To create value for their clients in this challenging business environment, private banks need strong teams of professional staff, from the front end to the back office. Both technical competency and ethical standard form the basic components of the professionalism of our industry practitioners. The HKMA encourages the industry to promote a competency framework for new entrants and on-going professional training. The financial market is very dynamic and rapidly changing. The industry therefore should ensure that staff are well-equipped with the necessary technical and market knowledge and skills in performing their jobs. It is also fundamental for private banks to act in the best interests of clients at all times. The HKMA therefore encourages the industry to promulgate a set of professional and ethical standards that are designed specifically for the private banking practitioners. I know that the industry is moving towards this direction. HKIB has been providing professional qualifications like Certified Financial Management Planner. In 2011, the Hong Kong Securities Institute (HKSI) also introduced the Certified International Wealth Manager programme. These are well-organised programmes that help enhance the technical competency of industry practitioners. On a separate front, we very much welcome the industry’s proposal to set up a new industry body called “Private Wealth Management Association”. I also support the initiative to further upgrade the professional standards of industry practitioners by developing a new competency framework for wealth management.
Having said that, you may rest assured that the HKMA is committed to continue its collaboration with the SFC and the industry to make sure that our regulatory framework and rules remain friendly to users without compromising investor protection as we go forward in the months and years ahead. The third and final question is: are private banks fully equipped and ready to capture the rapidly growing business opportunities? The answer to this, I would say, is again “yes” followed by a “but”. This is because much more needs to be done by the industry if it wishes to realise Hong Kong’s full potential in the medium and long term. As I said earlier, the adoption of a portfolio approach in private banking would be a move welcomed by private banks and their customers, but private banks must ensure they have the proper systems and controls in place. A portfolio based approach cannot be taken as an excuse to compromise investor protection. For instance, when more Mainland clients open private banking accounts in Hong Kong, our banks must have in place sufficient number of account managers who are professionally competent and linguistically proficient. It is hard to imagine that quality service can be provided to a Mainland customer who does not speak English or Cantonese if the account manager cannot communicate in Putonghua. Moreover, it would also be helpful if important contracts or documents are written in bilingual forms so that Mainland customers find it easier to understand what they have signed or bought.