[Direct answer]In the Beijing area, after the risk exposure of asset management products, investors should proceed simultaneously along four paths. Firstly, verify the underlying assets: clarify the investment direction of funds, ownership of assets, progress of asset disposal, and recoverable value, which determine the basis for actual compensation; verify through three channels: the custodian, regular reports, and communication with the trustee. Secondly, assert the trustee's liability: the trustee has the obligation of due diligence and good faith, and should handle trust affairs in accordance with agreements and laws. If there are circumstances such as failing to dispose of assets according to agreements, failing to disclose major risks in a timely manner, or obvious conflicts of interest, investors can assert their right to compensation. Thirdly, participate in the disposal process: strive for the right to information and participation in asset disposal plans led by the trustee or manager, to avoid assets being disposed at a low price. Fourthly, assert rights through regulatory and judicial channels: if investors believe that the manager has violated laws and regulations, they can report it to relevant financial regulatory departments; if no agreement can be reached, they can assert their rights through litigation or arbitration. It should be particularly noted that the risk disposal of asset management products is professional and collective in nature, so investors should avoid impulsive actions and prioritize verifying the facts and taking standardized legal measures. The Trust Law of the People's Republic of China (implemented on January 1, 2001) and relevant regulatory provisions on asset management products are the main basis for judging the trustee's liability.\nFinancial capital and cross-border transactions involving foreign entitiesThe services in this column can assist in designing a rights protection plan.

1. Problem background and typical scenarios

Common complaints include: the product failed to make payments on schedule; a significant drop in net value with insufficient information disclosure; suspicion that the underlying assets were disposed of at a low price; information asymmetry caused by multiple investors taking separate actions; the trustee proposing to resolve the risk by extending the maturity or exchanging shares; and investors suspecting misappropriation of funds.Business and contract disputes in enterprisesThe analysis of breach of contract liability in the column can be used for reference.

II. Key points of dispute

Focus One: The ownership and valuation of underlying assets. Focus Two: The criteria for assessing the trustee's performance. Focus Three: The adequacy of information disclosure. Focus Four: The procedures and pricing of disposal plans. Focus Five: Coordinating multiple claims. Focus Six: The interface between administrative and civil procedures.Special services and other casesThe solution design descriptions in the column can be used for reference. Focus 7: The decision-making mechanism and voting arrangements for asset disposal directly affect the efficiency of disposal and the reasonableness of prices.

III. Professional analysis by Henglue Lawyers

Henglu Law Firm typically handles such risk events in five steps. The first step is to sort out the product and the main parties: verify the product type and the qualifications and responsibilities of the managers, trustees, and custodians, and clarify their respective responsibilities. The second step is asset tracing: track the flow of funds to the underlying assets, verify the ownership status of the assets, the mortgage guarantee situation, and the progress of asset disposal. This part of the work often determines the recoverable proportion. The third step is duty review: compare the contract and regulatory requirements to review whether the trustee has made investment decisions as agreed, whether it has disclosed major risks in a timely manner, and whether there are conflicts of interest. The fourth step is evidence preservation: preserve the product brochure, risk disclosure letter, regular reports, investment briefing materials, communication records, etc., to form a complete chain. The fifth step is path design: based on the verification results, decide whether to participate in the disposal negotiations, claim the trustee's compensation liability, or take joint action with other investors. It should be particularly noted that seeking the right to know and participate in the risk disposal process is often more practical than pursuing accountability after the fact. Therefore, it is necessary to actively intervene before the disposal plan is determined.\nFinancial capital and cross-border transactions involving foreign entitiesThe timing of intervention described in the column can be supplemented.

IV. Practical suggestions and legal basis

Action suggestions: 1. Verify the product structure and underlying assets as soon as possible; 2. Request complete information disclosure materials from the manager; 3. Preserve all communication records and information disclosure documents; 4. Coordinate actions with other investors; 5. Monitor the disposition process and keep records of participation; 6. Engage with regulators to advance parallel legal actions. Legal basis: - Provisions of the Trust Law of the People's Republic of China (effective January 1, 2001) regarding trustee obligations and protection of trust assets; - Regulations on asset management products and asset management businesses; - Relevant provisions of the Civil Procedure Law of the People's Republic of China (amended and effective January 1, 2022); - Specific applications shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, the underlying assets are the basis for repayment, and verification should be given top priority. Secondly, the trustee's responsibilities need to be judged based on the contractual provisions and the actual performance of duties. Thirdly, it's better to preserve evidence as early as possible, as information may be lost after the disposal process. Fourthly, joint actions are more effective than individual actions, but they require unified guidelines and authorizations. Fifthly, attention should be paid to the connection between regulatory and civil procedures to avoid duplicated efforts. Sixthly, excessive actions should be avoided to avoid affecting the disposal process.Special services and other casesThe column can also provide explanations from rights protection organizations.

