Policy Address

Financial Regulation

12.         Hong Kong's financial market has been buffeted by the global financial tsunami since September last year. The collapse of Lehman Brothers triggered the minibond incident. Now, the vast majority of the eligible minibond holders have accepted the settlement offer. Our financial market is gradually emerging from the shadow of the crisis and moving ahead on the road to recovery. With the experience gained, we will seek to further achieve the two main objectives of investor protection and financial security when formulating policies on financial regulation.

13.         To better protect investors, we will canvass the views of the parties concerned on the regulatory regime and the entire sales process of investment products. We aim to strengthen investor protection in every aspect, from investor education, authorisation of investment products, disclosure requirements, sales practices, conduct of intermediaries to financial disputes resolution. Some of these measures have been implemented while some are undergoing or will undergo public consultation.

14.         The local financial system has emerged from this global financial crisis without any systemic problems, thanks to our robust regulatory regime. Nevertheless, the G-20 and international regulatory bodies, having learnt lessons from the crisis, have proposed a series of measures to enhance the regulation of financial institutions and markets. Together with the regulators, we shall continue to improve our regulatory regime, taking into account global financial developments and local market needs.

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