Global Financial Strategy

Search the site   >>Advanced search
First for financial regulatory news and views
HOME   |   REGISTER   |   SUBSCRIBE   |   NEWS   |   ANALYSIS   |   INTERVIEWS & FEATURES   |   EVENTS   |   MUTTERS   |   JOBS   |   MY ACCOUNT
EUROPE   |    US & CANADA   |    ASIA PACIFIC   |    MIDDLE EAST & AFRICA   |    LATIN AMERICA & CARIBBEAN   |    OFFSHORE   |    SINGAPORE   |    HONG KONG
TRADING   |    CASINO MARKET   |    BANKING   |    INSURANCE   |    FINANCIAL REPORTING   |    TAXATION   |    MACROECONOMIC   |    PROFILES   |   CONTACT   |   
  • MF Global spoke of 'strong' finances
  • EC: No corp gov powers for ESAs
  • FSA appoints senior investment bank adviser
  • GFS has now closed
  • Czechs join UK on fiscal compact sidelines
  • Davos stalemate on EU's IMF funds
  • Tucker: Resolution regime 'top priority'
  • Saudi Arabia increases central bank role
  • FSB urges Canada for one securities regulator
  • CFTC set for committee to scrutinise HFT
  • Fitch downgrades Belgian banks
  • What corruption really costs
  • UK FSA pushes for Mifid II rethink on OTCs
  • Shanghai boosts global financial status
  • Canada aligns credit rating rules with EU
  • Bowles blasts lack of women at ECB
  • Sarkozy to introduce French FTT in August
  • Barnier warns on further bonus reforms
GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed
You must be logged in to use this function.


Hong Kong rejects ‘race to the bottom’

Monday 31 October 2011 – by Will Henley


The chief executive of Hong Kong’s Securities and Futures Commission has said he wants to avoid an international regulatory “race to the bottom”.

Ashley Alder told a conference of the Investment Funds Association on Friday that he would ensure the Chinese special administrative region delivers on G20 reforms of securities markets.

“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,” Alder said.

The remarks follow concerns that some jurisdictions might implement required reforms selectively or lag behind the US and Europe in a bid to attract firms fleeing onerous regulatory curbs.

In June, US commissioner Bart Chilton of the Commodity Futures Trading Commission expressed fears that the migration of trading to “less well regulated” areas would lead to a “race to the regulatory bottom”, although he did not single out Hong Kong specifically.

Related articles:
Hong Kong refuses to be bound by 2012
Asian regulators hit back after US jibes
Hong Kong exchanges at a crossroads
US regulator raises ‘lax’ Singapore fears
The single biggest threat to Hong Kong
‘Regulatory race to the top’ – Wheatley

The SFC and Hong Kong Monetary Authority sought to quash doubts earlier this month when they announced that they are working toward the G20 targets. However, their joint statement admitted that a 2012 target date is dependant on implementation elsewhere.

Alder nonetheless said on Friday: “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.

“Quality regulation results from an interactive process, which is why it is important for an organisation 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,” he added.



WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.
Login Register Most read Most commented
Username

Password

>> Forgotten your password?
>> Sign Up  

GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

  • Diamond warns against ‘Balkanisation’
  • ABI: UK insurers must keep EU links
  • EU Parliament site hit by hacktivists
  • George Soros: New year, same crisis
  • FSB: Swiss regulator needs more teeth
  • OCC: Deriv fears are an overreaction
  • ‘Major wave’ of Solvency II drafts in May
  • IMF paper urges Aus bank capital boost
  • BoE: Limit bonuses to boost bank capital
  • 2012 vision: Increased regulatory exposure looms
  • Barnier offers hope to NYSE/Boerse
  • Esma rushes short selling consultation
  • Bowles re-elected as Econ chair
  • Hoogervorst hints at accounting slowdown
  • Asia in the year of the dragon
  • Barnier: FTT will not be forced on UK
INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don’t know

View results

FIND A REGION
 
Global Financial Strategy - [email protected] | Home | Legal | Contact design by SDV