|
As you are likely aware, on 8 June the Secretary for Financial Services and the Treasury published his blog post “Further Reform of Regulatory Regime of Accounting Profession” on the Financial Services and the Treasury Bureau’s (FSTB) website.
The Institute’s President, Raymond Cheng, was informed about the proposed change at a meeting with the FSTB in the morning of 8 June. Prior to that meeting, the Institute was unaware that such a change was to be introduced.
The Council of the Institute held a special meeting to discuss the proposals today
(11 June). The Council is concerned about the short notice of the intention to reform the regulatory regime; the legislative timeline; and the lack of clarity about the transition period and arrangements.
In order to ensure that the reform is carried out appropriately and effectively, the Council will direct the Institute to carry out two actions, and urges the Government to carry out a third.
Firstly, the Institute will undertake a comparative study of other key jurisdictions, to determine how the proposals fit within the global environment. We must ensure that the proposals do not impact Hong Kong’s status as a leading financial centre.
Secondly, the Institute will gauge the views from various stakeholders and assess the implications of the reform. These stakeholders include its members in practice and in business, practice units, young members, student members, as well as Institute staff. The Council is also concerned about the impacts on the Institute’s operations as a whole and whether the proposals could affect the long term sustainable development of the Institute.
Finally, as well as studying the international landscape, it is imperative to consider how these proposals will impact both the profession and the business community generally. We therefore urge the Government to carry out extensive local consultations with a wide range of stakeholders, including those from the profession, to make sure that all views are collected and considered.
While the Institute has the goal of enhancing audit quality and the standards of professional conduct of the accountancy profession, we have concerns about the manner and pace at which these proposals have been introduced. Changing the regulatory regime is not a simple process, and we urge the Government to undertake it in a measured and considered manner, after extensive consultations and assessment of all its impacts.
|
