The Securities and Futures Commission and the Accounting and Financial Reporting Council signed a memorandum of understanding to enhance regulatory cooperation. This agreement extends oversight of financial reporting, audits, and compliance to include licensed virtual asset service providers, registered open-ended fund companies, and authorized funds.
The new framework facilitates information sharing, case referrals, and mutual assistance between the two regulators. It also enables coordinated inspections and investigations. This document replaces a previous agreement established in 2021 between the commission and the Financial Reporting Council, which rebranded as the Accounting and Financial Reporting Council in 2022.
Kelvin Wong, chair of the commission, stated that the expanded cooperation aims to provide comprehensive oversight across a wider range of financial entities and activities. This move aligns with the ongoing development of the digital asset regulatory framework in Hong Kong, which has recently introduced rules for crypto advisory services, margin financing, and perpetual contracts.
