Hong Kong’s Financial Reporting Council (FRC) has signed an MoU with the Securities and Futures Commission (SFC) to strengthen the regulation of capital markets through collaboration between the two regulators.

Under the MoU, which took effect yesterday (24 February), the FRC and SFC agreed to develop a closer collaboration in the regulation of the securities and futures market, particularly in relation to the regulation under their respective supervisory regimes of listed entity auditors and compliance by listed entities with financial reporting requirements.

The collaboration between the regulators under the MoU, which includes case referrals, joint investigations, mutual assistance, capacity building and the exchange and use of information, aims to increase the overall effectiveness of both regulators in ensuring the quality of financial reporting by listed entities and the audit quality of listed entity auditors.

To ensure that their regulatory efforts are coordinated, the two regulators agreed to notify one another when preparing and issuing policies or guidelines which may have a significant impact on their respective regulatory functions.

FRC chairman Kelvin Wong said: “The signing of a new MoU between the SFC and the FRC underpins our collective resolve, as independent regulators, to collaborate effectively with each other and with other local, Mainland and overseas regulators, to protect the interests of the investing public and the wider public interest in Hong Kong’s capital markets and in the success of Hong Kong’s international financial centre.”

“Closer collaboration between the SFC and the FRC will be key to combat persistent problems with false or misleading financial statements and other corporate misconduct,” said Mr Tim Lui, Chairman of the SFC. “By working closely with the FRC to maintain the integrity of our capital market and promote good corporate governance, we can expect to see improvements in the audit quality of listed companies in the years to come.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

 

Earlier this month the FRC appointed Florence Wong as its deputy CEO