AFRC and Securities Commission Malaysia Sign MoU to Strengthen Cross-Border Regulatory Cooperation

The Accounting and Financial Reporting Council (AFRC) and the Securities Commission Malaysia (SC) have signed a Memorandum of Understanding (MoU) to strengthen cooperation in the areas of audit oversight and financial reporting compliance.

The MoU provides a framework for consultation, the exchange of information and the provision of assistance between the two regulators in relation to the oversight of auditors and compliance by issuers with financial reporting requirements administered or enforced by the parties, including registration or recognition of auditors, inspections, investigations, enquiries, enforcement, surveillance, and referral of cases.

The MoU was signed by Ms Janey Lai, CEO of the AFRC, and Mr Alex Ooi, Executive Director and Head, Audit Oversight, SC Malaysia, in the presence of The Honourable Christopher Hui, Secretary for Financial Services and the Treasury of the HKSAR Government, and Dato’ Mohammad Faiz Azmi, Chairman of the SC.

Dr David Sun, Chairman of the AFRC, said, “This MoU reflects the shared priorities of the AFRC and the Securities Commission Malaysia in strengthening regulatory collaboration, upholding market integrity, and supporting the healthy development of capital markets in both jurisdictions. Through closer cooperation, we can further enhance the quality of financial reporting and auditing, while reinforcing confidence among investors and other stakeholders.”

SC Chairman Dato’ Mohammad Faiz Azmi said, “The Malaysia’s Capital Market Masterplan 2026 - 2030 aims to achieve stronger regional connectivity and cross-border investments. This MoU with the AFRC will facilitate robust cross-border cooperation that is vital to sustaining trust and resilience of our capital markets.”

Ms Janey Lai, CEO of the AFRC, said, “The MoU provides a practical framework for information sharing and enforcement collaboration in areas relating to audit oversight and financial reporting compliance. We look forward to working closely with the Securities Commission Malaysia to support effective implementation of the MoU and contribute to stronger investor protection across both markets.”
 

Notes:

1. The Securities Commission Malaysia (SC) is a statutory body established under the Securities Commission Malaysia Act 1993 (“SCMA”). The SC, among others, oversees compliance of financial reporting and disclosure requirements by listed companies under Malaysian securities laws, thereby promoting high-quality financial reporting, investor protection, and confidence in Malaysia's capital market.  In addition, the SC’s Audit Oversight Board (AOB) which was established under Part IIIA of the SCMA is also responsible for the registration or recognition of all auditors of public interest entities or schedule funds and exercising oversight over any person who prepares a report in relation to financial information of public interest entities or schedule funds. The SC’s AOB is also responsible for promoting confidence in the quality and reliability of audited financial statements in Malaysia, and promoting and developing an effective and robust audit oversight framework in Malaysia.
2. In general, the MoU provides a framework for consultation, the exchange of information and the provision of assistance between the parties for purposes permitted or required under their respective laws and regulations in relation to the oversight of auditors and compliance by issuers with financial reporting requirements administered or enforced by the parties, including registration or recognition of auditors, as well as inspections, investigations, enquiries, enforcement, surveillance of such auditors and issuers and referral of cases.
3. Cooperation of the parties under the MoU may include: (a) providing information possessed by a party at the request of the other party; (b) where the information is not already possessed by the requested party, obtaining or assisting the requesting party in obtaining such information to the extent legally permissible; (c) providing information by a party on its own initiative, where the information is or would likely be of assistance to the other party; and (d) identifying emerging risks affecting audit quality, financial reporting integrity and investor protection.