In making our streets clean and free from litter, it is not enough to station one health inspector at the corner of every street to catch offenders (there are simply not enough health inspectors to go round anyway), nor is it enough to raise the fines against littering to a draconian level because people will still litter if they think they can avoid being caught. The best way to keep our streets clean or cleaner, in my view, is to nurture the value among our citizens that littering is morally bad and should not be indulged in even when no health inspector is around and there is a low chance of being caught. In the context of the financial-services sector, the best way to uphold the integrity of the markets and trustworthiness of the industry is for the stakeholders to nurture and cherish a culture and values that encourage and support honesty of the practitioners and  4  BIS central bankers’ speeches  restrain the institutions from placing the maximization of profit above the interests of the customers. This may all sound very idealistic and is “easier said than done”. We all understand that it will take a long time, years and even decades, to change people’s mindset and values. However, no IFC is built overnight. It has taken London and New York many, many decades to become what they are today. The race to become among the top IFCs in the world is a long term endeavour.
More specifically, the financial services industry, the regulators and policy makers can and should work together to upgrade the 3Cs, which is essential in maintaining our competitiveness against other financial centres. Now I would like to name a few initiatives that the HKMA is pursuing in this regard in collaboration with the stakeholders. (a)  Competence: in conjunction with the SFC, the industry and professional bodies such as the TMA, the Hong Kong Institute of Bankers and the Hong Kong Securities and Investment Institute, we are seeking to revamp and formalise the professional qualifications and training for market practitioners in the fields of private banking and wealth management in general. The HKMA has also stipulated in its supervisory circular that banks must ensure that their staff have the necessary qualifications and professional training in the relevant fields. We are making good progress in this regard and we hope to be able to introduce an enhanced qualification and training framework in a few months’ time. (b)  Control: under the Banking Ordinance, directors and senior management of banks must be “fit and proper”, given the important roles they play in ensuring that their banks are run prudently and properly. In order to enhance the control and governance functions of individual institutions, the HKMA has recently refined the procedures for approving the appointment of bank directors and senior management. In addition to the usual vetting, we now convene face-to-face meetings with some of the nominated candidates.