If you are not an authorised financial institution and are carrying on business in Hong Kong in one of the ten types of activity regulated by the SFC (Note), you will need to obtain a licence. Auditors of licensed corporations shall conduct a compliance audit in addition to the standard annual audit required under the Companies Ordinance.

Note: For more details, please refer to the SFC website

Pinery provides a full range of audit services for corporations or registered institutions holding Type 1, 4 or 9 license:

– Ensure the corporation remain compliant

– Licensed corporations are required to submit financial returns to the SFC on a regular basis, i.e.  monthly, quarterly and biannually. Financial position, margin client analysis and assets under management shall be included therein. Pinery will assist you in preparing a series of financial returns to ensure that the corporation complies with the SFC regulations.

– Dedicated accountant

– Licensed corporations need a dedicated accountant throughout the year. For example, following the introduction of IFRS 16 Leases, accountants will need to consider the new standard when preparing for both the first FRR and the final audit for the financial year. Our team tracks all regulatory submissions from licensed corporate clients throughout the year and liaises with them regarding updates in accounting and from the SFC.

– Compliance audit

What kind of reports we will issue to Licensed corporations?

1. Standard company audit report

2. Compliance audit report

What kind of items to check?

1. Client funds shall be deposited into a segregated account within the same day

2. Standing authority is changed regularly

3. Interest on client funds is properly handled

4. Authorisation for withdrawals is properly obtained

What is Compliance audit report?

In this report, we are responsible for confirming to the SFC that you have complied with all the rules relating to the handling and record-keeping of client funds/assets upon ensuring that you have a detailed record of client funds that is consistent with the records of a clearing system, e.g. CCASS