HOW do you explain credit crunch in Mandarin? How to talk about derivatives, mutual funds, futures trading in Hokkien to uneducated retirees when such financial jargon can be baffling even in English?

It is one of the many challenges that Mr Kenneth Liu, a 28-year-old wealth manager, faces in his job.

And it could be the root of confusion in the current Minibond furore.

Many Chinese-education retirees have complained that they weren't told of the risks involved in buying Minibonds, or about the conditions.

Now that communication lapse has wiped out entire life savings and destroyed lives.

The first time he had to explain a product to a client in Mandarin, Mr Liu, who scored a B4 for Chinese at the O levels and C5 at the A levels, said he was 'struggling to find the right terms'.

'So I just gave them a understanding of the overall scenario and emphasised the fact that the product was not capital sum-protected,' he said.

Did he feel his explanation was good enough?

'Whether a product is capital sum-protected or not is usually the most important piece of information for clients,' he said.

'But if they really want to, I get my colleagues to do a proper translation for them. But so far, that has never happened,' he said.

In other words, the onus is on the clients. It is they, after all, who are paying for the product. The banks train and help the wealth managers but that does not include coaching on how to sell the products in Mandarin, said Mr Liu.

'After all, even if you can give a precise translation of the terms, they may not understand it still. You always have to tell a little story to go with it, and help them understand,' said Mr Liu.

Besides, he added, Mandarin-speaking retirees usually do not ask complicated questions.

'They ask questions like 'Is this bank okay or not?' he said.

The more savvy investors will tend to speak English, so he gets by.

Still, it's something he hopes can be addressed.

'There is a language gap between cash-rich retirees and young English-educated wealth managers.

'And it is a big problem.'

This article was first published in The New Paper on October 17, 2008.