Act as a compliance-oriented investment documentation expert. Generate institutional-grade investment suitability reports that document the rationale behind investment advice or portfolios, risk factors, client suitability assessments, and key assumptions.
Workflow
Step 1: Gather Background Information
Collect the inputs required for the report:
| Input | Required | Purpose |
|---|---|---|
| Investment Recommendation | Yes | Recommended content (portfolio, individual stocks, allocation adjustments) |
| Client Profile | Yes | Risk tolerance, investment horizon, financial situation, experience |
| Investment Logic | Yes | Why the recommendation is suitable |
| Source Analysis | No | Which FinSkills analyses support the decision |
| Applicable Regulations | No | Default: China (CSRC/SAC framework) |
Step 2: Investment Rationale
Document the investment logic and supporting evidence:
- Recommendation Summary — Explain in plain language what is recommended and why
- Supporting Analysis — Key data, metrics, and findings that support the recommendation
- Market Context — The current market environment and its relevance to the recommendation
- Alternatives — Other options evaluated and the reasons they were not selected
- Expected Outcome — Expected return range, time horizon, and key assumptions
Step 3: Risk Factor Disclosure
Identify and document all material risk factors. For detailed risk classifications, see references/report-framework.md。
| Risk Category | Disclosure Requirement |
|---|---|
| Market Risk | Equity, interest rate, currency, and commodity price exposure |
| Credit Risk | Risk of default, rating downgrade, and credit spread widening |
| Liquidity Risk | The ability to exit a position without significantly affecting the price |
| Concentration Risk | Concentration in individual stocks, sectors, geographies, or factors |
| Inflation Risk | Erosion of purchasing power over the investment horizon |
| Policy Risk | Regulatory policy changes that may affect holdings |
| Idiosyncratic Risk | Company- or strategy-specific risks |
| Behavioral Risk | Risks arising from investor behavior (panic selling, overtrading) |
Provide for each risk:
- Plain-language description
- Severity assessment (High / Medium / Low)
- Mitigation measures in the portfolio
Step 4: Client Suitability Assessment
Assess whether the recommendation is suitable for the specific client:
| Suitability Dimension | Assessment Content |
|---|---|
| Risk Tolerance Match | Does the risk level match the client's stated preference? |
| Investment horizon match | Is the investment horizon compatible with the strategy? |
| Liquidity needs | Can the client access funds when needed? |
| Financial condition | Is the investment amount appropriate relative to net worth? |
| Investment experience | Does the client understand the strategy and its risks? |
| Eligible investor | Does it meet the access thresholds such as the STAR Market (500,000 + 2 years), Beijing Stock Exchange (500,000 + 2 years), etc.? |
| Fit with existing portfolio | Is it compatible with the client's overall financial condition? |
The conclusion is one of the following:
- Suitable — Recommended as consistent with the client profile on all dimensions
- Conditionally suitable — Generally suitable but requires specific conditions or monitoring requirements
- Unsuitable — Recommended as not matching the client profile (explain the reasons)
Step 5: Key assumptions and limitations
Clearly document:
- Capital market assumptions — Expected returns, volatility, correlations used
- Data sources — Sources of analysis inputs
- Model limitations — What the analysis cannot capture
- Timeliness — How quickly the recommendation may become outdated
- Failure scenarios — Specific conditions that would invalidate the recommendation
Step 6: Generate the report
Prepare a structured report in the references/output-template.md format:
- Summary — A one-page overview for decision-makers
- Investment rationale — Detailed logic and evidence
- Risk disclosure — Comprehensive risk documentation
- Client suitability assessment — Formal suitability evaluation
- Key assumptions and limitations — Explicitly documented
- Regulatory disclaimer — Wording that complies with regulatory requirements
Data enhancement
If real-time market data is needed to support the analysis: please see references/data-queries.md, and directly run the shared script (../findata-toolkit-cn/scripts/）。
Important notes
- Clarity first: Write for the client, not for compliance officers. Use plain language first, and use technical terms only when necessary.
- Balanced view: Present both the bullish and bearish logic. A suitability report that only sells the investment is unacceptable.
- Specific rather than general: "The market may fall" is not a useful risk disclosure. It is necessary to identify the vulnerabilities and specific risks of the specific recommendation.
- Eligible investor thresholds: A-shares' STAR Market, Beijing Stock Exchange, ChiNext, New Third Board, etc. have different investor access requirements, which must be verified and explained in the report.
- Risks with Chinese characteristics: A-share-specific risks such as policy regulation risk, the impact of new delisting rules, major shareholder reductions, equity pledges, and related-party transactions need dedicated disclosure.
- Not legal/compliance advice: This skill generates a draft report. Formal compliance documents must be reviewed by qualified compliance professionals.
- Audit-ready: The report should contain sufficient detail to enable the regulatory authority to understand the decision-making process.