About AFRC

A brief history of AFRC

AFRC, formerly known as the Financial Reporting Council (FRC), was established in December 2006 under the Financial Reporting Council Ordinance (FRCO).  The FRC came into full operation in 2007 with the major functions of initiating enquiries into possible non-compliance with accounting requirements and conducting investigations into auditing misconduct.

On 1 October 2019, the Financial Reporting Council (Amendment) Ordinance took effect and the FRC transformed itself to be the full-fledged independent auditor regulator of Hong Kong, vested with direct powers of inspection, investigation, recognition of overseas auditors of listed entities and discipline concerning auditors of public interest entities (PIE auditors). It also has the responsibility of overseeing the performance of the Hong Kong Institute of Certified Public Accountants (HKICPA) of their functions in relation to auditors of listed entities including registration; setting of standards on professional ethics, auditing and assurance; and setting of continuing professional development requirements.

In 2021, the Government introduced the further reform of the accounting profession. On 22 October 2021, the Financial Reporting Council (Amendment) Bill was passed, transforming the FRC to become the independent regulatory body for the accounting profession renamed as the Accounting and Financial Reporting Council (AFRC).

1 October 2022 marked the commencement of the new regulatory regime of the accounting profession.  The AFRC is charged with expanded statutory functions, including the issuance of practising certificates to certified public accountants; registration of accounting practice units and Public Interest Entities auditors; and inspection, investigation and discipline work of the accounting profession. It also oversees the HKICPA’s performance in its various statutory professional functions and promotes the healthy development of the accounting profession. Apart from statutory functions, the AFRC conducts policy research and publishes guidelines to promote the quality of financial reporting, audit quality and corporate governance. 

The AFRC is committed to upholding the quality of financial reporting and protecting the public interest.  We aim to create positive ripple effects for the benefit of the accounting profession and Hong Kong as a competitive international financial centre and business hub.