Core Viewpoint - The article discusses the importance of investor suitability in the context of fund sales, emphasizing the need for fund-raising institutions to assess the risk tolerance of investors and match them with appropriate fund products [4][10]. Group 1: Investor Suitability Assessment - Fund-raising institutions are required to evaluate the risk tolerance of ordinary investors and provide results of this assessment, categorizing investors into five risk tolerance levels: C1 (lowest) to C5 [4][6]. - The risk levels of fund products are classified into five categories: R1 to R5, ranging from low-risk products like money market funds (R1) to high-risk products like derivatives (R5) [6][7]. Group 2: Risk Level Matching - Investors can purchase fund products that match their risk tolerance level, with specific guidelines indicating which risk levels they are allowed to invest in [9][10]. - For example, a "conservative" investor can only be recommended R2 or lower risk products, and if they wish to invest in higher-risk products, they must receive special risk warnings and confirm their understanding [8][10]. Group 3: Investor Education - The article emphasizes the importance of investor education, advising investors to conduct assessments, understand risks, ensure product suitability, and read relevant documents before making investment decisions [11].

Core Viewpoint - The newly implemented "Regulations on the Appropriateness Management of Financial Institution Products" (referred to as "Regulation No. 7") aims to enhance the transparency and integrity of financial product sales, particularly those with uncertain returns and potential principal loss, by prohibiting misleading practices in product promotion and sales [1][4][5]. Group 1: Overview of Regulation No. 7 - Regulation No. 7 was officially released after a three-and-a-half-month consultation period, introducing stricter guidelines for financial institutions regarding the promotion and sale of investment products [1][2]. - The regulation specifically targets investment-type products, including asset management products and other financial products, which are primarily regulated by the former China Banking and Insurance Regulatory Commission [2][3]. Group 2: Prohibited Practices - Financial institutions are now prohibited from misleading or inducing customers to purchase products through performance manipulation or improper presentation [4][6]. - The regulation addresses practices such as obscuring product nature, confusing product categories, exaggerating product advantages, and selectively displaying performance data [6]. Group 3: Performance Disclosure and Management - The regulation emphasizes the need for clear performance disclosure, aligning with previous guidelines issued by the National Financial Regulatory Administration regarding asset management product information disclosure [7][8]. - The phenomenon of "new product ranking," where newly launched financial products exhibit inflated returns to attract investors, is highlighted as a concern that the regulation aims to mitigate [9]. Group 4: Investor Classification and Risk Assessment - Regulation No. 7 mandates the classification of investment products by risk level and requires an assessment of investors' risk tolerance, distinguishing between professional and ordinary investors [10][14]. - The regulation specifies that only products rated below an investor's risk level can be purchased, ensuring that investments align with the investor's risk capacity [14][15]. Group 5: Special Considerations for High-Age Clients - Financial institutions are required to exercise special care when dealing with clients aged 65 and above, implementing stricter operational procedures for high-risk product sales [18][19]. Group 6: Risk Assessment Frequency and Validity - The regulation standardizes the validity period for risk tolerance assessments to twelve months, limiting the frequency of assessments to prevent excessive evaluations aimed at selling high-risk products [20].