Investors should be alert to the potential impact of worldwide financial institutions' efforts to strengthen their financial positions, Securities & Futures Commission Chief Executive Officer Martin Wheatley warns.

Speaking today at the Property Leaders Forum 2009 organised by the Asian Public Real Estate Association, Mr Wheatley said although Asia's exposure to the ongoing global financial crisis is limited, investors should be aware of the impact of the sweeping restructuring underway in the global banking sector - a much-needed process in the wake of the current economic crisis.

Citing a recent report, he said the financial crisis's severity has prompted the International Monetary Fund to predict banks and financial institutions worldwide would probably have to write down US$4.1 trillion worth of assets to restore stability.

"This crisis is unprecedented in its global reach. No economy is sheltered from the effects of the crisis," Mr Wheatley said. "The ongoing de-leveraging in the global banking sector will inevitably have an effect on Hong Kong - both on overall sentiment and more explicitly, on holders of structured products."

In light of this, the commission has already told issuers of structured products to make appropriate information available through distributors.

Investors who have any doubts about what the impact of overseas corporate failures might be on their investments should contact the product distributors for further information, he said.