CHAPTER I GENERAL PROVISIONS
Article 1 In order to standardize the management of product suitability of financial institutions and protect the legitimate rights and interests of financial consumers, this method is formulated in accordance with laws and regulations such as the Banking Supervision and Administration Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China, the Insurance Law of the People's Republic of China, and the Trust Law of the People's Republic of China.
Article 2 The appropriateness management referred to in these measures refers to the identification, prompting, matching, sales, trading and other activities carried out by financial institutions based on the basic attributes and risk characteristics of products, combined with customer financial needs, financial conditions, risk tolerance and other factors.
Article 3 The suitability management of investment products and insurance products issued, sold, or traded by financial institutions with uncertain returns that may result in principal losses shall be subject to these Measures.
Financial institutions conducting interbank market business shall comply with the relevant regulations of the financial management department of the State Council on the interbank market. The sale of investment products issued by securities, funds, and futures operating institutions shall comply with the relevant regulations of the financial management department of the State Council on the suitability of securities, funds, and futures investors.
The term 'financial institutions' referred to in these Measures refers to financial institutions that hold financial licenses and are regulated by the State Administration of Financial Supervision and Administration.
Article 4 Financial institutions shall, in accordance with laws and regulations, diligently fulfill their duties, and prudently perform their duties. They shall bear the responsibility of suitability management for the products they sell or trade, and sell or provide appropriate products to suitable customers through appropriate channels.
Article 5 Customers should make independent and prudent decisions based on their own situation, taking into account the suitability matching opinions of financial institutions and understanding the product, and bear risks.
The suitability matching opinion of financial institutions does not indicate that they make substantive judgments or guarantees about the risks and returns of the product.
Chapter 2 Basic Rules
Article 6 Financial institutions should establish and improve suitability management systems, clarify the specific basis, standards, methods, and processes of suitability management.
Article 7 Financial institutions should have information systems and other facilities that meet suitability management requirements to ensure network and information system security, efficiency, and sustainable services, and to safeguard data security. For those that do not meet the requirements of suitability management, the information system should have functions such as identification, prompting, and restricting transactions.
Article 8 Financial institutions should fully consider the needs of target customer groups and conduct consumer rights protection reviews when designing and developing products.
Article 9 Financial institutions should clearly define the attributes, risk levels, rights and obligations, and suitable customer scope of their products.
Article 10 Financial institutions should collect customer information within a reasonable range and evaluate customer situations.
Customers should abide by the principle of good faith and provide the necessary information for purchasing products truthfully, accurately, and completely. If the customer refuses to provide information as requested above, the financial institution may refuse to sell or trade the product with them.
Financial institutions should fulfill their obligations to protect customer information and ensure the security of customer information.
Article 11 Financial institutions shall, when selling or trading specific products or conducting specific market business, clarify customer qualification review standards and procedures in accordance with the admission requirements stipulated by the system, and strictly carry out customer qualification review.
Article 12 Except for the circumstances stipulated in Article 38 of these Measures, financial institutions shall not sell products that are not suitable to customers.
If any of the following situations occur, it shall be determined that the customer and related products are not suitable:
（1） The product risk level is higher than the customer's risk tolerance;
（2） The funds required to purchase the product are significantly mismatched with the customer's financial payment level;
（3） Other situations where it should be determined that the customer and the product are not suitable.
Article 13 Financial institutions are prohibited from the following behaviors during the promotion, sales, or trading process:
（1） Representing clients for evaluation, providing inappropriate prompts, selling or trading before evaluation, or influencing the authenticity and effectiveness of evaluation results through other means;
（2） When informing customers and providing risk warnings, there may be false, misleading or significant omissions in the content, including but not limited to confusing deposit, wealth management, fund, trust, insurance and other products, violating the commitment of principal and insurance returns, exaggerating product returns or coverage, etc;
（3） Proactively promoting products with a risk level higher than the customer's risk tolerance, deceiving or misleading customers into purchasing or trading products that are not appropriate;
（4） Misleading or inducing customers to purchase relevant products through manipulation of performance or improper display;
（5） Other behaviors that violate appropriateness requirements and harm the legitimate rights and interests of customers.
Article 14 Where a financial institution sells or trades products through the Internet or other online means, it shall embed appropriateness management into the process, fully perform the obligation of appropriateness, and protect the legitimate rights and interests of customers such as the right to know and the right to choose independently.
Article 15 Financial institutions that cooperate with third-party institutions to carry out marketing should strictly fulfill their marketing management responsibilities, strengthen supervision and management of third-party institutions, and ensure that marketing content and methods are legal and compliant.
