Group 1 - The concept of "suitability management" refers to financial institutions identifying, advising, matching, selling, and trading products based on their attributes and risks, alongside clients' financial needs and risk tolerance [2] - Financial institutions are responsible for ensuring that suitable products are sold to appropriate clients, adhering to legal and regulatory requirements [2] - Risk levels of financial products are categorized from low to high, with five levels defined: Level 1 (low risk), Level 2 (lower risk), Level 3 (medium risk), Level 4 (higher risk), and Level 5 (high risk) [3][4] Group 2 - Level 1 products primarily invest in low-risk short-term financial assets, such as money market funds and cash management products [3] - Level 2 products mainly invest in debt assets with a low proportion of equity assets, presenting a lower overall risk [3] - Level 3 products typically invest in debt assets with equity assets not exceeding 40%, facing some risk of principal loss [3] Group 3 - Level 4 products invest in both equity and debt assets, with equity assets exceeding 40%, thus facing significant principal loss risks [3] - Level 5 products can invest entirely in equity or derivative assets, facing extreme risks of principal loss [3] - The risk ratings are based on past performance and risk conditions of similar products, but do not guarantee future risk-return characteristics [4] Group 4 - Investors must undergo a risk tolerance assessment before purchasing financial products, ensuring their risk capacity meets or exceeds the product's risk level [6] - The assessment includes factors such as age, financial status, investment experience, objectives, expected returns, risk preferences, liquidity needs, and loss tolerance [6] - The validity of the risk assessment is twelve months, after which a new assessment is required for purchasing bank-distributed products [8]