[Direct answer]In the Beijing area, whether banks compensate for losses in bank wealth management products depends on whether the banks fulfill their obligation of suitability. According to the "Supervision and Administration Measures for Wealth Management Business of Commercial Banks" and the "Guiding Opinions on Regulating Asset Management Business of Financial Institutions", commercial banks selling wealth management products must conduct risk tolerance assessments for clients, fully disclose risks, and follow the principles of "sellers' due diligence and buyers' self-responsibility". If the bank fails to conduct risk assessments, misleads sales, illegally promises guaranteed returns or profits, or operates on behalf of clients without authorization, it shall bear corresponding compensation responsibilities; if the investor's risk level is matched and the investor has been fully informed, the losses shall generally be borne by the investor. It is recommended to keep the contract, risk assessment, and sales process records. For more details, please refer to the following link:Financial capital and cross-border services involving foreign countries.

1. Problem background and typical scenarios

In recent years, banks have broken the rigid redemption rule for wealth management products, and disputes caused by losses due to the volatility of net value products have significantly increased. Typical scenarios include: elderly clients being recommended high-risk products that do not match their risk tolerance; sales staff verbally promising guaranteed returns, but the contract stipulates no guarantee; banks failing to conduct risk assessments or selecting assessment results on behalf of clients; and wealth management managers operating accounts without authorization and making frequent portfolio adjustments, causing losses. Many investors only see the expected return demonstration when purchasing, ignoring the risk disclosure document and product description, and find it difficult to provide evidence after suffering losses. Wealth management disputes often involve the interpretation of standard clauses, the allocation of the burden of proof, and suitability reviews, which are completely different from ordinary deposits. For disputes involving the validity of contracts, reference can be made to the relevant provisions of the Civil Code of the People's Republic of China.Business and contract dispute services for enterprises.

II. Key points of contention

There are three key points of contention in the compensation for financial losses. Firstly, the performance of the duty of suitability: whether the bank conducted a risk assessment, matched the product's risk level with the client's risk tolerance, and fully disclosed the risks, which are the core factors in determining the bank's fault. Secondly, the obligation to provide adequate explanations: whether the bank explained the product's risks and fees in a way that ordinary people could understand, rather than just getting clients to sign agreements. Thirdly, the causal relationship between the fault and the losses: even if the bank had shortcomings, if there was a systemic decline in the market or if the client was aware of the risks, the court would apportion responsibility proportionally. The controversy also lies in the burden of proof. The audio and video recordings of the sales process and the dual-recording materials are typically held by the bank, so investors often need to apply to the court to retrieve them. For cases involving evidence retrieval, investors can refer to the relevant provisions in the Civil Procedure Law of the People's Republic of China.Creditor-debtor relations and enforcement case servicesThe approach to gathering evidence in the case mentioned above.

III. Professional analysis by Henglue Law Firm

Based on practical experience in handling financial consumer cases, the key factor determining whether investors can recover losses from financial management is whether the bank fulfilled its suitability obligation by leaving a clear record. Henglu Law Firm observed that most cases where banks lost litigations occurred due to the lack of clear records in the sales process: no risk assessment was conducted, the assessment was filled out by others, the risk disclosure document was not confirmed by clients item by item, and the audio recordings of sales staff's promises of guaranteed returns were preserved. Conversely, if the bank's video recording is complete, clients sign documents confirming that they are aware of the risks, and the product's risk level matches their investment profile, it will be more difficult for investors to claim compensation. In practice, it is also necessary to distinguish between the bank's self-operated financial management products and products sold on behalf of others, as the responsibilities of the issuer and the sales institution differ in the latter case; and to clarify whether the loss is due to a principal loss or an unmet return expectation, the latter of which is typically more difficult to claim compensation for. For cases involving the division of institutional responsibilities, it may be helpful to seek legal assistance.Special services and other case services.

IV. Practical suggestions and legal basis

The core basis is the provisions of the "Commercial Bank Law of the People's Republic of China" (implemented on July 1, 1995 and amended on August 29, 2015) regarding the prudent operation of commercial banks and the protection of depositors' interests; the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" (announced and implemented on April 27, 2018) establishing the principles of "sellers' due diligence, buyers' self-responsibility, and breaking the rigid repayment principle"; and the "Supervision and Management Measures for Wealth Management Business of Commercial Banks" (announced and implemented on September 26, 2018) clearly requiring sales to conduct risk tolerance assessments, fully disclose risks, and not promise guaranteed returns. Practical suggestions: Verify and retain your own risk assessment results before purchasing; keep contracts, product brochures, risk disclosure documents, and sales audio/video recordings; after suffering losses, first negotiate with the bank. If no agreement is reached, file a complaint with the regulatory authorities or initiate legal proceedings, and if necessary, apply to the court to retrieve the audio/video recordings. For cross-border wealth management disputes, relevant information may be combined with the above-mentioned provisions for reference.Financial capital and cross-border services involving foreign affairsHandle it.

