Hong Kong SFC and AFRC sign new MoU, expanding regulatory cooperation on virtual asset service providers
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AT A GLANCE
The Hong Kong SFC and AFRC signed a new memorandum, expanding regulatory cooperation concerning licensed institutions, virtual asset service providers and funds.
Article
【Hong Kong SFC and AFRC sign new memorandum of understanding, extending regulatory cooperation to licensed institutions and fund financial reporting】
The Securities and Futures Commission of Hong Kong (SFC) and the Accounting and Financial Reporting Council (AFRC) today signed a new Memorandum of Understanding (MoU), extending their regulatory cooperation beyond the monitoring of financial reporting by listed entities and related audit work. The new MoU covers the financial and compliance reporting of licensed corporations, virtual asset service providers licensed by the SFC, SFC-authorised funds and registered open-ended fund companies, as well as related audit and assurance work performed by their auditors. In addition, the MoU establishes a comprehensive framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations relating to regulatory matters of common concern to both parties.
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Key points
01
The Securities and Futures Commission of Hong Kong and the Accounting and Financial Reporting Council signed a new Memorandum of Understanding.
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The scope of regulatory cooperation has expanded from the financial reporting of listed entities and related audit work to other areas.
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The MoU covers the financial and compliance reporting of licensed corporations, virtual asset service providers licensed by the SFC, SFC-authorised funds and registered open-ended fund companies.
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The MoU also covers audit and assurance work performed by the relevant auditors.
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The MoU establishes a framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The two Hong Kong regulators said they would expand the scope of their cooperation. In addition to the financial reporting of listed entities and related audits, the cooperation also covers the financial and compliance reporting of certain licensed institutions, virtual asset service providers, funds and open-ended fund companies, as well as related audits, information sharing and case coordination.
Why it matters to readers
This means that more regulated entities and their auditors are brought within the cooperation framework of the two institutions, with related financial reporting, compliance reporting, audits and regulatory cases potentially handled through coordination between the two parties.
Beginners can check whether the platforms or funds they use fall within the categories listed in the text, and whether regulators will subsequently announce specific reporting, inspection, or investigation arrangements.
Risks and unknowns
The evidence comes from a reposting channel containing accompanying advertisements and does not provide the regulator’s original announcement or the full text of the memorandum; its authenticity and completeness still require verification.
The original text uses “today,” but the body of the evidence does not give a specific signing date.
The original text does not state whether the new framework introduces specific filing, audit, inspection, or compliance-cost obligations.
Related Developments
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The original text does not list any specific cases, inspections, or investigations conducted under the new framework.
Related concepts
Memorandum of Understanding
This term is not in the glossary yet. Browse related concepts in the glossary.
