Hong Kong SFC and AFRC Expand Regulatory Cooperation, Bringing Virtual Asset Service Providers and Funds into the Financial Reporting Regulatory Framework

BlockBeats news, September 28: The Hong Kong Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) today signed a new Memorandum of Understanding (MoU), expanding the scope of their regulatory cooperation from the financial reporting and related audits of listed entities to the financial and compliance reporting of licensed corporations, SFC-licensed virtual asset service providers, SFC-authorized funds, and registered open-ended fund companies, as well as the audit and assurance work carried out by the relevant auditors.

Under the new MoU, the two parties will establish a comprehensive cooperation framework covering information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. The Hong Kong SFC stated that this cooperation aims to further enhance regulatory coverage, strengthen the quality of financial reporting and market integrity, and boost global investors' confidence in Hong Kong's financial regulatory system.