Secretary for Financial Services & the Treasury Prof KC Chan says a consultation on the establishment of a financial ombudsman will be launched by the year's end.

Speaking on a radio talk show today, Prof Chan said the proposed new post will handle complaints and mediation work related to the sector.

Prof Chan said the recent global financial turmoil has highlighted the need to enhance financial-system management and the world has reached a consensus on improving the fiscal-control mechanism.

On his earlier visit to Europe, the secretary exchanged views with his overseas counterparts on the issue. He said major countries will review their policies on regulating cross-country banks and hedge funds, adding Hong Kong will join the discussion and work closely with other countries to improve the regulatory work.

Speaking on Hong Kong's tax system, he said although the city has a simple tax system with a low tax rate, it is not a tax haven.

To ensure the city's arrangements for the exchange of tax information align with international standards, the Government will put forward relevant legislative proposals this year.