[Direct answer]In the Beijing area, it is concluded that claims can be pursued through a combination of contractual, infringement, and criminal litigation. Asset management products should fulfill their fiduciary management duties in accordance with regulatory requirements such as the "Guiding Opinions on Regulating Asset Management Business of Financial Institutions". These products should be managed separately, with separate accounting books and calculations, and are not allowed to engage in or participate in pooled fund businesses with characteristics of rolling issuance, collective operation, and separated pricing. If investors encounter misappropriation of pooled funds, they can claim breach of contract liability according to the Contract Chapter of the Civil Code of the People's Republic of China, and seek compensation for the managers' breach of fiduciary obligations. For crimes such as misappropriation and embezzlement, investors should promptly report the case to the public security organ. The key to protecting rights lies in timely fixing product contracts, transaction records, information disclosure and communication materials, clarifying the whereabouts of funds and the responsible parties, and choosing complaint and reporting, civil litigation, or criminal reporting according to the circumstances.

1. Problem background and typical scenarios

Some financial management or asset management products have faced issues such as misappropriation of fund pools, maturity mismatch, and payment default risks due to irregular operations. Typical cases include: the product funds being used for related parties or high-risk projects; the manager changing the use of funds without authorization instead of investing according to the agreement; insufficient information disclosure, making it difficult for investors to understand the whereabouts of the funds; and failure to make payments on maturity or a significant reduction in the payment ratio. When dealing with such issues, regulatory authorities and courts usually review whether the products comply with regulations, whether the managers fulfill their fiduciary duties, and the actual flow of funds, based on which they determine responsibilities and relief measures.

II. Key points of contention

First, whether the product violates the requirements of fund pooling and independent management. Second, the division of responsibilities between the manager and the sales agency. Third, whether the misappropriation of funds constitutes a breach of contract, infringement, or suspected crime. Fourth, the determination and proof of investors' losses. Fifth, the responsibility boundaries of the asset custodian. Sixth, the effectiveness and implementation of credit enhancement or guarantee arrangements. Seventh, the connection between complaints and reports, civil litigation, and criminal reporting. These issues determine the targets and pathways of recourse.

III. Professional analysis by Henglue Law Firm

Based on Henglu Law Firm's practical experience in handling financial and contract disputes, the following four key points should be noted when addressing such issues. First, regulatory compliance review: Asset management products should be managed separately, with separate accounting and settlement systems, and are prohibited from engaging in or participating in fund pool businesses with features such as rolling issuance, collective operation, and separated pricing. If the product operates in violation of regulations, the manager may bear corresponding responsibilities. Second, liability subjects: If the manager fails to fulfill their fiduciary duties and results in misappropriation of funds, they shall bear breach of contract or compensation liabilities; if the sales agency engages in misleading sales, they may also bear corresponding responsibilities; and if the custodian fails to fulfill their supervisory obligations, they may also be held accountable. Third, litigation strategies: Investors may first file complaints and reports with regulatory authorities to establish facts, and then initiate civil litigation to claim restitution and compensation. For suspected crimes such as misappropriation and embezzlement, they should promptly report the case to the police and may combine criminal recovery of assets and civil claims to avoid duplicate compensation. Fourth, evidence preservation: Product contracts, risk disclosure documents, transaction and transfer records, information disclosure materials, and communication records are key to determining liability and losses. These should be preserved as early as possible to prevent evidence being destroyed. Fifth, loss quantification: The difference between the investment principal, expected returns, and actual payouts should be calculated based on receipts and account records, and credit enhancement or guarantee arrangements may serve as supplementary recourse. Sixth, risk prevention: Before purchasing, investors should verify the product's nature, investment scope, and the issuer's qualifications, and be cautious of fund pool products that promise guaranteed high returns.

IV. Practical suggestions and legal basis

Practical suggestions: First, comprehensively collect product contracts, risk disclosures, transfer and information disclosure certificates, and fix the destination of the funds; Second, file complaints and reports with financial regulatory departments to help clarify the facts; Third, claim breach of contract liability from the manager according to the contract and request repayment and compensation; Fourth, if there are suspected crimes of embezzlement and misappropriation, report the case to the public security organ in time; Fifth, verify the responsibilities of the sales agency and the custodian and, if necessary, claim against them jointly; Sixth, pay attention to the credit enhancement and guarantee arrangements and use them as supplementary paths for recourse. For in-site services, please refer to the relevant pages on the platform.Financial capital and cross-border transactions involving foreign countries、Creditor's rights and debts, and enforcement、Business and contract disputes in enterprises、Criminal defense and criminal case filingAndSpecial servicesLegal basis: Articles 577 and 584 of the Civil Code of the People's Republic of China (both of which came into effect on January 1, 2021), as well as the current provisions of the "Guiding Opinions on Regulating Asset Management Business of Financial Institutions" and the current provisions of the Criminal Law of the People's Republic of China regarding crimes such as embezzlement and misappropriation. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, asset management products should be managed and accounted for separately, and managers who violate the requirements of fund pooling may be held accountable. Secondly, if the manager fails to fulfill its fiduciary obligations, it shall bear breach of contract or compensation liability. Thirdly, if there is any suspicion of misappropriation of funds, it shall promptly report the case to the police, and criminal and civil remedies can be combined to advance the case. Fourthly, the product contract, transfer records, and information disclosure materials are key evidence for safeguarding rights, and it is necessary to fix them as soon as possible. Fifthly, the losses shall be based on the principal and the difference between the actual and promised payouts, and the credit guarantee may be supplementary. Sixthly, if the sales agencies and custodians fail to fulfill their obligations, they may also be held accountable. Seventhly, the financial products are complex in structure and involve many parties in the case, so it is recommended to consult professional lawyers as soon as possible to coordinate the protection of rights.

VI. Frequently Asked Questions

Q1: If the financial management funds are misappropriated, can we directly sue the manager?

Yes. If the manager fails to fulfill his fiduciary obligations, changes the use of funds without authorization, or violates the requirements for independent management of asset management products, investors may claim breach of contract against him and request repayment and compensation according to the contract. It is recommended to collect evidence of the product contract, transfer of funds, and information disclosure at the same time, and to file a complaint with the regulatory authorities when necessary to clarify the facts.

Q2: Are fund pool wealth management products legal?

It is usually not compliant. According to the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" and other requirements, asset management products should be managed separately, kept separate accounts, and accounted for separately. They are not allowed to engage in or participate in pooled fund businesses with the characteristics of rolling issuance, collective operation, and separate pricing. If they operate in violation of regulations, the managers and relevant institutions may bear corresponding responsibilities.

Q3: Is it useful to call the police?

It plays an important role when suspected of committing a crime. If the funds are misappropriated or embezzled in connection with a suspected crime, reporting the case can prompt the initiation of an investigation, the freezing of assets involved in the case, and the recovery of stolen money and mitigation of losses. Criminal proceedings and civil claims can proceed in parallel, but care must be taken to avoid receiving duplicate compensation. It is recommended to report the case promptly and provide evidence such as contracts and transfer records.

Q4: Do sales agencies have any responsibilities?

There may be liability. If the sales agency misleads investors in the promotion, fails to fully disclose the risks, or fails to fulfill its duty of suitability, resulting in investors' losses, investors may claim corresponding liability from the sales agency in accordance with the contract and the law. The specific extent of liability shall be determined based on the degree of fault and the causal relationship between the sales actions and the investors' losses.

Q5: How to calculate and claim the losses?

Based on the difference between the investment principal, the expected return, and the actual payout, the amount shall be calculated according to the contract, the transfer records, and the account records, and the part that has already been paid out shall be deducted. When making a claim, the claimant may request the return of the principal and compensation for losses, while paying attention to the supplementary role of credit enhancement and guarantee arrangements. It is also necessary to avoid double compensation by coordinating with insurance payouts and criminal asset recovery.

The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.