--- title: "Investors' financial management \"buying wrong,\" financial institutions must take responsibility" type: "News" locale: "en" url: "https://longbridge.com/en/news/280029635.md" description: "The Beijing Financial Court reported multiple cases of investor financial disputes, emphasizing that financial institutions must bear responsibility for financial products that are unsuitable for clients. The \"Administrative Measures for the Suitability of Financial Institution Products,\" which took effect on February 1, requires financial institutions to understand clients' risk tolerance and make appropriate matches when selling products. The court ruled that banks in two cases bore partial compensation responsibility for failing to fulfill their suitability obligations, reminding investors to enhance their risk prevention awareness" datetime: "2026-03-21T18:24:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280029635.md) - [en](https://longbridge.com/en/news/280029635.md) - [zh-HK](https://longbridge.com/zh-HK/news/280029635.md) --- # Investors' financial management "buying wrong," financial institutions must take responsibility According to a report from this newspaper (China Youth Daily · China Youth Network reporter Liu Yinheng, intern reporter Zou Junqi), what should one do if recommended financial products are clearly inconsistent with their risk tolerance when purchasing wealth management products? How should responsibility be determined when there are losses in wealth management? The Beijing Financial Court recently reported several typical cases to provide clear guidance for investors to protect their rights according to the law. Starting from February 1 this year, the "Measures for the Appropriateness Management of Financial Institution Products" (hereinafter referred to as the "Measures") officially came into effect, aiming to reinforce the core obligation of financial institutions to "sell suitable products to suitable investors" and clarify the appropriateness requirements that must be followed in the sales process. Specifically, the "appropriateness obligation" requires financial institutions to fulfill their responsibilities to understand the customer, understand the product, and make appropriate matches when recommending and selling financial products. In a case published by the Beijing Financial Court, retired employee Li wanted to manage his finances safely but, under the "guidance" of a bank customer manager, repeatedly conducted risk assessments through mobile banking and purchased a trust product that exceeded his risk tolerance. Two years later, he incurred losses of over 50,000 yuan. The court found that although the bank had provided detailed product information and the online purchasing process complied with relevant regulations, Li's two risk assessment results were inconsistent, with significant differences in responses to the same questions. The bank failed to further verify this and did not provide a special written warning regarding the product's risk exceeding the customer's tolerance, thus failing to fulfill its appropriateness obligation and was ordered to bear partial compensation responsibility. In another case, 65-year-old Shang, upon the recommendation of a customer manager, converted his previously lost fund into a new fund touted as having "great potential." However, Shang was unaware that the risk level of the newly converted fund had increased, exceeding his latest risk tolerance rating. By the time he redeemed it, he had lost over 700,000 yuan. The court ruled that fund conversion is not merely an after-sales service. The seller still has obligations to disclose risks and confirm with the investor. The bank involved in the fund conversion process acted improperly in fulfilling its appropriateness obligations. The court ultimately ruled that the bank should bear 70% of the compensation responsibility for Shang's losses resulting from the fund conversion. The "Measures" stipulate that financial institutions must fulfill special attention obligations when selling or trading high-risk products to clients over 65 years old. Judges remind that investors, especially the elderly, must effectively enhance their risk prevention awareness during the investment process, make prudent decisions based on their risk tolerance, and adhere to the principle of "do not invest if you do not understand, do not make blind decisions," to safeguard their wealth management "purse." In one case, Cai, who had extensive experience in securities trading, remitted over 7 million yuan to a trust company to subscribe to trust products based on a friend's introduction, but later only received about 3.8 million yuan in settlement funds. During this process, Cai did not sign a written contract, and the relevant risk questionnaire was not signed by him. After the dispute arose, the trust company used Cai's "rich experience and strong risk awareness" as the main defense argument. The court found that the trust company failed to provide evidence proving that it had fulfilled its obligations for customer qualification review and risk disclosure. Even if Cai had rich investment experience, the amount of this trust investment was far higher than his previous single securities transaction amounts, and the trust company's responsibility for investor appropriateness review should not be exempted The court ruled that the trust company must pay Mr. Cai investment losses of over 3.9 million yuan. The judge stated that the "Measures" stipulate that financial institutions should perform their duties in accordance with laws and regulations, diligently and responsibly, and prudently fulfill their responsibilities. They must bear the primary responsibility for the suitability management of the products they sell or trade, and sell or provide suitable products through appropriate channels to suitable clients. For investors, regardless of whether they have extensive prior investment experience, they should invest rationally and effectively safeguard their own property security ### Related Stocks - [165521.CN](https://longbridge.com/en/quote/165521.CN.md) - [002800.CN](https://longbridge.com/en/quote/002800.CN.md) - [510230.CN](https://longbridge.com/en/quote/510230.CN.md) ## Related News & Research - [China’s Jinlihua Electric Soars by Limit After Unveiling Plan to Foray Into Commercial Aerospace Field](https://longbridge.com/en/news/287036981.md) - [Europe-China spacecraft launches to study Earth's 'invisible armour'](https://longbridge.com/en/news/286881963.md) - [11:19 ETROE Dental Lab Launches Passivity Plus, a Self-Adjusting Coping for Full-Arch Implants](https://longbridge.com/en/news/287090181.md) - [A*STAR expands fusion research collaboration with CFS](https://longbridge.com/en/news/287150684.md) - [OpenAI launches Plaid integration for ChatGPT Pro users](https://longbridge.com/en/news/286817467.md)