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MPFA reminds administrators of occupational retirement schemes and employers who provide the schemes to their employees of the significance of their statutory obligations and the need to exercise due care in discharging these obligations, including when appointing scheme auditors, in light of the Accounting and Financial Reporting Council (AFRC)’s disciplinary actions today (27 October) against an audit firm and its engagement director for their deficiencies in statutory audit and assurance engagements relating to two occupational retirement schemes.

MPFA, as the Registrar of Occupational Retirement Schemes, attaches great importance to the proper discharge of statutory audit obligations under the Occupational Retirement Schemes Ordinance (ORSO) by administrators of occupational retirement schemes, who bear primary responsibilities under ORSO for safeguarding scheme members’ interests, including ensuring that occupational retirement schemes are properly managed and comply with all statutory requirements. In particular, the appointment of duly qualified auditors with the necessary competency and expertise to undertake audit and assurance engagements for occupational retirement schemes, and the preparation of audited financial statements and auditor’s reports in accordance with statutory requirements, are important safeguards that help identify potential weaknesses or non-compliance and provide assurance on scheme financial reporting. Relevant employers also play an important role in supporting effective scheme administration and ensuring compliance with ORSO.

To reiterate the supervisory requirements, MPFA has issued today a supervisory directive to administrators and employers of occupational retirement schemes reminding them of their obligations under ORSO to appoint suitable auditors and conduct due diligence before appointing or reappointing scheme auditors.   

MPFA and AFRC collaborate with each other on audit related matters concerning occupational retirement schemes, including information sharing in accordance with the statutory requirements and regulatory coordination.  Through ongoing collaboration with AFRC, MPFA aims to further enhance the quality and robustness of occupational retirement scheme audits and strengthen the protection of the interests of members of occupational retirement schemes.

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27 October 2026