[Direct answer]In the Beijing area, when securities firm asset management products encounter defaults or significant losses, investors typically pursue claims through four channels. The first channel is to assert breach of contract liability, including demanding redemption, payment of interest or penalties, and compensation for losses caused by the breach; the second channel is to allege that the manager failed to fulfill statutory or contractual duties, such as failing to operate within the agreed investment scope, failing to disclose information on schedule, misusing assets illegally, or failing to provide necessary information disclosure and risk disclosure; the third channel is to claim breach of suitability obligations, i.e., the manager failed to complete qualified investor identification, risk assessment, or risk disclosure, leading investors to make investment decisions under information asymmetry; and the fourth channel is to use administrative supervision complaints and industry mediation to exert pressure and secure evidence. It should be noted that the outcome of the claim depends on the product nature and the facts of the breach: if the product is a structured arrangement with agreed upon profit distribution sequences, investors may need to bear corresponding sequential risks; if the manager violates investment operation regulations, the scope of liability may exceed the contractual provisions. According to Articles 509 and 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), parties shall fully perform their obligations in accordance with the agreement, and a party who fails to perform or performs in violation of the agreement shall bear breach of contract liability; at the same time, the provisions on suitability obligations in the "Measures for the Management of Suitability of Securities and Futures Investors" can also serve as the basis for liability claims.\nFinancial capital and cross-border transactions involving foreign entitiesThe column provides specific instructions on how to handle asset management disputes.

I. Problem background and typical scenarios

Investors who consult on such issues are often in the stage after the product expires and is not redeemed, or after the net value suffers significant losses. Common confusions include: whether to seek help from the manager or the sales agency, whether to sue directly, and what evidence is needed. In practice, the most common problem is confusing the sales agency with the manager: product contracts are usually signed and managed by the manager, while the sales agency may only be a sales agent. The responsibilities of the two parties are different, and the claimant needs to clarify this first. Another common misconception is that only when there is no redemption can claims be made; in fact, violations such as the manager's failure to invest according to the agreement, failure to disclose information on time, and failure to fulfill suitability obligations may also constitute breaches of contract and result in corresponding liabilities. Therefore, before protecting their rights, investors should do two things: first, sort out all documents and timelines, including contracts, risk disclosures, evaluation records, regular reports, and net value announcements; second, check whether the actual investment is consistent with the contract provisions. It should be noted that there is urgency in fixing evidence: product liquidation, changes in institutional personnel, and the retention period of system data may all affect subsequent evidence collection. For arrangements regarding dispute response and enforcement coordination, investors can refer to the relevant guidelines.Creditor's rights and debts, and enforcementColumn.

II. Key points of dispute

First, the contracting parties and management entities of the product contract. Second, the distinction between payment and violations of investment operations. Third, the order of profit distribution and the assumption of sequential risks. Fourth, the defects in the performance of suitability obligations. Fifth, the performance of information disclosure obligations. Sixth, the demonstration of loss amounts and causalities. Seventh, the choice of arbitration clauses and litigation paths. Eighth, the connection between administrative complaints and civil procedures. In addition, attention should also be paid to the division of custody and valuation responsibilities, the supervision arrangements for investors in the liquidation stage, and the evaluation methods of the managers' responsibilities after partial payment. The above specific rules shall be subject to the currently effective laws, regulations, supervisory provisions, and judicial judgments.

III. Professional analysis by Henglue Law Firm

From the perspective of financial disputes, the effectiveness of claims for breach of contract in asset management depends on three fundamental tasks. First, proving the facts of breach of contract: it requires comparing the contractually agreed investment scope, prohibited items, time limits, and information disclosure requirements with the actual operations of the manager on a case-by-case basis, and comparing them with regular reports, net value announcements, audit reports, and regulatory public information. For example, when investments deviate from the contractual provisions or there are illegal related-party transactions, the facts of breach of contract are usually easier to prove. Second, demonstrating legal responsibilities: listing and matching evidence for the manager's duties of diligence, risk disclosure, suitability matching, and information disclosure to avoid making general claims about failure to fulfill duties of diligence without verifiable factual basis. Third, designing requests and paths: requests should clearly distinguish between principal, interest, breach of contract penalties, and compensation for losses, and pay attention to the reasonableness of the breach of contract penalties and losses. At the same time, assess whether there are arbitration clauses in the contract. If there are, it is usually necessary to apply for arbitration in accordance with the agreement. When handling similar matters, our firm usually follows the order of first fixing evidence, then determining the form of breach of contract, and finally designing requests and paths, while simultaneously assessing the feasibility of obtaining investigation conclusions through administrative complaints or regulatory penalties as support for civil proceedings. It should be noted that if the manager has actively made partial repayments or proposed settlement proposals after the dispute arises, their performance should also be included in the overall assessment to select the optimal advancement plan. This case was handled by Beijing Henglu Law Firm.Yang YafangThe attorney (practice license number: 11101202211531374, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: First, sort out the contracts and all signed documents to clarify the contracting and management entities; Second, compare the actual investment operations with the contractual provisions; Third, collect regular reports, net value announcements, and information disclosure materials; Fourth, verify the fulfillment of suitability obligations; Fifth, calculate the amount of losses and the causal relationship; Sixth, verify the existence of arbitration clauses; Seventh, evaluate the value of cooperating with administrative complaints. Legal basis: Articles 509, 577, and 585 of the Civil Code of the People's Republic of China (all effective from January 1, 2021); the provisions on custody, suitability, and information disclosure in the Securities Law of the People's Republic of China (amended on March 2, 2019 and effective from March 1, 2020); the relevant provisions of the Securities Investment Fund Law of the People's Republic of China (amended on April 24, 2015 and effective from January 1, 2016); specific product rules shall be subject to the contractual provisions and currently effective regulatory provisions.

