The Hong Kong Securities and Futures Commission and the Accounting and Financial Reporting Council have signed a new memorandum of understanding extending regulatory cooperation to licensed corporations.

Hong Kong Securities and Futures Commission and Accounting and Financial Reporting Council Sign New Memorandum of Understanding on Financial Reporting

BlockBeats reported on September 28 that the Hong Kong Securities and Futures Commission and the Accounting and Financial Reporting Council signed a new Memorandum of Understanding that extends their regulatory cooperation beyond the oversight of listed entities’ financial reporting and related audit work.

Broader Reporting and Audit Coverage

The new agreement covers financial and compliance reporting by licensed corporations, virtual asset service providers licensed by the Securities and Futures Commission, funds authorized by the Securities and Futures Commission, and registered open-ended fund companies. It also covers related audit and assurance work carried out by their auditors.

Coordinated Supervision Tools

The framework sets out arrangements for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations on regulatory matters of common interest.

What It Means for Market Participants

The change connects securities, fund, virtual asset, and accounting oversight through a shared reporting and investigation framework. For institutions and their auditors, it means financial and compliance disclosures may be examined under a more coordinated supervisory approach. The immediate effect is procedural: it defines how the two authorities work together when reviewing reporting, audit assurance, and regulatory cases involving the covered entities.