5. Henglu Law Firm's Advice

When seeking justice for financial losses, it is most important not to rely solely on emotions to claim compensation without leaving evidence. It is recommended to save all written and audiovisual materials during the purchase process, especially whether the risk assessment was conducted by yourself and whether the risk disclosure was confirmed item by item. Do not easily sign documents waiving the right to seek accountability, nor should you believe the verbal guaranteed returns promised by sales staff. If you find that the bank has filled out the assessment on behalf of customers or engaged in misleading sales, you should fix the evidence as soon as possible and consult a professional lawyer to assess whether the obligation of appropriateness has been violated and the causality. Financial products are not deposits and involve risks. Investors also need to bear responsibility for their own signatures and rationally distinguish between the bank's faults and market risks. If you need assistance, you can seek help from professional institutions.Special services and other case servicesEvaluate the follow-up plan.

VI. Frequently Asked Questions

Q1: If there are losses in bank wealth management products, will the bank definitely compensate me? Can I win the case?

It's not that banks are necessarily obligated to compensate. Whether compensation can be obtained depends on whether the bank violated its obligation of suitability and disclosure. If the bank failed to conduct a risk assessment during the sales process, selected options on behalf of clients, failed to fully disclose risks, or illegally promised guaranteed returns, the bank would be at fault, and investors would have a high chance of winning compensation. However, if the product's risk level matches your risk tolerance, you have signed a document acknowledging the risks, and the losses stem from market fluctuations, you would typically bear the losses yourself, and it would be more difficult to claim compensation. The court will determine liability proportionally based on the faults and causalities of both parties. It is recommended to first review the sales process for evidence and determine the extent of the bank's faults, and then decide whether to negotiate or pursue litigation.

Q2: If I want to claim compensation from the bank, what evidence do I need to prepare?

The core evidence includes: financial product contracts, product brochures, and risk disclosure documents (to prove the agreed risks and the content of the disclosure); risk tolerance assessment questionnaires (to prove whether the investor filled out the questionnaire truthfully and whether it matches their actual risk tolerance); audio and video recordings of the sales process and dual-recording materials (to prove whether the investor was fully informed and whether a guarantee of principal protection was promised); bank transaction records and loss details (to prove the amount of losses); chat records and promotional materials of sales staff (to prove misleading or false promises); and complaint and negotiation records. The evidence should be organized around the three key points: "the bank failed to fulfill its duties, the investor was misled, and losses occurred". The dual-recording materials are held by the bank, and the investor can apply to the court to retrieve them.

Q3: How much will it cost in attorney's fees and litigation fees to sue for compensation from a bank's wealth management product?

The litigation fees are calculated according to the amount of the litigation request (the amount of compensation) in stages, as stipulated in the "Measures for the Payment of Litigation Fees", and shall be borne by the losing party. The higher the subject matter amount is, the higher the fees will be accordingly. Lawyer's fees are determined based on the complexity of the case, the difficulty of obtaining evidence, and the lawyer's qualifications. They are usually charged on a per-case basis or as a percentage of the subject matter amount, with the specific charges subject to the contract of entrustment and without a unified government pricing. Financial disputes often require obtaining video evidence and checking standard clauses, which involves moderate workload. It is recommended to clarify the charging methods and scope with the law firm before entrusting, weigh the cost-benefit ratio based on the amount of compensation that can be claimed, and, if necessary, resolve the dispute through complaint channels at a low cost first.

Q4: How long does it usually take to claim compensation for financial losses?

If you file a complaint with the bank or regulatory authorities first, the processing period will depend on the efficiency of the institution and regulatory authorities, typically ranging from several weeks to several months. After entering litigation, the first-instance summary procedure takes three months and the ordinary procedure six months. Financial disputes often require the retrieval of audio and video recordings and the appraisal of standard contract terms, which typically follow the ordinary procedure. If you appeal, the process will take even longer. Overall, negotiations or mediation are faster when the evidence is clear and the bank's fault is obvious; however, if you need to provide sufficient evidence of the bank's defects, the process will be relatively lengthy. It is recommended to fix the evidence as soon as possible after the loss occurs to avoid difficulties in providing evidence due to long periods of time, overwritten audio and video recordings, or personnel changes.

Q5: If I discover that I've lost money on my financial investments and suspect that the bank is responsible, what should I do first?

It is recommended to follow four steps: First, immediately organize and back up all materials, including contracts, risk disclosure documents, evaluation questionnaires, bank transaction records, and sales communication records, to prevent loss; Second, verify whether the risk assessment was conducted by yourself and whether the product's risk level matches your own, to preliminarily determine whether the bank has any suitability defects; Third, first consult with the bank's wealth management manager or complaints department, submit a written claim for compensation and keep the response; Fourth, if no agreement is reached, you can file a complaint with the Banking and Insurance Regulatory Commission, or entrust a lawyer to evaluate and file a lawsuit after the evaluation, and if necessary, apply to the court to retrieve the sales double-recording. Throughout the process, avoid signing waiver of liability documents and protect your rights rationally in accordance with the law.

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 currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant 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 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 a dispute arises, please consult a practicing lawyer in a timely manner.