This article provides a step-by-step guide as to how you can quickly and easily write a suitability report for a pension sharing order.

1) Select or add the client

Go to Write report and select or create the private client you wish to write the report to.

2) Select the Report Creation Method

This article walks you through the steps of building the report 'from scratch'.

3) Create the report

In Report Details, give the report a name and select the Report Type. Assuming you're creating the report 'from scratch', we'd suggest using the Suitability Report.

4) Add the required sections

You’ll then be directed to the Report Builder where you should add the necessary sections from the 'Available sections' drop down. There’s a really simple choice to make first – is the pension share going into an existing plan belonging to the client, or are you recommending a new plan set up specifically for the purpose of receiving the funds?

  1. If the pension share is going into an existing plan, you’ll need the Review of Your Existing Pension Plans section.
  2. If the pension share is going into a brand new pension plan, you’ll need the New Pension Recommendation section.

Finally, you may also need to include the Recommended Investment Strategy section if you're recommending a change of investment strategy for the existing plan or to outline the investment strategy of the newly recommended pension plan.

5) Complete all section wizards

Next you'll need to step through the section wizards of all sections that require your input, starting with the Introduction section.

6) Complete the Introduction section 

You will progress through the steps of the Introduction section in the usual way. When you reach the Client Objectives step you should select or add the advice option(s) that accurately reflect the client's objective(s) and add comprehensive Know Your Client (KYC) information to ensure you fulfil the regulator’s expectations of you in terms of documenting a client's objectives. Alternatively, you can the client's objectives as free text.

7) Complete the Client Risk Profile section

It's in this section that you will confirm the client's attitude to risk and capacity for loss, as well as their knowledge and experience.

8a) Complete the Review of Your Existing Pension Plans section (where pension share funds are going into an existing plan)

You’ll be prompted to provide an overview of the existing plan within the Plan Summary step, and summarise its on-going charges in the Current Plan Charges step. 

You may also wish to include details of the plan's Current Investment Strategy in the Plan Summary step. This is especially important if the received pension share funds are being invested into the same investment strategy as the existing plan.

In the Recommended Action step, you will need to confirm what action you are recommending in respect to the existing plan. You should select 'invest the pension share within'.

You will then be prompted to confirm the total Transfer-in Amount in the Recommended Contribution step, and the impact the newly invested monies will have on the charges of the receiving plan in the Revised Plan Charges step. 

You can also confirm any disadvantages associated with the recommendation being made in the Key Disadvantages and Tax Implications step.

8b) Complete the New Pension Recommendation (where the pension share funds are going into a new plan)

You’ll be prompted to provide an overview of the new plan being recommended within the Plan Summary step. You should add the pension share amount into the Transfer-in Amount field.

Complete the Why Product step as normal with your reasons for selecting the recommended product type.

The Why Contribution step has been designed to allow you to confirm the reason(s) why the amount and type of contribution has been recommended. Clearly, the reasons selected here should reflect the client’s needs and objectives. A standard option relating to pension sharing is included for your convenience; but just like any such step, you can edit the wording of the standard option or add your own option(s).

Finally, complete the Why Provider, Plan Charges, Plan Benefits & Features, Key Disadvantages and Tax Implications, and Other Solutions steps as normal.

9) Possibly complete the Recommended Investment Strategy section 

It's here, you should include details of:

  • The revised investment strategy for the existing plan; or
  • The recommended investment strategy for the new plan recommendation.

Remember that there are three ways to create a Recommended Investment Strategy:
  • Clone a Current Investment Strategy you've previously created in a review section.
  • Create a new Recommended Investment Strategy from scratch.
  • Clone another Recommended Investment Strategy.

10) Complete the Important Information section

This is the last section you'll need to complete and is self-explanatory.

11) Tailor the structure of the report

Having completed all of the section wizards you should then tailor the structure of your report by unchecking any sections you do not wish to include in your report; and then change the sort order of any sections to reflect your personal preferences.

You’ll find more information about how to remove sections from your report here.

You'll find more information about how to reorder the sections in your report here.

12) Download the report / covering letter

Click the Download report / Download cover letter icon and the report / covering letter will download to Word.

Report template

Having created the report, you may then wish to convert it into a template and save it to your Report Template Library to use as a starting point for creating future reports.