Speaking at the annual conference of the Hong Kong Investment Funds Association, Ashley Alder chief executive of the SFC, said Hong Kong should not be drawn into a “race to the bottom” with regulation, but should work “in lockstep with the global effort to achieve the main goals of financial reforms through communication and co-operation.”
“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,” said Alder.
“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.”
Stressing that Hong Kong’s attraction as a financial centre rests on its robust regulatory regime and legal system he said: “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.”
