Matters outside the jurisdiction of the Institute

1. Listed companies matters

The Financial Reporting Council (“FRC”), an independent statutory body, is responsible for investigating possible auditing or financial reporting irregularities related to listed entities in Hong Kong.  Complaints on these matters should be made directly to the FRC (www.frc.org.hk) as the subject matter is outside the jurisdiction of the Institute.

Matters involving listed companies may also warrant the attention of the Hong Kong Stock Exchange or the Securities and Futures Commission of Hong Kong.

2. Criminal matters

If a member, member practice or registered student is suspected to be involved in any criminal activities, the matter should be reported to the police.

3. Civil and employment matters

Fee disputes and employment matters are examples of civil disputes that are outside the Institute’s jurisdiction. It is suggested that legal advice be sought to determine how to proceed.

The Institute does not have the authority to direct members to pay damages to any party.

4. Possessory liens

A lien is a right of a person to retain possession of the owner‘s property until the owner pays what he owes to the person in possession.

A lien should not be exercised over the following documents:

·           books of a company which have to be made available for public inspection or be kept at the registered office or some other specified places.

·           books of accounts which the company must keep under the Companies Ordinance.

For further details, please refer to Statement 1.301 “Books and papers – ownership, disclosure and lien” of Volume 1 of the Members’ handbook.

5. Companies Ordinance matters

The following are examples of the duties of directors, not the auditors, under the Companies Ordinance, Cap 622:

·           ensuring shareholders are given copies of the audited financial statements upon demand.

·           ensuring that statutory records are kept at the company’s registered office for public inspection.

·           circulating proposed resolutions and resolutions that have been passed.

6. Regulation of TCSP licenses

The Companies Registry (CR) has the statutory authority to regulate TCSP licenses. The Institute does not have jurisdiction to intervene in CR’s handling of any licensing matters. However, the Institute will enquire of any member who may have breached anti-money laundering and counter-terrorist financing requirements and take appropriate action.