Hong Kong targets tighter scrutiny of listed firms' auditors

Hong Kong

HONG KONG, which has faced a slew of criticism on company financial reporting, is set to create a new framework to oversee auditors of listed entities in the city.

Proposed legislation will boost the Financial Reporting Council (FRC) by giving it the independence to investigate and discipline auditors, according to a government statement on Friday. It will also empower the FRC to oversee ethics and standards in the industry. The bill will be introduced to lawmakers on Wednesday."The bill will enhance the existing regulatory regime for auditors of listed entities, allowing it to be independent from the audit profession, thereby providing better protection to investors," James Lau, secretary for financial services and the treasury, said in the statement. "This is crucial to strengthening Hong Kong's status as an international financial centre and capital market," he said.