FRC’s Briefing at LegCo Panel on Financial Affairs on 2021-22 budget

The Financial Reporting Council today briefed Members of the LegCo Panel on Financial Affairs on its budget for 2021-22.

At the briefing, Dr Kelvin Wong, Chairman of the FRC shared with Members how the FRC has contributed to the protection of investors and public interest through the effective performance of its expanded functions since the commencement of the new auditor regulatory regime on 1 October 2019.

Mr Marek Grabowski, CEO of the FRC, presented the budget and explained that in 2021-22 the FRC would be consolidating its rapid growth in 2019-21, which had been necessary to transform the FRC into Hong Kong’s full-fledged independent auditor regulator. The budget recognised the need to optimise fiscal discipline in the current economic circumstances, but the FRC would still be able to deliver all of its statutory functions effectively.

Dr Kelvin Wong, Chairman of the FRC remarked, “In the face of the challenges brought by COVID-19, the FRC has been proactively communicating with the audit profession on major audit risks that the FRC is concerned about. We have also established a new governance and organisation structure, set up an objective and transparent regulatory framework and enhanced collaboration with local, Mainland and international regulators for raising the quality of financial reporting and further strengthening the protection of investors and the public interest.”

In concluding his remarks, Mr Marek Grabowski said, “This budget allows us to consolidate and enhance the efficiency and effectiveness of our inspection, investigation and oversight functions, to establish our discipline function, and to respond with agility and transparency to new public issues.”

Dr Kelvin Wong also briefed Panel Members that the FRC also conducts policy research that contributes to the enhancement of audit quality and corporate governance. A research report in relation to the listed entity audit market in Hong Kong will be published in mid March.

• Chairman s Speech at LegCo Panel on Financial Affairs on 2021-22 budget
• CEO's Speech at LegCo Panel on Financial Affairs on 2021-22 budget