Article 16 Financial institutions should strengthen the qualification management of sales personnel to ensure that they have the corresponding product sales qualifications.
Financial institutions should continue to provide training to sales personnel to ensure that they fully understand the attributes, characteristics, and risk levels of the products they sell or trade.
Financial institutions should establish a scientific and reasonable incentive and restraint mechanism for sales personnel, and the assessment criteria should include but not be limited to the compliance of sales behavior and procedures, customer complaints, etc. Sales performance should not be the only assessment indicator.
Article 17 Financial institutions should objectively and completely record the key aspects of suitability management, properly preserve relevant information and materials, including but not limited to product rating results, customer evaluation results, notification and reminder materials, audio and video materials, etc., to ensure that the suitability management process can be traced back. The retention period of relevant materials shall not be less than five years after the termination of the contractual relationship between the institution and the client. If the financial regulatory department of the State Council has other regulations on the retention period, they shall prevail.
Article 18 Financial institutions that sell or trade high-risk products with customers over the age of 65 should fulfill special attention obligations, which may include developing specialized sales or trading procedures, obtaining additional information, strengthening notifications and risk warnings, giving more time for consideration, and conducting timely follow-up visits. For online sales or transactions through the Internet, the process design should be age appropriate, easy to use and secure.
Article 19 Financial institutions shall not sell or trade products with persons without civil capacity. With the consent of the legal representative, low-risk products may be sold or traded with persons with limited capacity for civil conduct.
Article 20 Financial institutions should promptly and properly handle complaints related to suitability, actively negotiate with customers to resolve conflicts and disputes, and promote the resolution of conflicts and disputes through mediation, arbitration, litigation, and other means if negotiations fail.
Article 21 If financial institutions entrust other institutions to act as agents for sales, they shall confirm that the agency has the qualifications to sell relevant products and the personnel, internal control systems, technical equipment, and other conditions to implement suitability obligations. The commissioning agency shall provide information on the suitability management standards and requirements of the relevant products, as well as considerations for product classification and grading. Proxy sales agencies shall fulfill suitability obligations such as customer evaluation and suitability matching.
The commissioning agency and the agency sales agency shall clearly define the responsibilities and obligations of both parties for appropriate management in the commissioned sales contract. For acts that violate the obligation of appropriateness in commissioned sales, the commissioning agency and the agency sales agency shall bear corresponding legal responsibilities in accordance with laws, regulations, and contractual agreements.
Chapter 3 Appropriateness Rules
Article 22 Financial institutions should uniformly classify the risk levels of investment products issued and sold by themselves. The product risk level, from low to high, should include at least level one to level five. Products involving investment portfolios should be classified into risk levels based on the overall risk situation of the products. If the product risk rating results of the issuing institution and the sales institution are inconsistent, the sales institution shall adopt and disclose the rating results based on whichever is higher.
The issuing institution shall dynamically manage the product risk level according to market changes and promptly inform the sales institution of the changes. Sales agencies should promptly disclose changes in risk levels and proactively adjust suitability matching opinions based on changes in product and investor information, and inform investors in a timely manner. During the product opening period, investors can independently decide whether to hold existing products.
Article 23 When financial institutions classify the risk level of investment products, they should comprehensively consider the following factors:
（1） Investment direction, investment scope, investment ratio, and liquidity of investment assets;
（2） Maturity deadline, subscription and redemption arrangements;
（3） Leverage situation;
（4） Structural complexity;
（5） Fundraising method;
（6） The credit status of the issuer and other relevant entities;
（7） Past performance and historical fluctuations of similar products;
（8） Other factors.
Article 24 The risk rating of investment products should be the responsibility of a specialized department or team; Financial institutions can entrust third-party professional institutions that meet relevant qualification requirements to provide services for their risk rating work, and financial institutions bear the ultimate responsibility for their product risk rating.
Article 25 When financial institutions sell investment products, they should understand the necessary information related to investors and suitability management, including:
（1） Basic information such as the name, occupation, age, and contact information of natural persons, and the name, nature, qualifications, and contact information of legal persons or other organizations;
（2） Information reflecting the financial condition, such as sources and amounts of income, assets, liabilities, etc;
（3） Information reflecting risk identification ability, such as investment related learning, work experience, etc;
（4） Information reflecting investment needs and intentions, such as investment purpose, investment period, expected returns, etc;
（5） Information reflecting risk tolerance, such as risk appetite and tolerable losses;
（6） Information required to understand laws, regulations, product rules, or contractual agreements.