5. Henglue Law Firm's Advice

Please pay attention to the balance between the penalty and the losses in the design of the request. Investment deviations from the contractual provisions are often a breakthrough point. First, clarify the responsibility boundaries between the contracting parties and the sales agencies. Second, the proof of the breach of contract lies in comparison rather than assertion. Third, investment deviations from the contractual provisions are usually a key breakthrough point. Fourth, pay attention to the choice of arbitration and litigation paths. Fifth, fix the disclosure documents and net worth records in time. Sixth, the investigation conclusions formed by administrative complaints have evidentiary value. Seventh, pay attention to the statute of limitations requirements during the corresponding period. Eighth, please pay attention to the balance between the penalty and the losses in the design of the request. For the review and interpretation of contract terms, you can refer to the following materials:Business and contract disputes in enterprisesColumn.

VI. Frequently Asked Questions

Q1: If a wealth management product suffers a loss, can I definitely claim compensation from the manager?

Not necessarily. The net asset value fluctuations of asset management products are inherent risks. Only when the manager defaults or violates statutory duties can they receive corresponding support. In practice, the breakthrough points include: failing to operate within the investment scope as agreed in the contract, failing to fulfill the obligation of information disclosure on time, failing to conduct risk disclosure or suitability matching, and engaging in illegal related-party transactions. If there are only market fluctuations without the above-mentioned defects, it will be more difficult to claim compensation.

Q2: Should I contact the property manager or the sales agency?

Generally, you should first look at the contracting parties of the contract. The managers of asset management products assume responsibilities such as investment operations and information disclosure, while the sales agencies may only act as agents. The responsibilities of the two parties are different. If there is misleading or failure to fulfill the obligation of suitability during the sales process, the sales agencies may also bear corresponding responsibilities. It is recommended to determine the claim object based on the contract and the signed documents, and pay attention to the proof of the agency relationship.

Q3: If there is an arbitration clause in the contract, can I still file a lawsuit?

An effective arbitration clause is usually exclusive, and the parties should apply for arbitration as agreed. Therefore, before initiating the procedure, it is necessary to first check whether there is an arbitration clause in the contract and its validity. If the clause is invalid, the agreement is unclear, or it has not been actually applied, it may be possible to sue in court. Pre-checking can avoid procedural detours and the risk of exceeding the time limit.

Q4: How should we calculate a reasonable amount of loss?

Generally, it shall be based on the actual losses, that is, the difference between the principal and the realized gains, minus the portion that has been redeemed; if the manager has default behaviors such as investment deviation, the investor may claim corresponding compensation based on the causal relationship between the default and the losses. When calculating the losses, the net value records, redemption certificates, and expense deductions should be taken into account. If necessary, an appraisal can be applied for, and a professional lawyer can assist in formulating the calculation standards.

Q5: Is it useful to complain to the regulatory authorities?

It's useful. Administrative complaints themselves cannot directly lead to compensation, but their investigation conclusions and regulatory punishment decisions can serve as important evidence in civil proceedings, especially when it's difficult to provide evidence of breach of contract on one's own. In addition, complaints may also prompt managers and investors to reach a settlement. Therefore, in practice, it is usually recommended to advance complaints in conjunction with civil proceedings, first obtaining the investigation conclusions and then determining the claims and path to follow.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations 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 relevant evidence, to avoid missing the statutory time limit.Financial capital legal services·Attorney Yang Yafang·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.