Abstract: The paper analyzes the reform of financial supervision system by applying a comparative method supplemented with standard analysis, empirical analysis and historical analysis. Firstly, the paper compares the financial innovation in the Anglo-American countries since the 1980s. Secondly, it compares the financial regulation reforms in terms of functions, objectives, principles and systems after the 2007 financial crisis. Lastly, the paper draws the conclusion that national financial regulatory reform must adhere to financial innovation. International community should strengthen the international collaboration of financial regulation, keeping the combination of macro-prudential supervision with micro-prudential supervision. It also should focus on monitoring systemic risk and ensure the consistence of the financial regulatory system with financial structure.