The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) today entered into a new Memorandum of Understanding (MoU) to expand regulatory cooperation beyond the oversight of financial reporting and related audit work of listed entities (Note 1).
The new MoU covers the financial and compliance reporting by licensed corporations, SFC-licensed virtual asset service providers, SFC-authorised funds and registered open-ended fund companies, as well as the related audit and assurance work performed by their auditors. In addition, it establishes a comprehensive framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations in matters of mutual regulatory interest.
Dr Kelvin Wong, Chairman of the SFC, said, “This MoU reinforces our shared commitment to reliable financial reporting and high-quality audits. Closer collaboration with the AFRC to cover a broader range of entities and activities in our diverse financial ecosystem will ensure more comprehensive oversight, strengthening market integrity and consolidating Hong Kong’s standing as a trusted international financial centre.”
Dr David Sun, Chairman of the AFRC, said, “This MoU marks an important milestone in the longstanding partnership between the AFRC and the SFC. By providing a clearer framework for coordination, it strengthens our collective ability to safeguard the public interest and support the continued resilience and long-term competitiveness of Hong Kong’s financial markets.”
Ms Julia Leung, Chief Executive Officer (CEO) of the SFC, said, “This MoU strengthens regulatory backing for our collaboration with the AFRC, ensuring our supervision evolves with market dynamics. Deepening our regulatory cooperation across financial sub-sectors is essential to upholding the quality of financial reporting and bolstering the confidence of global investors in Hong Kong’s regulatory system.”
Ms Janey Lai, CEO of the AFRC, said, “Reliable financial reporting and auditing underpins market integrity and investor confidence. The enhanced cooperation and information sharing between the AFRC and the SFC will enable us to identify emerging risks earlier and carry out our statutory responsibilities to respond more effectively.”
Note:
- The new MoU supersedes the one signed between the SFC and the former Financial Reporting Council in 2021.
