BVI regulator formally recognises Hong Kong audit standards for licensed firms

On 7 April 2021, the BVI Financial Services Commission (FSC) issued an update to its Regulatory Code 2009 (RC09), which was gazetted on 8 April 2021, to formally recognise Hong Kong audit standards as being appropriate standards for auditing financial services licensees such as brokers, fund managers, banks and insurers.

The change is contained in the Regulatory (Amendment) Code 2021, which amends the RC09 and will come into force on 6 July 2021.

Prior to the amendment the FSC would be entitled to approve Hong Kong audit standards on a case by case basis, but this change now provides welcome clarity to Hong Kong-based groups operating licensed subsidiaries in the BVI.

In addition to Hong Kong standards, the RC09 also expressly recognises IFRS, US GAAP, UK standards and Canadian standards for audit.