ACCA proposes AI rules for Hong Kong accountants

Proposal targets AI adoption in auditing valuation and advisory work.

The Association of Chartered Certified Accountants (ACCA) has proposed artificial intelligence (AI) governance rules and regulatory sandboxes for Hong Kong’s accounting and auditing sector.

This forms part of its recommendations for the region’s first Five-Year Plan for Economic and Social Development.

ACCA recommended a “General Rule for AI Application in the Accountancy Profession” and a dual-track regulatory sandbox to guide AI deployment in accounting and auditing.

The body said the framework would move the profession from defensive compliance towards proactive surveillance.

It also proposed expanding accountants’ role into valuation, mergers and acquisitions, and real-world assets, including the adoption of International Valuation Standards.

“The profession must evolve from back-office support to front-office strategy,” said Christina So, Head of ACCA Hong Kong and Greater Bay Area (GBA) Lead.

So said accountants should serve as “builders and guardians of market credit”, whilst supporting institutional alignment and international standards.

ACCA’s recommendations respond to the HKSAR Government’s consultation on its first Five-Year Plan and cover AI, the GBA, the Northern Metropolis, Hong Kong’s financial centre, the green economy, and talent.

For the GBA, ACCA proposed greater flows of corporate data and talent, including mutual recognition of professional qualifications across the region.

For the Northern Metropolis, it recommended industry-chain maps and a pilot transformation testing ground to connect research with commercial production.

ACCA called for Hong Kong to move from attracting international capital to helping companies allocate capital through stronger offshore renminbi and commodities markets.

The proposals include expanding renminbi exchange-traded funds and real estate investment trusts, alongside developing a larger physical commodities delivery hub.

ACCA proposed AI green bonds, green shipping bonds, and a green-transition subsidy scheme for small- and medium-sized enterprises as part of its green economy recommendations.

It also called for a carbon-trading demonstration zone and a sustainable aviation fuel academy in the Northern Metropolis.

For talent development, ACCA recommended doubling the Continuing Education Fund ceiling to $50,000 and expanding recognised courses in AI and green finance.

ACCA also proposed adding environmental, social, and governance qualifications to the Hong Kong Qualifications Framework.

The body recommended a three-tier framework for responsible AI use across enterprises, including an AI capability assessment framework linked to government funding.

Wilson Cheng, Chairman of ACCA Hong Kong, said Hong Kong should build on its strengths in finance, innovation and technology, professional services, and talent.

“As a high-end professional services hub and a two-way bridge connecting the Chinese Mainland with international markets, Hong Kong must strengthen its competitiveness by building on its strengths in finance, innovation and technology, professional services, and the agglomeration of top-tier talent,” Cheng said.

ACCA said the recommendations draw on member research and symposiums and are organised around top-level strategy, standard implementation, platform building, and administrative measures.