[Direct answer]In the Beijing area, elderly investors are recommended to invest in high-risk funds that do not match their risk tolerance. If the sales agency fails to conduct a risk assessment, conducts the assessment on behalf of the investor, fails to fully disclose the risks, or still recommends the product despite knowing it is not suitable, they can claim that the agency has failed to fulfill its suitability obligation and request compensation for the principal and interest losses in accordance with Articles 72 and 76 of the "Notes on Civil and Commercial Trial Work of the National Court" (issued on November 8, 2019). For those who have already redeemed and confirmed losses, they should pay attention to the three-year statute of limitations from the date they become aware of the losses. It is recommended to immediately preserve the assessment questionnaires, video recordings of the consultation process, promotion records, and transaction certificates. First, negotiate with the agency; if no agreement is reached, promptly file a lawsuit and refer to the relevant provisions for reference.\nCross-border financeColumn.

I. Problem Background and Typical Scenarios

This kind of help-seeking is often seen in several situations: First, the elderly go to the bank to handle deposits or purchase low-risk financial products, and are guided by customer managers to sign fund subscription forms; Second, the risk assessment is answered and ticked by sales staff on behalf of the elderly, and the assessment results are artificially inflated; Third, when promoting products, sales staff verbally emphasize returns and avoid mentioning drawdowns, leading the elderly to mistakenly believe that it is an "upgrade of deposits"; Fourth, when children organize the elderly's accounts, they find that the elderly have held loss-making medium- and high-risk funds for many years; Fifth, some elderly people's hearing and understanding abilities decline, and the dual-recording process is just a formality. The Beijing area courts generally adopt a cautious attitude towards the protection of elderly financial consumers, and the sales institutions' obligation to disclose risks to elderly clients is actually more stringent. The approach to handling related disputes can be referred to for reference.\nCross-border financeColumn.

II. Key points of contention

Focus One: Evaluating authenticity. Assessments that involve ghostwriting, plagiarism, or inducing answers cannot reflect the true risk tolerance, and it is difficult for institutions to sell products based on such assessments in compliance with regulations. Focus Two: Standards for fulfilling the obligation to provide explanations. According to Article 76 of the Guidelines, simply having elderly individuals sign a "awareness of potential capital losses" document is insufficient to demonstrate adequate risk disclosure. This must be evaluated in conjunction with the content of the dual-recording system. Focus Three: Appropriate product matching. If the risk level of the recommended product significantly mismatches the assessment results, age, or investment experience, it constitutes negligence. Focus Four: The true intention of elderly investors in entering into contracts. Contracts signed under misleading circumstances can be claimed to be rescinded. Focus Five: Calculation of losses. Typically, this includes the principal and interest calculated according to certain standards, minus any dividends already received. Focus Six: Contribution of fault. If the elderly individual has long-term investment experience, the liability ratio may be adjusted. Specifically, refer to current applicable laws, regulations, and judicial rulings. For cases involving children handling family property on behalf of their elderly parents, relevant provisions can be referenced.Marriage and family matters, and divorce litigationColumn.

III. Professional analysis by Henglue Lawyers

Based on the practical experience of lawyers from our firm, the breakthrough points in elderly financial disputes are almost all in the sales process. The court tends to believe that elderly clients have relatively limited financial knowledge, and institutions should provide more comprehensive risk disclosure to them than to ordinary investors. If the double-recording video does not ask questions one by one, fails to remind of the maximum drawdown, and the sales staff guide the answers, it can be determined that the obligation to provide explanations is not fulfilled. Common pitfalls include: when family members want to redeem the funds urgently after discovering the problem but fail to fix the evidence first, resulting in the institution evading responsibility by claiming that the evaluation and double-recording materials have exceeded the storage period; only making oral complaints without leaving written evidence; and signing documents waiving the right to pursue legal action based on the institution's "internal compensation plan". A more reliable approach is: first apply to retrieve the double-recording and evaluation files and make copies for retention, then negotiate with the institution; if the institution delays or refuses to accept the request, directly initiate litigation proceedings. If it involves the overall arrangement and inheritance planning of large-scale assets under the elderly's name, it is also possible to consult on these matters simultaneously.Inheritance and division of estateProfessional opinions in the field.

