[Direct answer]In the Beijing area, after a financial product suffers losses, it's not necessarily impossible to claim rights against the bank, but whether compensation can be obtained depends on whether the bank has fulfilled its obligations of suitability and disclosure. According to Articles 72 to 78 of the "Memorandum on Civil and Commercial Trial Work of the National Courts" (Law [2019] No. 254, issued on November 14, 2019), when promoting and selling financial products, the selling institution has the obligation to sell suitable products to suitable investors, fully disclose risks, and truthfully explain matters. If the bank fails to conduct risk assessment, fails to disclose risks, or induces sales, causing investors to lose their principal, it shall bear corresponding compensation liability. It is recommended to first retrieve the risk assessment questionnaire, the dual-recording video, and the product brochure to determine the bank's fault, and then negotiate or sue to protect rights. For more details, please refer to the following link:Financial capital and cross-border legal services involving foreign affairs.

I. Problem background and typical scenarios

In recent years, the number of disputes over losses in bank wealth management products has increased significantly. Typical scenarios include: investors being recommended products that exceed their risk tolerance level at the counter, with risk assessments being a formality; bank employees verbally promising "guaranteed principal and returns", while the product contracts state that they are not guaranteed; the collapse of funds, trusts, and private equity products sold on behalf of banks, with investors mistakenly believing they were bank deposits; and elderly clients being induced to "purchase complex derivatives with a single click" on mobile banking. Many investors give up claiming compensation because they believe that "wealth management products are supposed to be at their own risk", but in fact, if the bank is at fault, investors can still claim compensation for their losses. For cases involving the recovery of funds, they can combine with other legal remedies to seek compensation.Creditor-debtor relations and enforcement case servicesAdvance.

II. Key points of contention

There are three main points of contention in the dispute over financial losses and rights protection. Firstly, the performance of the duty of suitability: whether the bank conducted a genuine risk assessment, matched the product risk with the investor's risk level, and fully disclosed the risks. Secondly, the obligation to provide information: whether the product's investment direction, leverage, non-guaranteed nature, and worst-case scenarios were truthfully explained, rather than just using standard contracts to evade responsibility. Thirdly, the causality and scope of losses: whether the losses were caused by the bank's fault or by systemic market risks, and the compensation should be limited to the portion corresponding to the fault. For financial product contracts, reference can be made to the relevant provisions.Business and contract dispute resolution services for enterprisesDetermine the liability for breach of contractual obligations.

III. Professional analysis by Henglue Lawyers

Based on practical observations in handling financial consumer disputes, the most common problem in wealth management loss cases is the allocation of the burden of proof for banks' "fitness obligation". According to Articles 75 and 77 of the "Nine Civil Cases", the selling institution bears the burden of proof to determine whether it has fulfilled its fitness obligation, and investors only need to prove that they purchased the product and suffered losses. This significantly reduces the burden of proof for investors. In practice, some banks use the defense that "investors have signed the agreement", but the signature itself cannot exempt them from their obligations to disclose and explain risks. If there is no dual recording or the assessment is filled in on behalf of investors, the bank will still be held accountable. Henglu Lawyers usually recommend: immediately preserving the dual recording and assessment materials after an incident occurs, requiring the bank to explain the product risks in writing, verifying and filing the qualifications of the products sold on behalf of others, and then choosing to file a complaint or lawsuit according to the degree of fault. For cases involving cross-institutional recovery of compensation, it can be followed up accordingly.Intellectual property protection and corporate legal servicesClarify the responsibilities in the product chain.

IV. Practical suggestions and legal basis

The core basis is Article 72 (Duty of Appropriateness), Article 74 (Responsible Subjects), Article 75 (Burden of Proof), and Article 77 (Scope of Compensation) of the "Nine Civil Cases Notes" (Law [2019] No. 254, issued on November 14, 2019); the provisions on risk disclosure and sales management in the "Supervision and Management Measures for Wealth Management Business of Commercial Banks" (implemented on September 26, 2018); and the general rules on contractual fault liability in the "Civil Code" (implemented on January 1, 2021). Practical suggestions: Before purchasing, check the risk level and the authenticity of the assessment; after an incident occurs, preserve the double recording, assessment, and contract; request the bank to explain its fault in writing; if no agreement can be reached, file a complaint with the financial regulatory authorities or sue according to the contract; when suing, pay attention to the statute of limitations and jurisdiction. For cases involving mass-scale agency sales failures, relevant provisions can be combined with other laws and regulations to safeguard the legitimate rights and interests of investors.Special services and other case servicesCoordinate collective rights protection efforts.

