Financial literacy promoted by Hong Kong’s FRC and IFEC collaboration

H

ong Kong’s Financial Reporting Council (FRC) is collaborating with the Investor and Financial Education Council (IFEC) to promote financial literacy on audit related topics to retail investors and members of the public.

Even though financial literacy in Hong Kong is high, based on having the highest overall score in the 2020 OECD/INFE International survey of Adult Financial Literacy, anecdotal evidence suggest there is less knowledge and use of auditor’s reports in making investment decisions, especially among retail investors.

FRC CEO Marek Grabowski said: “Our responsibilities extend to the financial statements and related auditor’s reports of listed entities. Our articles seek to demystify some of the more complex elements of financial statements and auditor’s reports by explaining them simply and identifying how they can inform investors about the quality of the financial statements, including red flags to look out for.