VI. Frequently Asked Questions

Q1: If the asset management product suffers a loss, can I ask the manager to compensate me in full?

Generally, it is not possible to directly demand full compensation. Asset management products inherently involve two aspects: market risk and the fiduciary duty of the manager. If the net asset value decreases solely due to market fluctuations, investors can only be compensated based on the actual asset value. However, if the manager is at fault for not investing according to the agreement, failing to disclose major risks in a timely manner, failing to exercise due diligence, or having conflicts of interest, the manager may be held liable for compensation. This requires identifying the fault by comparing the contractual provisions, regulatory requirements, and the actual performance of duties. In practice, investors should prepare two types of materials simultaneously: objective records of the product's operation and specific evidence of the manager's deviation from the agreement.\nFinancial capital and cross-border transactions involving foreign entities.The column can also provide explanations on how to assess responsibility.

Q2: I don't know anything about this. Does this count as a violation of the rules?

If the manager fails to disclose the product's risks, strategies, investment scope, potential risks, and major events to investors in accordance with regulations, this may indeed constitute a violation. The judgment criteria typically include whether the product brochure and risk disclosure document are complete, whether the investment briefing is conducted as required, whether regular reports are disclosed in a timely and complete manner, and whether major risk events are promptly notified. Investors should actively request the above-mentioned documents and keep the request records; if the manager is unable to provide them or the content provided is obviously insufficient, this can be used as evidence to claim that they have failed to fulfill their disclosure obligations. It is recommended to send a written information request letter and keep the delivery receipt as soon as possible after identifying the risks.

Q3: The assets were disposed of at a low price. Can I object to this?

You can raise objections, but the key is to strive for the right to participate and detect abnormalities in a timely manner. Practical suggestions include: First, pay attention to whether the decision-making process of the disposal plan complies with the agreement and regulatory requirements, and whether the necessary evaluation and public disclosure procedures have been carried out; Second, if you find that the disposal price is significantly low, you can request an explanation of the pricing basis and apply for a professional evaluation; Third, raise objections in writing and preserve evidence before the disposal plan is finalized, and request a delay in the disposal to complete the evaluation; Fourth, if necessary, apply for property preservation to prevent the completion of the disposal. It should be noted that it is much more difficult to recover losses after the fact than to prevent them in advance, so the timing of intervention is very critical.\nFinancial capital and cross-border transactions involving foreign entitiesThe column can also provide a statement of rights during the disposal phase.

Q4: If many people lose money together, can they sue collectively?

Yes, but attention needs to be paid to the organization method. Most investors' contracts are the same or similar to the product, providing a basis for joint action. Practical suggestions: First, unify demands and positions to avoid weakening the strength of individual actions; Second, elect representatives and issue standardized power of attorney documents; Third, jointly verify underlying assets and entrust third-party evaluations; Fourth, assess the feasibility of jointly initiating litigation or arbitration, and resolve disputes through mediation with the participation of qualified institutions; Fifth, ensure that information sharing among investors does not harm personal privacy and trade secrets. It should be noted that courts may handle claims separately due to differences in investors' demands, so unifying demands in advance can help improve efficiency.

Q5: Is it useful to file a complaint with the regulatory authorities?

It's useful, but the mechanism of its operation needs to be clearly understood. The main value of reporting to the regulatory authorities lies in the following aspects: the regulatory authorities can verify the managers' illegal and irregular behaviors and require them to make corrections; the materials obtained through regulatory investigations can be used as evidence in civil cases; and sometimes, the regulatory authorities will promote the optimization of risk disposal plans. Therefore, it is recommended that: first, the content of the complaint should be specific, listing the product information, the time and amount of risk exposure, the specific problems of the managers, and the losses that have already occurred; second, keep the complaint materials and acceptance certificates; third, pay attention to the progress of the handling and maintain communication with the regulatory personnel in charge. It should be noted that complaints cannot replace civil claims, and the two approaches should be pursued in parallel.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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 current 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. In the event of a dispute, please consult a practicing lawyer in a timely manner.