product. we have launched earlier this week a “ consumer corner ” on the hkma website to provide important information on local banking consumer issues, including a set of “ frequently asked questions ” based on public enquiries and topical issues. as with protection, so with education, we are also working with our partners. among these initiatives, we are joining with the consumer council in their consumer awareness campaigns. another very important initiative i ’ d like to highlight, is our work with the securities and futures commission to establish an investor education centre ( iec ). the hkma will supplement this with additional consumer education independent of the iec, focusing on areas such as banking products and services, as well as other investment products that may not be covered by the iec. “ the role of the consumer ” so, as well as good practice among financial institutions, financial authorities also have an important role to play in enhancing consumer protection and education. but focusing on just those two groups leaves out possibly the most important group of all – the consumers themselves, to whom i will devote my remaining remarks. one of the things on which the global financial crisis cast a cold light was the implicit cost to households – and indeed to society and financial markets – of low levels of financial literacy. financial literacy is increasingly recognised as an important individual life skill that people need to thrive in a modern economy like hong kong. without it, consumers can be at risk of mis - buying and bank employees are themselves at a higher risk of mis - selling. for example, one of the hallmarks of our financial sector in this city is the universal banking regime that allows banks to offer basic services as well as a wide range of financial products. this is a great strength for the industry and highly beneficial to both banks and consumers. however, we should also acknowledge that it can expose some customers to higher risks arising from investment in complex financial products. i have in mind especially consumers who may be less sophisticated but who may nonetheless have a high level of trust in banks. in that sense, it was not surprising that following the financial crisis, there was greater demand by consumers and consumer groups to better understand the risks of investment products offered by banks. this demand has been amplified by a number of other trends, namely : the greater complexity of financial products ; the rapid pace of change in financial standards and regulations ; the rising number of high net worth individuals in asia - pacific actively looking for investment opportunities ; and the recognition that regulation alone is insufficient to protect consumers. financial education

peter pang : hong kong mortgage corporation mortgage - backed securities issues speech by mr peter pang, deputy chief executive of the hong kong monetary authority and executive director of the hong kong mortgage corporation limited, at the signing ceremony for the hk $ 2 billion mortgage - backed securities issue drawn under the us $ 3 billion mortgage - backed securitisation programme bauhinia mbs limited, hong kong, 27 november 2006. * * * good afternoon, ladies and gentlemen, let me first extend to all of you a very warm welcome to today's signing ceremony. today's issue of mortgage - backed securities ( mbs ) under the bauhinia mortgage - backed securitisation programme of the hong kong mortgage corporation ( hkmc ) is unique in two ways. first, this is the first time the hkmc has sponsored an mbs issue as a triple - a rated institution. on 30 october, moody's announced the upgrade of the hkmc's domestic currency rating to aaa and the hkmc's foreign currency rating to aa1. the hkmc has therefore made history as the first entity in hong kong, and so far the only one, to have a triple - a rating. the upgrade in credit ratings reflects the financial strength of the hkmc and the strong support of the hong kong sar government for the corporation. with this strong credit rating, the hkmc is well positioned to play a more active and strategic role in promoting the development of the debt and securitisation markets in hong kong. secondly, today's issue of two billion dollars marks the launch of the first - ever partially un - guaranteed mbs sponsored by the hkmc. the nine mbs issues sponsored by the hkmc so far, totalling $ 11 billion dollars, have all been guaranteed by the hkmc. these issues were all welcomed by investors. the hkmc prides itself on being a financial institution that spearheads product innovation in hong kong's capital markets. for this issue, after consulting the market, the hkmc has decided to adopt a mbs structure along the lines of a collateralised mortgage obligation. the cmo structure divides the pool of underlying mortgage assets into credit tranches or classes with different tenors and interest rates to suit the appetites of a wider range of investors in hong kong and the region. in today's two billion dollars mbs issue, the class a portion accounts for 87 % of the issue and does not carry any guarantee. class b accounts