The Hong Kong Monetary Authority (HKMA) and the Accounting and Financial Reporting Council (AFRC) entered into a new memorandum of understanding (MoU) on 17 August, superseding the one signed on 19 November 2007.
Under the new MoU, the HKMA and the AFRC agree to strengthen collaboration through case referrals, mutual assistance, capacity building and exchange of information.
The enhanced cooperation will facilitate the AFRC’s regulatory efforts in upholding the quality of financial reporting, auditing and the accounting profession’s work in relation to the banking sector, which is vital to the HKMA in assessing the financial resilience of banks and ensuring their safety and soundness.
The MoU will assist both parties in carrying out their statutory functions more effectively and efficiently and in maintaining Hong Kong’s status as an international financial centre.
The signing of this MoU comes after the AFRC released its first joint statement alongside the Securities and Futures Commission (SFC) as part of their enhanced collaboration in the regulation of the securities and futures markets in Hong Kong.