Tuesday, November 01, 2011

Hong Kong Securities Regulator Says Global Financial Regulation Should Not Be Race to the Bottom

Eschewing a race to the bottom as far as global financial regulatory reform is concerned, Securities and Futures Commission CEO Ashley Alder, said that Hong Kong is committed to implementing the key G-20 recommended financial regulatory reforms in a robust manner. In remarks to the Hong Kong Investment Funds Association,he said that regulation should not be used as a competitive tool. In line with the G-20 rubric, Hong Kong will ensure that financial reforms are directed at containing systemic risks and also protecting investors. The Commission CEO emphasized that Hong Kong’s attraction as a financial centefr 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.

The quality of the regulations are what matters, he said, not their numbers. In his view, quality regulation results from an interactive process, which is why it is important for a securities regulator to continue to communicate with a cross section of the market as well as globally. Financial regulatory reform cannot be accomplished in isolation, stressed the SFC head. Thus, it is very important for Hong Kong to remain effectively in lockstep with the main goals of internationally agreed reforms and work closely with the industry and other regulators to promote solutions which protect investors and underpin stability.