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Hong Kong SFC Outlines Regulatory Challenges

by Mary Swire, for LawAndTax-News.com, Hong Kong

31 March 2006

Hong Kong's Securities & Futures Commission on Wednesday released a document setting out the regulatory challenges and risks it faces, and the strategies to address them.

Commission Chairman Martin Wheatley explained that the document provides a strategic framework for the commission for the next three financial years.

It also shows how the commission will meet its strategic objectives through regulation, enforcement, educating investors, and market facilitation.

Four major regulatory challenges have been identified, and initiatives will be put in place for each to ensure the commission's statutory regulatory objectives are met.

The four challenges are:

  • Improving standards of corporate governance and behaviour;
  • Tackling risks arising from complex and structured products, and mis-selling to retail investors;
  • Addressing the consequences of a market or economic downturn if and when that happens; and
  • Keeping Hong Kong at the forefront of international financial markets and promoting regulatory best practice.

A total of 21 initiatives in the four areas of regulation, enforcement, education and market facilitation have been mapped out to address the challenges and associated risks. Some of the initiatives are already in place.

"As a responsible regulator, we need to focus on issues of the greatest importance and prioritise accordingly. This forward-looking plan helps the commission determine the major initiatives to pursue in the next few years," Mr Wheatley concluded.

The full text of the Hong Kong Securities and Futures Commission's Regulatory Challenges document can be found in the Tax News Resources section.

 

 






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