Hong Kong's Securities And Futures Commission: Communication And Co-Operation Key To Financial Reforms

Hong Kong should move forward in lockstep with the global effort to achieve the main goals of financial reforms through communication and co-operation, the Chief Executive Officer of the Securities and Futures Commission (SFC), Mr Ashley Alder said today.

Speaking at the annual conference of the Hong Kong Investment Funds Association, Mr Alder noted that the agenda after the 2008 financial crisis now focuses on global systemic risk as well as the stability and conduct of financial intermediaries. It is therefore important for Hong Kong to work closely with the industry and other regulators to promote solutions which protect investors and underpin stability.

But this is not about how much regulation, it is the quality of regulation that matters, he said.

“Quality regulation results from an interactive process, which is why it is important for an organization like ours to continue to communicate with a cross section of the market as well as globally. We cannot do this in isolation. It’s very important for Hong Kong to remain effectively in lockstep with the main goals of internationally agreed reforms,” Mr Alder said.

He stressed Hong Kong’s attraction as a financial centre rests on its robust regulatory regime and legal system and the city must maintain this unique advantage while pursuing the next stage of market development.

“We should not seek to join any race to bottom as far as regulation is concerned and I do not believe that regulation should be used as a competitive tool. We are committed to the key G20 reforms because the need to ensure that reforms are directed at containing systemic risks and also protecting investors is an overriding concern in light of the fallout from the financial crisis,” Mr Alder said.