Regulatory Partnership

The cover photo shows the arms of four individuals in a balanced support configuration that symbolises thepartnership between four key market participants: the issuer, intermediary, investor and the regulator.

Markets develop because investors trust their efficiency, fairness, transparency and freedom from misconduct. Too much regulation impedes market development and drives business away. Too little leaves investors at risk.The Commission must find the right balance through focusing on areas of regulatory risk, and judiciously using its limited resources to advance market integrity, promote market development, as well as providing appropriate investor protection. This search for balance is a partnership with the market community.

To help Hong Kong become the preferred centre for securities and futures business in the Asia Pacific time zone, the Commission must pick the right regulatory tools and use them without fear or favour. Under-enforcement does as much harm as over-regulation. Regulation is more a craft than exact science. The photographs of hands in different activities within this Annual Report serve to convey the message that we will continue to discharge our responsibilities firmly, diligently, and with the assistance of the market, the right judgement and balance.