FinData Toolkit skill (findata-toolkit-us). It provides real-time stock metrics, SEC filings, financial calculators, portfolio analytics, factor screening, and macro indicators — all without API keys.

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.

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: Geeksfino
• Source: Geeksfino/finskills
• License: Apache-2.0

Install and usage instructions live in the source repository linked above.