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Disciplinary Process
The NPDA will: set out the allegations against the regulatee as well as the relevant facts and evidence; state the AFRC’s preliminary views on the allegations and proposed sanctions; and enclose a List of Documents relevant to the matters set out in the NPDA. ... The regulatee should explain in writing any disagreement with the allegations, facts, preliminary views, or proposed sanctions, with detailed reasons and evidence. ... Where a regulatee cooperates with the AFRC and reaches an early resolution, the AFRC may reduce the sanction(s) by up to a maximum of 30%.
AFRC reprimands and imposes pecuniary penalty of HK$80,000 against CCTH CPA Limited for delay in fulfilling a requirement issued by the AFRC
Failure to comply with our requirements issued under the AFRCO is a serious matter. The sanctions in this case have reflected CCTH’s cooperation with the AFRC through its early admission and settlement initiation during the investigation stage and agreement to our proposed sanctions at the disciplinary stage. The pecuniary penalty has been reduced to reflect such cooperation, without which the sanctions imposed would have been more severe.” ... Our rationale for sanctions Full compliance by regulatees with our statutory requirements is crucial to the effectiveness of our role in upholding audit quality and enhancing public trust in the quality of financial reporting in Hong Kong.
AFRC reprimands Centurion ZD CPA Limited, Chan Kam Fuk and Ling Chun Kwok for serious breaches of professional standards, imposes pecuniary penalties totalling HK$700,000 and cancels the practising certificate of Chan Kam Fuk for 12 months
Our rationale of sanctions In deciding the appropriate disciplinary sanctions against the Regulatees, the AFRC considered all relevant circumstances of the case, including the nature, seriousness, frequency, duration and impact of the misconduct, as well as any aggravating and/or mitigating factors. ... Had there been such evidence, the breaches would have been considered as very serious and the sanctions imposed would be more severe. ... The sanctions are intended to send a strong deterrent message to the Regulatees to prevent repetition of similar failings, and ensure that the market understands how our regulatory principles are applied in order to uphold audit quality.
Consultations and Studies
Consultation on the Proposed Regulatory Framework for Sustainability Assurance in Hong Kong 30 December 2025 Consultation Conclusions in relation to FRC’s / AFRC’s Disciplinary Process and Sanctions Approach 23 June 2022 Engagement and Consultation on FRC’s / AFRC’s Regulatory Regime (English version only) 9 March 2022 Consultation Paper in relation to FRC’s / AFRC’s Disciplinary Process and Sanctions Approach 9 March 2022 Comparative Study on Audit Oversight Functions 5 June 2017 Consultation paper: Proposal to improve the regulatory regime for listed entity auditors 30 June 2014
FRC launches Engagement and Consultation Paper on further reform of the accounting profession
The Consultation Paper includes five consultation documents relating to the disciplinary process and sanctions approach: A. Outline of the AFRC’s Disciplinary Process; B. ... Guidelines for Exercising the Power to Impose a Pecuniary Penalty for Professional Persons; D. Sanctions Policy for PIE Auditors and Registered Responsible Persons; and E. Sanctions Policy for Professional Persons.
AFRC imposes its first ever permanent non-issuance of practising certificate order and pecuniary penalty of HK$300,000 against Chan Kam Kwan for serious CPA misconduct
Any attempt to undermine regulatory oversight by providing false and/or misleading information is very serious misconduct and warrants severe sanctions. The AFRC has zero tolerance towards such behaviour and will take robust action against the wrongdoers to maintain public confidence.” ... Providing false and/or misleading information Before the commencement of the Practice Review, Chan provided false and/or misleading information to the HKICPA by stating that CKK & Co had: performed a monitoring review of its quality control system and a completed engagement in December 2019; established written policies and procedures regarding suspicious transaction reporting, financial sanctions and terrorist financing; and performed sanctions screening of clients before establishing client relationships and on an ongoing basis. ... In deciding the sanctions against Chan, the AFRC considered all relevant circumstances.
AFRC reprimands Wu Kam Shing for CPA misconduct and imposes pecuniary penalty of HK$200,000 following insider dealing determination
AFRC reprimands Wu Kam Shing for CPA misconduct and imposes pecuniary penalty of HK$200,000 following insider dealing determination 27 June 2025 The Accounting and Financial Reporting Council ( AFRC ) has sanctioned Mr Wu Kam Shing ( Wu ) for CPA misconduct, following a determination of insider dealing by the Market Misconduct Tribunal ( MMT ). ... In deciding the appropriate disciplinary sanctions, the AFRC has considered all the relevant circumstances, including the nature, seriousness, duration, frequency and impact of the misconduct. ... Such conduct typically warrants exclusionary sanctions, such as revocation or suspension of registration, and cancellation or non-issuance of practising certificates.
AFRRT dismisses the out-of-time review application of Lam Kin Choi and stresses the importance of complying with statutory deadlines
AFRRT dismisses the out-of-time review application of Lam Kin Choi and stresses the importance of complying with statutory deadlines 8 August 2025 The Accounting and Financial Reporting Review Tribunal ( AFRRT ) has dismissed the out-of-time review application made by Mr Lam Kin Choi ( Lam ) in relation to the decision of the Accounting and Financial Reporting Council ( AFRC ) to impose sanctions 1 for his flagrant disregard of two statutory requirements to produce information and documents for the AFRC’s inspection of his two practice units, and ordered Lam to pay the AFRC costs in the sum of HK$60,000. ... The AFRC imposed sanctions on Lam and published the Press Release on 28 May 2024 after communicating the decision to Lam and upon the expiry of the 21-day period prescribed under the AFRCO for making a review application. ... Please see the AFRRT’s Reasons for Determination 3. 1 The AFRC imposed the following sanctions against Lam: (i) public reprimand; (ii) pecuniary penalty of HK$300,000; (iii) suspension of his HKICPA registration for two years; (iv) cancellation of his practising certificate; (v) two-year non-issuance of practising certificate order; and (vi) order for investigation costs and expenses of HK$50,214. 2 Pursuant to section 37R of the AFRCO, the AFRRT may only grant an extension of time if the following three conditions are all satisfied: (i) a written application is made within the 21-day specified period; (ii) the AFRRT has given both the applicant and the AFRC a reasonable opportunity of being heard; and (iii) the AFRRT is satisfied that there is a good cause for granting the extension. 3 AFRRT Application No. 2 of 2024.