Archived material
Effective dates of Financial Reporting Council (Amendment) Ordinance
On 6 May 2019 the government gazetted 1 October as the effective date of the Financial Reporting Council (Amendment) Ordinance 2019. This is the date when the responsibility for regulating the auditors of listed companies will pass from the Institute to the FRC. The Institute will continue to work with the FRC to ensure a smooth transition of powers. From 2022, the FRC will be funded by a levy on securities transactions, paid by both buyers and sellers, in addition to levies paid by listed companies and their auditors.
Media Coverage
- Hong Kong FRC's New Oversight Powers Start in October (Regulation Asia – 21 May 2019)
Financial Reporting Council (Amendment) Bill gazetted
On 30 January 2019, the Financial Reporting Council (Amendment) Bill 2018 was enacted by the Legislative Council and was gazetted on 15 February 2019. The Financial Reporting Council will assume full responsibility for the regulation of auditors of listed companies at a date yet to be determined. The reform caps over a decade of work from the Institute and government and transitions Hong Kong from self-regulation to independent oversight – bringing Hong Kong's regulatory regime for auditors in line with the international standard and practice. The development also further strengthens Hong Kong's reputation as an international financial centre.
Before the FRC takes over, the Institute will further discuss with the Financial Services and the Treasury Bureau and the FRC to resolve outstanding issues and to ensure smooth transition and effective operation under the new regime. We will also contribute the views of the profession to the process of establishing the FRC's oversight of some of the Institute's functions.
Media Coverage
- 財匯局撥款通過 修訂核數師徵費基準 (Ming Pao Daily – 31 January 2019)
- 立法會通過成立財務匯報局修訂條例草案 (Metro Radio – 30 January 2019)
- 財務匯報局修訂條例獲立法會通過 將直接監管上市公司核數師 (HK01 – 31 January 2019)
- 黃天祐：條例草案通過賦予財匯局權力 (Hong Kong Economic Journal – 30 January 2019)
- 財匯局接管上市公司核數監管權 (ET Net – 31 January 2019)
Financial Reporting Council (Amendment) Bill 2018
In January 2018 the government gazetted the Financial Reporting Council (Amendment) Bill 2018, as its legislative approach to the regulation of the auditors of listed entities. You can find more details about the Bill on the Bills Committee page of the Legislative Council website.
The Institute published a media statement in response to the gazettal on 19 January:
Media Coverage
- 財匯局料有權監察處分核數師 (Ta Kung Pao – 20 January 2018)
- 財匯局擬「升呢」獨立監管核數師 (Apple Daily - 20 January 2018)
- 港府促嚴管上市公司核數師 (Oriental Daily - 20 January 2018)
- 香港會計師公會：關注財務匯報局改革年開支增至9000萬港元 (Finet.hk - 22 January 2018)
Third Bills Committee Meeting (10 April 2018)
The third meeting of the Bills Committee took place on 10 April 2018. Before the meeting the Institute returned a written submission (English / Chinese translation) in response to the request by Committee members on four key issues raised at the second meeting, namely:
- Guidance on sanctions determination and application;
- Regulation of non-Hong Kong auditors;
- EU equivalence; and
- The scope of assurance engagements covered by the Bill.
The Chief Executive and Registrar Raphael Ding also submitted bylined articles about the FRC (Amendment) Bill to two media outlets.
- 名家筆陣：給財匯局改革建議 (Oriental Daily - 23 April 2018)
- 捨本逐末的「歐盟等效」 (Hong Kong Economic Journal – 23 April 2018)
Media Coverage
- 財滙局監管未到位開支卻大增 (Hong Kong Economic Journal – 24 April 2018)
Second Bills Committee Meeting (20 March 2018)
On 9 March the Institute submitted its detailed response to the Bill.
The second meeting of the Bills Committee took place on 20 March. The committee met with stakeholders including the Institute, accounting firms and other associations. Their submissions can be found on the meeting website.
At the meeting Chief Executive and Registrar Raphael Ding highlighted some key areas of concern for the Institute. You can view his speech in Chinese or in English. You can also read the speech here (in Chinese).
Media Coverage
- 財匯局擴權涉罰則 會公促提供具體指引 (Oriental Daily - 21 March 2018)
- 會計師公會促財匯局交代9900萬花費 (Ming Pao Daily - 21 March 2018)
Background and previous consultations
Institute press release before the FRC amendment bill was published (October 2016)
Late in 2016 and in anticipation of the release of the FRC Amendment Bill, the Institute published a press release reiterating its position on audit regulatory reform. The press release is available here:
Government consultation
After the Institute's consultation finished, the government consulted stakeholders and the public from June to September 2014. More details about this consultation are available here:
- Government consultation (2014)
- Government consultation conclusions and the Institute's response (June 2015)
Institute consultation
The Institute conducted a consultation with its members regarding the reform of audit regulatory regime from October 2013 to January 2014. For more details about this consultation see:
