Hong Kong’s FRC and Stock Exchange strengthen collaboration
Joe Pickard 8 June 2021
ong Kong’s Financial Reporting Council (FRC) and the Stock Exchange of Hong Kong (the Exchange), have signed an MoU to strengthen collaboration between the two organisations.
This MoU replaces one signed in 2007 and facilitates efficient and effective collaboration between the FRC and the Exchange in respect of the FRC Ordinance’s regulation of public interest entity auditors and the compliance by listed entities with regulatory requirements in financial reporting.
Key modes of collaboration include liaison, coordination and cooperation in cases of mutual interest, mutual referral of complaints and cases, exchange and use of information and mutual assistance.
With the aim of proper coordination of their regulatory efforts, the FRC and the Exchange have also agreed to notify each other when preparing and issuing policies or guidelines that may have a significant impact on their respective regulatory functions.