THE Hong Kong Government would regulate those who did not regulate themselves, Financial Services Secretary Michael Cartland said yesterday.
Speaking after the presentation of a code of ethics and professional practice guidelines by the Hong Kong Coalition of Service Industries (HKCSI), Mr Cartland said the government continued to look to industry to regulate itself.
'We don't want to impose regulations. It's not something that we would do unless it became necessary,' Mr Cartland said.
He gave as an example instances of abuse in the leveraged foreign exchange industry which resulted in a law empowering the Securities and Futures Commission to offer leveraged foreign exchange investors the same protection afforded to investors in Hong Kong's stock and futures markets.
The service sector accounted for 70 per cent of the territory's employment and 76 per cent of its GDP, and Mr Cartland said the HKCSI's area of involvement now covered telecommunications, transport, legal services, estate agencies, statistics, tourism and travel and financial services.
'Among the themes reflected [in Governor Patten's policy commitments early this month] are our concern for proper standards of conduct within the financial services sector and the business community, emphasis on the importance of effective self-regulatory mechanisms, and our acknowledgement of the growing expectations of the community at large in this regard, and of our responsibility to pay heed to this,' he said.
The government envisaged specific measures in the next year to reinforce its commitment to curbing malpractices and encouraging sound business practices.