When the investor is a professional investor as stipulated in Article 27 of these Measures, financial institutions may collect necessary information related to suitability management as appropriate.
Article 26 Investors in investment products are divided into professional investors and ordinary investors, and financial institutions provide differentiated and appropriate management for both.
Article 27 Professional investors are those who meet one of the following conditions:
（1） Banking and financial institutions, insurance and financial institutions, financial holding companies, securities, fund and futures operating institutions, and private fund managers;
（2） The financial products issued by the above-mentioned institutions to investors, asset service trusts managed by trust companies, and public welfare and charity trusts;
（3） Social security funds, enterprise annuities, occupational annuities and other pension funds, charitable funds and other social welfare funds, Qualified Foreign Institutional Investors (QFII), Renminbi Qualified Foreign Institutional Investors (RQFII).
When financial institutions sell investment products to professional investors, they may simplify or exempt risk tolerance assessments and carry out retrospective management as appropriate.
Article 28 Investors other than professional investors are ordinary investors. Financial institutions must strictly evaluate the risk tolerance of ordinary investors in accordance with the provisions of these Measures, make judgments on products suitable for purchase or trading, provide clear and appropriate matching opinions, fully fulfill their disclosure obligations, and promptly provide risk warnings.
Article 29 The evaluation level of investors' risk tolerance should include at least one to five levels from low to high. Investors shall conduct risk tolerance assessments at the same financial institution no more than twice in a single day, and no more than eight times in total within twelve months. If the risk tolerance assessment level of investors is inconsistent with the latest result, financial institutions should remind them and ask investors to confirm the changes again.
The validity period of the risk tolerance assessment results is generally twelve months. If the assessment has not been conducted for more than twelve months or if the investor voluntarily informs that there may be situations that may affect the risk tolerance, financial institutions should re evaluate their risk tolerance when selling or trading with investors.
Article 30 Financial institutions selling private equity products shall clearly define the criteria for identifying private equity product investors in accordance with relevant laws and regulatory systems, evaluate investors' asset size, income level, investment experience, risk tolerance, etc. in an effective manner, and sell them in a non-public manner. It is not allowed to lower the investment threshold in a disguised way by splitting product shares or collecting (receiving) interests, nor to promote private equity products to unspecified objects through public media, financial institutions' business outlets, official websites, Internet applications (APP) or other means.
Article 31 Financial institutions should strictly fulfill their information disclosure obligations. Before selling investment products, ordinary investors should also be informed of the following information in a way that is easy to accept and understand:
（1） Basic information of the product, especially the product type, product manager, investment scope and proportion, fundraising method, income distribution plan, etc;
（2） The risk level of the product and the possibility of adjusting the risk level during its existence period;
（3） The related risks of the product, with a focus on the possibility of principal loss;
（4） The relevant fees or rates required to purchase the product;
（5） The suitability matching opinions stipulated in these measures;
（6） Other information that should be disclosed.
During the product's existence period, financial institutions should also timely, accurately, and completely disclose information on the product's investment operation, leverage level, risk status, and potential risk events that may have a significant impact on investors' rights and interests in accordance with relevant regulations or agreements.
Article 32 Financial institutions selling insurance products should comprehensively consider the following factors to classify and grade insurance products:
（1） Types of insurance products;
（2） Product guarantee responsibility;
（3） Whether the policy benefits are determined;
（4） Other factors.
Article 33 Financial institutions selling insurance products should strengthen the management of sales personnel, sales behavior, and sales channels, establish a graded management system for insurance sales qualifications, and classify sales personnel based on their insurance knowledge, compliance records, sales history, etc. It should be linked to the graded management system for insurance products, differentiate sales qualifications, implement differential authorization, and clarify the types of insurance products that can be sold with different qualifications.
Article 34 Financial institutions should understand the necessary information related to policyholders and suitability management based on the characteristics of insurance products, including:
（1） Basic information such as the name, occupation, and age of natural persons;
（2） Information on insurance coverage needs, product term requirements, and the situation of similar insurance types purchased for the purpose of compensating losses;
（3） Information reflecting the ability to bear premiums, such as income and assets;
（4） Information reflecting risk tolerance, such as risk appetite and tolerable losses;
（5） Information that should be understood according to laws, regulations, product rules, or contractual agreements.
Article 35 Financial institutions should conduct demand analysis and financial payment level assessment on policyholders based on their understanding of relevant information, propose clear and appropriate matching opinions, and provide appropriate insurance products to policyholders.
Article 36 Financial institutions selling investment linked insurance and other products that may result in principal loss should also conduct product risk rating and policyholder risk tolerance assessment in accordance with the relevant requirements of this chapter on investment products.
