Accounting Body To Add Functions

Secretary for Financial Services & the Treasury Christopher Hui today welcomed the passage of the Financial Reporting Council (Amendment) Bill 2021 by the Legislative Council.

The amended ordinance, which expands the Financial Reporting Council (FRC)’s statutory functions, would enhance the regulatory regime of Hong Kong’s accounting profession, the Government noted.

Becoming a full-fledged independent regulatory body for the accounting profession, the FRC will, in the new name of Accounting & Financial Reporting Council under the new regime, perform more duties, including the issuance of practising certificates to certified public accountants, registration of accounting practice units and public interest entities auditors, and inspection, investigation and discipline work of the accounting profession. It will also oversee the Institute of Certified Public Accountants’ performance in its statutory professional functions.

Mr Hui said: “The amended ordinance brings Hong Kong’s regulatory regime of the accounting profession more in line with international developments and with increased coherence and efficiency, hence reinforcing our status as an international financial centre and business hub, and facilitating the long-term development of the profession.”

The Government will draw up the subsidiary legislation to provide for the transitional arrangements of the new regulatory regime, he added.

Meanwhile, the FRC will prepare guidelines and administrative documents in relation to its expanded powers, with the accounting profession and other stakeholders engaged in the process.

After the preparatory work has been completed, the Secretary for Financial Services & the Treasury will announce in the Gazette the amended ordinance’s commencement date.