The Government will legislate to empower the Financial Reporting Council to become an independent auditor oversight body.
Releasing the public consultation results today on proposals to improve the regulatory regime for listed entity auditors, Secretary for Financial Services & the Treasury Prof KC Chan said the consultation showed an overwhelming majority of respondents supported the reform.
"The initiative will bring Hong Kong's regime in line with international standards, offering benefits to the audit profession and the investing public, as well as reinforcing Hong Kong's status as an international financial centre and capital market," Prof Chan said.
Under the reform proposals, the council will be vested with direct inspection, investigation and disciplinary powers against listed entity auditors.
The Hong Kong Institute of Certified Public Accountants will perform the functions of registration, setting continuing professional development requirements and standards on professional ethics, auditing and assurance for listed entity auditors under the new regime, subject to the council's oversight.
The Government will introduce the amendment bill in the 2016-17 legislative session.
