The Exchange, FRC strengthen financial reports oversight
This is to ensure the quality of financial reports of listed companies is upheld.
The Stock Exchange of Hong Kong Limited and the Financial Reporting Council (FRC) have signed a memorandum of understanding (MoU) to beef up its collaboration to ensure quality of financial reports.
The new MoU will replace the 2007 MoU that facilitated efficient and effective collaboration between the Exchange and the FRC with respect to financial reporting.
“Audit, along with financial reporting, plays a critical role in driving good corporate governance within listed companies,” Calvin Tai, Hong Kong Exchanges and Clearing Limited (HKEX), said.
“The signing of this new MoU signals our closer cooperation between the Exchange and the FRC,” he added, noting it reinforces Hong Kong as an international financial centre. The Exchange is a wholly-owned subsidiary of the HKEX.
Moreover, the Exchange and the FRC also agreed to notify each other in issuing policies or guidelines, in cases it will have an impact on their regulatory functions.
“The MoU establishes a joint, complementary, and collaborative framework for the FRC and the Exchange under which our collective regulatory efforts can better provide investor protection through high quality financial reporting,” Marek Grabowski, FRC CEO, said.