consumers, and this change resulted in the creation in april 2010 of our banking conduct department. i will focus first on our work to strengthen consumer protection before going on to saying something about our work on consumer education. hkma & consumer protection in terms of consumer protection, first, the hkma has introduced new requirements on banks and issued guidelines on the selling of investment products. these include ( a ) requiring audio - recording the customer risk profile assessment and sales process to provide audit trails for reviews by banks and the regulators ; ( b ) implementing a pre - investment cooling - off period in the sale of unlisted structured products to less sophisticated customers ( such as the elderly or first - time buyer ) ; and ( c ) requiring banks to carry out continuous reviews of product risk and inform investors of any upward changes to the risk ratings of the products they have purchased. these requirements were in addition to existing measures introduced by the hong kong securities and futures commission ( sfc ) on the supervision of securities companies ’ selling activities. second, the hkma is active in monitoring banks ’ compliance with these and other regulatory requirements through thematic on - site examinations. banks are expected to have control processes and procedures in place to ensure adherence to the conduct regulations. in addition, to monitor compliance levels among banking staff, the hkma conducts mystery shopping trips. third, the hkma has strengthened consumer protection by working with partners. one example is our work with the hong kong association of banks in carrying out a comprehensive review of credit card practices in hong kong, drawing on reforms undertaken in the uk and us. as a result, we have been rolling out in stages 31 measures aimed at promoting fair and responsible business practices by credit card issuers, and all these will become effective by 2013. a second example is our partnership with the financial services and the treasury bureau and the securities and futures commission to establish the financial dispute resolution centre. the objective is to help consumers settle monetary disputes quickly by means of mediation and arbitration. the centre came into operation in june this year. bis central bankers ’ speeches the hkma & consumer education on consumer education the hkma has also been very active. from time to time, we publish articles, called “ insight articles ”, to increase consumers ’ awareness of their rights and obligations in relation to particular consumer products like accumulators, octopus cards and instalment payment plans. we also highlight key features and risks of certain investment products, and remind consumers not to invest if they do not understand a

education requires long term commitment and effort from us all, but the prize is also great. ladies and gentlemen, over the next day or so, we have the opportunity to make a real and substantial contribution to this agenda. for that reason, i am most grateful to you for joining us, and i very much look forward to our discussion and exchange of views. together, i am sure we can learn and develop further many good measures. measures that will not only help consumers, but will also improve the health and strength of the financial sector and our economies more widely. thank you. bis central bankers ’ speeches