Article 37 When financial institutions sell insurance products, they should inform policyholders of the following information in a way that is easy to accept and understand based on product characteristics:
（1） Basic information of the product, including product name, coverage scope, insurance period, payment period, compensation limit, claim procedure, cash value of the policy, renewal conditions, clauses to reduce or exempt the insurer's liability, etc;
（2） The uncertainty of policy benefits, potential loss of premiums, or unexpected policy benefits;
（3） Hesitation period and the rights of the policyholder during the hesitation period;
（4） Possible losses from surrender;
（5） The total premium amount, initial policy fees, policy management fees, and other expenses that the policyholder needs to pay;
（6） The suitability matching opinions stipulated in these measures;
（7） Other information that should be disclosed.
Article 38 Before the insurance contract is concluded, if the financial institution determines that the policyholder and the insurance product are not suitable, it should advise the policyholder to terminate the insurance.
If the policyholder does not accept the termination proposal and still requests to enter into an insurance contract, the financial institution shall fully explain the relevant risks and confirm in writing that it is the policyholder's independent choice based on a full understanding of the product information.
Article 39 Financial institutions selling personal insurance products with uncertain policy benefits, such as dividend based, universal, investment linked, and variable, shall only underwrite after obtaining a signed and confirmed insurance declaration from the policyholder if any of the following situations exist:
（1） Single premium payment exceeding four times the annual household income of the policyholder;
（2） Annual premium payment exceeds 20% of the policyholder's annual household income;
（3） The sum of the premium payment period and the age of the policyholder reaches or exceeds 75;
（4） The premium amount is greater than or equal to 150% of the policyholder's premium budget.
In the insurance declaration, the policyholder should indicate that they were aware of the insurance product situation at the time of application and voluntarily assume the risk of uncertain benefits under the guarantee policy.
Article 40 Sales of property insurance products and personal insurance products with a term of less than one year are exempt from conducting assessments of policyholder needs and financial payment levels, and relevant information such as policyholders and insurance subjects can be collected as needed.
Group insurance is exempt from conducting assessments of policyholder needs and financial payment levels; For group insurance involving products that may result in principal loss, a risk tolerance assessment should be conducted for natural persons who intend to pay premiums.
Chapter 4 Supervision and Management
Article 41 The State Administration of Financial Supervision and Administration and its dispatched agencies shall, in accordance with relevant laws and regulations and the provisions of these Measures, supervise and manage the performance of suitability obligations by financial institutions, and may carry out off-site supervision, on-site inspections, on-site investigations, etc. in accordance with the law.
The State Administration of Financial Supervision and Administration and its dispatched agencies may investigate third-party institutions and individuals who cooperate with financial institutions in accordance with relevant laws, regulations, and regulatory systems regarding suspected violations of suitability management regulations, and strengthen regulatory cooperation with other regulatory departments.
Article 42 If financial institutions violate relevant regulations on suitability management, the State Administration of Financial Supervision and Administration and its dispatched agencies may take regulatory measures against the institutions and responsible personnel in accordance with relevant laws, regulations, and regulatory systems.
Article 43 If financial institutions and related responsible personnel violate the provisions of these Measures, and the circumstances are serious or cause serious consequences, the State Administration of Financial Supervision and Administration and its dispatched institutions shall impose administrative penalties in accordance with laws and regulations such as the Banking Supervision and Administration Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China, and the Insurance Law of the People's Republic of China; If there is no provision in laws and regulations, but this method is violated, the State Administration of Financial Supervision and Administration and its dispatched institutions may give warnings, issue criticism notices, and impose fines of not less than 10000 yuan but not more than 100000 yuan depending on the situation.
Article 44 The State Administration of Financial Supervision and Administration and its dispatched agencies will include the suitability management of financial institution products in the annual regulatory evaluation of financial consumer rights protection.
Article 45 Industry self regulatory organizations such as the China Banking Association, China Trust Industry Association, China Insurance Industry Association, and China Insurance Asset Management Association shall establish and improve industry suitability management self regulatory norms in accordance with laws and regulations, and carry out self regulatory management of financial institutions to fulfill suitability obligations.
CHAPTER V SUPPLEMENTARY PROVISIONS
Article 46 The terms "above" and "below" referred to in these measures all include this number.
Article 47 Insurance agencies and insurance brokers are subject to these measures.
Article 48 The State Administration of Financial Supervision and Administration is responsible for interpreting these measures.
Article 49 These measures shall come into effect on February 1, 2026.
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