| Date
| Context
| Summary of development
| Action
|
|---|
| 5.7.99
| FA
| The Panel discussed with the Administration and the Hong Kong Society of Accountants (HKSA) on the regulatory regime for the accounting and auditing profession in Hong Kong. [Paper]
|
|
| 7.01
| -
| The Standing Committee on Company Law Reform (SCCLR) issued Consultation Paper on Phase I of the Corporate Governance Review. One of the SCCLR's proposals was to set up a body with authority (similar to the Financial Reporting Review Panel (FRRP) in the United Kingdom) to investigate financial statements and enforce any necessary changes to the companies' financial statements. [Consultation paper "Chapter 4, paragraph 27 (page 125)"]
|
|
| 13.1.03
| FA
| At the briefing on the Chief Executive's Policy Address 2003, the Secretary for Financial Services and the Treasury informed the Panel that the Administration had drawn up a Corporate Governance Action Plan (the Plan). One of the initiatives was to enhance the regulation of the accounting profession. As mentioned in the Plan, the Administration aimed to finalize the concerned legislative proposals in the third quarter of 2003, in consultation with HKSA. [Paper on "Enhancing Corporate Governance"]
|
|
| 12.2.03
| CQ
| Hon CHAN Kam-lam raised a question on the regulation of accounting profession in Hong Kong.
[Hansard "page 57"]
|
|
| 13.6.03
| FA
| The Panel discussed with the Administration and HKSA on the HKSA's proposal to amend the Professional Accountants Ordinance (PAO) to -
change the title of HKSA to the "Hong Kong Institute of Certified Public Accountants";
improve the existing regime on the regulation of accountants;
set out an immunity provision covering the acts of persons performing statutory functions in good faith under PAO; and
provide for certain technical amendments to PAO and the By-laws.
[HKSA's Paper]
[Administration's paper]
|
|
| 24.3.04
| COU
| Dr Hon Eric LI introduced the Professional Accountants (Amendment) Bill 2004 into LegCo. The objects of the Bill were -
to improve the existing regime on the regulation of accountants;
to broaden the scope of powers and sanctions available to HKSA and provide for certain technical amendments to the Ordinance and the By-laws in the light of operational experience;
to set out an immunity provision covering the acts of persons performing statutory functions in good faith under the Ordinance; and
change the title of HKSA to the "Hong Kong Institute of Certified Public Accountants" and the designation of its members from "Professional Accountants" to "Certified Public Accountants".
[LegCo Brief]
[President's ruling]
|
|
| 2.4.04
| FA
| The Panel discussed with the Administration on the progress of the following initiatives to enhance the regulation of the auditing profession and preparers of financial statements -
| proposals made by HKSA to increase the lay members in the HKSA's Council, expand the membership of any Investigatory Committee (IC) instigated by the HKSA's Council, alter the composition of IC with the majority of members as lay members, and alter the composition of the five-member Disciplinary Committee with the majority of members as lay members (these proposals to open up HKSA had been taken forward in the Professional Accountants (Amendment) Bill 2004 sponsored by Dr Hon Eric LI); and
| | proposals to establish an Independent Investigation Board to deal with alleged accounting, auditing and/or ethics irregularities related to listed companies, and a FRRP to enquire into apparent departures from the law and accounting standards in the annual accounts of companies. The Administration issued a public consultation paper in September 2003 to seek public's views on the proposal. (The Administration intends to introduce a bill for implementing the proposals in second quarter of 2005). | | |
[Paper] [Consultation Paper]
| A
|
| 16.4.04 and 23.4.04
| HC
| HC considered the Professional Accountants (Amendment) Bill 2004 introduced by Dr Hon Eric LI into LegCo on 16.4.04 and 23.4.04, and decided that the policy issues relating to the Bill should be further discussed by FA Panel before a decision was made on whether a bills committee should be formed to study the Bill.
[Minutes (16.4.04)]
[Minutes (23.4.04)]
|
|
| 3.5.04
| FA
| The Panel discussed with Dr Hon Eric LI, HKSA and the Administration on the policy issues relating to the Professional Accountants (Amendment) Bill 2004.
[LegCo Brief]
|
|
| 5/04
to
7/04
| BC
| At the meeting on 7.5.04, HC considered the Panel Report on the policy issues relating to the Professional Accountants (Amendment) Bill 2004 and agreed to set up a bills committee to scrutinize the Bill.
[Minutes]
[Panel Report]
The Bills Committee held 4 meetings. [Bills Committee on Professional Accountants (Amendment) Bill 2004]
The Bills Committee reported its deliberations to HC on 18.6.04.
[Minutes]
[Report]
The Council passed the Bill on 9.7.04. [Hansard "page 165"]
|
|
| 7.3.05
| FA
| The Administration briefed members on the "Consultation Paper on the Legislative Proposals to Establish the Financial Reporting Council" (the Consultation Paper) issued on 28 February 2005.
The Consultation Paper set out the detailed proposals in respect of the composition, funding arrangement, powers and functions, checks and balances of the Financial Reporting Council (FRC). The consultation closed on 15 April 2005. [Paper with consultation paper] [Background Brief]
|
|
| 4.5.05
| CQ
| Hon TAM Heung-man raised a question on the reform in professional liability. [Hansard "Page 32"]
|
|
| 6.5.05
| FA
| The Administration reported to the Panel the outcome of the public consultation on the proposal to establish the FRC.
According to the Administration, the FRC proposal had overwhelming public support. The Hong Kong Institute of Certified Public Accountants (HKICPA), Securities and Futures Commission, and Hong Kong Exchanges and Clearing Limited and the Administration had agreed to contribute to the funding of the FRC on an equal share basis. The Administration aimed at introducing a bill into LegCo within the 2004-05 session to take forward the proposal. [Paper]
Members expressed concerns about the lack of connection between the investigation undertaken by the FRC and the subsequent prosecution work of the HKICPA or the law enforcement bodies, duplication of investigatory efforts and wastage of resources. The Administration provided a follow-up paper to address the concerns. [Follow-up Paper]
|
|
| 7/05
| BC
| The Administration introduced the Financial Reporting Council Bill into the LegCo on 29.6.05 and a Bills Committee was formed on 8.7.05 to scrutinize the Bill.
The Bills Committee held 20 meetings. [Bills Committee on Financial Reporting Council Bill]
The Bills Committee reported its deliberations to the House Committee on 23.6.06. [Report]
The Council passed the Bill on 12.7.06. [Hansard]
|
|
| 5.7.06
| CQ
| Hon TAM Heung-man raised a question on reform on professional liability system. [Hansard "Page 71"]
|
|
