In Hong Kong, more than 40,000 investors, many of them retirees and ordinary depositors, bought Lehman Brothers-linked minibonds before its collapse. When the bank fell, there were many who accused the banks of mis-selling these products, although eventually the issue was resolved through compromises between banks and investors.
There is strong reason to believe that it is in everybody's best interests for investors to be educated so they understand their investment options and can make rational, informed decisions. As long as their financial knowledge remains low, they will have difficulty interpreting financial information, advice and marketing, and the long-term relationship and trust between banks and clients will not be improved and developed.
Financial education is closely interlinked with financial inclusion. As a complement to financial inclusion that should be pursued in a commercially viable manner, financial education will help providers of financial products to expand their business operations to new segments of the population. Meanwhile, it can create consumer awareness on access to various types of products, and make them understand their rights and responsibilities as clients of financial services.
Landmark building should respect the public's feeling
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