# Suitability Obligations

China’s ‘Silver’ Investors and the End of Caveat Emptor: Courts Hold Banks Liable for Wealth Management Losses

Chinese courts are increasingly holding banks liable for investment losses when they fail to strictly adhere to 'suitability' protocols, particularly regarding elderly investors. While 'buyer beware' remains a core market principle, banks must now provide exhaustive proof of risk disclosure and compliance to avoid significant compensation claims.