The Securities & Futures Commission is reviewing its regulations and processes to reduce red tape and bureaucracy, its chairman Eddy Fong says.

Speaking at the Institute of Directors luncheon today Mr Fong said Hong Kong must remain vigilant to identify areas where it is not competitive. As such, the commission will deregulate rules, processes or regulations which create structural barriers to efficiency and competition.

Mr Fong added it is also necessary for the commission to tighten regulation to close any loopholes resulting from the changing environment.

He called on directors to instil a culture of discipline and integrity in their organisations to contribute to the continued success of Hong Kong's financial markets.