5. Henglu Law Firm's Reminder

Don't be too quick to admit defeat when suffering financial losses, nor should you mistakenly believe that there's nothing you can do if you're responsible for your own profits and losses. The first step is to retrieve and secure the risk assessment, double recording, and product contracts to determine whether the bank has fulfilled its suitability obligations. The evidence should focus on three aspects: risk mismatch, failure to disclose risks, and induced sales. Start by calculating the costs of litigation fees and attorney's fees. If the bank uses the excuse of "already signed the contract" to evade responsibility, you can simultaneously file a complaint with the financial regulatory authorities to put pressure on them. If there are disputes over the determination of fault or unclear evidence, it is recommended to consult a professional lawyer as soon as possible to avoid losing rights due to the expiration of the statute of limitations or the loss of evidence. For claims against third-party product providers, you can also seek recourse through legal channels.Creditor-debtor relations and enforcement case servicesClaim them together.

VI. Frequently Asked Questions

Q1: If I suffer a financial loss, can I win the lawsuit against the bank?

The success of the lawsuit does not depend on a promise of the outcome, but on whether the bank committed any fault and the causal relationship between the fault and the losses. According to Article 77 of the "Nine Civil Cases", if the selling institution fails to fulfill its due diligence obligations and causes investors to suffer losses, it shall bear compensation liability. If the court can prove that the bank failed to conduct risk assessments, disclose risks, exaggerate profits, or illegally sell products, it will usually support compensation for the principal and corresponding interest. However, if the investor's own risk level is matched, they have signed and confirmed their understanding of the risks, and the losses are caused by normal market fluctuations, the chances of winning compensation will be limited. It is recommended to first secure evidence of the video recording and risk assessment, evaluate the bank's fault, and then decide whether to sue. Never believe in unrealistic promises of success in the lawsuit.

Q2: To protect my rights against financial losses, what evidence do I need to prepare?

The core evidence includes: financial product contracts and product brochures (which specify the risk level and investment direction), risk assessment questionnaires and dual-recording videos (to prove whether the bank fulfilled its duty of suitability), chat records or recordings of bank employees' recommendations and promises, subscription and debit vouchers, account profit and loss statements, and the bank's qualifications for selling products and product filing documents. The organization of evidence should focus on the four points of "the bank failing to match the risk - failing to disclose the risk - inducing sales - losses occurring". Dual-recording and risk assessment are the most vulnerable links for banks, so it is necessary to apply for retrieval or notarized preservation of the relevant materials as soon as possible.

Q3: If I sue the bank for financial losses, how much will the attorney's fees and litigation costs be?

According to the "Measures for the Payment of Litigation Costs", the litigation fees are paid in stages based on the amount of the litigation request (usually the principal and interest losses claimed), and are borne by the losing party. In cases where the plaintiff partially wins and partially loses, the fees are shared proportionally. Lawyer's fees are related to the complexity of the case, the amount of the claim, and the lawyer's qualifications. They can be charged on a per-case, hourly, or percentage-of-the-amount basis, subject to the terms of the engagement contract, with no unified government pricing. Financial consumer cases are subject to a cap on contingency fees. It is recommended to clarify the fee calculation method and cap with the law firm before entrusting the case, and to evaluate the potential losses and costs before initiating the litigation to avoid making small-amount disputes uneconomical due to high costs.

Q4: How long does it usually take for a lawsuit over financial losses to reach a conclusion?

The timeframe depends on the procedures and the circumstances of the case. In the first-instance ordinary procedures, the case is generally concluded within six months, and in the simplified procedures, it is within three months; if the facts are clear and the evidence is concentrated on the bank's dual recording and the contract, it is more likely to apply the simplified procedures. If the bank appeals, the second-instance proceedings generally take three months. After the judgment takes effect, if the other party refuses to perform the obligation, it is necessary to apply for enforcement. Overall, for simple cases, it may take several months from filing the lawsuit to recovering the money; for complex or mass cases, it may take more than a year. It is recommended to apply for property preservation in parallel during the litigation, seize the bank's executable property or freeze the corresponding accounts, so as to shorten the actual time for recovering the money.

Q5: If I suffer a financial loss, what should I do first to address it?

It is recommended to proceed in four steps: First, immediately require the bank to provide a complete product contract, a risk assessment questionnaire, and the method of retrieving the dual-recording video, so as to fix the evidence of the bank's sales process; Second, check whether the investor's risk level matches the product's risk level, and investigate whether the bank filled out the assessment on behalf of the investor or failed to disclose the risks; Third, organize the subscription deduction vouchers, account profit and loss statements, and employee commitment records, and request the bank in writing to explain the product risks and the reasons for the losses; Fourth, if no agreement is reached through negotiation, first file a complaint with the financial regulatory authorities or the Consumer Association. If the problem still cannot be resolved, initiate legal proceedings within the statute of limitations according to the contractual jurisdiction agreement. Throughout the process, keep all communication records and, if necessary, hire a lawyer to participate in the evaluation and negotiation.

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

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