Financial Secretary John Tsang says the Government will review finance policy to further improve the regulatory framework and enhance investor protection.

Speaking at a luncheon today Mr Tsang expressed empathy with small investors who have suffered losses from the Lehman Brothers' bankruptcy. He said the Monetary Authority and the Securities & Futures Commission have been meeting with the investors and offering assistance, while keeping in close touch with concerned trustees and distributor banks.

"They have assured me they will deal with investors' enquiries and complaints in an expeditious manner. They will provide me, in about three months' time, with their observations, lessons learned and issues identified," Mr Tsang said.

The Government, the Monetary Authority, the Securities & Futures Commission, the Insurance Authority and the Stock Exchange will take all necessary measures to ensure the financial market remains stable and the economy can steer a smooth course amid global financial turmoil.

Mr Tsang said the Government will keep enhancing Hong Kong's competitiveness amid the global financial turbulence with financial regulators.

"We are reviewing our regulatory framework with special emphasis on maintaining flexibility and responsiveness in prioritisation of issues, co-ordination of risk assessments and co-operation in policy development between the administration and financial regulators," he said.

Mr Tsang said the Government will remain alert to global developments and maintain financial stability and institutional resilience.