On September 28, 2026, SFC and AFRC entered into a new MoU to expand regulatory cooperation on financial reporting beyond listed entities, covering licensed corporations, virtual asset service providers, authorised funds, open-ended fund companies, and related audit work. The new MoU supersedes the one signed in 2021.
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Execution of Memorandum of Understanding
On September 28, 2026, the Securities and Futures Commission ("SFC") and the Accounting and Financial Reporting Council ("AFRC") executed a new Memorandum of Understanding (the MoU), expanding their regulatory cooperation beyond the oversight of financial reporting and related audit work pertaining to listed entities. The execution ceremony was attended by Dr Kelvin Wong, Chairman of the SFC; Ms Julia Leung, Chief Executive Officer of the SFC; Dr David Sun, Chairman of the AFRC; and Ms Janey Lai, Chief Executive Officer of the AFRC.
Scope of Regulatory Coverage
The MoU extended its ambit to encompass financial and compliance reporting obligations of licensed corporations, SFC-licensed virtual asset service providers, SFC-authorised funds, and registered open-ended fund companies, together with the associated audit and assurance work performed by their respective auditors. The instrument further established a comprehensive framework governing information sharing, case referrals, mutual assistance, and coordinated inspections and investigations in matters of shared regulatory interest.
Statements by the SFC Leadership
Dr Kelvin Wong affirmed that the MoU reinforced both parties' commitment to reliable financial reporting and high-quality audits, observing that broadened collaboration covering a wider range of entities and activities would ensure more comprehensive oversight, thereby strengthening market integrity and consolidating Hong Kong's standing as a trusted international financial centre. Ms Julia Leung emphasised that the MoU provided strengthened regulatory backing for ongoing cooperation with the AFRC, ensuring supervisory practices evolve in tandem with prevailing market dynamics. She further underscored that deepening cross-sectoral regulatory cooperation was essential to upholding reporting quality and bolstering global investor confidence in Hong Kong's regulatory framework.
Statements by the AFRC Leadership
Dr David Sun characterised the MoU as a significant milestone in the longstanding partnership between the two bodies, noting that the clearer coordination framework enhanced their collective capacity to safeguard the public interest and support the continued resilience and long-term competitiveness of Hong Kong's financial markets. Ms Janey Lai observed that reliable financial reporting and auditing underpin market integrity and investor confidence, adding that strengthened cooperation and information exchange would enable both regulators to identify emerging risks at an earlier stage and discharge their statutory responsibilities more effectively.
Supersession of Prior Arrangement
The MoU superseded the Memorandum of Understanding previously executed between the SFC and the former Financial Reporting Council in 2021.
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