IV. Practical suggestions and legal basis

Action suggestions: 1. Collect the subscription orders, risk assessment questionnaires, dual-recording videos, promotional materials, sales communication records, and transaction records as soon as possible; 2. Have the children assist in verifying the elderly person's true understanding at the time of purchase and document it in writing; 3. First, file a written complaint with the institution, request access to the dual-recording videos, and simultaneously report the matter to regulatory authorities; 4. If no agreement can be reached, file a lawsuit within the three-year statute of limitations to assert the liability for the duty of suitability and seek compensation for principal and interest losses; 5. Properly arrange the elderly person's subsequent asset allocation to avoid secondary harm. Legal basis: Articles 72 to 78 of the "Memorandum on Civil and Commercial Trial Work of the National Courts" (issued on November 8, 2019) stipulate the framework of the duty of suitability and the burden of proof; Article 148 of the "Civil Code of the People's Republic of China" (effective on January 1, 2021) provides that civil legal acts performed under fraud may be requested to be rescinded, and Article 188 stipulates the three-year statute of limitations; The "Law of the People's Republic of China on the Protection of the Rights and Interests of the Elderly" (effective on October 1, 1996 and amended on December 29, 2018) also explicitly prohibits fraudulent sales targeting the elderly.

5. Henglue Law Firm's Advice

Risk Warning: Firstly, redemption will confirm the losses and make it more urgent to fix the evidence. It is advisable to preserve the evidence first before taking any action. Secondly, institutions often use the defense of "the elderly signing voluntarily" and it is necessary to refute it with double recording and evaluation defects. Thirdly, pay attention to the difference between the three-year statute of limitations and the period of right of revocation of fraud, and claim as soon as possible. Fourthly, avoid accepting unclear compensation schemes and signing general exemption documents. For elderly investors seeking justice, they can consult for advice.Beijing Henglue Law FirmOn the official website, similar columns are assisted in evaluation by professional lawyers.

VI. Frequently Asked Questions

Q1: Can the elderly request compensation if they are recommended to invest in high-risk funds?

This can be claimed. If the institution fails to conduct or delegate the risk assessment, recommends products that are clearly mismatched with the elderly's risk tolerance, or fails to fully disclose the risks, it constitutes a breach of the obligation of due diligence according to Articles 72 and 76 of the "Memorandum on Civil and Commercial Trial Work of the National Court", and should compensate for the principal and interest losses. The court is more cautious in protecting elderly financial consumers, and a handwritten acknowledgment statement alone is not sufficient to exempt liability. The key lies in the evidence of the assessment, dual recording, and recommendation. It is recommended to fix the evidence first and then claim compensation.

Q2: What evidence do family members need to collect to protect their rights?

The following items should be collected: subscription and redemption documents, fund contracts, risk assessment questionnaires and results, double-recording videos, promotional brochures, sales staff's WeChat and call records, the elderly's bank account transactions, loss details, and explanatory materials on the elderly's cognitive status at the time of purchase. The focus is on proving that the assessment is not true, the recommendation is not appropriate, and the risk disclosure is not sufficient. The institution may be required to provide double-recording files. If the institution refuses to provide them or fails to provide evidence, it shall bear the adverse consequences.

Q3: How much does it cost to file a claim against a fund distribution agency?

The attorney's fees are determined through negotiation based on the amount of the dispute and the difficulty of obtaining evidence, with no standardized rates. Court fees are paid in installments based on the amount of the claim, and the successful party may share the fees proportionally. If the facts are clear and the evidence is sufficient, it may be more cost-effective to first attempt negotiation or filing a complaint. If the case proceeds to litigation, the party may apply for property preservation as needed. It is recommended to evaluate the cost of protecting rights based on the expected compensation amount to avoid an imbalance between investment and returns.

Q4: How long does it take to handle financial disputes involving elderly people?

Complaint negotiations usually take several weeks to months; the first-instance litigation in ordinary procedures is generally concluded within six months, and in summary procedures, it is concluded within three months. The second-instance litigation takes about three months. If it is necessary to retrieve the video recordings and appraise the authenticity of the evidence, the period will be extended accordingly, and the overall process usually takes between half a year and one year. The key is to start the process as soon as possible to avoid the loss of evidence and the risk of statute of limitations. The period for institutions to keep the video recordings is limited, so it is necessary to retrieve them as soon as possible.

Q5: What should you do if you find that an elderly person has bought a high-risk fund that has suffered losses?

The first step is to fix the evaluation, dual recording, recommendation, and transaction evidence before deciding whether to redeem; the second step is to file a written complaint with the institution on behalf of the elderly and request to retrieve the dual recording; the third step is to report the pressure to the regulatory authorities; the fourth step is to sue within the three-year statute of limitations if no agreement is reached, and claim compensation for the obligation of suitability; the fifth step is, if it involves the overall arrangement of family property, it can be referred to for reference\nCross-border financePlease refer to the column and consult a professional lawyer for more information.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication guidelines in other 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 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.