The Central Bank, Consumer Protection Code, states that all financial services providers must provide a potential customer with a written statement of why the product or service they are recommending is most suited to you.
This is called a “Reason Why” letter, also sometimes called a “Suitability statement”. This letter must state why the recommended product or service meets your requirements, that you are likely to be able to afford it and it is in line with your attitude to risk.
The letter or statement must be given to you before you accept the product or service. The financial provider will give you a copy and keep the same on file, (you might also be asked to sign this statement)
In layman’s terms this letter / document is your comfort blanket that your financial adviser has recommended a product that best suits your needs and you can afford same.